Godzilla's Left Toe
Member
Nintendo has constantly under shipped consoles since the NES to keep demand up. This is what they do. They under ship damn near EVERYTHING and they've done that since the 80s.
lol
Nintendo has constantly under shipped consoles since the NES to keep demand up. This is what they do. They under ship damn near EVERYTHING and they've done that since the 80s.
For those asking Jim is satirising V for Vendetta with his clothes/set design.
Everyone keeps saying "NINTENDO is leaving money on the table therefore artificial scarcity isn't real!"
Yeah ok..that's not how marketing works. Now Nintendo will be in the news (and I've already seen stories about this) about how they have a brand new thing out that is hard to find and "everyone" wants it- thus making a killing during holiday sales or whenever they keep releasing it.
Sure, they can meet the demand for the products they have, but why do that when they can create even more demand by making headlines like this in news outlets outside of their normal demographic.
Anyone asking for proof only needs to watch the actual news once in a while.
Anyone needing more proof only needs to look at the past tactics of Nintendo during the NES and SNES. Nintendo has controlled their supply all the way back to the NES and this has been chronicled in sources like Console Wars.
https://twitter.com/NintendoNYC/status/804143537864450048
The #NESClassicEdition will be available for purchase tomorrow @ 9AM at #NintendoNYC. Limit 1 per guest, while supplies last.
So I've seen a bunch of posts about these videos but never watched one... I commend all of you for being able to look past the guy's outfit, but I just can't.
I dont buy into the scarcity induced to drive demand nonsense. That's not how economics work and it's horrible business.
It's just money left on the table. The gains go to scalpers, not Nintendo. Plus it results in horrible will.
So I've seen a bunch of posts about these videos but never watched one... I commend all of you for being able to look past the guy's outfit, but I just can't.
Then why do toymakers pursue the same strategy, despite the economics not working?
The actual question is why do people believe that it is "a strategy" despite the economics (the facts) not working.
Because businesses do unreasonable things all the time?
What businesses do things that demonstrably hurt their own bottom line?
The actual question is why do people believe that it is "a strategy" despite the economics (the facts) not working.
Because toymakers have used it time and time again as a valid approach to prolonging interest in said product?
You don't see any problem with saying "this definitely happened because this always happens" as a purely self-supporting argument?
I mean, it would seem obvious that a thing "everyone knows" that "always happens" would have, you know, some documented evidence that it has ever happened, because its not just nonsensical at prima facie, its actually illegal for most limited companies as a breach of fiduciary duty
Here is what I don't understand. If this were Sony, or MS, accused of said practices, and both have done shady shit in the past, nobody would bat an eyelash.
It remains to be seen if demand for the NES classic is purely seasonal, I doubt that it is as when the thing was announced, and the preorder runs at Bestbuy, Target and TRU that sold out were done over the summer. Initial Wii sales were certainly spiked during the holidays, but that demand sustained over the course of the year. While I don't expect the NES classic to have the same tail, I expect demand to be high through at least May and Nintendo to continue to trickle out the product, especially during the Switch launch.No, that's bullshit and an attempt to derail questioning this 'truth that everybody knows'.
Anyone selling any product that is highly seasonal that cannot meet demand in time to meet those seasonal sales, I would question on what basis that claim is being made.
Is there some huge sales boost expected on December 26th they can swoop in and meet? Of course there fucking isn't.
Believe whatever you want if it makes you uncomfortable to believe that Nintendo wants your money, because Nintendo wants your money and will use whatever advantage it can to get your money. So will Sony and MS and every other fucking company on the planet. They are not your friends.
Pre-ordering where you have to make an initial payment... Bad. Pre-ordering because you want said thing on release before reviews... Bad.
Pre-ordering to claim yours, and have reviews/in depth previews go up before release... Good. Nintendo's pre-release media coverage was quite good.
Right.
So; please explain how this makes money, not how it results in lost sales.
"THIS HAS HAPPENED BEFORE WITH OTHER PRODUCTS ALLCAPS ONEELEVEN" is not an explanation
If a hot toy manfacturer restricts, say product A in a series, but has plenty of product B, C and D, then okay, there might plausibly be an uptick of B,C and D as substitute goods.
That is not the case here.
If there is a giant shipment , say, next week, then a tiny initial shipment to 'whet appetities' before opening the floodgates might plausibly benefit overall sales.
That is not the case here.
If there was a second huge seasonal sales event shortly after christmas, where all the missed sales that have occurred can be met and then some, there might be a plausible reason for this to happen.
