Reggie: Wii won't meet holiday demand

Nintendo of America exec says supply constraints of console will continue until after the holiday season.

Unbeaten in the console sales charts since April in the US, Nintendo's Wii has consistently outsold its competitors by healthy margins. However, far from reaching its saturation point, the Mario Factory has yet to meet demand for its console. According to Nintendo of America president and CEO Reggie Fils-Aime, that situation isn't going to change as the already-booming gaming industry heads into its busiest time of the year.

In an interview with the San Jose Mercury News, Fils-Aime unabashedly admitted that Nintendo isn't meeting the demand for its console. "We have been sold out worldwide since we launched," he boasted. "Every time we put more into the marketplace, we sell more, which says that we are not even close to understanding where the threshold is between supply and demand...Our inventory is lasting a day."

Not mincing words, the outspoken exec said that a lot of children will be left wanting this holiday season. "We're working very hard to make sure that consumers are satisfied this holiday, but I can't guarantee that we're going to meet demand," he said. "As a matter of fact, I can tell you on the record we won't."

As for why, Fils-Aime noted that it is a game of economics that it is hampering supply, not the console maker's ability to produce. "The issue is we went in with a curve that was aggressive, but the demand has been substantially more than that. And the ability to ramp up production and to sustain it is not a switch that you flick on," he explained.

572 Comments

  • mbashour

    Posted Oct 29, 2007 6:53 am PT

    I think it's nice to have one really fun console like the Wii, but also have a system for hardcore games (PC, obv) since you want to chill...and other times you want to destroy someone lol (and Halo is anything but hardcore...(CS))

  • Ebaumisnoob

    Posted Oct 17, 2007 4:01 am PT

    The reason wii does well is because parents buy it for their kids. My friend has one, he bought TP, hated it, bought CoD3(which I love on the 360) hated it, the thing looks like **** on the TV, and he says he wants 360 now
    Right now, I'm enjoying great games such as gears,halo3,oblivion, bioshock, forza2, DoA4, PGR4 and soon Mass Effect

  • Krammin

    Posted Oct 6, 2007 11:36 pm PT

    Nintendo have been superb in their marketing strategy with the Wii, and that's what this is... As a console, I don't rate it, I bought one and was completely disappointed so sold it a month later. Not a fanboy just someone who got suckered into the Gimmick.

  • porkchopxp

    Posted Oct 5, 2007 8:46 am PT

    I have a Wii, I like the Wii and as much as it pains me to admit this; It's creatively underacheiving. I've owned quite a few titles(Zelda, TW07, Madden 07, Red Steel, Rayman RR, Warioware, Super P Mario, RE4, MP3 . . . to name a few) and rented quite a few more and while fun, not one game had gotten under my skin. By that I mean the way I felt when I played MGS on the PSone for the first time or Goldeneye for N64 or NFL 2K1 for the Dreamcast or Gears or War for the 360 . . . you get the idea. Unfortunately, I don't see that mind-blowing game anywhere on the horizon. The Wii may be changing the way games are controlled, however, they're falling way short and way behind on changing the way games are played.

    Granted, we're only less-than-a-year in and perhaps the third-party devs will come to the rescue. But they won't be doing it for the challenge, it will be because their publisher's smell money and THAT never spawns a good franchise when the smell of profit steers creativity(SEE ALMOST ANYTHING FROM EA). Quirky, whacky imports might band-aid the bleeding but it won't save a console(see the Dreamcast). Pray the big N has one true visionary on the rise who will come up with the perfect IP for the Wii otherwise we'll just keep getting 7-10 sub-par ports and retreads to every 1 Nintendo IP redesign . . .

  • Link_Destined_1

    Posted Oct 5, 2007 6:51 am PT

    @Expo_Smacko: Get Metroid Prime 3: Corruption. I think it's a great FPS. In fact, I think the FPS and the Wii could go together like peanut butter and jelly!

  • Proman84

    Posted Oct 4, 2007 1:40 pm PT

    Cool.

  • Mkeegs79

    Posted Oct 4, 2007 12:13 pm PT

    I look forward to Super Mario Galaxy and I know a lot want SSBB and I own all 3 systems but find it funny that a lot of people choose the Wii over the 360. You wont be playing Mass Effect, Halo 3, Call of Duty 4, Assassin's Creed, and in the future you wont have Resident Evil 5 and so on. I guess everyone has their own tastes. I just wish people didn't get so caught up in the Wii hype though. Ironically the most innovative system has the least new IPs and such...

