Pachter: Blame the Weak U.S. Dollar for Wii Shortage

April 1st, 2008, 20:19 Posted By: Shrygue

via Gamedaily

In mid-March leading video game retailer GameStop said they expect shortages for Nintendo's Wii to continue for several more months. But why is there a shortage for the system in the U.S. well over a year after the console's launch? If you ask Wedbush Morgan Securities analyst Michael Pachter, it's all the fault of our faltering economy and the weakened U.S. dollar.

Speaking to the Dallas Morning News recently, Pachter noted that Nintendo is deliberately allocating more of its Wii stock for Europe because it can make a bigger profit selling to consumers across the pond. Since Nintendo is a foreign company, when it sells its products in the U.S. for U.S. dollars, our currency has to then be converted into Japanese yen. Because the dollar right now is relatively weak, Nintendo is better off converting the euro.

That said, demand for the Wii has reportedly come down to more normal levels in Europe, and as such Nintendo will likely be shipping more units to the U.S. to satisfy the still greater demand stateside. Therefore, the Wii shortages in the U.S. should subside as 2008 progresses.

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