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I don't believe Nintendo is creating artificial demand, at least not anymore. I genuinely think its a result of their suppliers cannot keep up with demand of the product and Nintendo underestimating the Switch's popularity at launch.

If people remember, during the E3 Spotlight a Nintendo rep said he was 'relieved' the Switch has been as popular as it has been. I take that as they probably weren't sure how well the Switch would sell and thus under estimated production of the system for launch (in order to save resources in case of a flop), which created the supply issues we see today. Even with them trying to correct it and ramp up supply post-launch it is not something that will instantly be seen (part order increases will have to be produced and delivered) and probably takes a couple weeks or so to actually start increasing production, beyond their old shipment numbers.