Popular enough that people are willing to trade their PS3 straight up for the Nintendo Wii.
Looking at Craigslist.org, there are an astounding number of people willing to trade their PS3s for a Nintendo Wii. Sometimes they want the difference in cash, but occasionally there are the ones that are willing to take the loss to possess a Nintendo Wii.
There are theories behind this of course -- that the profit to be made on eBay on a Wii is much larger than the profit of a PS3, and with Sony back to making blue lasers again, the PS3 is now able to make their way to the retail stores without shortages.
Retailers, unaware of the shift in the console gray market, continue to bundle the PS3 with the games and accessories they otherwise wouldn't sell (and make a nice profit margin on) at a cost nearing $1000, putting it outside the reach of most consumers.
The Nintendo Wii, on the other hand, bundles for around $500-600, still less than an bundle-less PS3 and becomes the console market's new method of obtaining a Wii -- on eBay, a non-bundled Wii console can reach upwards of $400, making the bundle extras truly extras, as the amount to be made on those bundled items can be far less in order to make a profit.
With Christmas over, one might hope to see sanity return to eBay and craigslist, but it seems the Wii shortage has just begun, and retailers, now aware that the PS3 is an overhyped, expensive console, have shifted their bundling focus onto the Nintendo Wii -- Gamestop/EBGames now offers a Wii bundle for almost $700.
Here's a quick breakdown of the $679 bundle, with retail cost of item in parentheses.
- Nintendo Wii system (system, remote controller, nunchuck, stand, sensor and Wii Sports) ($250)
- Wii 1 Gigabyte Memory Card ($60, although you can get a generic one for ~$13)
- 1 additional Wii Remote Controller ($40)
- Legend of Zelda: Twilight Princess ($50)
- Trauma Center: Second Opinion ($50)
- Red Steel ($50)
- Marvel Ultimate Alliance ($50)
- Super Monkey Ball Banana Blitz ($50)
- Madden NFL 2007 ($50)
- 1 Year Product Replacement Plan
Total Cost: $650, with the 1 Year Product Replacement plan effectively costing the remaining $29. Of course, realize that Nintendo warranties their Hardware for 1 year, and their accessories for 3 months, so the $29 you pay for the "1 Year Product Replacement Plan" is essentially a waste of money, unless you end up with a 4 month old defective Wii Remote.
Toys 'R' Us and their bundles aren't much better (unless you're the eBaying type) . Priced at $489, $539, and $589, they come with the console and 4, 5 or 6 games and a $39 "Starter Kit" which includes a 512 MB Memory Card, a controller cover, and a system tray (one already comes with the system -- why do you need another?)
And don't even bother looking at Amazon for the Wii -- the third-party sellers have effectively turned the little $250 console system into a $1000+ bundled game system.
We're only one month past release of the console, the busiest shopping month at that, and I suspect that by March/April, supplies should be far more adequate, and that by June/July, people should be able to walk into their local store and pick one without much hassle. And then of course, there's the rumor that Nintendo will start releasing Wiis with other colors and without Wii Sports, effectively lowering the console price to sub $200. Remember, it only took four months before Nintendo released the black and pink versions of the DS Lite in the US -- expect a similar color strategy for the Nintendo Wii.
Of course, if you just can't wait to score yourself a Wii, the rumor is that retailers have begun stockpiling the consoles in anticipation of New Year's Eve sales -- December 31st is the next shipment date for those of you who wish to camp outside stores.
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