Wii Fit Shortage in US Caused by Weak Dollar
It’s very hard to find a Wii Fit in US stores right now, but why? It was recently reported in the news that the Wii Fit shortage isn’t happening just because of high demand; but it’s also because the US dollar has become so weak.
With the United States declining status throughout the world, Nintendo has made a move to maximize their profits by sending four times as many Wii Fit units to Europe. Nintendo makes a lot more money this way because demand is higher in Europe and the Euro is currently very strong compared to the US Dollar. Smaller countries also gain more buying power, which just adds to the demand. One analyst had this to say:
“Nintendo is shrewdly maximizing its profit by sending four times as many units to Europe, reaping the benefits of the strong euro,” says Michael Pachter, an analyst with Wedbush Morgan Securities. “The shortage demonstrates one consequence of the weak dollar. We’re seeing companies ignore their largest market simply because they can make a greater profit elsewhere.”
The United States may be the largest market, but that means nothing when gas prices are so high and US citizens really have no extra money to spend on things like the Wii Fit. It’s interesting to see how much the economy here has affected Nintendos decision to send so many more Wii Fit’s to Europe. If the current economic trend continues we may start getting a lot of overseas video game related products from Nintendo last and/or least.
What do you think about this? Do you think it’s fair that Nintendo sends four times as many Wii Fits to Europe than they do to the United States when we are clearly the fatter nation?!
By: Aaron Reed
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With the United States declining status throughout the world, Nintendo has made a move to maximize their profits by sending four times as many Wii Fit units to Europe. Nintendo makes a lot more money this way because demand is higher in Europe and the Euro is currently very strong compared to the US Dollar. Smaller countries also gain more buying power, which just adds to the demand. One analyst had this to say:
“Nintendo is shrewdly maximizing its profit by sending four times as many units to Europe, reaping the benefits of the strong euro,” says Michael Pachter, an analyst with Wedbush Morgan Securities. “The shortage demonstrates one consequence of the weak dollar. We’re seeing companies ignore their largest market simply because they can make a greater profit elsewhere.”
The United States may be the largest market, but that means nothing when gas prices are so high and US citizens really have no extra money to spend on things like the Wii Fit. It’s interesting to see how much the economy here has affected Nintendos decision to send so many more Wii Fit’s to Europe. If the current economic trend continues we may start getting a lot of overseas video game related products from Nintendo last and/or least.
What do you think about this? Do you think it’s fair that Nintendo sends four times as many Wii Fits to Europe than they do to the United States when we are clearly the fatter nation?!
By: Aaron Reed
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