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Analyst: Wii Supply Constrained For Christmas

October 7th, 2008

Planning on getting a Wii for someone this Christmas? Nintendo has promised to increase supply for the holidays, so you have nothing to worry about, right? According to Jacob Mazel, despite the future increase in available units, you may want to do your Christmas shopping soon. Like, in the next week or so.

“No videogame machine in three months has ever sold 5m in the Americas at $250. So Wii will likely have the all time revenue record from hardware sales this quarter – and each machine will be profitable at a healthy margin. The amazing part to all of this is that 5m for the Americas is probably no where near enough. Historically, selling ~600,000 in October in the Americas (which may be conservative given October 2007 sales were 600,000 and since 2008 will see better sales) would mean 1.5m in November and at least 3m in December if stock is ample. To actually meet Wii demand for the Americas, something like 750,000/1,850,000/3,850,000 is probably necessary for October, November and December.”

I don’t think that the shortage problem will be that severe, but then again, demand for the Wii has been surprising, as well as consistent. Besides, doing Christmas shopping early never hurt anyone, I assume.

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