Tuesday, December 11, 2007
Nintendo Corp.'s Wii game console shortage is already a well-told story. By warning last month that there may not be enough Wii's to go around this Christmas, the Japanese company further fueled a feeding frenzy among consumers.
Shortages of "the hot toy" or gadget during the holiday season are usually traced back to missteps taken by the responsible consumer electronics manufacturer.
But Nintendo might just dodge the blame this year. By rationing the supply of Wii, Nintendo might have hit upon the right strategy to forestall the inevitable price erosions and the low, low margins most consumer electronics products suffer.
"Take the example of Apple's iPhone," said Rick Sizemore, chief strategy & business development officer at Multimedia Intelligence. Unlike Apple which dropped the price of iPhone by $200 just two months after it went on sale this year, Nintendo has managed to maintain "both its buzz and the price" of Wii for more than a year, he said.
By: DocMemory
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