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.

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

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.

This

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

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

Anything about purposeful undersupplying that resulted in legal charges?

I dunno but you can look it up yourself if you want.

No here in The Netherlands its been in stock in many web stores for the last few weeks now, the shortage was ended here and it has sold very well.