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Nintendo Wii re-launch strategy working at several retailers

Posted Feb 5th 2007 11:50AM by Brian White
Filed under: Rumors, Products and services, Consumer experience, Competitive strategy, Circuit City Stores (CC)

By all numbers and accounts, the gaming console war right now is easily being won by the Nintendo Wii over the much-ballyhooed Sony PlayStation 3. If you look at the numbers, it's not hard to see why (I think): less than a million PlayStation 3 consoles sold since launch in late November (due to parts supply issues) and more than a few million Nintendo Wii consoles shipped since roughly the same time. It also does not hurt that the Wii is only $250 while the cheapest PlayStation 3 costs double that at $500.

In addition to the war currently being raged -- and don't forgot the Microsoft Xbox 360, which has a head start of almost an entire year -- Nintendo is either planning or having a neat "re-launch" strategy that is taking place at national retailers like Circuit City Stores (NYSE: CC) and Best Buy (NYSE: BBY). Some stores sell out of the consoles very fast once a shipment arrives -- but could that shipment have been larger? I'm wondering if Nintendo is actually employing a multi-pronged "embargo" retail strategy that limits quantities shipped to retailers. Then, when it becomes available again, another "launch" is promoted by those same retailers, ala "new shipment of Nintendo Wiis just arrived -- get yours now!"

On that note, retailer Circuit City is having yet another "re-launch" of Nintendo's Wii on Sunday, February 11. Of course, "quantities are limited, while supplies last" are the two standard disclaimers on the "re-launch." In addition, no rainchecks will be given and there is a one per household limit. Talk about creating demand by making the console have such severe selling limits. I'm pretty sure this is part of a strategy instead of a logistics nightmare. For the uber-obsessive, www.wiitracker.com will track the inventory of these babies nationwide.

Tags: BBY, Best Buy, BestBuy, CC, Circuit, City, Nintendo Wii, NintendoWii

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