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by r00fus 3499 days ago
I really don't see why Nintendo didn't produce a bit more on launch - I mean, they're not some kickstarter newbie - don't they have some skills in demand-forecasting?
2 comments

When you hear about how the latest Nintendo is sold out everywhere, it makes you want one more.

They have slow production on purpose. If you could walk into any store and get one, it wouldn't be nearly as big a deal.

Not to mention that having the production capacity to meet initial demand on a popular product would be an huge waste of money.

Best case scenario, a week or two after launch, the vast majority of that capacity would be sitting idle after the initial rush is over and the purchase rate tapers off. Worst case scenario, the product isn't as popular as you anticipated and you've got a big ol' writedown to deal with. (Atari anyone? Blackberry tablet?)

Plus, you can just go to any garage sale and buy one of the original consoles with 100s of games for like $20
I don't seek out garage sales but look for old Nintendos when I end up at one and I never see them, never mind for cheap with a pile of games.
It spikes demand. Crazy parents run all over the place looking for it.

The winners are Nintendo, who gets sales in the 1Q, which is normally death for this kind of product, and the retailers, who get parents visiting daily and buying other crap.

My brother spent weeks looking for the "cream pie in the face game" last year. In the process, he picked up a half dozen other board games.

I don't see how people buying knockoff (but in-stock!) consoles will hep Nintendo sell more Nintendos