Why do companies such as Nintendo only make/send out limited number of new consoles?

Question

ie:the Wii

Answer 1

This happens with any system launch. They only finish actually designing the system around a month before release usually. Then they try their best to make as many as they can for three weeks (on average) then they have a week or so to ship them to the stores so the stores can start selling them. Rest assured, if they could have more systems out, they would.

Note, the time frame varies greatly from system to system, I just used a month as an example.

Edit: Yes the publicity is good too, but for the most part it's about getting as many out within a very small time frame as they can.

Answer 2

Nintendo finished the final product of the Wii just a couple months before it was released, and wanted to get it out before Christmas because that is the biggest selling point of the year. I would assume that making a console is not quick and may take time to put together, package, and ship. I know they released 400,000 units in the U.S. and I think 500,000 in Japan. Making close to a million Wii's in just a few months is amazing to me.

Answer 3

There is only a limited number of recorces that are nessasery for wii developement.
Also people are buying the consoles too fast that nintendo cannot produce at the same rate as the public are buying.

Answer 4

typically is the Xbox 360. it ought to have Kinect with techniques from then which will make the Nintendo Wii unnecessary. this suggests this is going to likely be good for informal recreation enthusiasts who ought to have otherwise offered the wii. also, the xbox ought to have the 'hardcore' recreation enthusiasts determining to purchase it nonetheless because except Sony make some severe adjustments to the PS3, the Xbox will nonetheless have more advantageous suited video games, more advantageous suited snap shots and far more advantageous suited on-line. that is likewise the most inexpensive console obtainable and the narrow version will be out quickly meaning even more advantageous human beings will purchase it

Answer 5

why are people talking about pricing? the system has a set retail price. it's second hand prices that are higher, and these higher, second sale prices do not benefit nintendo.

they make as many as they can - a million in less than a year is amazing, regardless of anything else, and costed a lot of money. then they sell them to make their money back. they sell them around the holidays because people are more likely to buy a system on the holidays.

the amount that they made/shipped was a lot - even if it doesn't seem like it, because there are so many stores to ship to. they are still making them as fast as they can!

because they cannot hope to fill in as many orders as are desired, that creates a heightened sense of urgent desire - believe me, if nintendo was able to make enough to sell to everyone, they would have - it's for profit!

Answer 6

I'm guessing its got something to do with production issues ie not enough chips / other technology.

It would be in their interest to make as many as possible, not only would people be more likely to go with that console (and thus committing themselves to that gaming system & their games) but the more they produce the cheaper the thing would be in the first place.

Answer 7

It's a marketing technique. They cannot legally market on E-Bay, and indirect marketing is not cost effective. Instead, they send out limited quantities and charge the highest vending price allowed. The idea is to create an artificially prolonged sellers market; they prey on people who want it first; and their goal is to inflate that clientele group. In other words, they want to milk it.
This practice of prolonging a sellers market, should be illegal because people get into physical confrontations.
Patience truly is a virtue.

Answer 8

It's all to do with Cost and demand because If they make to many of the consoles. Then the excess cost of making the extra consoles eats into the profit that they can make same with cars

Answer 9

It's known as price skimming/ premium pricing. A low supply of a product means people will be willing to pay above the asking price. You can see the guys that sell tickets and allsorts on ebay.

Answer 10

It creates a competitive demand for them, and ensures that the first load will sell at the highest price possible and that it raises the product profile as a 'must have'. If there were enough for all it would not create as big a hype or demand for them.