Is demand for the Wii waning, now that the console has seen a full year in the field? Not according to Nintendo, who claims the Wii is seeing higher than expected demand, much more than they had planned for. Which might explain the continued supply issues they have been dealing with. Some go so far as to speculate that PS3 sales have picked up largely due to a shortage of Wiis on the shelves.
It is not as unexpected as they claim, however. In fact, more than a year ago they expected shortages during the holidays. And, earlier this year, they said that outstanding supply issues would remain through the rest of this year. If demand is so great to continually cause supply issues, obviously Nintendo has done something right with the Wii. By the same token, they are doing something wrong - by not solving these issues. They are only shooting themselves in the foot by not ramping up supply, particularly at this time of year.