"If Nintendo were to raise prices and supply more systems, they would have a huge increase in sales."

This is why sane people oppose price ceilings.

Alas, welcome to the world we live in, where a lot of people would call that type of thing 'price gouging'.

"But eventually sooner than later, the increase would drizzle out. Sales would eventually thin out and possibly decrease because the demand has gone down because of readily available consoles."

Well, yeah, if only because all sales eventually stop at some point. Why should that prevent a price increase?

That's like saying "Well, you have malaria and if you take medicine for it, you'll increase your health, but eventually, you'll grow old and die. But if you're sick, you get to park in the handicapped space, so by not taking the medicine, you're a genius!"

nintendo=you used to be my favorite

(tear) :(

Lucky is more like it!

What Nintendo have donr that wrong. Yeah , there's loads of cack gams for the wii-a huge proportion in fact-but if they hadn't taken this huge change in direction they wouldn't even be selling consoles tday, would they? Also , while I agree that Ninty have continued a false buzz over their console and some peripherals to the nth degree AND sell more to the casual gamer these days they are hugely aware that this cannot last. The Wii line up this year, even from 3rd parties does look more promising and it had to. Nintendo know from experience, what happens if you don't keep your consumer happy-they leave. As a result, I think, come this years motre adult aimed games as Nintendo begin to wind up for their next console, educate those new gamers and appease real gamers who haven't completely left them(SMG,NMH,MP3,SSBB-they can still have and make great Wii games if they try).
Nintendo have done the market this gen by looking at it all sideways and come up smelling of gold and shovelware but the sands will shift and I feel they know this. This year we see them push third party devs with better games(EA, HVS, Sega)and next year(not forgetting S&P2 and Punchout!!2 this year)they get their own big hitters back with new Mario and Zelda games just before the new Wii is announced. Anyway that's the way I see it. Might not work but, like I said they had to do something and now we'll see if they can make it last.

Hate to break this to you, but the Economics 101 needs some work. Right now, the demand is pretty flatlined:

http://www.gamestooge.com/2...

Learn something from Cabbage Patch Kids and Teddy Ruxpin dolls. There's some other factors you neglected:

* Saturation
* Fad

The Wii is saturated, and the core owners don't buy anything that isn't a gimmick (ie. Wii Fit) Third party developers don't make money on the Wii

The Wii was a fad - something you bought because everyone else wanted one. No one wants one now, as evidenced by the lack of high priced sales on eBay. When you can't sell a Wii for higher than the MSRP, that means interest has flagged. In fact, it was LOWER than MSRP in November.

It's cute the way you try Economics 101, but that isn't the way things work.

this drama about how Nintendo has changed and crap...
Nothing changed, just because the main focus(of what they always wanted) is more into a brighter light they are a " EVIL ".

Meh whatever, just enjoy your games kids.

Nintendo opened the doors for gaming to a wider range but now...its just old man thinking big of them self, they need to pass and let the next generation of consoles take over.

They can't rely on the same graphics they have been using since the Gamecube for very long.

Funny thing is that there has never been shortage on Wii:s in here where I live, I could still go today and buy 5 wii:s if I would want to :|
Guess its somewhat differs between countries. The console sure has gotten the attention of female "gamers" and gamers tough but as for older ppl I dont really know(they tend to buy toys for their children so wii is undoubtly far more accessable for them as with all these cartoon characters in most of wii:s game covers.)

personally im just wondering what nintendo will try and pull off the next gen...........maybe keep it kiddyish???? or spend some of that fortune they just made?