  • Lonely_VG_Nerd

    Posted Oct 4, 2007 11:54 am PT

    .. Noooooooo!!!
    ^

  • Expo_Smacko

    Posted Oct 4, 2007 9:41 am PT

    That's great for Nintendo. However the Wii in my opinion is a horrible system. But I am a hardcore gamer and need awesome graphics and good FPS's wii offers neither.

  • XBASX

    Posted Oct 4, 2007 7:08 am PT

    LOL look at all the fanboys going crazy.
    Play your games and be happy!

  • yusefdoodi

    Posted Oct 4, 2007 4:05 am PT

    they still want customers

  • Zapoo

    Posted Oct 3, 2007 11:15 pm PT

    Or what you do is raise the price so that the demand is not as high

  • comb5

    Posted Oct 3, 2007 5:29 pm PT

    As soon as I get $300 I am living at my Wal-Mart until I get my hands on a Wii.

  • razu_gamer

    Posted Oct 3, 2007 3:38 pm PT

    @jrj5: woah! thanks for that great input. Finally some correct analysis. Thanks.

    @internationaal: thats what you came up with against jrj5?? You "think". Get real. There is no reason to restrict supply other than to give a willing customer to change their minds on what to buy.

    OK back to Nintendo. MP3, Galaxy, Medal of honor Heroes 2, Umbrella Chronicles will last me throughout christmas till end of January. If that does not satisfy "hardcore gamers" for a early life console, you need to get lives.

    Red steel 2, No More heroes should last me through February, Please Nintendo make AAA games to be released after that b/c non come to my head except Sadness and Disaster day of crisis.

  • pkujulo2

    Posted Oct 3, 2007 1:24 pm PT

    Funky muzik, the ps3 is overpriced for a home console, I agree. But the PS3 actually loses about $50 per console, which Sony makes up for with accessories.

    Just thought I'd throw that fact out there.

  • wayofthesauce

    Posted Oct 3, 2007 12:30 pm PT

    I really doubt holding back hardware is something nintendo wants. Remember - they don't have the graphical powerhouse capabilities like 360 and PS3. To survive, they need to focus on price and accessability. The wii sells because it's cheap and easy for anyone to use. By not allowing people to get their hands on it, sales could go to MS/Sony as people who want to buy games just can't get a wii. Now on the otehr side of the coin however - the wii itself is filling the market just as nintendo had hoped with a mix of hadcore and casual gamers as well as families and younger buyers purchasing the system and games. With a very diverse audience to fill, yes there's not going to be many games tailored specifically to you. But outside of the hardcore audience the other groups buy only a handful of games a year and there's plenty overall for them to choose from. Nintendo has the games out there and in the pipeline for all customers, they really needed this holiday to get these systems into the hands of consumers. This holiday could have been the point at which they said "goodbye!" to sony and MS for good in this console war. I'd be willing to bet that 90%+ of the members of this site are part of the "hardcore" crowd and I am one of them and yes, the wii hasn't had many great games in my opinion. But with SSBM, SMG, NiGHTS, and MP3 either released or going to be released soon, the wii has something for me to look forward to. Getting my hands on one is looking difficult at best and is making me really consider just how much I want one though. Nintendo you NEED to get consoles out there, the games can follow just get them out there as fast as you can. The price is cheap enough to get people to buy but they can't spend their money on a product not in stores.

  • funky_muzic

    Posted Oct 3, 2007 12:30 pm PT

    The Wii will NEVER drop below the XBox 360 or PS3 in total sales, for a few key reasons:
    1. Microsoft couldn't sell rice or raw fish in Japan. The Japanese people have loyalites to Sony & Nintendo, and for the most part, won't buy a Microsoft console.
    2. Sony's PS3 is over-priced. Well, maybe it's a good deal for the hardware that's inside the console, but most consumers aren't willing to pay that much for a video game console...especially when they have cheaper alternatives.
    3. The main reason the Wii will win this generations' console wars is because Nintendo has practically cornered (and created) the casual gamer market. Basically the hard-core gamer consists of all those that played video games in the pre-Wii era. The casual gamers are all those that DID NOT play video games. Obviously, there are a lot more casual gamers than hard-core gamers...and Nintendo knows they can make a boat load of money off the casual gamers. Just wait until Wii Fit comes out. Every overweight American will want to own a Wii. I'm old school and consider myself to be a hard-core gamer, but I must admit that I love Wii Sports. For replayability, it's got to be up there with some of the greatest games ever like Ms. Pac Man...and it's a great multi-player game.
    I'm happy for Nintendo's recent success, and I can't wait to play with some of their new innovations in the future.

