Nintendo switch release

We'll probably never know if they really just cheaped out on hardware or not. But keeping the recent events with amiibos and the NES Classic Mini being scarce as shit too.....my money would be on Nintendo just being pricks and keeping demand high and artificially creating high demand themselve by only supplying a very, very limited number of units to stores.

Jim Sterling has a video about that with the NES Classic Mini (stating some stores only got 2 units to sell).


If it's sold out then it must be good. Is what those situation are to make us think.

Then there was the incident with a full truck of Splatoon amiibos being stolen (was it really?) and the scarcity of New 3DSes (I think a guest on the Co-Optional Podcast said it was due to a strike at a big harbour).
And wasn't there a Wii shortage too? (I could be wrong with this one)
But why has this only been the case for Nintendo products?

Nintendo Switch has sold nearly as much as PS4 did in the same amount of time. All consoles have limited availability at launch and sell out. The question is how quickly does stock get refilled.

There wasn't a wii shortage as much as Wii demand was insane.

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Demand isn't kept artificially high by the manufacturer. The consumers are the ones who dictate demand as a whole.

I think what you mean to say is that supply is being restricted by Nintendo. Usually, when a good is being supplied at an artificially low quantity an artificially high price is the result - think gas shortages in 1970's America during the Iran oil embargo. Here is a great example of your typical gas station during that time:

That's a serious shortage caused by price ceilings set by the government and the limited quantity of oil supplied from OPEC. I never saw lines like that everyday for a Switch.

In the reseller market, it seems that margins are fairly thin..i mean @DeViLzzz flipped his for maybe 5 days worth of Tim Hortons ;) I don't think there is a real shortage here just typical production line waves.

TL;DR I think you are just mad you don't have one so you make Nintendo look like the bad guy.

Do I need to get the popcorn?

lol no popcorn needed. Just makes more sense rather than the typical "nintendo changes demand" malarkey that gets spread about when they or just about anyone releases something that's remotely popular.

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Look at the issue with the one NO JOY CON plus look at the breakdowns of the thing and you can tell they cheaped out. People aren't creating videos and making this stuff up.

But are the issues as wide spread as the videos make it out to be? Time will tell I suppose although I doubt Nintendo will ever release a figure on that when the hysteria is over. By the way...I know you sold your Switch but did you ever take it out and mess with it a bit?

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With all the bad news adding up I didn't dare take it out. Also when I bought it I knew I was going to flip it so no I didn't take it out of the box.

daww. I'm curious to know if that unit had any dead pixels, left joy con problems, etc. You should follow up with the guy and see if he had any issues.

Nah I'd rather not know and it is not my problem now. I told him too that he'd be dealing with Nintendo if there was a problem as where I got it from there is a no electronics return policy that is usually enforced although I got them to take a camera back once.

And that's where the shady stores come into play.

On top you have Amazon with the MSRP, after that the price hikers are offering what they have in stock for a higher price.

Oh, and prices from those stores go up to ~565€. Not private resellers/flippers, no, stores.

They're not the only ones. The manufacturer can manipulate demand by distributing limited supply.

Apples and oranges. Oil is a resource, the Switch a gaming device.
Also people don't line up in their cars to buy a console.
And those lines do exist for people who want to buy consoles.


That's just for the pre-order.

Nintendo isn't a newcomer to the console market who just got "caught off guard by surprisingly hight demand". At this point they should know that demand will be high. Watch Jim Sterling's video I posted earlier. It doesn't even really matter if the scarcity is due to Nintendo creating it artificially to keep demand high (what's sold out must be good, so more people are likely to want it) or if production is slow and the product got rushed out (hence the "dead pixel and the left joy-con issues are not covered by warranty" bs).
btw, in that regard I agree with @DeViLzzz that the Switch seems to be rushed out (who needs QC anyway? /s).

And your absolutely entitled to that opinion but I don't need to make Nintendo look like "the bad guy". They're fully capable of doing that without the help of others.

