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

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Yes. Mainly because I don't believe in coincidences of this size with businesses. You're not gonna have shortages (wii, nes classic, amiibo, switch, ds, etc) for as long as Nintendo does and with this many of their products. The people responsible would eventually lose their job over it if it kept happening. Artificial shortages, artificial scarcity and managed scarcity (whatever you want to call it) is a known business tactic and nintendo has been doing it for awhile. Having shortages once in a blue moon is one thing but it repeatedly happening with all of their popular products is quite another.

https://www.theverge.com/2017/4/13/15294494/nintendo-nes-classic-edition-console-discontinued-strategy

http://www.gamasutra.com/view/news/109643/Opinion_Why_Artificial_Scarcity_Could_Boost_Digital_Game_Downloads.php

https://www.engadget.com/2007/03/27/wii-shortage-is-intentional-according-to-gamestop/

http://n4g.com/news/2014325/gamestop-and-target-cancelling-some-switch-pre-orders-due-to-shortages



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I don't believe shortages when companies like GameStop give clear timelines of how long a shortage will last over six months in the future.

Nintendo recognizes demand, and if they were taking legitimate steps to address it, the shortage would be solved by late September (assuming they immediately started turning the wheels to get it addressed after demand was apparent).

Allowing people to believe there is a shortage puts a sense of urgency in the minds of buyers, one that says "Oh shoot, there's a Switch. I should buy it because I won't have the chance to do so for a while if I miss this opportunity." Hell, it almost works on me every single time they come in the store where I work, and this is coming from someone who recognizes what they're doing.

Do I believe it's artificially lowering supply? No, my store gets about 18 a week, but the "Oh shit it's here" factor helps it leave the store the same day. To put that in perspective, we get around 50-75 PS4's a month, and 60-80 Switches. So like I said, it's not in low supply. It's perceived to be because of a cycle:

1. Everyone buys the console until it is gone at launch
2. Perception of trendiness is established by media and an inability to find a Switch on shelves.
3. New stock arrives.
4. Customers recognize it as "hard to come by" and purchase it.
Repeat steps 2-4 until it stops selling.



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Nintendo can't just ramp up production at will to meet demand, they're competing against companies like Apple for parts. Can't make 20 million Switches if you only have access to enough LCDs or memory chips to make 10 million.

http://www.foxbusiness.com/features/2017/05/31/nintendo-fights-parts-shortage-for-switch-wsj.html



Bet with Liquidlaser: I say PS5 and Xbox Series will sell more than 56 million combined by the end of 2023.

Short answer: No.

Long answer: Nooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo.



Not this time. There really is a crippling NAND shortage going on, and Apple is a way bigger party than Nintendo can ever be. They really want a hit after the Wii U flop.



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pokoko said:
No. A bird in the hand is worth two in the bush. That sale you failed to make today might not be there tomorrow.

Does a shortage drive demand somewhat? Does it create a positive impression for your product? Yes, but it's not worth the risk to purposefully manipulate the market and it's an awfully short-sighted tactic. The upside is relatively minor and probably doesn't even make up for the downside--and that's without considering the logistics of screwing up your own supply chain.

This



When I first opened the thread I thought "No", but reading some of the replies has got me thinking now :P



KLAMarine said:
pokoko said:

Well, to be fair, Nintendo does have a long history of manipulating the market.  They did a LOT of dodgey stuff in the 1980s that left a sour taste in the mouths of consumers and got them in hot water with various governments.  They've undersupplied retailers all the way back to the NES, both with consoles and with games.  At this point, it's pretty much expected.

Remind me of this dodgey stuff again if you could please?

pokoko said:

Personally, I think it means that Nintendo cares more about their bottom line than anything else.  They'd rather a supply deficit than to have an over-supply on the books for the year.  

I think it's safe to say Nintendo cares more about their bottom line than anything else. They gotta keep the lights on in their offices and pay their employees somehow...

I'm pretty sure you remember that they were charged with price-fixing in both the US and EU and paid millions of dollars for it.  My own personal dislike is the way they undershiped third-party games against their own titles.

As far as caring about your bottom line at the end of the year, there are times where worrying too much about your overhead can impact your sales potential.  In retail, there is a saying that goes, "you can't sell what you don't have."  Sometimes understocking doesn't just mean you lose a sale, it also means you lose a customer.



Not with the Switch. But I do believe with 100% certainty they did with the Wii U and Amiibo



pokoko said:
KLAMarine said:

Remind me of this dodgey stuff again if you could please?

I think it's safe to say Nintendo cares more about their bottom line than anything else. They gotta keep the lights on in their offices and pay their employees somehow...

I'm pretty sure you remember that they were charged with price-fixing in both the US and EU and paid millions of dollars for it.  My own personal dislike is the way they undershiped third-party games against their own titles.

As far as caring about your bottom line at the end of the year, there are times where worrying too much about your overhead can impact your sales potential.  In retail, there is a saying that goes, "you can't sell what you don't have."  Sometimes understocking doesn't just mean you lose a sale, it also means you lose a customer.

Anything about purposeful undersupplying that resulted in legal charges?