Nintendo is facing increased “complications” as a result of ongoing Wii supply shortages, but nonetheless expressed displeasure with unofficial system bundles put together by retailers.
In an interview with Reuters, Nintendo of America president Reggie Fils-Aime said the company is having trouble planning for the coming months because of the Wii shortages, as well as unanticipated demand for the DS handheld, which has led to some concerns over DS inventory levels for Christmas. “The level of demand we are facing complicates all of our future business planning,” Fils-Aime said. “All of that becomes a much tougher exercise until we have supply and demand curves that intersect.”
In spite of the supply difficulties, Fils-Aime expressed particular concern over unofficial bundles assembled by retailers that sell for significantly higher than the Wii’s standard list price of $250, which he feels may dull Nintendo’s competitive edge. “Retailers have already been given feedback that we are not big fans of that. We think it masks some of the price advantage we have versus our competition and, frankly, the consumer should decide what they want,” he said.
However, he also said Nintendo wouldn’t be taking any direct such as cutting back Wii shipments to retailers who engaged in this practice, relying instead in Nintendo’s strength in the market to carry its message. “We don’t have to remind retailers of the strength we have right now. We are simply making an observation and that reinforces our point quite nicely with retailers,” he said.
