Economic Theory in Action
Posted by inpheaux on March 2nd, 2006 at 11:41 am
In a free market when a product's quantity supplied drops and quantity demanded remains constant price will rise. This is demonstrated in the convenient depection to the right [the red arrow is the Bad Part], but it is also happening right now in Southeast Asia, much to the dismay of gamers. See, today is the street date of the DS Lite in Japan, and things aren't going well. Earlier in the week, word came from Hong Kong stating that the actual quantity of DS's that would be available would lag far behind current demand, and speculation on the actual sale price went through the roof, in excess of double MSRP.
This issue quickly trickled down to several major importers, who had all started taking preorders on the DS Lite as soon as it was announced. This has resulted in a huge mess of cancelled orders, price hikes, delays, and large open questions related to if / when early-adopters will be getting their DS Lites.
Nintendo has publicly apologized for this, but it's not exactly their fault that everyone and their dog wants a DS Lite. Well, it is, but it isn't something to be ashamed of. Either way, if you were planning on importing, I'd suggest waiting awhile. The going price seems to have moved to $199 USD, for the moment at least, but that will most likely head back down to at-or-around $150 before long.
Discuss this article on the forums.