If you're not familliar with the concept of "freakonomics", it's the term economist Steven Levitt and journalist Stephen J. Dubner used in the title of their 2005 book to describe their method of using economic theory, by way of traditional storytelling, to understand socioeconomic trends and human behavior.

In the Freakonomics author blog, they feature repeat guest columnist Paul Kimmelman, who theorizes about Wii shortages that still plague Nintendo (and gamers) in the sixth month of its lifespan. He touches on the "freakonomics" of the Nintendo Wii. Who is benefitting from Wii shortages? And does Nintendo want them to end?

His first point cuts right to the chase.

Nintendo clearly made a colossal blunder in setting up their manufacturing. Even if they assumed it would not do very well, their inability to ramp up production in 4 months is pretty unusual in this industry. Note that there are no known parts shortages.

Kimmelman also wonders about the benefit to retailers who don't have Wiis in stock (they still get foot traffic from Wii hunters), how Wii inavailability affects sales of the Xbox 360, PS3, PS2, et al. and how scalpers continue to profit from Nintendo's shortages. He even goes far enough to suggest that traditional retailers may be "paying Nintendo not to ship them to the US" and that Nintendo benefits from the scarcity buzz.

An interesting read. Michael McWhertor

We Want a Wii! (Still) [Freakonomics Blog via Gamespot]