"Well we have been slowly increasing it. It takes about five months lead time to get the parts and things to increase the production. So our final decisions about what we thought we would need for this holiday, were made back in June and July. And at that time, we didn't expect the demand would continue to increase the way that it has."
The shortages and games like Halo 3 have helped Microsoft do some catching up….and there's evidence that Sony has been closing the gap as well…with less expensive versions of the Playstation 3. Is there reason for concern at Nintendo? Harrison says no…
"By the end of this Christmas, there'll be 140 games out for the Wii. Some of the bigger ones will be our own Super Mario Galaxy, Mario and Sonic game coming from Sega, there are also great games like Call of Duty and others from the publishers." Will Guitar Hero III be maybe the biggest third party title for the Wii? "Well it certainly has the potential. They've ordered more than a million units and their sales are off to a great start. People tend to forget that it's not just teenage boys and twenty something boys, but there's a lot of guys in their forties and fifties that also like to play air guitar."
Nintendo Senior VP George Harrison. Bloomberg Boot Camp, I'm Fred Fishkin.