Nintendo Again Faces Wii Supply 'Challenge'

The Wii is apparently once again facing shortages, and Nintendo is answering media reports of strapped retailers, saying that keeping up with current production demands is going to be tough. "In the short term, replenishing Wii inventories will be a challenge," corporate communications VP Charlie Scibetta told consumer weblog Joystiq. "But we are doing everything we can to satisfy consumers looking to purchase a Wii system." Facing languishing demand during the summer and fall months, Nintendo actually reduced Wii production ahead of the Christmas holiday, an unusual move. But amid widespread analyst reports that supply and demand for the popular family-friendly console were finally in balance, Nintendo had what it called a "healthy" holiday for Wii following its September price cut from $249 to $199. Now, apparently, demand is outpacing production again, with retail employees claiming they can't keep the Wii in stock. Frequent supply constraints have been something of a pattern for Nintendo since the 2006 launch of the Wii. Analysts have estimated that the company could have sold even more consoles to date if its production kept pace with demand.