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12.10.2007


Corporate morality, generally speaking, takes a backseat to good old-fashioned profit. Even if profits are high, any smart business owner continues to ask, “How can we increase profitability?” Honestly, can you imagine the resultant uproar if a CEO ever had the audacity to state to their shareholders, “You know what, we’ve had a good year with record profits and we could probably increase profitability tenfold by this time next year, but I don’t think we should be greedy”? Actually, they already have a term to describe these pious executives: unemployed. Is the foundation of every successful corporation insatiable greed? Of course not, but common sense will tell you that you can’t retire on good intentions either. If it’s possible to aggressively grow your business and unapologetically increase profits, you’re obligated to do so. Right?

Not necessarily. There is another school of thought, one which you don’t see too often. However, when you do, it’s an amazing spectacle, solely because of its rarity. Nintendo is temporarily pulling ads for its mega-successful Wii console and replacing them with ads for its handheld counterpart, the Nintendo DS. Why you ask? Because, despite the fact that the company is producing 1.8 million units a month, it still cannot meet consumer demand for the Wii. Nintendo sits at the very pinnacle of financial success, and yet, they’re concerned with “tak[ing] a responsible stand this Christmas season and not fuel[ing] demand.” Between the wild success of the Nintendo DS and unprecedented demand for the Wii, Nintendo is basically printing its own currency. Shouldn’t they collectively be milking the cash cow thrice daily, whipping consumers into a maniacal frenzy and swimming in money-filled pits the likes of which rival Scrooge McDuck’s?

Apparently not. While my use of the term 'corporate morality' is (admittedly) a bit overstated, Nintendo is demonstrating what so many businesses these days do not. Namely, scruples. Now before you roll your eyes at me, I’m not claiming it’s a corporate [Christmas] miracle. Nor am I suggesting that Satoru Iwata, President and CEO of Nintendo Co., Ltd. be canonized as a living saint. I’m simply stating that, in light of the Enrons of the world, this is a pleasant breath of fresh air.

More subtle than the projection of corporate responsibility though (which serves as a good public relations move in light of the recent criticism that Nintendo may be manufacturing the Wii shortage themselves to drum up demand), is the underlying intelligence in this decision from a business standpoint. The Wii is the must-have item of the 2007 holiday season. Consumers aren't on the fence trying to decide if they should purchase a Wii, they're actively seeking a retailer that has one to sell and aggressively pursuing all Wii leads using tactics that would make King Leonidas proud. All things considered, advertising at this point is a waste of money.

Kudos to Nintendo for not only recognizing this fact, but acting upon it.

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