Wiinomics

I do SO many Youtube videos now, I might as well put them here to when I’m not writing something.

Here’s the link to the article about Nintendo currently cranking out Wiis at 1.8 million units per month.

[Nintendo Making 1.8 Million Wiis Per Month, Shortages Will Continue]

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7 Responses to Wiinomics

  1. MTK's Latina says:

    you got the concept, but your supply and demand schedule is a tad bit wrong/confusing when trying to explain the shortage aspect of the issue… from the perfectly inelastic supply curve and your demand curve, you could have branched out a bracket ( } ) (on the bottom), showing the shortage in the quantity point from the your supply curve and the demand curve. from that you could stress more on the quantity shortage of the issue. πŸ˜€ (check chp. 4 and 5 of your Mankiw book, at least that’s where the explanation of my book is at.)

  2. miltownkid says:

    Yeah, I could have done that. And now that I think about it, I did get taught about elastic and inelastic supply curves, but… I haven’t been in class a lot lately. πŸ˜› That hasn’t really affected my ability to OWN the tests though. It’s on page 102. πŸ™‚

    I guess my focus was more on why there was a shortage and not so much on the shortage itself.

  3. MTK's Latina says:

    got it…
    well i think it is a bit obvious why Wii is not lowering the price so that supply and demand can fall at an equilibrium point. they could raise the price so that it could fall to an equilibrium point, but if they did that then there would not be such a high demand. i think Wii is focusing more on the long-run aspect of the issue. eventually at some point in the long-run it will fall to equilibrium point, but that would probably be due to another new and improved game console entering the market. at some given point the consumer will inherit their Wii and the demand will fall and reach equilibrium, but Wii just wants to keep the consumer in high demand because in the end they are still making a high profit… at least for now. πŸ˜‰
    get to class!!!

  4. miltownkid says:

    Even though it was a nice “gesture”, it seems to me that leaving it at a higher price point would have been a better idea. The Xbox now has a system at almost the same price as a Wii (279.99 vs 249.99.) Looks like the Wiis could have come out at 300-350 (easily) and then did price drops through time. They can’t do praise raises πŸ˜›

  5. MTK's Latina says:

    what you are saying is true…but i don’t think Wii is just being plain old nice to their customers… i think they are looking at the whole “profit” circumstance. sometimes when there is a high demand for a product, it is better to keep the price low in order to satisfy customers and STILL make a higher profit than when you keep the price high, which will eventually lower the demand. that, i ALSO read in Mankiw’s textbook. LOOK IT UP πŸ˜› also… if a product has a lower price, it allows for there to be a higher demand for complements of that product. so in this case, video games will surely have a higher demand because of the low price of the Wii… it’s a win-win situation πŸ˜‰

  6. MTK's Latina says:

    ha! i rock! πŸ˜€ πŸ˜€ πŸ˜€

  7. miltownkid says:

    lol. Yeah but I think the shortage is TOO much. I mean, NO ONE wants a shortage the way they’re going to have for the holidays. I really think an error was made somewhere… Maybe not though. Maybe I just feel that way because I’d really want one. 😦 But what’s going to happen over the holidays is some people are going to be getting Xboxes instead of Wiis because they won’t be able to find any Wiis. Seems like that would hurt them more than help. But whatever… I should be getting my Wii shortly. πŸ˜€ (I’m guessing they will be easier to get in the first quarter of 2008.)

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