Quoted from fuko:
I'm saying 2 things: first, shipping TH will allow JJP to collect on monies owed for outstanding preorders (not everyone is paid in full); but more importantly they will sell more standards to new customers who are not yet bought in. The same model was used in early days of WOZLE production and is driving WOZ sales today
I am referring to parts already received for production of new TH games (I've not seen their factory, so can't prove it), but also to sunk R&D cost. The only way to convert that to cash is to start shipping
I think the problem is you're not looking at it from a push/pull manufacturing standpoint.
From a financial standpoint, it makes more sense for JJP to push WOZ until the parts are completely exhausted. JJP gets $8000 for every WOZ that runs off the line. The parts are already paid for, the workers are already trained, there is likely very little downtime in the procedure anymore. This is the well oiled machine part of manufacturing.
Right now JJP is sitting on paid WOZ inventory/components right? And as he has stated numerous times every part is very machine specific (citing the delays in Hobbit). So those parts are lost cash if they aren't assembled into WOZ machines and sold. Right now he may have millions on the books in the form of raw materials/components, so he's got to get rid of those to make it worth while.
This is referred to as pushing in manufacturing.
Pulling is what he's doing with Hobbit. Pulling is when you wait for a threshold of orders to pile up, then order parts/raw materials.
Right now JJP is doing both, push manufacturing on WOZ and pull manufacturing on Hobbit. Until the WOZ components are gone, it makes more financial sense to keep churning out WOZ because those dollars spent are already on the books and out of the bank.
This is just speculation, but I bet this is probably why Bally used 4 bank drop target mechs on games with only 3 drops in a bank (ie. Space Invaders). The more universal parts you use the more flexible you can be with your manufacturing.
I'm not criticizing JJP, truthfully I think they're doing the best thing possible. Delays suck, but not getting your machine at all would be much worse.