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Forums - Gaming Discussion - Nintendo Switch Selling Out Due To Intentionally Low Stock? Think Again

Boutros said:
RolStoppable said:

That is your argument? A COO saying that he thinks that Nintendo did that, but then the aftermath is clearly proving him wrong because the Wii was produced at almost twice the rate of the PS2 and still sold out? You can't intentionally understock by producing and selling at a much higher rate than anything that came before it.

I was waiting for someone to fall into the Wii trap. Didn't expect it to be you though.

You sure can lol...Why couldn't they? If they can evaluate the demand correctly and accurately they can both sell a lot of units as well as ship just a little below demand to keep that hard-to-find status. Many shipments of fewer units allows to gauge that easily.

I honestly can't believe people are actually denying that Nintendo has been creating artificial scarcity especially since they've been doing it forever (it goes back to the NES era). And I also don't understand why people see this as an attack to Nintendo. I think it's a brilliant strategy that few companies could pull off as well.

But the first allocation of Switch being sold out doesn't mean anything yet.

You're not serious, right? Nintendo shipped 4 million Wiis by the end of 2006, 6 million units by the end of march 2007. It was manufactured 1,2 million units a month until 6/07, after that 1,8 million units a month until 6/08 when the production was ramped up to 2,4 million units a month. Nintendo was under heavier competition in Europe, so they kept the supply on a level they didn't lose any sales by not having a supply.

I don't think it's an attack to Nintendo, as much as it being attack to my intelligence. Just yesterday I helped my 12 year old kid in his homework, and frankly, even he could do better than that, as his homework needed to correlate with the real world.

In any case, just like the guy in the video thought, why it is only Nintendo creating artificial demand when being short on supply, why not others at same situation. Why did it work for Wii but not the Wii U.



Ei Kiinasti.

Eikä Japanisti.

Vaan pannaan jalalla koreasti.

 

Nintendo games sell only on Nintendo system.

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bananaking21 said:
Green098 said:
Yeah if people are saying Nintendo is understocking the Switch on purpose they'd have to say the same for PS4 and Xbox One at this point.

This is the company that is notorious for understocked their products to create artificial demand. Anybody thinking that they won't understock their first set of preorders is kidding them selfs. 

 

PS4 sold 1 million in less than 24 hours in the USA alone. No way where they understocking it. They sold every unit they could make

Those were some insane numbers when you look back at PS4 launch.



RolStoppable said:
Boutros said:

You sure can lol...Why couldn't they? If they can evaluate the demand correctly and accurately they can both sell a lot of units as well as ship just a little below demand to keep that hard-to-find status. Many shipments of fewer units allows to gauge that easily.

I honestly can't believe people are actually denying that Nintendo has been creating artificial scarcity especially since they've been doing it forever (it goes back to the NES era). And I also don't understand why people see this as an attack to Nintendo. I think it's a brilliant strategy that few companies could pull off as well.

But the first allocation of Switch being sold out doesn't mean anything yet.

It's perceived as an attack because it strongly implies that there wouldn't be much demand otherwise. It's also an accusation that is pretty much exclusively thrown at Nintendo.

The link you provided here doesn't offer any more substance than current accusations, it only proves that the accusations date back to the NES era. Nintendo manages to create a hit because they do something new, then demand outstrips supply. Correctly and accurately gauging demand is not possible when there is no proper precedence for a product. People like to use the Wii as an example for artificial scarcity, but independent market analysts who do nothing but analyzing sales data had the Wii at 30m tops for its entire lifetime. Even the best analysts were off by a tremendous margin, so there can't be a reasonable expectation that demand could be correctly and accurately gauged for the Wii. For the NES, it's the same story. The home console market at the time was declared to be dead and to never return by market analysts.

I would be willing to give people the benefit of the doubt, if there were accusations that Sony is trying to create artificial scarcity with PS VR; not that I believe that, but people who love this theory should jump on it. But as things are, it's a one-way street.

I haven't been following PSVR sales at all so I have no idea beyond assumptions but is there even that much demand for PSVR? I mean even if it was readily available I doubt it would sell that well anyway from what I've seen. Sony probably doesn't want to be left with overstock the way they were with the Move controller. As far as I know the Move controller was way overshipped and in a way the PSVR is to the PS4 what the Move was to the PS3 except way more expensive. So if Sony did create artificial scarcity with PSVR it absolutely didn't have the intended effects lol Did Sony even ship new units since it's been sold out?



RolStoppable said:

When Nintendo sells out, it's quickly said that it's low stock to create artificial demand. But when Sony sells out, it's because the product is amazing and everything that could be made is selling.

Just like when Nintendo releases a new hit game, its because "Nintendo fans" but when another company comes up with a new hit its because they know what the market wants.



When the herd loses its way, the shepard must kill the bull that leads them astray.

I do think nintendos initial shipment of 2 million is very conservative and needs to be increased.

The thing is, it all depends on what you percieve the Switch to be. I know nintendo is trying to market this as a home console, but just as many people are going to see a super powerful handheld.
For reference the 3DS, wich launched in a very similar time window did 3,6 million in about 4 weeks at 250$ price tag. That was the most successfull console launch in history at the time. (Nintendo always has successful launches. The WiiU had a successfull launch, yet both systems still struggled for the next six months. 3DS managed to recover, WiiU didn't)

Also, the PS4 and Xone both had staggered releases, while the Switch at launch covers all major territories.