This is patently wrong because I don't think you understand the difference between supply, demand, quantity supplied and quantity demanded. Producers can only affect the supply of a good - the price at all levels of quantity supplied. Supply and Demand are totally opposite things. Supply and demand together determine a market price at a quantity demanded and quantity supplied. If the manufacturer limits supply, then at all prices, the quantity supplied will decrease. The demand stays the same which is why there is an increased price. Anyway, basic economics isn't the feature of this thread.

Shady stores wanting to make money. Oh jesus, breh. I won't get into a centralized market vs. free market with you but making a profit isn't shady when they aren't hiding anything from you. You know they are charging a premium because the market is calling for it. You are using that info to not buy the system. Sounds fair to me.

Why do you have to make the distinction between people and stores when referring to a seller? Stores don't sell anything, people do. So the people who do not work for a store and the people who do work for a store, that are selling Switches, are setting their asking prices - it's a silly distinction. People can sell something at whatever price they want...whether they actually sell it is another thing.

Within the same paragraph you contradicted yourself. In one breath you say people don't line up for a console (whether it's in a car or not is irrelevant) then you say those lines do exist for people who want to buy a console. I'd like to respond to that paragraph but without elaboration from you, I'm not sure what you are trying to say there.

Check this out

Here is a relevant snippet:

expected to ship 2 million units before the fiscal year ends in March, Nintendo President Tatsumi Kimishima said in remarks accompanying the earnings....That 2 million system launch is smaller than the 3.06 million Wii U systems Nintendo shipped during its launch quarter in 2012

They were expecting demand for the Switch to be lower which is why their shipped goal was about 1/3 less than the WiiU. So, since Nintendo is the only supplier of Switches, supply was slated to fall by about a 1/3 from the prior generation. Makes sense. You supply less if the demand is predicted to be less. Keep in mind, they have to complete in the greater video game market which has a bevy of competition and there exist many substitutes.

But wait, I have a theory! There is an awfully large media hype on the Switch right now when it comes to sales and how well it's selling. Could it be that the hype is creating a false sense of very high demand? A sort of imperfect set of information not caused by Nintendo but by those that write and speak about the video game market? With a false, very high demand that outpaces supply of the good, prices are expected to be much much higher....and Nintendo was not involved. I think this is the case.

It explains why you are seeing prices ranging from 329, 385, 393 all the way up to 565 euros. The prices are already crashing because it turns out that very high demand was just hype from the media. Sellers are realizing they can't sell their current stock at silly prices like 565 euros and are lowering prices very quickly - this is why there is not a significant shortage. If there was a serious shortage, that list of prices on Amazon you posted would have all been 565+ euros.

Some seller's prices will remain high but they will be the ones that feel the pain when the market settles if that makes you feel better.

Full specilation

What if they knew they could not possibly supply enough to satiate demand and deliberately projected lower than WiiU levels of sales, thus creating demand and thus price hikes every where.

After all they somehow missed deliver dates for the switch to amazon while being fully aware of the release date and demand for the item.

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Wrong. No one lines up with their car to get a Switch. There are no drive-thru electronics stores. People have to STAND in line (probably on the sidewalk or in a mall) to get their Switches.

There's no sense in arguing with you. Fanboys must fanboy, I get it.

Sigh.

It's just a console release for a company you aren't even the CFO of.

Not really something to bicker over and ruin friendships.

I really don't understand why cars have anything to do this. The point is the shortage not the transportation you use to go and get the good that is experiencing a shortage. A queue is a queue, a line is a line. Anyways...

I'm giving an economic argument for the shortage of Switches has nothing to do with fanboyism.

The ideal scenario would be for Nintendo to supply a quantity that is equal to the quantity demanded as that would maximize profit. For them to not strive for that makes no sense as the opportunity cost would be huge. I think it's more likely that the hype delivered to consumers from sources other than Nintendo created a sort of false demand spike in the eyes of sellers. In due time prices will settle and most dealers will sell only at MSRP.

I feel like this is a nice little chat. Gives us something to talk about.

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I thought it was taking a turn for the worse. lol

Did you buy a Switch, @Goalkeeper?

I'll be buying a Switch when it comes bundled with game/s for a good deal and when there's several games worth getting for it. I have a ton of old PC games to get through still and almost never buy games new.