Nintendo Supply Issues

[scotland]

Low supply is a way to limit risk for Nintendo, but also fosters an environment of scalpers and disappointment. Does Nintendo having frequent supply issues help or harm the company's profits, excite or depress the fanbase, encourage or discourage scalping, etc. This seems to be a long running issue with Nintendo, so the company could reduce its impact if they chose.

For example, did initial low supply of Amiibos do any lasting good or bad? How about the low supply of games or bundles for the WiiU or 3DS? Low supply of the NES Mini Classic? Are initial low supply issues good, bad or neutral for the company, collectors, scalpers, the fanbase, etc.

[Retro STrife]

I've always felt like it was a scheme to drive up demand. Especially with how effective it was with the Wii. You could never find a Wii in stores back when it came out. And then when it became a big fad to own one, I think it propelled sales even more. Because once people saw it in a store, they thought "well, I better get it now, I might not have another chance." Plus, when things are hard to find and everyone is looking for it, people want it more. It took like 2 years before you could consistently find Wiis in a store. And look how well it sold. (Though I don't know how it helps sales when you don't have product on store shelves...but I still feel like that's part of what Nintendo is doing.)

And it works sometimes. I have had no interest in the NES Classic Edition since it was announced (why buy a fake system with 30 preloaded games when I already have the real thing and the cartridges?)...yet, once it sold out everywhere, suddenly I felt myself wanting one and I regretted not getting it. That has since passed, but I would still be tempted if I saw one in a store today. And only because it's hard to find. If they were everywhere, I would never consider it at $60.

[Atarifever]

I'm sure this works when a system is desirable. It worked with the Wii, for example, because people wanted the Wii anyway. Making it difficult to get made people pull the trigger to buy it whenever they found one. It also made great press (including a ton of free press regarding the lines, number of orders in, etc.).

As you said regarding risk, for a company as fiscally conservative as Nintendo, trickling systems out helps keep units produced in line with actual demand. That way they don't risk doing what Atari did around the release of E.T., where they counted on demand for consoles and games at a level that just left them with a ton of excess inventory. Nintendo really doesn't want excess inventory of anything. It costs them money to make and drives down overall prices as old stock is blown out, which is totally not their thing.

If it helps or hurts them is anyone's guess. I doubt more Wiis could ever have been sold than were sold during its life anyway. I doubt all the supply in the world would have sold more Wii Us. As for scalpers, if it helps or hurts them is up to customers. If everyone were more frugally minded like me, no one would buy at a mark up. But then, if everyone were like me, the biggest sale in games in the last six months would be some used Skylanders and an old copy of COD: MW3, so we'd have a pretty slow market. Whatever anyone does can't stop scalpers. Scalpers gonna scalp, suckers gonna buy.

[Rookie1]

I see these supply issues as strictly artificial.

For example, the Wii was in extremely short supply. Then within a month or so they flooded the market. I see that as they had warehouses in the U.S. full of these things, and they shorted stores to create hype. There is no way they could have under-produced, and then within a month manufactured tens of thousands of units, imported them, and distributed them across the states. And lets not forget, that was at a time when the shipyards in California were on strike, and cargo ships were not even being offloaded and were sitting in the harbor for several months.

Personally, however, I think the Mini was made in low quantities based off the fact that it doesn't seem like they put much effort in to it. The quality and the build just doesnt seem like its up to Nintendo's usual standards. It was cool and nostalgic, yes, but it looks rushed in terms of quality. Additionally, the guide book they put out to accompany it suffers from similar quality issues. And this is a licensed book by Nintendo mind you. There are pages with misinformation in it, pages that detail maps that arent even printed in the book, etc. It all just seems super rushed.

[CharlieR]

Could be artificial, could be that they just didn't make enough. With the NES classic, it seems like a mix of both. They may actually have had a short supply, but seriously, how could they not make enough? You had to figure they knew the thing was going to fly off shelves. Also, it's not like a new console where they're not sure how it will sell; tons of people want the NES classic to relive their childhood, or to have a simple plug-and-play with their favorite NES games. The demand is through the roof.

Maybe it's part of a strategy to only release a few at a time. Who knows, but if everyone could just buy one, where would all the excitement be?

As for the build quality; I'm not sure. Never seen an NES classic in person, but it looks like it of good quality, minus the short cord, but maybe that was also a strategy, mini NES, mini cord lol. The playing with power book does look rushed though.