  • bghattas

    Posted Oct 3, 2007 12:26 pm PT

    Well, I see somebody fixed Reggie's name like I asked. I ought to be a video game journalist somewhere. As long as I don't have to trade in my dignity like some people on the Internet will do for "power".

    Reggie Fils-Aime rules.

  • internationaal

    Posted Oct 3, 2007 12:18 pm PT

    @jrj5:
    I think Nintendo is just hyping again. For the past few months Wii's haven't been 'sold out' here. In my opinion, the only reason for a remark like this is to get people to buy the console as early as possible. Why? If they buy a Wii now... they won't buy a different console later!

    I mean... I haven't read the source but if he REALLY worded his sentence like "a lot of children will be left wanting this holiday season" then he's OBVIOUSLY playing on the parent's feelings! And that has NOTHING to do with a possible shortage!

    @WarGameJunkie
    Even though it's about the games... it's the gamers who care! Seeing that Wii or DS games hardly make the list of most visited games on GS Nintendo may be right that a lot of Wii/DS owners are non-gamers. Who aren't looking forward to specific titles. And who probably only occasionally will buy a game when they're in the shops (so packaging is the most important...).

  • hunter8man

    Posted Oct 3, 2007 11:51 am PT

    Sure there will Reggie. That is if you take into account all the greedy bastards that will be selling them on Ebay for $1,000 a pop.

  • kavadias1981

    Posted Oct 3, 2007 9:07 am PT

    Jeez! By the time Christmas is over, there will be more Wii's in people houses than 360's and PS3's combined! Anyone want to place a bet?

  • Treifla

    Posted Oct 3, 2007 7:39 am PT

    hell, who DID expect the demand to be this high? it's no wonder nintendo didn't see this coming, just from past sales records massive production would have been a bad idea for some of the reasons that jrj5 stated

  • jrj5

    Posted Oct 3, 2007 7:25 am PT

    For everyone out there that thinks Nintendo is controlling the supply to keep the system "hyped up":

    I am an Industrial Engineer and if Nintendo is controlling the supply of their system then they are not being smart. Here are the reasons why you don't want to control the supply.

    1. If a customer cannot get the product they are more likely to go and buy from a competitor
    2. Controlling the supply would result in larger inventory and inventory is a hidden cost that no company wants
    3. Controlling the supply would eventually cause the "bullwhip effect" when demand drops, leaving the company with too much inventory
    4. It will cause inaccurate predictions of future demand
    5. Production costs go up and profits are less because you are restricting profits

    Nintendo has been around a long time and I have to believe that they know this information. I think that Nintendo just under predicted it's demand and is actually telling the truth.

  • Treifla

    Posted Oct 3, 2007 7:19 am PT

    it's called incentives people, nobody can afford to put off buying a wii when there is one sitting on the shelf anymore. if wii were in the same supply as the PS3's people would rank other priorities higher and put off buying the system because the stock is higher then the demand for it

    thats just simple micro-economics

  • carlogz

    Posted Oct 3, 2007 7:02 am PT

    M-ManLA , The Wii still has the weakest Library, while the PS2 still has the strongest.

    But as for the topic, this is not good and bad for Nintendo. Bad that they cant ship consoles in time. But good that they are using this as a marketing strategy. How? Nintendo cant give what everyone wants. And people always want what they cant have. That's what so cool about the Wii. The fact that you cant have it makes people want to buy it more. it's rare.

  • mlbslugger86

    Posted Oct 3, 2007 5:41 am PT

    i could have sworn i saw about 30 wii's in toy'r'us in time square 2 weeks ago...

  • pupaboy

    Posted Oct 3, 2007 5:17 am PT

    You've just given Microsoft the same Christmas gift that you gave them last year. However, I'm sure Microsoft will be happy to get it.

  • M-ManLA

    Posted Oct 3, 2007 2:46 am PT

    Not good for Nintendo. They only have the cheapest system to make. Maybe he's lying, which is not a good thing to do. This past year, to me, Nintendo has the weakest library of game that will be comming out, and like I said before, Nintendo will be back in it's hole wondering why the PS3 and the 360 is outselling it.

