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Sorry, Wii all out

Boxes of Wii Nintendo consoles stacked up shop

TEXT OF STORY

Scott Jagow: Nintendo could have a Wii problem this Christmas. The company says it's making Wii game consoles as fast as it can, but there might not be enough to go around for the holidays. More now from Jeremy Hobson.


Jeremy Hobson: Analysts say it's possible Nintendo is just playing up the shortage to keep demand hot.

Here's technology industry analyst Van Baker:

Van Baker: Well, I mean, it certainly doesn't hurt to give a perception of scarcity, because then people are much more likely to go out and spend their money now.

But if consumers are ready to buy, they may not be able to find a Wii.

And IDC gaming analyst Billy Pidgeons says Nintendo would pay a price with its customers if it ramped up production without maintaining quality.

Billy Pidgeons: In the console business, there's very low tolerance for hardware issues, for failure. So it's got to work.

But Van Baker says Nintendo will have to walk a fine line to avoid giving its competition a boost. He says customers who can't get a Wii do have other options.

Baker: They may walk over and buy an Xbox 360 or a Playstation 3.

That would be a double whammy for Nintendo, which makes the bulk of its profits on sales of Wii games. Those games can sell for $50 or more.

I'm Jeremy Hobson for Marketplace.

About the author

Jeremy Hobson is host of Marketplace Morning Report, where he looks at business news from a global perspective to prepare listeners for the day ahead.

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