With the launch of the Nintendo Switch only weeks away I can already tell you that it will be next to impossible to secure yourself one. That’s only if you have not pre-ordered one yet. Now before everyone starts to attack me, understand that this is mostly opinion. These opinions are based off of my examinations of Nintendo’s past behavior in the market place. Moreover, if you don’t have it pre-order you’re going to have a long wait before you find one again. But, that’s not really what this post is about. It’s about supply and demand and how Nintendo manipulates it. In reality, Nintendo thinks like a toy company and like not a video game company.
We’ve seen this strategy with the Amiibo figures and more recently the NES Classic. The theory is to create a small supply that will sell out. That will make the demand look higher than it is. Nintendo knows this and they play right into the psyche of the consumer. In turn, it creates free advertising and a higher demand for them. That being said, Nintendo has learned this strategy from toy companies. For example, let’s say that a parent has promised their child product A but when the parent goes to the store product A is sold out. So, instead of going home empty handed they compromise and buy product B. On the other hand, they promised their kid product A, so when product A comes back in stock they buy that too. In the end the parent has bought booth products instead of just one.
Nintendo needs to wake up! It’s not a toy company. It’s a video game and technology company. Just think about it. If Nintendo would had taken pre-orders for the NES Classics their sales would had been though the freaking roof. I understand that they like to play the market safe. That’s fine, but as soon as the demand is high enough this type of thinking needs to stop. By that point in the lifespans of the product Nintendo needs to start increasing the supply. Like I said earlier we saw this same stagety with the amiibos. Certain Amiibo where very hard to find at the height of the Amiibos craze, but after a while Nintendo just reprinted those hard to find Amiibo. Now most of those Amiibos are everywhere. Stores like Best Buy can’t get rid of them. Sooner or later this will be the same fate of the NES Classic. After a while people loose interest, so this strategy doesn’t work well in the long term.
This YouTuber has the same thoughts about Nintendo that I do.