  • YukoAsho

    Posted Oct 2, 2007 11:55 pm PT

    "fixing the shortage problem would be a BAD idea, you would be losing out on free marketing, you would be spending money on factories, or resources and operations speed and that money would be taking away from the demand for better games effectivly doubleing the REAL cost of fixing the problem"

    Fixing the shortage would be a bad idea!? How is making the system easily available a bad idea, other than the fact that the system won't have the Tickle-Me Elmo effect anymore. And do you honestly expect Nintendo to make any real effort with games that aren't the big four? They make maybe one or two games a year that aren't their tired old rehashes, but they get no marketing support almost. Conker's Bad Fur Day, Eternal Darkness, Geist, games that Nintendo had, that could have been new franchises for the company, but didn't give a crap to offer any support in terms of marketing or development because they're not the big four franchises. Now Rare and Silicon Knights aren't looking back at Nintendo, and what little games they had planned outside of Mario, Pokemon, Zelda and Metroid are no longer even being thought of (I REALLY wanted to try Project HAMMER). The big N just doesn't want to do what it takes to make an all-around success. They're content with their virtual monopoly on handhelds and a console that sells on fad appeal.

  • WarGameJunkie

    Posted Oct 2, 2007 10:53 pm PT

    Well, leave it to Nintendo to manufacture a shortage to keep the "buzz" about their console going, despite the fact the games largely stink and the multiplatform titles aren't worth playing on the Wii. Unless they keep this shortage going until 2009, they're eventually going to end up being forced to address the rampant subpar games they've allowed to be developed for the Wii and the subpar scores for multiplatform releases compared to the 360 and PS3.I give the Wii to 2009 before they're in last place again because Nintendo doesn't learn, it's not about the console it's about the GAMES and they're allowing too much subpar junk to be developed for their system.

  • Treifla

    Posted Oct 2, 2007 10:43 pm PT

    personally, with the amount of hands down sales over the soney and microsoft it doesn't seem that a fake shortage would be the greatest approach

    when the wii first came out nintendo gave the system top priority and let the games slide, it's understandable, it would cost a hell of alot less to simply make better games then re market and remake the system (PS3 anybody?). you could also visibly see the shift in priorities,. how many initial projects were cancelled or simply not marketed well enough?

    now it's getting close to a year and people want to play some damn games, the focus has changed, nintendo can deal with a shortage, it's a decent boost for sales (god knows nintendo isn't the only company guilty for generating a little extra hype, Xbox im looking in your direction) but whats important is the games, and they are now the focus, think about it, hoiw many flagship games are in production at one? super smash bros, mario galexies, mario kart, fire emblem(for japan) and dragon quest (more so for japan)

    look at the opportunity cost for putting up more factories, not only are you throwing a bunch of money into new factories, resources, and increased speed of operations but your also taking money away from marketing, labour, and r and d for the video game projects you have on the go

    fixing the shortage problem would be a BAD idea, you would be losing out on free marketing, you would be spending money on factories, or resources and operations speed and that money would be taking away from the demand for better games effectivly doubleing the REAL cost of fixing the problem

    i congradulate nintendo on a sound decision, even if it was slightly out of their hands

  • Dreski83

    Posted Oct 2, 2007 10:40 pm PT

  • YukoAsho

    Posted Oct 2, 2007 10:21 pm PT

    This is the biggest fake shortage since the NES. Nintendo has a long record of doing this, so I'm not surprised.

  • qworks

    Posted Oct 2, 2007 9:20 pm PT

    Its amazing to me how the 'adult' gamers seem to put down the Wii. Actually, it is a good console. I know MS and Sony love their fanboys knowing how much money they will make from them. Let's face it, 360 gamers will buy (or repair) at least 2 consoles before this is over - probably more if you are a real gamer.

    Some of you say, 'hey, the warranty has been extended for 3 years'. That is for the ring of death (3 flashing red) only. Certainly you guys aren't stupid enough to believe you are going to keep seeing the ring of death on the newer released consoles? They will break now without displaying those 3 lights. The thing hasn't been out for 2 years yet and I am on my 2nd console - which is getting repaired now. And it went out with 1 flashing red. That means I had to pay for repair and be without my console for a month and a half. The PS3 will do the same thing on some level. Honestly, I had two XBox consoles and 3 PS2's.

    The only consoles I have had that don't die are those from Nintendo. The only reason I don't have the original of all my Nintendo consoles is because some of them have been traded in. It's crazy to talk about Nintendo fanboys when in essence, the 360 and PS3 lovers are even greater/worse fanboys for the simple fact they will GIVE MS and Sony more money just to keep their 'coveted' consoles running in their homes.

