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Wii shortages to cost Nintendo $1.3 billion this Christmas

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On December 17, 2007, 10:51 AM

Since its debut little over a year ago, the Wii has been a startling success for Nintendo. The company managed to shift an astounding 981,000 units in November alone. However, Wii sales have been constrained by supply. While Nintendo having trouble meeting demand for the Wii is nothing new, it looks like those supply problems could cost the console maker some serious money.

James Lin, a senior analyst at MDB Capital Group, believes that Nintendo could be selling twice the 1.8 million Wii consoles it is manufacturing a month and that the company is set to miss out on an estimated $1.3 billion in sales this Christmas – not to mention losses in revenue from missed software sales. Meanwhile, the PS3 continues to slowly eat into the Wii’s market share, especially in Japan.

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