Analyst: Wii shortages could last until 2008

Lazard Capital Markets' Colin Sebastian thinks Nintendo is producing nearly 1.5 million systems a month, but that might not be enough to meet demand.

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With the Nintendo Summit wrapped up, Lazard Capital Markets analyst Colin Sebastian dropped a note to investors to recap what he saw as key takeaways from the event. One of those takeaways was a "good news, bad news" situation for gamers still on the hunt for a Wii.

"We believe that Nintendo may be near its targeted monthly Wii production of approximately 1.5 million units per month, based on comments made by Nintendo, as well as retailers such as GameStop," Sebastian said. "Based on our retail channel checks, demand still appears to exceed supply, and we believe that shortages could persist through the remainder of the year, including the key holiday period."

Sebastian also said that the third-party titles "confirm a casual game focus for Wii/DS." He additionally suggested that Nintendo was more aggressively pursuing third-party support for its systems than it has in the past, based on conversations he had during the summit.

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