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Forums - Nintendo Discussion - Do you ACTUALLY believe that Nintendo is creating artifical Switch shortages?

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Eagle367 said:
Aeolus451 said:

Whoever said that? 

Do some research on artificial scarcity or managed scarcity before you dismiss it so casually. As I said before, long lasting repeated shortages of multiple products is not a coincidence. Since I'm gonna give the ninty the benefit of the doubt and not assume their a bunch idiots who can't manage how to produce enough product to meet demand (like you guys do), they're purposely limiting the production of their more popular products. It's a smart strategy if scarcity is controlled in a manner that increases demand, creates "sold out" headlines, sells through all stock as fast as possible, etc. 

Seriously, this is what's annoying and mindboggling about this topic. Most ninty fans say that it doesn't make sense that ninty would use this business practice but instead keeps having shortages due to popularity. There's couple of hilarous problems with that excuse. 

1. You're basically saying that ninty is not smart enough to do it on purpose but rather the repeated and lengthy shortages (with multiple products) are due to ninty's incompetence with being unable to figure how to produce enough product to meet demand.

2. The popularity part of the excuse is especially bogus. Ninty products don't exactly outsell it's competition and yet the competition manages to outsell ninty the majority of the time and not have shortages over and over except around a certain holiday season sometimes. Also, this isn't a valid excuse when the same product has shortages throughout the whole year and for years after. I can understand a company not anticapating how popular their product will be and having shortages for about a year after because of that but that excuse doesn't apply after they had plenty of time to adjust to the demand. 

3. There's alot of articles on this and people from the world of gaming saying that ninty is likely used managed scarcity or artificial scarcity since NES because the repeated and lengthy shortages can't be explained outside incompetence or using that business practice. Neither Sony or MS have shortages like ninty does. 

So yeah you have no solid proof just speculation right. And yes I believe ninty is incompetent in measuring their demand supply ratios. They messed up with the Wii u but couldn't possibly determine the switch would be so popular that 2.74mil first month wouldn't be enough. Now they have to battle mobile giants for screen and memory parts so the shortage is real. As for the Wii and DS tell me which company sold 20mil+ consistently each year for four+ years? Even the ps2 legged out on a year to year basis Wii was destroying it. Hell the ps4 is selling more than the ps2 time matched but it is still very behind the Wii. Ninty is a Japanese company in the traditional sense unlike Sony and Japanese companies have always been conservative. Its in their genes not to over produce but under producing is alright. That's how they function. Ninty is also just a gaming company so if they go overboard and it doesn't work out they don't have a safety net like Microsoft or Sony. They also sell their hardware at a profit always over production would be disastrous while for Sony and Microsoft it is routine and they can just lower the price if they over produce. When you look at ninty as a business and Sony and Microsoft it's very clear why ninty always has shortages

Nintendo has actually fairly rarely had stocking problems; people way overhype things. The reality is there are certain regions that it will always be hard to stock well for compared to others. The only time I can even think of where the theory potentially has slight grounds would be the Wii era, but even then they were manufacturing LOADS of DS's at the time, so it's not hard to imagine that it was somewhat difficult for them to manufacture for home consoles and handhelds at a quick enough rate.

the fact that there is a shortage in high end parts for mobile electronics at the moment adds to the difficult in manufacturing (google if you haven't heard about the issues, the Switch uses a few of the the same high-in-demand parts that things like Apple phones also use)

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Yerm said:
i think what really happened is that scalpers have taken over the supply. a lot of people who really wanted to buy the Switch got it during the first month, but i think after that the scalpers just came in take everything after that. im sure theyre putting out as many as they can, but something more seems to be at play here besides artificial demand.

I'm pretty sure skalpers account for less than 0.5% of the market. 

super_etecoon said:
Nope. The Wii sold because it was a revolutionary idea and people couldn't wait to play it. There were shortages then and from the very beginning people were claiming "Nintendo always does this." The WiiU was a me-too idea and never gained traction...and there were plenty of WiiUs in stock from the beginning. If Nintendo's strategy is to keep stock low to attract more users they didn't even implement it during that launch. Here we are at the Switch, again a revolutionary product, and we're seeing the shortages. And just as with the Wii, follow the numbers and you'll find that they are producing and shipping at capacity.

The problem with that idea is that the Switch isn't revolutionary.  We already have tablets that hook up to tvs.  THe Switch is a closed ecosystem unit with Nintendo IP's to sustain it.  If those same games were available on Ipad, the Switch would be only a minor sucess(there are always people looking for a dedicated handheld).

As far as the "manufactured shortages" goes...  I actually do believe that Nintendo is completely incompetant that they didn't think a new replacement for the ds/wiiu wouldn't even sell as much as one or the other is just stupid.  They should have waited 3-4 months to have supply.

It is near the end of the end....

Many people claim that Nintendo does this in order to benefit from new spreading about low stock, and huge demand. I'm pretty sure a headline reading "Nintendo Switch breaks sales record for the month of May" would have a much greater impact.

Of course they do. They potentially could produce more - provided contractors can supply them. But would that be economical in the long run?

Hunting Season is done...

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As a shareholder, I'd be super pissed if I found out that Nintendo could be making money but they are choosing not to.

Zoombael said:
Of course they do. They potentially could produce more - provided contractors can supply them. But would that be economical in the long run?

Are you implying they don't make more right now because they're waiting to make more when the production costs go down?

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Yes, because I'm not a Nintendo hater. All these people thinking that the shortages are just because Nintendo is too incompetent to provide enough stock. That's insulting, so I choose to believe otherwise.

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vivster said:
Yes, because I'm not a Nintendo hater. All these people thinking that the shortages are just because Nintendo is too incompetent to provide enough stock. That's insulting, so I choose to believe otherwise.

Smoke on the street is that it is because they're competing with Apple for componets. 

There is no compelling reason that they wouldn't want to sell as many Switches as possible.