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Nintendo Hardware Distribution 'Needs Improvement'

Delivery response and distribution needs attention, says Iwata, following "serious inventory shortages".

Nintendo president Satoru Iwata has said the firm needs to address ways to improve hardware distribution methods in US and Europe, speaking in regards to supply shortages that have hindered the business in those regions.

"In January this year, I explained to you that the sales of Wii hardware in December 2009 renewed the monthly historical sales record by a large margin, according to NPD. As a result, however, Wii console and Wii Fit Plus with Wii Balance Board, whose transportations from the manufacturing facilities to the retailers take longer, have suffered from serious inventory shortages," Iwata said of US during a financial presentation recently.

He went on: "In the United States, since it takes a long time for us to deliver our products to the retailers, when an inventory shortage takes place, it significantly impacts the business momentum. This is one of the areas we need to make improvements."

Iwata went on to say similar of Europe: "Also in Europe, Black Wii hardware experienced an inventory shortage in January and February, except in the UK. Although we had some Black Wii inventories for the UK market, due to the different power plug configurations, we were not able to flexibly reallocate the supply. This is another area in which we must make an improvement."

The Black Wii went on sale in US today.

[ Source: Nintendo ]