It’s made even funnier by the fact that this is actually a novel idea. Most of the time there isn’t enough supply for consoles to meet demand because console manufacturers want to measure demand before going all out, but Nintendo’s idea here is to just start producing at max speed immediately and assuming it will sell all of those units
@@minecrafter3448 this also isn't an unprecedented idea due to the sheer number of Switch sales combined with is relatively high attach ratio. (8.25) meaning that they will likely see a high demand for Switch 2.
One of the strengths of releasing the system outside of the holiday season is that you won't have the hardcore fans who want to buy it as soon as possible competing with more casual consumers like parents trying to buy a gift for their kids for Christmas.
Nintendo absolutely didn't use artificial scarcity with the NES. The thing came out at a time when video games were insanely unpopular in the west so it's more likely that Nintendo just underestimated how many NES's they would sell
@@andreworders7305yeah. It’s just true though. The video game market full on crashed before the release of the NES. It was a gamble fork a company that had never made a console. I know we have to adopt the “Nintendo bad” mindset constantly but this allegation is silly
The video game crash also meant there wasn't just lack of consumer interest, but also retailers not wanting to stock them in the first place. It took Nintendo basically promising to take on 100% of the risk, from requiring no upfront payment, to buying back any unsold product, and even smaller things like handling in-store setup. If there were any better options to get NES consoles on store shelves, they would've jumped on them well before any of that.
Yup, gaming got popular in Europe in the late 90s . LATE late 90s. Also the soviet union didn't even have Nintendo during nes and snes are. Imagine how much they could have sold there !
@@luigitime202But if Nintendo is meeting demand, then all the scalper’s friends would already have Switches. So they would still be stuck with extra consoles that no one wants, conceivably.
I imagine Nintendo started to get it upon realizing that a system sitting in a Scalper's garage or basement or whatever is fewer games being sold, fewer online subs, and more pissed off potential customers.
It's not really that. It's the logistics are extremely hard to get around to supply the entire world for these devices. Think about the stuff that sells in the range of game consoles. Stuff that sells more is like food stuff which is required yearround or stuff like the iPhone which is a fraction of the size, even for the Switch (counting packaging). We saw the biggest period of scalping (outside China) for the Switch was during the pandemic, the period where logistics were screwed up the worst. Nintendo is attempting moves to reduce the load for an individual Switch and has evolving relationships with retailers. In Japan, they bought JESNET and they have reduced the package for a Switch to be much smaller from launch.
More realistically, I think the Switch 2 has just kinda been /finished/ for a long time now and they've been waiting to release it, so they have had more time to iron out supply chain kinks
Well, a scalper buys just a system. A real customer would buy a system, a case, a pro controller, and a few games. Look at the PS5, many of their games still release on the PS4.
Another thing is that usually, in a lot of cases (not 100% if it's a valid strategy these days due to the cost of production of videogames increasing as the quality increases) the consoles are sold at a lower price to hopefully get more game sales later on. At least, that was the case for the 3Ds, and I wouldn't be too surprised if "Break even on the hardware, make bank on the software" is still a valid strategy, though selling consoles at a loss is probably out of the question
I've said it many times, but the best way to get consoles away from scalpers is providing more units to brick & mortar retailers vs online shopping. Allowing people to order as many units as they want from the comfort of their homes, scripts that automatically detect stock over various websites, multiple bots that can automatically buy out everything in seconds while you sleep, etc. can't be done when you have to buy in person. Also being able to have real life human beings verify 1 per person, that will allow more units get into hands of actual gamers.
@@chiquita683 buying 5, or 50, or maybe even 500 from one store meant to sell at a specific location over a small margin of land, will always be less detrimental than some jackass buying 5,000, 50,000, or 500,000 from a single website meant to sell internationally.
The unfortunate reality is that scalping is an inevitable consequence of mismatched supply and demand. The only way to prevent it is to either massively oversupply the product, or to raise prices to match the scalping price and thus reduce demand. Luckily for Nintendo, oversupplying a console is actually possible (unlike something like concert tickets) and it's safe to assume there will be enough demand over several years to eventually work through that supply so that they aren't just out all that money; although money now is worth more than money later, so oversupplying is still going to be less profitable than perfectly matching supply to demand.
Or you can not allow people to order the system online, then no bots can be used. People have to go INTO a store and enforce ONE pre-order per account. At least for the first year.
