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Wii

Analyst: Wii Shortage to End Soon

by Les Thomas - April 1, 2008, 11:52 pm EDT
Total comments: 19 Source: Dallas Morning News

The weak U.S. dollar may have been the culprit of the Wii shortage.

Game industry analyst Michael Pachter of Wedbush Morgan believes the shortage of Wii systems in the United States should soon be a thing of the past.

Speaking to the Dallas Morning News, Pachter said he believes the Wii shortage was caused by the weak U.S. dollar. By selling excess product in European countries with a strong Euro, Nintendo makes more profit when the money is exchanged to their native Yen.

Nintendo has stressed their desire to have a global community with the Wii. However, Pachter said diverting product for profit is definitely what happened. The good news for Americans, he declared, is that demand in Europe is dwindling and Wii shortages in the United States will soon be a thing of the past.

Nintendo's response to Wii shortages has been cryptic and usually blamed on production, but diverting Wii systems to Europe might also explain the company's ambivalence to addressing the issue.

The Dallas Morning News' Victor Godinez, who spoke with Pachter, summed up his thoughts on the matter. "No one wants to hear that they're second-class customers, but that's exactly what we American gamers are right now," he said.

Talkback

EnnerApril 02, 2008

Ah, good 'ol Pachter. Always pleasure for me to see him on Bonus Round.

Anyway, whatever the cause and reason, here's to hoping the prediction comes true. I've yet to get my Wii :(

ShyGuyApril 02, 2008

Well, it was good run. About 23 million and that's all she wrote. Sadly 360 and PS3 will only hit about the same amount. Video Game market crash CONFIRMED.

I am analyst too!

DAaaMan64April 02, 2008

If we do enter a depression/recession, I hope the video game market doesn't crash...

Shift KeyApril 02, 2008

Quote from: NintendoBadBoy87

The Dallas Morning News' Victor Godinez, who spoke with Patcher, summed up his thoughts on the matter. "No one wants to hear that they're second-class customers, but that's exactly what we American gamers are right now," he said.

This just in: the world does not revolve around America. News at 11.

KDR_11kApril 02, 2008

I don't think the falling dollar did that much, the Euro has been worth more for a pretty long time now and Europe has paid more for games this whole time. NoE is still treating us like crap.

PlugabugzApril 02, 2008

As much as KDR and i bash NOE it's still true.

$140 for Wii Fit is a favourite of mine. The lower prices in the states probably balance the books against the far higher ones in europe and oz.

oohhboyHong Hang Ho, Staff AlumnusApril 02, 2008

Here is New Zealand the retailers must be making an absolute killing. At the rate things are going, I wouldn't be surprised if the NZD did reach parity with the USD eventually. We are only 20 cents short now. Buying games online is a must since you can get a lot of stuff for less than half retail.

My DS is so well fed right now.

UltimatePartyBearApril 02, 2008

Quote from: NintendoBadBoy87

Speaking to the Dallas Morning News, Pachter said he believes the Wii shortage was caused by the weak U.S. dollar.  By selling excess product in European countries with a strong Euro, Nintendo makes more profit when the money is exchanged to their native Yen.

I seem to recall reading that Nintendo keeps all its monies in U.S. Dollars, so the Euro/Yen exchange rate shouldn't be an issue.  The Euro/Dollar exchange rate might be, I suppose.

I don't know where to look for confirmation on what I just wrote.  Does anyone know for sure?

animecyberratApril 02, 2008

Quote from: UltimatePartyBear

Quote from: NintendoBadBoy87

Speaking to the Dallas Morning News, Pachter said he believes the Wii shortage was caused by the weak U.S. dollar.  By selling excess product in European countries with a strong Euro, Nintendo makes more profit when the money is exchanged to their native Yen.

I seem to recall reading that Nintendo keeps all its monies in U.S. Dollars, so the Euro/Yen exchange rate shouldn't be an issue.  The Euro/Dollar exchange rate might be, I suppose.

I don't know where to look for confirmation on what I just wrote.  Does anyone know for sure?

I read that in their stock report, they blame the exchange between US and Yen for their stock prices going down.

UncleBobRichard Cook, Guest ContributorApril 02, 2008

Quote from: Plugabugz

The lower prices in the states probably balance the books against the far higher ones in europe and oz.

As a US gamer, I'd like to thank European gamers for this. :)

DAaaMan64April 02, 2008

Quote from: KDR_11k

I don't think the falling dollar did that much, the Euro has been worth more for a pretty long time now and Europe has paid more for games this whole time. NoE is still treating us like crap.

You maybe right, I guess it matters how much it takes NoA to care.

http://ichart.finance.yahoo.com/5y?eurusd=x

^ Dollar to Euro, last five years.

Ian SaneApril 02, 2008

But if the Wii shortage ends then I won't be able to impress anyone by owning one.  It is seriously a status symbol.  It's the first time in my life where mentioning that I own a videogame system gets people more interested in talking to me. ;)

DAaaMan64April 02, 2008

Quote from: Ian

But if the Wii shortage ends then I won't be able to impress anyone by owning one.  It is seriously a status symbol.  It's the first time in my life where mentioning that I own a videogame system gets people more interested in talking to me. ;)

LOL Too true. I get the wide eyes when I tell my launch story haha.

CericApril 02, 2008

I only get a reaction for a little bit.  Then people forget I have a Wii and get the reaction all over again.

GoldenPhoenixApril 02, 2008

I'll believe the end of the Wii shortage when I see it. Analysts have been making false predictions about the Wii for over a year now.

DAaaMan64April 02, 2008

Quote from: GoldenPhoenix

I'll believe the end of the Wii shortage when I see it. Analysts have been making false predictions about the Wii for over a year now.

I of course agree. But analysts suck anyway. haha

darknight06April 02, 2008

People are STILL listening to Sideshow Patcher?  Wheres the announcement for the HD Wii?  It's about time for it ain't it?  WoW isn't going to stay big?  Could've fooled me...

animecyberratApril 02, 2008

I don't have a very interesting launch day story. I went to K-Mart and bought mine when they opened up. Turns out I was the only person smart enough to goto K-Mart cuz nobody else in Twin Falls shopped there, they all waited in line for days over at all the big stores and I just walked in, grabbed my Wii and went home.

KDR_11kApril 04, 2008

I just noticed the HUGE pile of Wii one store here has. Like two pallettes full. The XBox and PS3 piles were much smaller. Well, I presume since I didn't even see the PS3 pile.

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