Could cost up to $1 billion
While Sony and Microsoft have their business plans set out in stone for the coming year , Nintendo are still reeling from the Wii stock shortages over the Christmas period.The knock-on effect of the shortages, aside from the financial impact ( losses of up to $1billion expected over the holiday period), is that Nintendo are struggling to now form a solid business plan for 2008. US president, Reggie Fils-Aime told Reuters "The level of demand we are facing complicates all of our future business planning. All of that becomes a much tougher exercise until we have supply and demand curves that intersect."
The Nintendo chief then went on to say that the company are doing everything they can to ensure that supply meets demand. "We at Nintendo America are focused on getting to the point when any consumer can walk into any of our retailers and find a Wii. Then we can plan, on an ongoing basis, the rest of the business," he concluded.
It's not just the Wii where Nintendo are facing stock problems, but the DS is also difficult to get hold off over the holiday period. "The DS continues to perform exceptionally well, with some retailers voicing concerns about DS inventory going into the holiday,” said Fils-Aime.
It seems ridiculous that Nintendo haven't been able to sort out their inventory problems for the second year running. The shortages are only helping their competitors and indeed the head of global marketing for Microsoft's games business, Jeff Bell, believes that they've benefited so far. "Sometimes you're good, sometimes you're lucky, and it's wonderful when you're both," he told Reuters.
Source :: Reuters
