This article shows why people screaming "artificial scarcity" on Switch are idiots

Don't believe the Nintendo deep state

The difference between those and Switch is simple: Nintendo makes money mainly from Siwtch software and accessories, not hardware. They need as many out there as they can get.

350 euros here Switch is costing when PS4 PRO is at 370euros ...

@drlostrib: Explain your reasoning then. Also, do you believe that the PS4 shortages at launch and the ongoing PSVR shortages were artificial?

@AzatiS: I'm not saying that they are selling at a loss. However, they make more money from software and accessories than from hardware. Also, from what I understand, in your case the cause of that is Nintendo using a really crappy distributor. Also, you've already said that you don't have shortages where you live in the first place, to the point that you don't even believe there's a supply issue at all.

...

Yes, people claiming 'artificial scarcity' are idiots.

No, LostRib is not one of them.

@drlostrib: @charizard1605: Sorry. The post was vague and I didn't understand.

Probably more due to the scarcity of hardware that Nintendo buys in from suppliers such as the ram.

These are the same people who thought the Power of the Clouds (xb1 )was the future of gaming.

Thats the case for every console manufacturer. They making way more money in the long run from accessories and of course software sales. Thats a given for every console out there. In the past many consoles were selling at a loss in purpose for that reason. Thats common sense BUT in Switchs case that is so overpriced and has all the momentum behind it to sell well ... thats alot of money right there to say " Nintendo dont care about hardware sales". 350euros baby each Switch !! Wtf you talking about

Also i never said i dont beleive theres a supply issue in the regions that there is a supply issue, i said to NOT exaggerate about this shortage like its a worldwide phenomenon because there are plenty of switches to find in european market and in many markets around the globe in general aside those big markets AND that i dont understand Nintendo why to support regions like mine that seems noone cares that much than push more units in US market or something more. It doesnt make any sense

So next time dont talk out of your little ass and say craps like i dont even beleived there was a supply issue at all.

@AzatiS: I feel like this is another pointless argument because I never said that it only applied to Nintendo, and your point about the cost in your country is completely irrelevant to this thread or any of my points.

You panicking and talking out your little ass now ! Damage control

I repeat Einstein , 350 euros each Switch and they dont care to push hardware ? Let me say it otherwise because youll start again, having Switch slightly cheaper than PS4 pro and they dont care to push sales ? Are you crazy ? When you can sell something like in a seriously overpriced price you eager to sell more and more and more, specially if everyone wants one right now ! So take back that crap you said about Nintendo makes money mainly from Switch software not hardware. Damn... Switch shouldnt cost more than 150 max and its double that

@AzatiS: Wow, you're aggressive. .-. So, what is your point, exactly? That you believe the markup on Switch is insanely high and is their primary source of income this time around, and as a result artificial scarcity makes sense for Switch because selling consoles matters more than software?

You know that you don't always have to make a poll for every topic.

Hit a button yet ? No? Damn.

My point is that you said The difference between those and Switch is simple: Nintendo makes money mainly from Siwtch software and accessories, not hardware.

And that is the case for all consoles as we speak out there not just Switch. But at the same time i found this statement wrong for the reason that Switch is being sold at double the price it should be in the first place which this means Nintendo is making serious money over hardware alone and the price difference between Switch and PS4 PRO or even X1S proves that point further. So, that right there is a wrong statement.

So i dont agree with that at all. Thats all. Now if you want to bring in this older arguments or make it personal because i dont agree with that go ahead , do it but DONT LIE about things ive said. Some people around here you have this habbit to do this over and over and its as a BETA male behavor as it gets.

YEah maybe, but if thats the case imagine Switchs worth. Practically Switch is a slightly better Wii U sold in 2017... for 300$ and since you all taking it as a console ( which im telling you a year now is wrong and might backfire ) ... compare it with PS4 PRO and tell me its price is solid. No, compare it even with PS4 slim and tell me whats up

So lets be real. Nintendo loves those hardware sales and OP is wrong by saying they making money at this point mainly from software and not hardware. 300$ for this ? I would be amazed if they are not making 100$ profit per console.

Nintendo gonna Nintendo with that artificial scarcity.

Nintendo have gross profit margins, people are morons who support it.

@AzatiS: first of all, there's the distributor point that you ignored. Second, the price that you would personally pay for it has no bearing on what most of the market would pay. Finally, by all estimates, it costs more than that to make right now.

You know would help to drop that cost though? Producing more. So it's in Nintendo's best interest to produce as many as they can. Thanks man, you added another point to what I've said instead of disproving one. Lol.

The funniest part of this is that you probably have an iPhone or a high-end smartphone that you're using as you complain about markups.

No, Nintendo isn't doing it on purpose, they are just stupid

What you also have to factor in MSRP is R&D costs. While your average console is just a plastic box wrapped around some hardware, the Switch took just a little more thought to design and develop.

Take the Lexus LFA for example, Toyota lost money on every single one sold and it was priced well over its closest competition. They had to charge as much as they did because it cost so much to design and create.

