Woe Is Wii: The Curious Case of Nintendo’s Supply Chain Plans

From CIO.com: “All set planning your supply chain strategy for 2009? How are the sales forecasts shaping up? Staying on top of your customer orders? What are your collaboration plans with your sourcing and retail partners? In truth, I’m sitting here wondering how any company is planning for the future right now. As an example of just how difficult this must be—with or without supply chain, BI or forecasting software to help you plan—let’s look at the curious case of the Nintendo Wii.”

“If there ever was a consumer product that lived up to retail industry analysts’ hype as being “recession proof,” the Nintendo Wii gaming console was it. Since its debut in 2006 and all the way through the turbulent economic environment and holiday season of 2008, the Wii has delivered handsome profits from all over the globe: In Nintendo’s back yard in Japan, throughout Europe and in the United States.

Wii sales have defied all consumer-spending logic and negative economic indicators. In the depressed timeframe of October to December 2008 alone (Nintendo’s third quarter), the company sold 10.4 million Wii consoles, which was up from 7 million during the same period in 2007. At the close of the 2008 calendar year, Nintendo had sold nearly 45 million consoles in total, crushing competitors Microsoft (Xbox 360) and Sony (PlayStation line). Recession? What recession?” Woe Is Wii: The Curious Case of Nintendo’s Supply Chain Plans

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