For those who were unable to snag a Wii Fit on launch day, might have awhile to wait before finding one. In an article released by the L.A Times, some insight is given behind the shortage of US Wii Fit stock.
The lack of Wii Fits in the US, can be summed up by two important factors (if you’re to believe the analysts). The first problem is simply the amount of Wii Fits that Nintendo decided to make for its’ first wave. Analysts believe that Nintendo is wary of releasing an exorbitant amount of the balance board game, due to the problems it had with the Nintendo Gamecube. While I can understand not wanting to create a supply greater than the demand, Nintendo had to know that Wii Fit was going to be the “it” item to have. I’m not sure if I agree with the analysts on this one. Of course I’m just a lowly gamer, while those guys have all kinds of experience in Wall street, and business in general.
The other aspect of the shortage sounds more believable than the first. The US economy has been struggling for the past few months. We’ve seen food and gas prices rise as the dollar has lost its’ power. The euro has actually become more valuable than the dollar, and for this reason accounts for some of the shortage. It’s been estimated that Europe received over 2 million Wii Fit units, while America only received 500,000.
Here is a quote from Michael Pachter, a professional analyst, “The shortage demonstrates one consequence of the weak dollar. We’re seeing companies ignore their largest market simply because they can make a greater profit elsewhere”
When it comes down to any business, it’s all about maximizing your profit. I don’t blame Nintendo for increasing units to Europe, nor do I hold any ill-will towards the decision. For people who are left wanting a Wii Fit, should just blame the shortage to bad economical timing. The dollar will eventually strengthen, barring any un-forseen disaster. Hopefully the next shipment of Wii Fits will see a stronger dollar, therefore a better ratio for Wii Fit units shipped.
What’s your opinion on this recent news? Do you hold a grudge for Nintendo releasing more Wii Fits for Europe than the US? Or do you just see this as a smart business decision by Nintendo?