@@ItApproaches This is only a bandaid solution. Scalpers can (and do) go to multiple stores and get friends to help. Also, it's not unheard of for store owners or employees to do the scalping themselves, making any one-per-person rules useless. If the potential payoff is enough, people will find a way, pretty much no matter what.
@@ItApproaches it would also piss off the majority of people who want to purchase it online. I am 100% certain that not selling online would be worse PR and hurt their bottom line far more than a scalping issue ever would.
@@cebo494 Humans are pissed off most off their lives and are cranky about everything, screw them. it's a first world problem, we had a LONG history of not having the luxury of buying stuff online. Humans are to attached to luxury and that luxury should go.
This is so true, especially with the lack of a huge graphical jump and lack of exclusives. You can’t tell me that 60 million people bought this console within 1-2 years
I did not buy a PS5 early on because I saw how hard it was to get and I did not want to camp out at stores and whatnot. As time went on, the hype and fomo wore off to the point I realized I didn't actually need a PS5, especially since I had just got a PC capable of gaming. I know I can't be the only person that gave up on buying a PS5 entirely because of how rough it was to get one when the hype was at its peak
Remember, sales data is just how many people purchased the system from retail or Sony. There are probably millions of PS5s sitting in scalpers warehouses and Sony loses money on consoles like that. Compare the number of games sales to consoles for PS5 and it's abysmal
Litterally the only thing besides the expected power increase this needs. Functioning joy cons, and then do the same thing and I feel like there are a ton of people so used to using Switch over the years that they will just naturally transition to the next one. I fully believe that there is no need for them to try something weird or dumb this time, and judging from what we've discerned from credible leaks it seems like that's what they're doing. Also, I'd argue the current business leader at Nintendo has taken a pretty straight forward philosophy with most releases over this generation, which is also encouraging.
i worked at best buy from november 2020-june 2023 and yeah there were always plenty of Switches, but at the same time they were still selling like CRAZY even years into its life cycle. we sold so many more than any Xbox/Playstation models, both because of demand and because we just had more of them to sell lol
I love that you made this channel. Many uploads at an easy to digest amount of time. If I see a topic I wanna hear you ramble on about I can pop in. Very cool idea. Hope this one sticks around!
Given the "delay" I believe them this time. I also believe them when they say they dislike scalpers and never intend to drive demand by making fewer units. People who have worked there previously like Kit & Krysta have said as much (they have no reason to lie about this now). It's a silly idea that they would do that purposely when it just drives 2nd hand vendor monetary gain.
Maybe they will also force preorders to be in person instead of online which may help reduce scalping? It takes away convenience, but maybe it helps, not sure
I've gotta say, I don't really understand why there are theories that the Switch Pro was going to be a thing. Releasing a mid-generation upgrade to a console is common for Sony and Microsoft, but Nintendo doesn't really have a track record of that outside of the handheld systems. And even then, the focus tended to be on making the system either smaller or bigger, with less emphasis on increasing performance. I may be wrong, but the only home console upgrade I remember Nintendo ever doing specifically to better performance was on the N64, and that went so poorly that a lot of people don't even know it exists. So releasing a Switch OLED model instead of a Switch Pro seems perfectly in line with Nintendo's track record. A new model that doesn't really increase performance and instead provides some other perk that a lot of people weren't really asking for, lol.
Mid gen upgrades weren't a thing until last gen. It's connected to the longer and longer generations. There's literally only the PS4 Pro, Xbox One X and New 3DS. But the purpose of the mid gen upgrade is the stall flagging sales as the tech for the next gen is 2/3 years out. The COVID pandemic happened right at the typical midlife with Animal Crossing for the Switch. So, right as Nintendo would have decided on it, Animal Crossing and the Switch broke records.
