A recent report by Infendo poses the question. Is Nintendo holding back shipments of the Wii? Not to put too fine a point on this, but over a year after launch the Wii is still virtually out of stock across the country (not to mention the rest of the world). Why is the Wii such a difficult video game console to keep in stock...

As I passed the children's apparel and turned right at the Wheat Thins, I noticed a large group of customers had amassed near the electronics department, forming a line that stretched well beyond the HD television displays. I immediately feared they were waiting for a Brawl shipment, leaving me Smash-less. But after asking one of the several associates patrolling the area, I learned they weren't waiting for a new movie or game release at all.

They were waiting for Wii. This particular Wal-Mart had just received a shipment of 19 Wii consoles, and at midnight, they went on sale.

I had unexpectedly walked into another case of Wii-mania. Customers were complaining about low shipments, “unfair line” structures and stealthy “line jumpers.” More than 25 people waited in line, though several had walked away in the hours prior. Wal-Mart positioned several employees in the electronics department for the shipment, as well as managers and security for rambunctious parents who were nearing pre-Christmas levels of consumer anticipation.

On a random Saturday. At midnight. In March.

Why is Nintendo having such a hard time delivering enough Wii consoles to meet demand? It was mentioned previously that the cost of just starting up another factory is immense, but wouldn't the high demand for the Wii warrant such a move? Especially after Nintendo had to deliver late on their Rainchecks.

There are obvious benefits for Nintendo in keeping a tight chain on supply and demand. They can prevent over extending themselves while continuing to benefit from the constant high demand and popularity of the Wii.

Sadly this limited supply in consoles is forcing buyers into a corner. While Nintendo frowns on retailers who force bundles, the majority of consoles available are sold in bundle form. In addition this limited supply creates a immediate second market for the Wii on sites such as eBay and Craigslist. New Wii consoles still commonly sell for $350.

Unfortunately it looks like the Wii is going to continue to be the highly sought after, rarely available console we all love for the foreseeable future.