The design of the Switch is genius from every angle, and every possible setup combination. It's solid in the hand, feels like it's worth the price whether you're in handheld or have it docked with a Pro in your hands.

Every handheld predating the Switch is susceptible to needing replacement if you kill the sticks/buttons/dpad etc, and even if you're careful like me some games (Mario party, Smash Bros etc) can be very hard on the input points. Kill a Switch stick/buttons, slap on new Joycon and it's like brand new. IMO Nintendo put more thought in designing the Switch than every console from every manufacturer, handhelds included, predating it.

Switch is ... shit for 300+ ! Sorry !

People claiming artificial scarcity aren't necessarily wrong. But it's more of the company soft releasing something because they don't know how it is gonna take off. Nintendo with damn near everything does this. MS did it with the Elite controller and I bet they will do it with the X1X. Once something's taken off these companies don't want to lose that momentum and want to take advantage of the impulse buy and what this stuff on shelves, they don't deliberately hold out

@xxyetixx: Shipping almost 3 million in the first month is a soft release? They were conservative, but it wasn't a soft launch at all. I think without the NAND shortage they'd be shipping at least a million per month worldwide.

@techhog89: hell yeah 3 million is a soft release in the first month. Especially the if they launched would wide.

@xxyetixx: What would you consider a typical number then? Keep in mind that we're not talking about a holiday launch here.

The fragility of some is so so satisfying to me.

Keep overpaying sheep ! Youre a sheep for a reason, all metaphors included. Fact

Four people voting that it's artificial, zero defending that position. Lol

@techhog89: true even if they made 1 million for NA, 1 million for EU, and a Million for Japan/Australia/South America and exceeded those sales you'd think they'd have another Million for each ready to go. I don't know what these companies thing a good launch amount is. You're talking about a lot of people in these areas, then over saturation, having to do sales if it isn't successful. I still feel they soft launched it but coulda hurt themselves is they manufactured 6 Million for the launch so main areas for 2 million. I'm pretty sure when Nintendo announced the Switch they said they were gonna make 8 Million for the first year then doubled that to 16 after the launch. That right there kinda tells me they were dipping their toes in the water and were cautious with the launch.

It's estimated manufacturing costs come in around $260, which means the mark-up isn't that substantial (depending on region, naturally).

@xxyetixx: The production numbers were never confirmed.

There's 2 types of people in the world. Trolls and idiots. This thread is proof of that.

Sheep you are sheep in more than 1 way.

What cows has to do with this ? They are the same as you but you cant call cow a sheep even if they are as much as you! It doesnt fit. Calling you sheep though with 2 in 1 meaning , priceless.

@techhog89: they most certainly did announce that they planned on shipping 8 million Switch's in the first year. Then after launch they doubled that number to 16 million

@xxyetixx: No, they didn't. The 10 million target is the only official number for this FY.

@techhog89:

https://www.google.com/amp/s/arstechnica.com/gaming/2017/04/nintendo-plans-to-ship-10-million-switch-consoles-in-the-next-year/%3famp=1

It's all there. How they expect to ship 10 million how reported production went from 8 to 16 Million.

Which is all after the launch of the console, because it was so successful their plan changed from the soft launch they did to step it up

@xxyetixx: Look again. Those aren't official numbers.

Artificial scarcity would be a compliment for Nintendo because it would reside within the realm of competence. Nintendo fundamentally doesn't seem to understand the nuances of supply and demand, or if they do, proper allocation, and as a consequence always appear to be the victim of their own miscalculations. From what I'm hearing, the system is easily available outside of the U.S. as in walk-in purchase. I hear they're readily available in Australia and Europe. How are they continually left underestimating demand per region? I wouldn't blame them if there were a lack of systems for a few months, that is understandable, but for this long and looking to continue into the holiday season and far past? This is not the first time Nintendo's had this problem, so my sympathy for their troubles is nigh absent.

If this isn't intentional, it is incompetence.

@MirkoS77: FYI, it doesn't matter. In the best case, adjusting distribution would result in complete global shortages, as around 70% of units shipped so far we're to regions where it's currently sold out.

What does the President have to do with this?

People do claim the Switch is easily obtainable outside of the United States but for all I know it can be a gross hyperbole. Supposing it is a genuine and accurate assessment, people can order it online rather than going on the scavenger hunt too often seen here. Why don't they go such a route? Nintendo is pleased with how the console is selling (minus supply issues of course) and certainly it wants to sell as many as possible but I do not have much sympathy for those who waited. People decided the game of waiting was more beneficial than pre ordering in January and now they are seeing just how bad of a decision they made and just how regrettable it manifested. Comparing the Switch and Wii availability shows me something (good or bad) is going on and it is much easier to get the new console than some ten years ago when it mimicked trying to purchase a Cabbage Patch Kid from the early 80's complete with mass shortages, fist fights, etc..,

If you really believe Nintendo is behind some sort of "artificial scarcity", then i bet you also believe the earth is flat.