@@PIKMINROCK1 While not performance upgrades, Playstation has at least been doing mid-gen console updates since the PS1. Every single Playstation has a slimmer version of it that released at another time, and Xbox is similar. I don't remember if the original Xbox ever got an updated console, but every one since has. Meanwhile, Nintendo has almost never released a new model of their home consoles. Handhelds, sure, there are a lot, one of them being a flat-out performance upgrade as well. But with the NES and SNES, I believe there are only regional differences. Outside of that, there's only 1 base model of the N64, 1 Gamecube, 2 Wiis (including the Wii Mini that hardly anybody bought), 1 Wii U, and now 3 Switches, unless I misses something somewhere. Aside from the N64 add-on, Nintendo just doesn't have a history of doing performance upgrades for their home consoles, or really hardly any updates at all. Plus, unless I missed something, Nintendo themselves have never so much as hinted that a Switch Pro was ever going to be a thing. It feels like the speculation all started purely because Microsoft and Sony did it, though we should all know by now that Nintendo doesn't do things similarly to the other big two companies at all.
Well, the Switch's OS does allow to clock the SoC higher than stock clocks. And the OLED would just have been the upgraded one, as it's using the more power efficient Mariko SoC. And the OLED Dock allows for 4K output, and the RAM it uses can clock much higher... so it's very likely that it was considered. But I don't think it was scrapped because of parts shortages. One benefit Nintendo gets from not going ahead and doing it, is that the general consumer will experience a much bigger leap between the base Switch and its successor than if they did a mid-gen refresh. This will be Nintendo's first true leap from the "entrypoint HD" performance in 12-13 years, which ages me a ton by just saying it. =D
@@CascoreGamer Redefining the argument to any hardware revision is silly because the Switch has already done so. You would be wrong and it doesn't why Nintendo wouldn't do a hardware upgrade. There are historical reasons why few console upgrades, namely that it would be hard to maintain compatibility with existing software and that engines weren't really a thing until the early 2000s. We don't really get flexible software profiles until after the Steam boom which lets developer designate how a game will run on weaker or stronger hardware i.e. Pro Mode.Without these evolutions, Pro consoles become impractical
The artificial scarcity stuff is so stupid. They need factories to build the console, and there are projected launch sales, they cant just rapidly make more factories if their console sells way better than they thought. Also much like servers, they dont want to build more than they need.
i remember going to the midnight release of the Switch and a guy ahead in the line bought like 5 Switches and then tried to sell them for more money to the people still waiting in line to get their own. Thankfully i was able to get one before they ran out, which they did before everyone got one, but i guess with this new mindset Nintendo has then hopefully it will turn out alright
Its not that theyre trying to mess with the customers, guys. Its just really hard to predict demand for nintendo hardware. They have a hit or miss reputation... So its a huge range of possible volume in shipments.
I really don't buy into the idea of Nintendo creating artificial scarcity to increase demand. I think what's really going on is, they just don't want to over-invest and overproduce. On this channel there's a lot of discussion (and even praise) about how Nintendo doesn't do the hiring/firing cycles, and I think that's a good parallel. Just like Nintendo doesn't rapidly expand its game production, and its human assets, just to cut them all back then they're not needed, neither does Nintendo want to build up its production capacity, just to aggressively prune it back when its no longer needed. Launch demand is short term. When its unexpectedly large, they scale slowly. The Wii Situation I think was exacerbated by what happened with the Gamecube. The gamecube was overproduced. Nintendo had more inventory than they could sell and were forced to do big price drops. So when Wii was having shortages, they were even slower and cautious in their response. And to an extent that was slightly justified because when Wii sales slumped, they slumped quickly.
As long as there are no build issues like drift or burn in and the switch 2 is significantly more powerful, I don't see a future where it doesn't sell. Unless it's more than 400.
9:13 (Kirby in background) Ooooof trying to take a chill pill, but everyone keeps getting in your way and making you angrier, including your own past mistakes.
@@TheBaconBothaha you can’t blame the guy based on your name 😂😂 But yeah I agree. Topic Arlo is just so perfect, because more Arlo is always a good thing
I still dont really understand the point of this channel. He literally just talks about the same stuff he normally talks about, just at "normal" video lengths.
There is a reliable way to put an end to scalping, but it's not something that would make buyers or sellers happy. If they raise prices to what people are actually willing to pay for the consoles, scalpers can't go higher than that, so they can't pull their shenanigans. But if they start putting out $1000 consoles, people start asking questions the sellers don't really want them asking, like "do I _really_ need this? is it better to sit by the sidelines for the early years?" So keeping MSRP low enough to keep people interested kind of outweighs the importance of scalping, which leaves them with rushing to produce as many as they can as their next countermeasure!
