Walmart is again taking Wii pre-orders online for shipment on launch date. Costco never did take pre-orders, I assume they will be selling in stores to promote traffic. I'm not so sure this "sell-out" reflects incredible demand....
I don't think it does either. But Nintendo claims that 250k units are on waiting list at GameStop. This is in addition to whatever preorders were actually sold everywhere. So there isn't zero demand which is good for Nintendo.
So the question is: what happens *after* the first 1M get their Wii U's. Does it catch on like wildfire and become the must have console for Christmas or does it fizzle?
The problem for me is I can't pinpoint what feature would make the Wii U so attractive. The tab controller is cool in my opinion, but that alone without any obvious amazing content worries me.
nintendo is now selling 3ds at a profit, has basically no debt, very transparent dividend policy with earnings,and the wii-u is selling out everywhere. They do have a history of not producing enough consoles in the past which seems to help demand but I'm not sure that is the case after what happened with the wii when it came out and the pricing snaffu on the 3ds. I feel the stock has a lot of room to run once a quarterly earnings report comes out after the wii-u's have been sold. Until then there are a lot of people who still doubt the wii-u, doubt the console business in general, and that is helping to keep the stock price low at the moment. They had the same doubts on the wii when it first came out because no one understood its potential. I Believe people underestimate the potential of the tablet controller.