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

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archer9234 said:
No. If that was the case. Than Wii U should of been strapped with production too.

The WiiU sold out at launch, too.  But demand fell after that, so the shortages didn't last as long.



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No, I don't think they are creating artificial demand with the Switch, nor do I think they did so with the Wii, but they definitely did in the 3rd and 4th generations.



SegataSanshiro said:

When I was a manager at GS in 2007 Nintendo would purposely send us 2-4 units at a time and a space of about 2-4 weeks in between shipments. No way in hell was it that hard to manufacture a overclocked Gamecube 360's were selling like crazy and we still had a bunch stacked in the back room and that was a state of the art machine. So yes Nintendo does it. It's good business. Create a high demand with low supply. It's a tried and true tactic. Switch is popular yes but Nintendo wants the hype to ride for not just popular but creating even more demand for a double edge sword.

I remember those days.  Though thinking about it, Nintendo's run by a bunch of old men out of touch, so I just think they were expecting to sell what they're making.  The problem is that it'll take a few months for Nintendo to ramp up production, which I doubt they'll do.  And when they do decide they need to ramp up production, it'll be too late.



Iwata, discussing the possibility of launching the Wii in the Chinese Market during the October 2007 Q&A.

"the sheer demand in the existing markets around the world is already higher than the supply we can provide."

Regarding supply, Nintendo's presentation discusses bottlenecks and a short decline in production due to the Chinese New Year.

Artificially constrained supply is a conspiracy theory that relies on Nintendo frequently misleading and lying to shareholders and industry analysts.

One quarter into fiscal year 2007, after seeing what a hit the Wii was the previous December, Nintendo anticipated shipping 16.5 million Wiis during the first full fiscal year. They ended up shipping 18.6 million.

I want to know what the artificial crowd thinks they could have shipped had they not been constraining supply. I also want to know what the marginal value of shipping one fewer console is in terms of lifetime consoles sold.

These are answers that no one will offer up because this theory is bunk.

Here is the URL for Nintendo's IR library for anyone who'd like to dig in.

https://www.nintendo.co.jp/ir/en/events/yearindex.html



I cant afford one :( well i can i have a credit card but dont like using it, maybe awhile before i can get one



 

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This theory is nothing more than rubbish.

People are pointing to a generation ago to "prove" that Nintendo would magically take away sales. If they're shipping units by airplane and have increased production since the day it released, why would anyone still think they're trying to create artificial demand? Are they still salty about Nintendo stopping the NES mini?



Aeolus451 said:
specialk said:

Lol. "My" excuse is what is being reported in the most respected business publication in the world. I'll stack that up against the wild speculation of vloggers any day.

And Microsoft and Sony absolutely do face shortages. When they release products that generate fervor and have high demand. The PS4 was difficult to find for months after launch. I bought my in late March of 2014 and had to call around to several stores. You can google "PS4 Shortage" to see more. The only piece of hardware that MIcrosfot has ever released to high demand (on par with Wii/PS4/Switch) was the Kinect.

And there were Kinect shortages. 

Did I not have this "Neither Sony or MS have these problems with shortages at this level the vast majority of the time." in my post?

Where did I say that sony or ms don't have shortages?

I would be more open to this idea if the Switch was selling Wii U-like quantities each week and they were telling us it's because of production issues but from the numbers we currently have Switch is selling exceptionally well trailing the Wii's debut by about 345k units and the PS4's debut (greatest first 3 months for a console ever) by about 1.2m.

Those are great sales numbers, especially for the period of March through May, it makes the argument for real supply issues much more credible than a marketing ploy to boost hype.



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TruckOSaurus said:
Aeolus451 said:

Did I not have this "Neither Sony or MS have these problems with shortages at this level the vast majority of the time." in my post?

Where did I say that sony or ms don't have shortages?

I would be more open to this idea if the Switch was selling Wii U-like quantities each week and they were telling us it's because of production issues but from the numbers we currently have Switch is selling exceptionally well trailing the Wii's debut by about 200k units and the PS4's debut (greatest first 3 months for a console ever) by about 1.2m.

Those are great sales numbers, especially for the period of March through May, it makes the argument for real supply issues much more credible than a marketing ploy to boost hype.

if im not mistaken, Wii & PS4 are the only consoles to ever have a better first 3 months than Switch so it makes no sense to claim they are deliberately holding back stock.



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

mountaindewslave said:
Eagle367 said:

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)

Yeah well that's generally the point. People just like to take a lie and run with it



Just a guy who doesn't want to be bored. Also

I do believe believe Nintendo is creating artificial demand. Zelda is an amazing game but is it worth buying a switch just for one game? Probably not, but hearing news about supply issues for months creates a sense of need to buy it now rather than wait. If Nintendo kept up with stock and no one was reporting supply issues then people could easily say "I want a switch but not for 1 or 2 games. I'll just wait until there is more games since I can just walk into any store and buy it at any time."

Everyone knows deep down that when they're done with that their switch will just be collecting dust and ignored until more games come out later but they forget all that when all they hear is supply issue.

Yes, I know that there are people genuinely who want the switch but can't find it in stock so it might be a loss of sale, but that is mostly temporary and they'll most likely buy it immediately if they ever saw it available.