Friday, April 04, 2008

weak dollar --> wii shortage?

Has the weak U.S. dollar led to a Wii shortage? One analysts says yes. If you do not wish to register for The Dallas Morning News, here are the relevant passages:

With a weak dollar, foreign companies that sell their goods in the U.S. for dollars and then convert those dollars to their native currencies get a smaller profit than if they sell their products in countries with strong currencies of their own (such as Europe with the euro). In other words, Nintendo makes a bigger profit on Wiis sold in Europe than on Wiis sold in the U.S.

So Nintendo, Mr. Pachter said, has been behaving perfectly rationally by sending excess Wii consoles to Europe to satisfy the more profitable consumers there.


This may actually be a good thing. Our lazainess, which is the root of our endless desire to print money, has finally prevented people from engaging in more lazy behavior. Though, since this is the Wii, people might get some sort of workout from it playing some of the games.

1 comment:

Anonymous said...

Have you tried Text Twist?