9:18 The critical phrase here is "if they keep bringing the games." That's not guaranteed, that's not a foregone conclusion. That is the biggest factor in both the Switch 2's potential success but also the potential cause of shortages. It all depends on the launch day games and the launch year games and we don't know a single one of them yet.
The NES and Wii did not suffer “artificial shortages“ Y’all really have no idea how manufacturing works. The amount of units that you’re going to be producing has to be planned out over a year ahead of time. Meaning it takes a minimum of a year to react to a severe shortage. During that year, demand continues to increase while companies speculate and calculate how far they think that demand will go. Companies always want to produce slightly less than they can sell because producing more than you can sell is a massive hit to your bottom line.
The Wii absolutely suffered artificial shortages Amiibo suffered artificial shortages The NES Mini and SNES Mini both suffered artificial shortages The Switch, at launch (not later because of COVID) suffered artificial shortages Nintendo loves artificial shortages, you are a fool to deny it
@@mjc0961 Not haven’t 20 Million units ready at launch ≠ *Artificial Storages…* It’s called being intelligent What if Nintendo ordered 20Million WiiU’s to be made in the first 12 month of the life cycle? They would have 7 million units that never sold and be 2.2 Billion Dollars in the RED You only make what you know for a fact you can sell. At no point was Nintendo so cocky in the NES, Wii, or Switch that they were willing to over forecast sales by tens of millions of units.
the switch oled does actually have a slightly more powerful chip, i think, but 95% of that extra power is used for just better cooling. the other 5% are largely negligable
This topic OMG… Here’s the thing about „artificial scarcity“: If you don’t sell product you don’t sell product! There’s no money in Nintendo “refusing” to sell you the product. The goal of an artificial scarcity tactic would be to make the product “almost sold out”, but still actually selling. The Wii was IMHO not artificial scarcity. It was just Nintendo not wanting to invest into expensive extra tooling and supply chain. They conservatively ramped from 15 to 20 to 25 million per year, but doing so overnight would have been reckless. A console is a 5 year gamble. To build up massive overcapacity in year 1 that will sit idle for the next 4 years is expensive and can ruin the company.
There’s a bit more to it than that. Nintendo started off manufacturing the Wii at the same speed they would need for sales similar to the GameCube. After seeing the hype, they immediately produced them as fast as they could, as fast as they did at the peak of the nes. That still wasn’t enough, so the next year they expanded and produced the Wii even faster than they had ever produced a console before, and that was finally enough.
Don’t pretend Nintendo tried to create artificial demand with the Wii. The produced enough units to meet the expected demand, which they thought would be similar to the GameCube. Then when demand skyrocketed, they made as many as their infrastructure could produce in 2007, similar to what it was at the time of the NES. But the Wii just kept selling, so they had to expand and produce consoles faster than ever before in 2008. That was finally enough, and demand declined after that.
One of the reasons I never and will never buy a PS5. I was really raring to get one and play Demons Souls and then I just coudln't find one. Years later and yeah they are around, but it's gone. I don't really care to play Demons Souls anymore and don't really want a PS5 anymore on one account of them releasing the PS games I want on PC now.
It really is a game thing for me. I didn't have any spare money when they launched any way, but you know I was at least someone interested in Demon's Souls because of how good it looked and sounded. Fast forward to now? Honestly unprecedented for a console generation, even now years later Demon's Souls and Ratchet and Clank rift apart are pretty much all I care about. And what's crazy is, BOTH of these games can be played on other platforms technically. Like yeah, I would really like to experience demon's souls's redone assets and sounds, but it doesn't change the fact that I can play Demon's souls on ps3 (or pcs3 emulator) and it's the same experience essentially. So with that in mind, gta 6 next year will be the first thing that I'd be interested in that isn't also on PC right away, but even then that game is eventually being ported. Idk, it just feels kinda crazy to me that seemingly the entire selling point this gen has just been "owning a PS5" instead of pushing actual games to play. I just feel like in previous generations there was way more incentive to buy a system for the games and more of a feeling that you were missing out on certain things if you just had one platform.
Problem is the scalping is still going to happen with the special editions/ cool items. I didn't have an issue getting a switch because I luckily had saved taxes since I had heard rumors that there was going to be a handheld mainline system and got excited. I did want to get the Animal Crossing Switch but that got scalped up to 500, I think you can get one now for the regular price from the scalpers but I'm not condoning their logic that they can just turn around and sell it for exactly how much they paid for and break even. It would be cool to get the things I want but alas, it is what it is.
