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From ArsTechnica interview with Nintendo Senior Director of Corporate Communications Charlie Scibetta:

Nintendo Senior Director of Corporate Communications Charlie Scibetta wants to push back on those accusations. "It's definitely not intentional in terms of shorting the market," he told Ars in a recent interview. "We're making it as fast as we can. We want to get as many units out as we can to support all the software that's coming out right now... our job really is to get it out as quick as we can, especially for this holiday because we want to have units on shelves to support Super Mario Odyssey."

Scibetta says the shortages are simply a result of Nintendo underestimating the interest in the system. "We anticipated there was going to be demand for it, but the demand has been even higher than we thought," he said. "We had a good quantity for launch, we sold 2.7 million worldwide in that first month, said we're going to have 10 million [more] by the end of the fiscal year... Unfortunately, we're in a situation right now where as quick as it's going into retail outlets it's being snapped up. It's a good problem to have, but we're working very hard to try and meet demand."

More at the source: https://arstechnica.com/gaming/2017/06/nintendo-switch-shortages-are-definitely-not-intentional/

Hopefully I'm not late to the party on this one

 

[Kouriozan]

Makes sense they would be more conservative after the Wii U.

 

[NOLA_Gaffer]

Why would anyone think they're intentional? Nintendo wants to sell as many Switch consoles as they can get onto store shelves.

 

[Joe Condor]

Many posters will be like

 

[NotLiquid]

No one sensible would believe Switch shortages are intentional, especially with ARMS doing well and Splatoon 2 right around the corner.

 

[jooey]

Why would anyone think they're intentional? Nintendo wants to sell as many Switch consoles as they can get onto store shelves.

because saying "they hate money" is easier than having to think about real business or infrastructure

 

[TheGreatMightyPoo]

Why would anyone think they're intentional? Nintendo wants to sell as many Switch consoles as they can get onto store shelves.

A myth perpetuated by fanboys.

 

[Josh5890]

No one sensible would believe Switch shortages are intentional, especially with ARMS doing well and Splatoon 2 right around the corner.

Just hang around this thread for an hour and see how many sensible people you find.

 

[Sandfox]

Why would anyone think they're intentional? Nintendo wants to sell as many Switch consoles as they can get onto store shelves.

Whenever a Nintendo product is sold out people accuse them of create artificial shortages.

 

[James Scott]

Yeah, it's clearly not intentional since it's holding back their sales for quite a bit.
Hopefully they can get the parts they need to fix the stock issues for the rest of the year

 

[JoeInky]

That's just the sort of thing the would say if they were intentional!

 

[Anime_Lamp]

We know Apple screwed them in getting components for switch production.

 

[Jaded Alyx]

Just you wait....one of them will come along...

I can smell them.

 

[maxcriden]

Why would anyone think they're intentional? Nintendo wants to sell as many Switch consoles as they can get onto store shelves.

A lot of people believe Nintendo intentionally create shortages to drive demand via artificial scarcity. I do not believe this is the case. With amiibo, part of the issue was the port strike. With NES Classic, Nintendo simply did not understand the demand (or perhaps there was some other reason - but I don't believe they intentionally under shipped or intentionally left money on the table in that way).

(Well, it could be argued they're leaving money on the table now by discontinuing it, but maybe they figure they can make more with a revised model (or SNES version) launched at a different time that doesn't take attention from Switch.)

 

[Blackleg-sanji1]

I don't see how anyone would think they would intentionally have shortages on their major home console. Now the the mini console on the other hand....
*Still salty

 

[Neoxon]

Yeah, it's clearly not intentional since it's holding back their sales for quite a bit.
Hopefully they can get the parts they need to fix the stock issues for the rest of the year

Exactly, hopefully the restock next month helps the situation.

 

[Maximo]

Seems obvious, I can go to any store or purchase a Switch online without a hassle here in Australia.

 

[HowZatOZ]

We know Apple screwed them in getting components for switch production.

Is it possible for Nintendo to go to other manufacturers? I know there'd still be a wait as they ramp up production but certainly help with filling the gap, no?

Also as I keep saying in any Nintendo thread, if you are keen on getting the console buy one from Australia. We seem to have tons of stock despite its high demand. Would probably be cheaper for many as well.

 

[BatDan]

We know Apple screwed them in getting components for switch production.

Yeah, same glass used on iPhones and iPads.
Apple gets higher priority thus Nintendo gets the "scraps"

 

[LotusHD]

Just you wait....one of them will come along...

I can smell them.

 

[zelas]

"We just fucked up."

 

[Risette]

Is it possible for Nintendo to go to other manufacturers? I know there'd still be a wait as they ramp up production but certainly help with filling the gap, no?

Also as I keep.saying in any Nintendo thread, if you are keen on getting the console buy one from Australia. We seem to have tons of stock despite its high demand. Would probably be cheaper for many as well.

I think all of the major NAND chip manufacturers are short on supply

 

[Jaded Alyx]

Is it possible for Nintendo to go to other manufacturers? I know there'd still be a wait as they ramp up production but certainly help with filling the gap, no?

There is shortage of parts. It wouldn't matter.

Yeah, same glass used on iPhones and iPads.
Apple gets higher priority thus Nintendo gets the "scraps"

NAND chips too.

 

[Stormblessed]

Makes sense they would be more conservative after the Wii U.

Yeah, I think the Wii U's failure has probably informed a lot of this - Nintendo don't have the luxury of messing with the market, at least not on this particular occasion.

 

[HowZatOZ]

I think all of the major NAND chip manufacturers are short on supply

Ah fair enough. I was hoping it was just a shortage on part because Apple is swooping all production lines but only at certain manafacturers. Greedy guts Apple.

 

[brawly]

So it's incompetence. I have no other word for a complete four month shortage.

