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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:
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

Yes you can have shortages for something that sells 20mil+ each year and something that was planned as a novelty item and made only a couple million only for it to blow up and even outsell current consoles in its last month. 

And haha hahaha people actually believe ninty is some nefarious company purposefully screwing itself and its customers. I mean ninty made 2.74mil consoles in March. 2.74mil in a month is an amazing feat and that's not called short supplies especially considering this was their best console launch month even more than the Wii. We then hear stories how Ninty is using freaking AIRPLANES to meet demand in USA. Why would a company who purposefully restricts supply do that. Then in May it sells less than a ps4 even though demand is clearly there. I would assume they would not reduce it that much as to loose face by selling less than a 4 year old console and at least bare minimum keep it above that number. And as consumers have shown they are willing to buy from scalpers for more money. Ninty is loosing all those sales right there since it demand was met they would have sold twice the consoles one for the scalper and other for the consumer and made a hell of a lot if money but no their evil sells just wanted consumers to buy expensive products from people ninty doesn't even know about just for the hell of it. Sure ninty looses money and sales but ninty is pure evil right? Yeah when you think of Ninty as a company it makes zero sense for creating false shortages and they are literally loosing sales and money the longer shortages continue. Anyone who believes otherwise just really hates Ninty or is really gullible to believe a company would do stupid stuff like that which actually harms them and their consumer and only random scalpers benefit

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. 



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It's unfortunate that the Wii U's legacy is hurting the switch, they would have manufactured more Switches if it was successful, I'm still waiting to receive my switch. :( Breath of the wild is just sitting in my room gathering dust.



Sales prediction, PS4: 122 Million, Xbox one: 50 million, Switch: 105 million. 

Definitely not, just as I don't believe that without the stock issues Switch would be doing a 17m+ 2017 like others believe.

Two opposing extremes.



Parts shortages are outside Nintendo's control. They cannot just click their fingers and conjure up an infinite supply of memory chips, nor can they afford to get into a bidding war with Apple for them.

Like a console, a supply chain is only as fast as its slowest part and can be bottlenecked if a single stage stalls.



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

There are many possible reasons why Switch stock is in short supply and artificial supply restriction certainly is a possibility. Other possibilities include poor logistics planning, having to modify or redesign part of the product due to a high failure rate, having to redesign due to needing to use different components due to component supply issues or simply shortage of components.

My feeling is the Switch will get a minor revision due to the dock and joycon issues and that might have caused a pause in production but it's mostly about Nintendo still being unsure whether the Switch will have a huge drop in sales like wii u so being conservative with shipment numbers which also means artificial scarcity I guess. This has the benefit of less unsold inventory and keeping consumer demand higher. I remember the wii u being cleared from Tesco shelves as they weren't selling and them downsizing their Nintendo shelf space. It was hugely damaging for this to be going on across retailers and quickly established the wii u as a huge failure. Clearly Nintendo did not want to repeat that mistake.



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Yes. We're a fragile species. Nintendo knows this. We fear rejection and it's making us lust for Nintendo even more. I'm off to fap over rabbid princess peach now.



No way! I think Nintendo themselves misjudged just how popular the Switch would be and haven't been able to ramp up the production yet to meet the demand.

I think only conspiracy theorists believe Nintendo is deliberatly holding back stocks.



I'm on Twitter @DanneSandin!

Furthermore, I think VGChartz should add a "Like"-button.

It's not asking much to take a look at the monthly sales figures on VGC and compare those with Nintendo's production numbers to confirm/debunk the notion that Nintendo is withholding stock on any significant level.

Realistically, Nintendo (or anyone for that matter) wants as many hardware units in the hands of consumers as possible, preferably in the hands of end users rather than Ebay flippers or console hoarders in the interest of building up that initial user base which only means more software units and Nintendo branded accessories sold.

If the argument shifts to "Nintendo is purposely not producing as many hardware units as they could sell" then the question becomes, then why did they announce they were doubling production goals in light of the better than projected initial sales performance?

Announcing that production will be doubled does nothing to feed the street level notion that supply will continue to be pinched for the foreseeable future, thus encouraging runs on and hoarding of supply. It's not like Nintendo made that announcement to spur sales of games and accessories among consumers who have yet to be able to find a Switch at retail.

Consumer interest simply outstrips Nintendo's production and shipping rates currently. Nintendo wouldn't have resorted to shipping units via air cargo, thus cutting into their margins if this weren't the case.



DanneSandin said:
No way! I think Nintendo themselves misjudged just how popular the Switch would be and haven't been able to ramp up the production yet to meet the demand.

I think only conspiracy theorists believe Nintendo is deliberatly holding back stocks.

It's not really a conspiracy theory its just normal business practice. Who are they conspiring with anyway? 

They can't just phone up foxconn and say more Switch's please. They have to open more production lines at Foxconn requiring more investment and get new arrangements for components with suppliers. It's a big logistics exercise. It's not uncommon to ensure there is strong demand before commiting to higher production levels and investment. This also has the fringe benefit of creating pressure in consumer demand too so there are a quite a few commercial reasons to do this. I'ts not voodoo, tin hat or supernatural or anything else wierd or strange its just business.



StarOcean said:

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

I....what? The WiiU sat on shelves unwanted and unloved for years and eventually retailers just moved it out to clear shelve space. We even had threads on this site about the crazy (unofficial) discounts it was getting even though it had only released six months ago. There were provably no artificial shortages going on with the WiiU. It didn't sell and by the time it picked up a litte Nintendo had stopped production and the Switch was in the works, so rather than kick up production again wich would have been costly and ineffective, they let the leftover supply 'carry' it until it's demise last year.

Artifical demand only 'works' if you're actually trying to sell units. That's why it can't apply to either NES mini or the WiiU. Nintendo dicontinued both of them, thus they didn't gain anything by 'creating artificial supply'.

Amiibo were a surprise hit and sold out because they were popular. Nintendo did up production and most of the original 50 are readily available now. I get the feeling they downsized manifacturing quatities again for the newer Amiibos, with waning Amiibo popularity though. The Zelda BotW ones haven't seen a single restock since launch for example.