Nintendo CEO Iwata Explains Wii Shortage, Future Bleak

For those who've been interested in owning the Nintendo Wii since it launched last November, the pursuit has been something like hunting a great white whale.  Although the equally anticipated Sony PlayStation 3 was the first to experience massive shortages, growing excitement over Nintendo's motion sensitivity and lower price tag eventually made it the in-demand Christmas toy.  It seems Nintendo simply wasn't prepared, and after months and months of keeping quiet while consumers fumed, the company is finally admitting it has a problem.

 

In a recent Q&A hosted on Nintendo's website, CEO and President Satoru Iwata apologized for the shortage, saying,

 

"We are sorry that we were unable to sufficiently forecast this kind of demand…Making a significant volume of the high-tech hardware, and making an additional volume, is not an easy task at all"

 

Finally, word from the top.  Unfortunately, there may not be any end in sight.  Iwata goes on to say,

 

"…when we clear one bottleneck for a production increase, we will face another one."

 

Some hope exists.  For one, the company is ramping up production as much as it can, with an expected "small increase" in retail numbers for the next month or two.  Beyond that, Iwata doesn't appear optimistic.

 

Regardless, the "white whale" status of the little console – along with its rampant popularity – are both good news for Nintendo.  With the list of software hits still a bit soft in its first full year in release (at least, compared with Sony and Microsoft), the continuing shortage keeps the public firmly focused on a Wii console that simply must be phenomenal – otherwise, why would it be sold out?

12 comments
Posted by HoJo on May 25,2007 at 3:18 PM

It's funny the hype we all get into when there is a shortage of a product The hype has died for me. I am only here to see if they are admitting to a false shortage. Paraphrasing..."it will be good for the next two months but after that he sounded pessimistic" equals "get'em while they last". They can manipulate someone else, it won't be me.

Posted by S on May 10,2007 at 3:40 AM

Trawler obviously does not live in a major city so his opinion is irrelevant.

Posted by Ro on May 7,2007 at 11:47 PM

Trawler, you must live in the middle of nowhere because I too live in Canada and it was damn near impossible to get a wii on launch day. I happened to be very lucky to get mine, but alot of people even tried going to small towns to get one, but even they were sold out. A friend of mine is looking for one and half a year later everywhere is still sold out. There is quite a high demand, and the shortages are crazy. I guess it all depends on where you live...

Posted by Chris Anderson on May 7,2007 at 9:53 PM

About the canada comment, THE wii is very hard to find here, i went to walmart 4 hours before it opened and there was a sold out line, as well as every other store i went to, i had to get up early for a week thereafter waiting in line with 20 plus people every day hoping it would come in, Nicks blog is also very noob, gamecube outclocks the ps2 and has matched xbox for polygons on several games (re4). and he seems to think the psp had some relevance to nintendos plans for the ds and wii, stupid, i bet the only time nintendo execs talk about the psp is to give them a guideline on how not to make a blucky POS handheld, ROCK ON,

I h8 halo noobs

Posted by Trawler on May 7,2007 at 7:03 PM

I live in Canada and every time I go to Wal-Mart there are a couple Wiis for sale on the shelf. When I was preparing to get one on launch day I was told to arrive 9:30 PM and wait in line until morning if I wanted to get a one. I instead came 30 min before opening hour to find around 4 people waiting. With 26 Wiis available every body got one and there were even some left over. Sounds a lot different than the massive shortages I constantly hear about on the net. Eh, 90% of the stuff on the net is concerning the US anyways. My conclusion: if you want a Wii, move to Canada.

Posted by Twin on May 7,2007 at 5:35 PM

How many products can you make 1 million of in a month, CptBoomstick?

Sounds like breakneck production numbers to me. Do the math. One Wii is finished approximately every 2.59 sec. It is not a twinkie, it is a electronic device.

Posted by David on May 7,2007 at 5:12 PM

That blog is worthless.  The grammar errors don't help much either.

Posted by CptBoomstick on May 7,2007 at 4:04 PM

Don't get me wrong, I own and enjoy my Wii and 360 but...

Why is it when there are shortages for the PS3 or the 360 people run around with pitchforks talking conspiracy theories how the companies are withholding millions of unit in a warehouse somewhere? BUT, when Iwata comes out and says sorry we hit a bottle neck due to manufacturing the required volume of "HIGH TECH" hardware. Now correct me if I'm wrong but just about everyone who buys a Wii is purchasing it for the controller and not the graphics. So, judging by the shelf price of the Wii combined with Nintendo making a mad profit on each system sold I am guessing the components for the Wii are both insanely cheap to make/manufacture AND are readily available.

So why do I think there is a shortage of Wii's? Same thing every company does to create hype. Nintendo advertises the poo out of the system, creating a huge demand, and then trickles units into the market. Nintendo is going to ride this hype craze out, so as long as Wii's are selling out we are not going to see a significant increase in units shipped.

Posted by Chris on May 7,2007 at 2:42 PM

I'm a Sony fan, and there is no reason to pay any attention to that blog that Nick posted.  It looks like it was written by a fifth grader.  I remedial education fifth grader.

Posted by Sean on May 7,2007 at 1:49 PM

That blog is the most idiotic, biased thing I've read in ages - not to mention the grammar is simply awful. The DS is outselling the PSP over the world and the last part about the share holders getting rid of the CEO just doesn't make sense, especially considering the company has just announced their highest ever profits.

Posted by Dale on May 7,2007 at 12:37 PM

Why did it say on that link you just sent that when the PSP came out people started to ask whats a nintendo? making it seem as if the PSP is winning? and also where it says to make it seem like nintendo is dominating the market makes no sense either because just check the sales or next gen wars .com

Who ever posted that is talking absoultely BS

Posted by Nick on May 7,2007 at 9:50 AM