Mandalore76 said:
If that's the case, and it's that easy to build up artificial demand, why didn't they supply constrain the Wii U after the initial allotment sold out? Why didn't they supply constrain the Gamecube for that matter? On the contrary, Nintendo actually delayed the original release date of the Gamecube in North America by 2 weeks so that they would have more units available at launch, not less. The Wii and the Switch both suffered stock issues because the excitement and demand for the product was there from the get go. The demand created the stock shortages, not vice versa. The Wii sold 600,000 consoles in it's first 8 days on the market in the Americas. It sold 372,000 consoles in Japan in 2 days. It also sold 325,000 consoles in Europe in 2 days as well. In the first half of 2007, the Wii sold more consoles than both the XBox 360 and PS3 combined. And as far as the Switch goes, Nintendo debunked that theory by spending more to expensively air ship new units as they were selling out in the launch period rather than proceed with the cheaper and longer mode of transportation by sea. That's demand creating stock shortages. Not the other way around. |
Ninty simply increases productive capacity not following what are likely spikes in demand, but trying to predict the average demand for a longer period.
Every company does it, maybe it just happened that Ninty made more prudent predictions even when it was selling its most successful consoles.
True supply constraints happened in the past, but towards other companies: during the early console generations, it supply constrained cartridges for third party developers and publishers, actively preventing even the most successful 3rd party games from reaching the sales numbers of the top Ninty ones. Nowadays it would be harshly punished by current antitrust and consumer protection laws, but Ninty was forced to stop doing it earlier than stricter laws arrived, as soon as optical discs became successful on consoles, making third parties more willing to abandon the safe, but absolutist and limiting Ninty exclusive.