Wiinomics

If you have any questions or anything DO ask. If I did something wrong call me out on it (I think I did it right.) Will I be able to get a Wii for Christmas...?

Here's the link to Gizmodo article:

http://gizmodo.com/gadgets/gaming/nintendo-making-18-million-wiis-per-month-s...

Category:

Education

Tags:

• economics
• wii
• Wiinomics
• video
• games

[TheConSept]

I think there is something wrong with your graph... It confused me the instant that I had seen it. "When the prices are high the demand is low" Well Price is on the left side and apparently if something costed $1,000 it would be in high demand..... I think you need to switch the Quantity and Price labels. Then your graph will make more sence.... (or switch the Supply and Demand labels.)

[miltownkid]

No, it's setup correctly. Demand is on the bottom and it's based monthly. So as you move to the left, the number of units demanded per month decreases.

[bummpy]

It's a marketing thing. It just underperforms the rest of the competition if it were to be priced the same. The genius of Nintendo was in identifying the market segment of casual/family based gaming. They failed at identifying the price break point where they could implement their strategy for profit-max.

The question is whether or not the wii would have even become as popular/scarce as it has at $400.

That's what I know.

[miltownkid]

Oh indeed. I'm just saying they could have pulled off the same thing at a higher price (I'm sure.) It's what... $250, looks like they could have had it at $350 and had practically the same effect. Then they could have rocked price drops as well (they haven't had any of those yet.) If I was Nintendo, I think I would have wanted to be able to meet the demand for the units this holiday season. Instead, there are going to be people buying 360s instead.

[tagliarino]

I would like to take personal credit for this video. Since it was ME who he spoke to about Mario Galaxy....woot.

Wassup Miltown. Booya!

[miltownkid]

HEY! It was you! :) Yeah, between that conversation and my studying brought about these thoughts.

WHAT UP!!

[333matt1230]

I think you did this exactly right. I'm doing a project and it all adds up right :)

[CrackHeadForLife420]

@TheConSept hahaha consept doesn't now how to read a graph.

[kaliyogini]

You're awesome. :-)

[neokn3]

There's one thing wrong with the graph though. You are assuming what the demand curve would look like, especially the slope!

I know you were trying to just point out they should have priced it higher, and thats ok :)

[Ghosthand]

i got my wii 1 week after it came out, for £180, i guess i was pretty lucky.. =D

[suppmarkxb]

yu would be a could buisness teacher. excellent video.