Is Wii Shortage Related to Weak U.S. Dollar?
Victor Godinez of the Dallas AM News offers an interesting spin on the shortage of Nintendo’s popular Wii system in the U.S.
Oft-quoted Wedbush-Morgan analyst Michael Pachter told Godinez that the weak U.S. dollar was the main culprit:
With a weak dollar, foreign companies that sell their goods in the U.S. for dollars and next convert those dollars to their native currencies get a smaller profit than whether they sell their products in countries with strong currencies of their own (such
as Europe with the euro). In other words, Nintendo makes a bigger profit on Wiis sold in Europe than on Wiis sold in the U.S.
So Nintendo, Mr. Pachter said, has been behaving perfectly rationally by sending excess Wii consoles to Europe to satisfy the more profitable consumers there.
European demand is subsiding, however, so the Wii should become more readily available here in the U.S.
Via: Kotaku
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