I am buying consoles since mid 90s. I never ever bought the console in its launch year. I wait for the mid wave. At that point there is enough good games to buy second hand, as well as to get a better price of the console (like a budle or what not). Therefore, this fall I will buy PS5 and play some games until I wait for GTA6. I still have some Switch exclusive games to play, so before 2026 or even 2027 I won't buy Switch 2. ❤️
I am pretty cynical about Nintendo and I might be wrong but I think Nintendo was truly caught off guard on how successful the Switch could be at launch. Nintendo's console sales are kind of a mess from Gen to Gen and they just came off of the Wii U which was Nintendo's second biggest flop ever.
Honestly im hoping smyths and argos does a reservation system as extra security of switch 2 preorders in-person and ofc with metroid prime 4 beyond day 1 hopefully (switch 2 version)
I can remember I pre-ordered the switch on gamestop‘s website and then I had to wait 2 months after the release to finally get it?? What‘s the point in pre-ordering then. I hope the situations better when the successor comes out
They never manufactured shortages. These consoles make their real revenue selling games not the one time purchase of a console. They are basically saying they forgo making money for investors to seem like it’s in demand, and then later sell the console instead of doing it from the start. It’s absurd
His point about providing enough units is proven with the SNES Classic. The NES Classic was scalped to hell, you just couldnt get one. And there was definitely a lot of FOMO purchases if you did happen to see one in the wild The SNES Classic though was muuuch more widely available. As a result, scalpers lost money. They bought loads of units and couldnt flip them.
I don't think nintendo ever purposefully under manufactured any console. After the gamecube flop they just didn't enticipate that the wii would sell that well it was also a very diffrent concept for a console having those motion tracking controlls. It's also not a good thing to under produce your product if it's not you profiting out if wich they wheren't it just costs them not having as many potental impulse buyers and reputation.
@@chiquita683 Not when it comes to consoles but their is luxury brands who have limited launches not because they are scared they won't sell well or have enough to make more of the products just so that they can sell their goods as more exlusive then they actaully are.
for a second i thought that Nintendo would force providers to ask clients to show their ID and setting a limit of sold consoles to 2 per person or something like that Dictatorial measures would fix the scalper problem
I remember predicting the Switch sell better than the Wii U, but not gangbusters and predicting a what I thought was a generous 40 million units. As it turns out I was only off by about 100 million😅
I'm really looking forward to the next console, but even then I'm probably not going to go for the preorder, I'll get it no doubt, but I think I'll play it safe and try to wait until the first round of updates drops.
I haven’t watched the video yet but I just really need to say this where it matters, please for the love of god, make it so your consoles have to be shipped to you after ordering, I’m not saying don’t sell more than 10 to someone, I’m not saying start developing it when someone orders it, just please make it so when I want to buy it, I can just order it online, and that’s if I don’t find it irl, cuz it’s crazy that someone can preorder a console and people who didn’t get screwed
I’m a little more hopeful. The switch got a slightly better CPU after the initial wave of consoles came out so it might be worth waiting a year or so if that’s an option for some. You can potentially get a cheaper console (Black Friday sales etc) with better/revised internals.
8:15, its also very possible that Nintendo just wasnt first on the list to get the chips, it probably went, govermental uses/megacorps/chip manufacturers themselves, than civilian necessities use, then non essential things like consoles.
The shortages of ps5 wasn't solely because of the pandemic. There was a major need for new semiconductor facilities for years as they couldn't keep up demand. The gpu market is a good example, it was very hard to get any newly released gpus before the pandemic because of the supply issues
If Nintendo makes enough consoles vs. demand, scalping isn't profitable in the first place. If scalpers can't scoop up enough product, then they are competing against retailers, and if they scoop up too much, they compete against each other for those buyers actually willing to pay 2x the price there. It's a business model that is only viable when supply is sufficiently limited.
@@Metallicity Scalpers will buy by the pallets worth if given the chance. What has to happen for them to throw in the towel and not bother is for Nintendo to somehow be able to restock most retailers on a daily basis, which I just don't see happening.
