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Shortage Of Wii Reflects Nintendo's Caution

A year after its debut, Nintendo's popular videogame console Wii remains a hard product to obtain. While Nintendo's problem illustrates how tough it is for companies to try to predict demand for a product, it also is emblematic of the Japanese company's native caution.

Nintendo said earlier this year that it is making its best efforts to ramp up manufacturing. Still, this holiday season is seeing a repeat of last year's Wii frenzy, including lines of shoppers forming outside stores and bidding battles for the consoles on eBay. The frustration of U.S. shoppers could become a problem for Nintendo as it seeks to keep up momentum for a business that has surpassed expectations.

But supply-chain management experts say missed opportunity may still be better than being stuck with excessive supply. Unsold Wiis could create a negative impression that consumers don't want the product. And excess supply also angers retailers, that must work harder and offer discounts to get rid of the product.

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