Economics Case Study

1. Supply & Demand
Nintendo Wii

2. HELLO!
Gazi Golam Morshed Sagor (48)
Golam Mowla Shuvo (56)
Zaed Ibrahim ( )
Md. Shakhauat Hossain ( )
Ahmed Tanvir ( )

3. Summary of the Case Study
About the console
Launching of the Wii
Sales and Shortage of Wii
Profit from Wii selling
Price Drop of Wii of Nintendo

4. Q1. Would the demand for the Wii console be relatively inelastic or
relatively elastic? State why.
Playstation 3
(Sony)
Wii
Console
Xbox 360
(Microsoft)
Launched by
Nintendo
Attractive Feature
Controller

5. SCARCITY
HIGH PRICE
Parameter for Changing Demand
Q1. Would the demand for the Wii console be relatively inelastic or
relatively elastic? State why.

6. 2006-
30 Million(North
America)
2007-
1.6 Million Unit
per Month
2008 (Target)
2009 (March)-
2.4 Million Unit
per Month
Q2. Would the supply for the Wii console be relatively inelastic or
relatively elastic? State why.

7. Took longer time to
compensate demand and
Make it available for
people
Q2. Would the supply for the Wii console be relatively inelastic or
relatively elastic? State why.

8. Q3. Supply and Demand Curve
QE
• This supply and demand curve
shows the shortage and surplus of
wii console market.
• Shortage occurred due to the gap
between high demand of the product
QD1, and supply QS.
• Surplus occurred due to the less
demand(QD2) of the product then
supply.
• After reducing the price of the wii
console the demand and supply
reached in a equilibrium point QE.

9. Q4. Was the severe shortage for over two years an old marketing poly called international
scarcity, in which a company purposely keeps its hot product in short supply to build buzz.
Or was it simply bad planning on Nintendo’s part?
What did this mean for households?
What were the implications for Nintendo?
• The severe shortage for over two years was not an old marketing poly called international
scarcity. It was simply a bad planning on Nintendo’s part.
• Availability of Wii console= less purchase of households and vice versa.
• The implications for Nintendo: unique and something new on virtual gaming, record breaking
sales and profit, unnecessary price fall due to bad planning.

10. Reasons Behind Price Drop How Price Drop Affected Revenue
Boost sale Record volume sale
To increase market share Became best-selling video game console
To eliminate competitors Generated higher revenue
More revenue expectation
Q5. Price Drop and It’s Affect.

11. THANKS!