@@sweetfeathery They won't buy any if they will be forced to sell most of them for the same price as they paid for them. There isn't one giant coordinated network of scalpers, if someone is trying to sell Switch 2's for $500, and some other asshole charges $400, they're both going to sell zero if enough other scalpers price consoles at $350 to fill whatever gaps in retail exist. And nobody wants to be stuck with "pallets" of product that they can't sell.
"One per customer" is a good countermeasure. Of course you can just come in again the next day, or maybe just an hour later with a different outfit or send a friend. But it significantly increases the effort to scalp and gives normal customers more time to get what they want
I feel like Nintendo has probably seen the damage that shortages caused to the PS5. So I wouldn’t be surprised if they just sit for a while making more and more consoles so they can have a huge launch.
I get why shortages happen. NES: they literally had to sneak it into toy stores using ROB and still bundled it with the zapper later so there wasn’t a guarantee they’d all sell if they made too much in a country where one state had more people than all of japan. Then of course less sales each gen then on till Wii with GameCube needing to stop being made so they didn’t drop the price lower than 50 just to get rid of stock cause nobody wanted the system. So Wii having a shortage was them going “well no was got the GameCube so will they really want this GameCube with motion controls” and so took a while to catch up to demand. I’m guessing switch didn’t have this issue (till the pandemic) because with no handheld console going into production it meant Nintendo could focus on just switch since 3ds sales fell so much they could just make 2ds for a year and be done completely
An interest poll could work, but only with a very long hype cycle. They would have to announce, reveal, and present the thing, do a whole marketing campaign, do the poll, and THEN start making consoles. The hype cycle would have to be 2 years.
Stopping scalpers is very difficult and requires some cooperation on part of the retailers to not allow the sale of several consoles at once. Some kind of limit is needed. As long as Nintendo produces enough consoles and retailers put a limit on the amount of consoles 1 person can buy, hopefully it can stop most of the scalping.
Yeah tbh I struggle to think of a scenario where leaving a store with more than one physical console even makes sense. And like, say you've got twins etc, just buy another console at another store 🤷♂️
It’s simple: * Limit sale of Switch 2 to one per customer/account. * New accounts made in the last year, no purchases on the eShop and have almost no play history will be prohibited from purchasing a Switch 2 to prevent scalpers from making hundreds of accounts to buy one for each. Accounts that were made over 365 days, have a semi consistent play schedule and/or made multiple purchases will be marked as regular and be allowed to purchase one. * New accounts who want to buy one will need to fill out a questionnaire to customer support asking for it. If it’s genuine and passes an AI check, then they’ll be given an exemption code and buy one. Any scalpers trying to do multiple questionnaires on the same IP address will be blocked. * Reselling won’t be prohibited on sites like eBay or Facebook marketplace. But if any that do show up that are twice the selling price, the price and availability of the original store front will stop any panic buying.
With Nintendo's new Interdimensional Transportation System or ITS, you can pay Nintendo for the system and the new system will materialize if your home.
Seeing the title and thumbnail, literally one quote popped into my head. "Confidence!... A fool's substitute for intelligence." - Jim Carrey as Dr Robotnik in The Sonic Movie 1. Not that I trust Nintendo, but thats a very bold claim for them to make.
Honestly, I keep hearing this produce more units, but I personally always felt it was an issue of bots. Am I mistaken or anyone else worry we will still have shortages anyway?
Worst case scenario, there are enough scalpers to buy all of the oversupply, but because there’s an oversupply regardless they can’t sell it for more than a 20% markup
I think they simply have confidence for the first time. Nintendo is very humble and the Wii u really shook them. It's not hard to predict a much more powerful Switch, would be welcomed with open arms 🙂
Believe me, the Switch 2 is going to be hard to find, for at least a couple of months post launch. It's arguably the most anticipated piece of gaming hardware ever, no escaping that.
Ever? No way, I can imagine a lot of people and families that aren't picky about hardware upgrades won't care for a while, Nintendo will even keep supporting Switch 1 when Switch 2 comes out
I love the CEO of Nintendo's nuanced answer to potential supply issues is: "We will make enough."
It’s made even funnier by the fact that this is actually a novel idea. Most of the time there isn’t enough supply for consoles to meet demand because console manufacturers want to measure demand before going all out, but Nintendo’s idea here is to just start producing at max speed immediately and assuming it will sell all of those units
@@minecrafter3448 this also isn't an unprecedented idea due to the sheer number of Switch sales combined with is relatively high attach ratio. (8.25) meaning that they will likely see a high demand for Switch 2.
