LogFAQs > #972785068

SKARDAVNELNATE posted...

Yes, that fits, but what purpose does that serve? They make a certain number of copies and generate a certain amount of revenue. Or they could make more revenue by selling more copies. Instead they limit their own profits while increasing the profits of scalpers who make it so only those who will pay the most can get a copy. That inflated price doesn't benefit Nintendo.

It mostly serves to increase the likelihood that they sell 100% of the product they produce. Scarcity (real or perceived) drives up demand to the point where the items reliably sell out with no additional marketing or sales projections needed to ensure that. They choose to err on the side of under-producing and miss out on some potential revenue instead of wasting production resources on surplus products.

Now, saying that, not every shortage of Nintendo items is necessarily artificial scarcity. The Wii, for example, sold much, much better than just about anyone predicted and maxed out their production capacity for a long while. Similarly, thanks in no small part to Animal Crossing launching at exactly the right time, there was a huge spike in demand for Switches in early 2020 that was hard to satisfy because of global supply shortages. Their special editions, though? 100% artificial scarcity.