If you think the Switch is a home console, then yes ninteno stocked adequately to only slightly undestocked. But if you view it as a handheld nintendo is understocking by about 2 million.

We know Gamestop has a 250.000 people waiting list for the Switch already so we can safely say that in the US Nintendos initial Shipment will cover only 2/3 or less of the demand. They might be surprised by the high demand, but based off their expierience with handheldsystems they Shouldn't be. Seeing that they are releasing a hybrid system in all major territories at once initial Shipment should have been at least 3 million.



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RolStoppable said:
Boutros said:

I haven't been following PSVR sales at all so I have no idea beyond assumptions but is there even that much demand for PSVR? I mean even if it was readily available I doubt it would sell that well anyway from what I've seen. Sony probably doesn't want to be left with overstock the way they were with the Move controller. As far as I know the Move controller was way overshipped and in a way the PSVR is to the PS4 what the Move was to the PS3 except way more expensive. So if Sony did create artificial scarcity with PSVR it absolutely didn't have the intended effects lol Did Sony even ship new units since it's been sold out?

I don't think there's much demand for PS VR, but there are still people who are saying that it is sold out. We have a good idea that it didn't sell much overall, so limiting supply to create artificial demand would apply more to this situation than any other.

Your reasoning for the low supply of PS VR can be easily applied to amiibos, but in that case you opted for scarcity to increase demand. That's what I am talking about when I say one-way street.

Nintendo still hasn't restocked many amiibos for absolutely no reason (except to create rarity of course but that suggestion is apparently not accepted by everyone). PSVR will eventually get more stock until most interested will have had the opportunity to get one (it's only been 3 months since it released and I just looked it up and Sony announced more incoming stock soon). Nintendo knows there's demand for those amiibos that have never seen big restocks but they're still sold out and some of them have never been readily available. For example Roy came out 1 year ago and I never saw him in stock (or I would have bought it) here in Canada. The only way must have been to pre-order him but even those were sold out quickly. So a whole year goes by without new stock for a product that was never supposed to be limited. And that goes for many other amiibos. It's certainly not a production restriction issue at this point or a fear they wouldn't sell.



Boutros said:
RolStoppable said:

I don't think there's much demand for PS VR, but there are still people who are saying that it is sold out. We have a good idea that it didn't sell much overall, so limiting supply to create artificial demand would apply more to this situation than any other.

Your reasoning for the low supply of PS VR can be easily applied to amiibos, but in that case you opted for scarcity to increase demand. That's what I am talking about when I say one-way street.

Nintendo still hasn't restocked many amiibos for absolutely no reason (except to create rarity of course but that suggestion is apparently not accepted by everyone). PSVR will eventually get more stock until most interested will have had the opportunity to get one (it's only been 3 months since it released and I just looked it up and Sony announced more incoming stock soon). Nintendo knows there's demand for those amiibos that have never seen big restocks but they're still sold out and some of them have never been readily available. For example Roy came out 1 year ago and I never saw him in stock (or I would have bought it) here in Canada. The only way must have been to pre-order him but even those were sold out quickly. So a whole year goes by without new stock for a product that was never supposed to be limited. And that goes for many other amiibos. It's certainly not a production restriction issue at this point or a fear they wouldn't sell.

https://www.amazon.de/Nintendo-2000666-amiibo-Smash-Roy/dp/B019MOC73W

Meanwhile he is so readily available in europe that you can almost get him at half price. In fact almost all Amiibo got major restocks over here after a while and havent been out of stock ever since.

If Nintendo intentionally understocks, they're pretty spotty about it.



I would assume Nintendo is a bit cautious with initial stock, because selling out initial stock sounds better than not, even if the numbers are higher

Kimishima did say he wanted 4(?)M units by the end of March, so they are still expecting it to do well



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Boutros said:

Nintendo still hasn't restocked many amiibos for absolutely no reason (except to create rarity of course but that suggestion is apparently not accepted by everyone). PSVR will eventually get more stock until most interested will have had the opportunity to get one (it's only been 3 months since it released and I just looked it up and Sony announced more incoming stock soon). Nintendo knows there's demand for those amiibos that have never seen big restocks but they're still sold out and some of them have never been readily available. For example Roy came out 1 year ago and I never saw him in stock (or I would have bought it) here in Canada. The only way must have been to pre-order him but even those were sold out quickly. So a whole year goes by without new stock for a product that was never supposed to be limited. And that goes for many other amiibos. It's certainly not a production restriction issue at this point or a fear they wouldn't sell.

Creating a rarity is a whole different topic that limiting supply in order to try to create demand. Rarity means higher price on second hand market for a limited release, but the first hand seller is only losing sales. Are you sure the issue isn't with retailers? Not sure if Roy Amiibo would sell, other than the collectors would be buying them.



Ei Kiinasti.

Eikä Japanisti.

Vaan pannaan jalalla koreasti.

 

Nintendo games sell only on Nintendo system.

Lmao fuck! I just made a post about this. But yeah, no... the stock isn't low and anyone who thinks otherwise needs to do their homework and look at the business prospects. I'm pretty sure Kimishima doesn't hold the more conservative business practices that Iwata believed in.