@@Crafty_boy70I mean there is lmao. Come the fall the demand for news is gonna be bigger than ever
Furukawa legit said "Nah I'll win"
When they sell out he should be fired immediately
One of the strengths of releasing the system outside of the holiday season is that you won't have the hardcore fans who want to buy it as soon as possible competing with more casual consumers like parents trying to buy a gift for their kids for Christmas.
A great way to gauge demand and produce plenty of consoles at the same time
Nintendo absolutely didn't use artificial scarcity with the NES. The thing came out at a time when video games were insanely unpopular in the west so it's more likely that Nintendo just underestimated how many NES's they would sell
yep and with the wii
“Most likely” does not equal absolutely
@@andreworders7305yeah. It’s just true though. The video game market full on crashed before the release of the NES. It was a gamble fork a company that had never made a console. I know we have to adopt the “Nintendo bad” mindset constantly but this allegation is silly
The video game crash also meant there wasn't just lack of consumer interest, but also retailers not wanting to stock them in the first place. It took Nintendo basically promising to take on 100% of the risk, from requiring no upfront payment, to buying back any unsold product, and even smaller things like handling in-store setup. If there were any better options to get NES consoles on store shelves, they would've jumped on them well before any of that.
Yup, gaming got popular in Europe in the late 90s . LATE late 90s. Also the soviet union didn't even have Nintendo during nes and snes are. Imagine how much they could have sold there !
I love the idea of some scalper being stuck with 20 consoles because Nintendo meets demand.
Dude please that whould be great
To be honest, having 20 consoles would probably make some good game nights
@@luigitime202could make some sick tournaments with them
@@luigitime202But if Nintendo is meeting demand, then all the scalper’s friends would already have Switches. So they would still be stuck with extra consoles that no one wants, conceivably.
@@EMLtheViewer counterpoint, his friends forget to bring them because he didn’t tell them what they were going to be doing
I imagine Nintendo started to get it upon realizing that a system sitting in a Scalper's garage or basement or whatever is fewer games being sold, fewer online subs, and more pissed off potential customers.
It's not really that. It's the logistics are extremely hard to get around to supply the entire world for these devices. Think about the stuff that sells in the range of game consoles. Stuff that sells more is like food stuff which is required yearround or stuff like the iPhone which is a fraction of the size, even for the Switch (counting packaging). We saw the biggest period of scalping (outside China) for the Switch was during the pandemic, the period where logistics were screwed up the worst. Nintendo is attempting moves to reduce the load for an individual Switch and has evolving relationships with retailers. In Japan, they bought JESNET and they have reduced the package for a Switch to be much smaller from launch.
More realistically, I think the Switch 2 has just kinda been /finished/ for a long time now and they've been waiting to release it, so they have had more time to iron out supply chain kinks
Well, a scalper buys just a system. A real customer would buy a system, a case, a pro controller, and a few games. Look at the PS5, many of their games still release on the PS4.
Another thing is that usually, in a lot of cases (not 100% if it's a valid strategy these days due to the cost of production of videogames increasing as the quality increases) the consoles are sold at a lower price to hopefully get more game sales later on. At least, that was the case for the 3Ds, and I wouldn't be too surprised if "Break even on the hardware, make bank on the software" is still a valid strategy, though selling consoles at a loss is probably out of the question
I've said it many times, but the best way to get consoles away from scalpers is providing more units to brick & mortar retailers vs online shopping.
Allowing people to order as many units as they want from the comfort of their homes, scripts that automatically detect stock over various websites, multiple bots that can automatically buy out everything in seconds while you sleep, etc. can't be done when you have to buy in person.
Also being able to have real life human beings verify 1 per person, that will allow more units get into hands of actual gamers.
You dont understand business and cash flows, its not uncommon
@@chiquita683 That's the most vague & general way to say nothing at all.
It worked for many generations & several decades, it would work fine.
@@chiquita683Your comment is the most stereotypical TH-cam comment I've ever seen.
"You're wrong, and I have no evidence or thoughts to add."
@@chiquita683
buying 5, or 50, or maybe even 500 from one store meant to sell at a specific location over a small margin of land, will always be less detrimental than some jackass buying 5,000, 50,000, or 500,000 from a single website meant to sell internationally.