 

[jts]

Yeah, same glass used on iPhones and iPads.
Apple gets higher priority thus Nintendo gets the "scraps"

wat no

Switch's screen is plastic.

 

[Persona7]

Ah fair enough. I was hoping it was just a shortage on part because Apple is swooping all production lines but only at certain manafacturers. Greedy guts Apple.

Greedy? They are just a higher priority business partner.

 

[Herbspiceguy]

Ofcourse they're not. A public company wants to make as much profit as fast as possible.

 

[Ryoku]

I'm more impressed on how public and more direct Nintendo has been recently rather than the usual "no comment" routine.

 

[jediyoshi]

Ah fair enough. I was hoping it was just a shortage on part because Apple is swooping all production lines but only at certain manafacturers. Greedy guts Apple.

We know Apple screwed them in getting components for switch production.

Is that supposed to be mutually exclusive with them carrying out already planned business? What's the distinction between this and Nintendo screwing themselves over in getting components for Switch production?

 

[Cuburt]

"Intentional shortages" is the stupidest game conspiracy theory that many otherwise rational people seem to entertain the idea of.

"Because Nintendo" seems to justify any sort of wild theories.

 

[thestopsign]

So it's incompetence. I have no other word for a complete four month shortage.

Incompetence or maybe being bullied out of parts that are in shortage by a larger company with more purchasing power? You decide!

 

[Nitpicker_Red]

I don't see how anyone would think they would intentionally have shortages on their major home console. Now the the mini console on the other hand....
*Still salty

Considering the mini-console's shortages as intentional makes even less sense, as after increasing the first run they have stopped producing them instead of continuing the production to bank on that so-called "demand increase caused by the shortage"...

Edit: and shouldn't scarcity demand be more efficient in increasing the price people are ready to pay instead of increasing the total number of sales?

 

[Plum]

So Nintendo conspires to hold back supply, puts out some shameless "nu-uh not intentional" statement and now people are eating it up?

Spoiler

/s of course

 

[ksamedi]

Ah fair enough. I was hoping it was just a shortage on part because Apple is swooping all production lines but only at certain manafacturers. Greedy guts Apple.

I rhink there are other manufacterers that can supply what is needed. A lot of chinese companies probably did good bids for Nintendo. But the demand is high for certain parts. I suspect that these production considerations are already made in the design phase of a new console. Nintendo has a plan B and C. We know that shipment will increase from now onward and probably reach its full potential in the holidays.

 

[jediyoshi]

Incompetence or maybe being bullied out of parts that are in shortage by a larger company with more purchasing power? You decide!

What's the alternative from a business?

 

[bionic77]

System has only been out for 3 months.

It takes time to sort out these production issues.

I wonder if demand would have this high if the system had not launched with zelda.

 

[mrmickfran]

Fuckin Apple

Making money, the nerve of them

 

[mazillion]

Wow I have no idea Nintendo internally dried up the supply on the Wii. So they hit their quota for the year and created scarcity until their next fiscal year to guarantee meeting next years quota?

Corporate is weird as hell.

 

[Father_Brain]

"Intentional shortages" is the stupidest game conspiracy theory that many otherwise rational people seem to entertain the idea of.

"Because Nintendo" seems to justify any sort of wild theories.

I'm reminded of all the people who insisted for six months last year that there was no possible way NX could launch in March 2017 and that Nintendo was obviously just lying to shareholders when they announced that date.

 

[Soul of the Beast]

How about releasing the goddamn console in here Taiwan?
I am not buying imports, Nintendo. It's about time you take this market seriously.

 

[DeuceGamer]

A lot of people believe Nintendo intentionally create shortages to drive demand via artificial scarcity. I do not believe this is the case. With amiibo, part of the issue was the port strike. With NES Classic, Nintendo simply did not understand the demand (or perhaps there was some other reason - but I don't believe they intentionally under shipped or intentionally left money on the table in that way).

(Well, it could be argued they're leaving money on the table now by discontinuing it, but maybe they figure they can make more with a revised model (or SNES version) launched at a different time that doesn't take attention from Switch.)

I don't think there was a ton of money to be made on the NES Classic at $60, which is probably why it was discontinued so quickly.

 

[geordiemp]

For items that are 'collectables' with no additional money behind, Nintendo do seem to play the market.

NES Classic maybe as there is no additional spend once you have it, its a one off, and maybe same demographic as switch spenders so...

For a console which requires moving to sell the better profit games, hell no.

 

[J@hranimo]

Maaaaaaaaaaaaaan if Nintendo cheaped out on their hardware like they used to this wouldn't happen!

/s

 

[RamzaIsCool]

But wouldn't this be a continued problem for Nintendo? I mean Apple isn't going to stop manufacturing iphones/ ipads any time soon, so what can Nintendo do to not be in this situation next year or the year after that?

 

[jroc74]

Maaaaaaaaaaaaaan if Nintendo cheaped out on their hardware like they used to this wouldn't happen!

/s

You joke but you may have a point.

 

[DeuceGamer]

Wow I have no idea Nintendo internally dried up the supply on the Wii. So they hit their quota for the year and created scarcity until their next fiscal year to guarantee meeting next years quota?

Corporate is weird as hell.

There really is no proof to this either.

 

[BADMAN]

It makes sense with amiibos but definitely not with consoles. Nintendo doesn't want this thing losing the heat it's got based on stock limitations.

 

[Velocity:Design:Comfort]

So it's incompetence. I have no other word for a complete four month shortage.

You have to either be among the most cynical people in the world, a manipulator/liar, or just generally ignorant to spin this into incompetence. If in my business we had so much demand we could not keep up with demand temporarily, that is called growth and success. It takes time to staff good people in that case - just like it takes time to get the parts they need in his case.