A Wii Bit Short On Supplies

Chris Morris 07.22.08, 9:30 AM ET

Chris Morris

Thinking of buying a Wii for your kids or loved one this holiday season? Start looking now.

Although it has been nearly two years since Nintendo's (other-otc: NTDOY.PK - news - people ) latest videogame system went on sale, finding one is still a challenge for U.S. consumers. The hunt may get a little easier in the months to come, but bagging a new Wii is still far from a sure thing.

"We are really intending to increase the shipments to the U.S., especially compared to last year," says Satoru Iwata, Nintendo's global president and CEO. "However, I can't give you a 100% commitment [that you'll be able to find a Wii this holiday season]. What I can commit myself to is that Nintendo is going to do its best to supply as many Wii hardware units as possible in order to meet demand there."

Iwata says demand for the device in the U.S. is unusually high in contrast to either Europe or Asia. The company is on schedule to produce 2.4 million Wiis this year and will allocate additional units to U.S. retailers. Still, it has been caught off guard by the popularity of the Wii in America.

"We could not imagine it would be that high," he says.

The shortages haven't stopped Nintendo from becoming the best-selling console in the U.S and the world. To date, 10.9 million Wiis have been sold domestically, pushing the Xbox 360 from Microsoft (nasdaq: MSFT - news - people ) into second place.

Nintendo's flagship handheld device--the Nintendo DS--continues to sell well also, with U.S. sales topping 20 million to date. The system will get a boost this winter, also, with the release of "Grand Theft Auto: Chinatown Wars," which marks the first time a GTA game has appeared on the DS.

The DS faces new competition, though, from the Apple (nasdaq: AAPL - news - people ) iPhone. The popular system has just a smattering of game offerings now, but several big titles, including "Spore" from Electronic Arts (nasdaq: ERTS - news - people ), will release iPhone versions later this year.

Iwata says the company is confident the DS will not see its market share dwindle.

"I use the iPhone myself," he says. "I know that it's an attractive product, but when I look carefully at the iPhone's users vs. the users of our Nintendo DS, I understand there are some overlaps. And if you ask 'Is the overlap too big?,' my answer is no, not so much."

Instead, Nintendo plans to focus on ways to use the DS' touch screen in new ways, much as Activision (nasdaq: ATVI - news - people ) did with "Guitar Hero: On Tour," which sold over 422,000 copies in June, according to NPD.

While Nintendo has done an excellent job in attracting new players to the videogame industry, it has been harshly criticized for ignoring the people who stuck with the company through the lean years. Many hardcore gamers feel the company has abandoned them.

This was apparent at the company's press conference at this year's Electronic Entertainment Expo. Typically, Nintendo briefings are raucous affairs with frequent interruptions for applause. (Heck, I even saw one fanboy break into tears when the trailer for "The Legend of Zelda: Twilight Princess" was first shown four years ago.)

This year, though, the conference was a muted affair--and not just because E3 was a smaller event.

"If there is any perception that Nintendo is ignoring the core gamers, it's a misunderstanding and we really want to get rid of that misunderstanding by any means," says Iwata. "We are sorry about [the E3] media briefings, specifically for those who were expecting to see Nintendo show something about 'Super Mario' or 'Legend of Zelda.'

"However, the fact of the matter is the so-called 'big titles' need a long, long development period. ... We really didn't think this year's E3 media briefing was the time to do so."

The Nintendo faithful have forgiven the company before--and it's likely they'll do so again. But as non-core gamers contribute more and more to the company's bottom line, their voices are likely to grow still louder.

http://www.forbes.com/technology/2008/07/21/nintendo-wii-shortage-tech-personal-cx_cm_0722nintendo.html

I forgive you Nintendo :)

 Forbes doesn't have editors anymore, apparently.

The writer sees the iPhone as a competitor to the DS?

Oh wait, he owns one. Mystery solved.

That's not selective quoting in the headline at all... Vaio, are you sure you don't love to see the internet go up in flames?

What? You don't think Billy and Sally on the playground can afford to pay thousands of dollars a year to a TelCo for a data plan?

He pretty much reconfirmed that Zelda and Mario are in production.

Nintendo can't supply all the needs of the gaming populace, they need to kick the third parties in the ass and tell them to release more quality stuff and less things that end in "z" or have party in the name.

This time i did select it cause i thought it was important. Don´t realy see how it would bring flaming though.

I was happy when i read it and wanted to shear it. Sorry if it offended anyone.

Someone cried for Zelda at E3 four years ago... WOW