December 21st, 2007

ronin

Nintendo in Polish standoff w/retailers over Wii prices.


Nintendo is taking a tough stance against price hikes based on the Wii's shortage.

http://arstechnica.com/news.ars/post/20071220-exclusive-retail-chain-scalping-wii-allotment-on-ebay.html

What happens when the supply of something goes down, and the demand for it remains constant? Yeah, THE PRICE GOES UP! It's the first frikkin' law of free market economics.

Moreover, whose fault is the Wii shortage? Who had a year-plus to ramp up their factories after the Wii became the fastest selling console in history last November? Who absolutely could have ramped up production - was even told to do so by many people - but was stupid and intentionally refused to do so? And now who is being all emo because other people are able to charge a lot of money for something that there intentionally isn't enough supply of?

Bonus question: If Nintendo cuts off Wii supply to certain retailers, what effect will this further reduction in the supply of Wiis have on prices?


Nintendo stands there, Wii Zapper held firmly to their own head, shouting at the retailers: "Stop! Or we'll shoot!"

Yeah. Let me know how that works out for you there, guys...
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