That is not the case here.
If there was a second much more expensive SKU that is functionally similar but has higher margins, so restricted supplies of the cheaper less profitable SKU to force people into buying the higher margin SKU might plausibly result in this.
That is not the case here.
So instead of condescendingly dismissing these questions by talking about fanboys and how corporations only exist to make money - explain how they fuck they are making money by doing this.
You seem to be refusing to accept the existence of basic marketing concepts. Nobody is going to provide you with enough smoking-gun evidence of subtle multi-layered ones to meet your approval.
There isn't any smoking gun. Many people saw the obvious nostalgia-mining potential in the NES Mini. Nintendo apparently didn't? Nintendo apparently didn't want to gauge demand, seeing as they didn't open up for preorders? And there are a multitude of scenarios where willfully underselling the NES Mini could be of advantage to Nintendo, some of which are proven or suspected to have been employed by Nintendo's highly-paid and highly-skilled marketing division in the past (which, by the way, has occasionally failed due to making the wrong move).
Some people will say it's "Trick these people into buying your next product right away." But I guess since they'll be forced to undership that too they'll never get the sale.There's no "smoking gun". There's no smoke. There's no goddamn gun!
1) Make product
2) Make people want product
3) Don't have enough product for people to buy
4) ???
5) Profit
What exactly does step 4 consist of?
Wii U or 3DS?If a hot toy manfacturer restricts, say product A in a series, but has plenty of product B, C and D, then okay, there might plausibly be an uptick of B,C and D as substitute goods.
That is not the case here.
Nice crystal ball you have there. I also like how the benefit needs to be "giant" to even be "plausible".If there is a giant shipment , say, next week, then a tiny initial shipment to 'whet appetities' before opening the floodgates might plausibly benefit overall sales.
That is not the case here.
Nice crystal ball you have there.If there was a second huge seasonal sales event shortly after christmas, where all the missed sales that have occurred can be met and then some, there might be a plausible reason for this to happen.
That is not the case here.
Switch?If there was a second much more expensive SKU that is functionally similar but has higher margins, so restricted supplies of the cheaper less profitable SKU to force people into buying the higher margin SKU might plausibly result in this.
That is not the case here.
Sorry, I still don't buy that Nintendo needs attention more than they need money, especially considering how poorly the Wii U went.
They may be conservative about how much they manufacture because (1) it's Nintendo and they're conservative about everything and (2) their last two hardware launches did not go well. Both the 3DS and Wii U undersold after the initial launch window, and while they were able to turn the 3DS around eventually (with the help of a swift price cut they "apologized" for with the Ambassador program), Wii U units just sat on shelves forever.
Regarding the Marth Amiibo, no data model on Earth would tell you something that looks like this:
would end up being in high demand.
Right.
So; please explain how this makes money, not how it results in lost sales.
"THIS HAS HAPPENED BEFORE WITH OTHER PRODUCTS ALLCAPS ONEELEVEN" is not an explanation
If a hot toy manfacturer restricts, say product A in a series, but has plenty of product B, C and D, then okay, there might plausibly be an uptick of B,C and D as substitute goods.
That is not the case here.
If there is a giant shipment , say, next week, then a tiny initial shipment to 'whet appetities' before opening the floodgates might plausibly benefit overall sales.
That is not the case here.
If there was a second huge seasonal sales event shortly after christmas, where all the missed sales that have occurred can be met and then some, there might be a plausible reason for this to happen.
That is not the case here.
If there was a second much more expensive SKU that is functionally similar but has higher margins, so restricted supplies of the cheaper less profitable SKU to force people into buying the higher margin SKU might plausibly result in this.
That is not the case here.
So instead of condescendingly dismissing these questions by talking about fanboys and how corporations only exist to make money - explain how they fuck they are making money by doing this.
My best friend has held positions as a buyer in a large high fashion retailer and as a merchant in a staple well-established garment manufacturer. I talked to them about this and they think it is just retailer stupidity since they likely underestimated demand in a huge way and placed small orders, which led to a small manufacturing run. I'm speaking with second hand information, so don't quote me on this or treat it as authoritative, etc. (I.e. take it with a grain of salt).
According to him, the limited supply to create interest works with sales of actual limited supply of well known goods (e.g., gucci handbags) and as a lie for goods where there is actually a big supply (like every infomercial good ever). Sometimes, they will stagger supply to allow for sustained sales say over black Friday and cyber Monday where they sell out of a good on Friday but are holding some in the back for Monday. Limited supply is also crucial for high end luxury fashion where the limited supply is what creates the bulk of the demand for the good.