  • rudyHG

    Posted Oct 2, 2007 8:23 pm PT

    December 3rd can't come fast enough

  • Paper_Knife

    Posted Oct 2, 2007 8:07 pm PT

    thats bs. idiots are not gonna sell as much as they could.

  • santiagochile

    Posted Oct 2, 2007 7:29 pm PT

    nice try nintendo.....creating false shortages will only work so long
    ===================================================
    Until the next console, you mean. That should be about 5 years from now. I think Nintendo will be happy with that. Face it, Nintendo is winning, and you console is losing. I'll take the PS2 any day over either the PS3 or the 360.

  • DoubleAxe

    Posted Oct 2, 2007 7:09 pm PT

    Since the SNES I always wanted Nintendo back in the spot light as #1... and now that day is finally here

  • Zenfoldor

    Posted Oct 2, 2007 5:57 pm PT

    @Potemkin2005

    You are certainly entitled to your opinion sir.

  • Brokendemise

    Posted Oct 2, 2007 5:25 pm PT

    Ugh, you've beaten everyone in console sales, now beat them in game-sales.

  • ctg867

    Posted Oct 2, 2007 5:02 pm PT

    Surprise surprise. The casual gamers continue to eat these things up. And the hardcore gamers will be left wanting more. It's nice they finally are going to have four titles by the end of the year (I don't think it's fair to count Zelda or RE4 since the better versions of them are on Gamecube), but it's still not enough. I figure it'll sell steady until next year, but a decline is going to come, and it'll come hard.

  • Hellmonkey012

    Posted Oct 2, 2007 4:53 pm PT

    Is he warning us, or buttering us up??????????????????????
    Conspiracy?................................................................I think not.

  • Pun_Laca

    Posted Oct 2, 2007 4:37 pm PT

    Another Wii-less winter? Another?!

  • Albi4ever

    Posted Oct 2, 2007 4:33 pm PT

    Ekk! scary that he just comes out and says "we dont have enough product for you".... i guess when you're super successful, you can say whatever you want. Now, would we see Sony or Xbox saying they wont have supplies ready for the holiday? doubt it.

    Halo 3 is already out, so the holidays are already here for xbox players. ps3 will have metal gear and gta4... eventually! but with Mario and Smash brothers coming, the Wii will be more in demand than ever before... it could get ugly this holiday!

  • KingChainz31684

    Posted Oct 2, 2007 4:32 pm PT

    This is a personal attack at all you gamers who think that the nintendo wii has no strong titles or even only a few. I have put lists up of all the good titles around page 6 or so if you first to last sorting, also all the great titles, and if you think Halo 3 and its 8 short single player missions and what is nothing more than a basic and whats becoming a hacked up MP already which is awesome since once Halo 2 got that way it never recovered. i mean the last 2 years between halo 2 and 3 all halo 2 had was fbomin' 10 year olds and thier squeeky voices. Bio shock is the best made game on the 360 as of right now. I mean Halo 3 did all the same things wrong as halo 2 did other than the story was better...all i know is i am glad the trilogy is over cuz like the first 2 its a game that is already making different gaming sites most overrated games lists. Gears of War is also better than Halo 3 by a lot. and you know if you take away halo 3, Gears of War, Gotham racing, and forza motor sports guess how what your next best exclusive title is Kameo and its a good game but its also been 23 months since it came out sooo yeah talking about great games lol. and since they are both obtainable for the PC well Gears special edition will be soon those 2 aren't especially exclusive. Gears is the best console MP shooter right now to me, as far as best over all shooters for the single player on the market bioshock is up their i think S.T.A.L.K.E.R. is great Metroid Prime Corruption sets new standards for single player shooters though i had to play it on hypermode to really make it amazing but it was still great on veteran. I can't wait for the new Ninja Gaiden on the 360 also. But with titles like SSBB, SMG, SMOG, Manhunt 2, REUC. also great games like Zelda, and others are already around it seems to me that its taken a lot less time for great games to show up on the wii than the 360 and the PS3, though i think the PS3 is on a pace to pass up the 360 in great games. all i know is i hope all 3 systems give me reason to play console games excessively.

  • chudllama

    Posted Oct 2, 2007 4:05 pm PT

    Man, that guy is UGLY!

  • XBASX

    Posted Oct 2, 2007 3:53 pm PT

    Please fanboys, don't cry. Just don't read this so you'l get jealous.
    What do you say? Then why all this emo crapp?
    No sorry can't read you, bye bye.

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