Analyst: Wii U pre-order sell outs not at indication of success
Wii U has been experiencing frequent sell-outs at retailers. Many sites have already been closing pre-orders online. GameStop has even decided to make a waiting list due to an “overwhelming demand” for the console.
It’s impossible to deny that the system has been popular in some regards, but Colin Sebastian of R.W. Baird cautions that what we’ve seen thus far isn’t necessarily an indication of its success. He feels that it’s a neutral indicator or “slightly positive, but not conclusive.”
“Nintendo tends to manage the distribution channel to generate some sort of perception that its [system] is in demand. I think seeing these sellouts on some of the websites is not a negative indication. It’s either neutral or slightly positive, but it’s not conclusive.”
Sebastian also commented on the production of Wii U. He says that if Nintendo begins manufacturing in late September, “the most they can commit to is 1.5 million units per month.””
“We know no one has leaked any pictures of the Wii U supply line. Those always leak. Someone always sneaks a camera into the facility. The fact that we haven’t seen pictures means manufacturing hasn’t started as of this week. So, if they’re starting manufacturing in late September, the most they can commit to is 1.5 million units per month.”
Sebastian concluded with the following:
“What’s most important for Nintendo is what happens at launch. You want a combination of as many units as possible, that are also perceived to be in short supply, but you don’t want to under supply the market so people go out and by something else.”
