Original URL: http://www.theregister.co.uk/2007/12/14/wii_shortage_costs_nintendo/
Wii shortage costs Nintendo dear, analyst claims
Demand - supply = profit lost
Posted in Games, 14th December 2007 11:05 GMT
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The global Christmas Wii shortage may have saved individual gamers a few quid, but one analyst thinks it’s cost Nintendo up to $1.3bn (£637m/€888m).
MDB Capital Group’s senior analyst, James Lin, told [1] the New York Times that the volume of unsatisfied demand is "staggering" and that “Nintendo is leaving $1.3bn on the table” by not fulfilling.
Lin also claimed the company could “easily sell double what they’re selling”.
However, Nintendo of America’s President, Reggie Fils-Aime, recently claimed the company isn’t constricting the availability of consoles [2] to keep demand high.
"Anyone who suggests that a shortage is good for business really doesn’t understand business," he said.
The global Wii shortage has been well documented. Some shoppers have been forced to set sail for France [3], where there are reportedly Wiis available for £150 (€210/$300), which is about £30 less than their UK RRP.