While I've disagreed with LordRaptor on a number of topics in the past, I think he is completely right here because this Nintendo system doesn't fall into any of those categories.
No, that's bullshit and an attempt to derail questioning this 'truth that everybody knows'.
Anyone selling any product that is highly seasonal that cannot meet demand in time to meet those seasonal sales, I would question on what basis that claim is being made.
Is there some huge sales boost expected on December 26th they can swoop in and meet? Of course there fucking isn't.
e:
Because literally nobody in this topic can explain what the benefit to Nintendo doing this with this product is.
Jim Sterlings conclusion is "to piss off retail workers" which - sorry - I don't find remotely plausible as a reasoning.
You are claiming its to "manipulate the market and sales in their favour" - how? How does not selling product do that?
Everytime someone says something like this, they reveal how little they know about any of this. Nintendo does not stock shelves.I don't think this is what they're doing (the far more likely explanation for them is that they're incompetent .
Everytime someone says something like this, they reveal how little they know about any of this. Nintendo does not stock shelves.
Nintendo could literally fill a warehouse and it wouldn't matter if the stores don't want it. I'm willing to bet the buyers knew about the mini well ahead of time and signaled they were cool on it, which led to a smaller production. Nintendo's "research" mean nothing when the buyers research could say otherwise.The salesman is responsible for people not ordering their product. If Nintendo took accurate measures of demand, then they should be able to reasonably sell retailers on larger orders.
So yes, Nintendo isn't GameStop. But they also aren't FedEx; they do more than just mail shit to stores.
Nintendo could literally fill a warehouse and it wouldn't matter if the stores don't want it. I'm willing to bet the buyers knew about the mini well ahead of time and signaled they were cool on it, which led to a smaller production. Nintendo's "research" mean nothing when the buyers research could say otherwise.
It's why first run amiibos were so short stocked. I remember the threads of people saying Nintendo was too late to the party, that Activision and Disney has already eaten their lunch. After launch, Nintendo were fools for thinking it would fail.
You missed my last edit where I point out that a $60 novelty box is the last thing the buyers are thinking about stocking a lot of, especially when they're still dealing with overstocked Amiibos. Good research would point out that it's an emulator box that the wii/wii u already gut in terms of sales potential. That the "hard core" would usually laugh at being asked to buy an emulator, and that this might get millennials and parents not into tech to spend a little money.Buyers' research should be no different than Nintendo's if both are doing competent research. If the buyers' research sucks, then show them yours and make your case (which is quite literally the whole point of selling them your product).
And threads aren't exactly good places for market research. If Nintendo used such poor measures, then that would certainly be incompetence. Good research would've done a better job of estimating sales of their products.
I'm honestly amazed this thread is still going.
This just isn't how things work. Even if it is incompetence there is a high possibility it is on the side of the retailers and buyers.
Nintendo doesn't walk into a meeting with buyers at Best Buy and tell them how many they are shipping. The retailers place orders and the manufacturer will then scale production in order to match their demands. I haven't worked for Nintendo or on any hardware products but this is drawn from my experience shipping games.
Nintendo doesn't walk into a meeting with buyers at Best Buy and tell them how many they are shipping.
You missed my last edit where I point out that a $60 novelty box is the last thing the buyers are thinking about stocking a lot of, especially when they're still dealing with overstocked Amiibos. Good research would point out that it's an emulator box that the wii/wii u already gut in terms of sales potential. That the "hard core" would usually laugh at being asked to buy an emulator, and that this might get millennials and parents not into tech to spend a little money.
I would say this thread is a sign of business done well, not incompetence, when they got the people they weren't targeting to crave their product. Let's be honest, if this was on pre order none of the people they actually were trying to target, fresh blood, wouldn't have ever been able to get a system. And this thread would still exist, but some anger would be towards scalpers.
Since there have been reports of retailers being massively shorted on orders, that would seem to not be the case.I'm willing to bet the buyers knew about the mini well ahead of time and signaled they were cool on it, which led to a smaller production.
Since there have been reports of retailers being massively shorted on orders, that would seem to not be the case.
Wouldn't saying otherwise indicate that they are idiots? Why take the fall and admit you don't know your customer?If it's on retailers and buyers then why are they saying they got less than they ordered?
This reads like you didn't watch the video.