Emily and I have been loosely following the availability of the Wii Fit. It's generally sold out in our local Best Buys, Circuit Citys and Game Stops. It's often also sold out online at those same retailers, and at Amazon. However, there are always Wii Fits available on eBay. The retail price is $90, but the eBay price tends to be around $125.

It seems like what's happening is:

1. There is more demand than supply
2. Enterprising individuals monitor retail stores closely and buy Wii Fits whenever they can
3. Enterprising individuals sell Wii Fits on eBay and make a profit
4. This is inconvenient for non-enterprising individuals
5. Enterprising individuals are making money
6. Nintendo is losing money

I'm not sure why Nintendo is so chronically unable to meet the demand for the Wii Fit (and for the Wii, remotes, nunchuks, Mario Kart, and many other games). I can understand wanting to keep up a high perceived demand. And I can understand not wanting a lot of inventory sitting on store shelves. But holy cow, they're missing out on sales. I can't imagine the high demand or low excess inventory really outweighs the lost business.

From a business standpoint they should

1. Produce more and keep the price at $90
2. Continue producing the same amount but increase the price
3. Some combination of 1 and 2