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Kyuu said:
Louie said:

Number 4 is actually really funny because during the early Wii days, many posters on this website said Nintendo was creating "artificial demand" for the console by intentionally limiting supply. (You probably lived through that period as well, seeing your account was created in 2009 - but I think we should explain this to newer posters). They accused Nintendo of "stockpiling" Wii consoles (which, hilariously, is what all companies do because demand during the holidays is so much higher than during the rest of the year) and argued sales would be way lower if people didn't have the fear of missing out. I still have the first draft of an article somewhere on my laptop that we planned to publish on VGChartz to explain this.

And, even more hilarious, today it's a good thing and an indicator of success that the PS5 was sold out at first and an indicator of doom for Switch 2 that it isn't.

TLDR: If a Nintendo console sells out its sales "don't count" because Nintendo is creating artificial demand and that's a sign that actual demand is low. If it doesn't sell out its sales must be bad, the console is slowing down and actual demand is low. It's a never-ending cycle. 

Switch 2 and PS5 situations are nothing alike. Switch 2's sales did slow down to levels below the original Switch outside Japan where it's sold cheap. There are also legit concerns about cartridges, prices, and the RAM and tariffs crisis.

Quick note: This is not even true. Switch 2 has consistently stood well ahead of Switch 1’s sales figures even outside of JP. Yes, there have been a few instances of Switch 1 getting ahead (I’m looking at NA during November of Year 1), but NS2 is selling almost 20-50% faster in non-holiday months.