The unfortunate reality is that scalping is an inevitable consequence of mismatched supply and demand. The only way to prevent it is to either massively oversupply the product, or to raise prices to match the scalping price and thus reduce demand.
Luckily for Nintendo, oversupplying a console is actually possible (unlike something like concert tickets) and it's safe to assume there will be enough demand over several years to eventually work through that supply so that they aren't just out all that money; although money now is worth more than money later, so oversupplying is still going to be less profitable than perfectly matching supply to demand.
Or you can not allow people to order the system online, then no bots can be used. People have to go INTO a store and enforce ONE pre-order per account. At least for the first year.
@@ItApproaches This is only a bandaid solution. Scalpers can (and do) go to multiple stores and get friends to help. Also, it's not unheard of for store owners or employees to do the scalping themselves, making any one-per-person rules useless. If the potential payoff is enough, people will find a way, pretty much no matter what.
@@cebo494 While true there is no perfect solution, it would help reduce the problem.
@@ItApproaches it would also piss off the majority of people who want to purchase it online. I am 100% certain that not selling online would be worse PR and hurt their bottom line far more than a scalping issue ever would.
@@cebo494 Humans are pissed off most off their lives and are cranky about everything, screw them. it's a first world problem, we had a LONG history of not having the luxury of buying stuff online. Humans are to attached to luxury and that luxury should go.
Real talk: the difficulty of finding a PS5 in the first few years is why I have a hard time believing it’s sold as much as they say.
This is so true, especially with the lack of a huge graphical jump and lack of exclusives. You can’t tell me that 60 million people bought this console within 1-2 years
@@PixelPikmin I hardly heard anyone ever talk about the ps5 and yet the sales data is right there. It's so hard to believe
I did not buy a PS5 early on because I saw how hard it was to get and I did not want to camp out at stores and whatnot. As time went on, the hype and fomo wore off to the point I realized I didn't actually need a PS5, especially since I had just got a PC capable of gaming. I know I can't be the only person that gave up on buying a PS5 entirely because of how rough it was to get one when the hype was at its peak
Remember, sales data is just how many people purchased the system from retail or Sony. There are probably millions of PS5s sitting in scalpers warehouses and Sony loses money on consoles like that. Compare the number of games sales to consoles for PS5 and it's abysmal
There was a chip shortage around that time too
I was originally going to buy a PS5 when it launched, but since you couldn't get one for under a 1000 dollars from resellers I just never did.
Scalpers: This
Won’t
DO!!!
hope the joycons don't suck
That’s probably the selling point to casuals
I find it hard to believe they won't keep joycons as they are but maybe included cons will be better given warranty president
The joycons had one good idea, the separated d-pad buttons, but its execution sucks so much people think it's a bad idea
Amen my brother 🙏
Litterally the only thing besides the expected power increase this needs. Functioning joy cons, and then do the same thing and I feel like there are a ton of people so used to using Switch over the years that they will just naturally transition to the next one. I fully believe that there is no need for them to try something weird or dumb this time, and judging from what we've discerned from credible leaks it seems like that's what they're doing. Also, I'd argue the current business leader at Nintendo has taken a pretty straight forward philosophy with most releases over this generation, which is also encouraging.
I can’t wait for scalpers to be jailed by Nintendo themselves and for there to be no artificial scarcity for their upcoming hardware! :)
Technically the EU also, since they would outlaw the scalping bit software, as in not fucking around with that stuff
I just wanna say that I really appreciate this channel. Little interesting topics. Relaxed. Thanks for making this, arlo.
And to think he did all this just to get away from the algorithm and does what he wants without fear.
i worked at best buy from november 2020-june 2023 and yeah there were always plenty of Switches, but at the same time they were still selling like CRAZY even years into its life cycle. we sold so many more than any Xbox/Playstation models, both because of demand and because we just had more of them to sell lol
I love that you made this channel. Many uploads at an easy to digest amount of time. If I see a topic I wanna hear you ramble on about I can pop in. Very cool idea. Hope this one sticks around!
I like how dramatic the music is
Given the "delay" I believe them this time. I also believe them when they say they dislike scalpers and never intend to drive demand by making fewer units. People who have worked there previously like Kit & Krysta have said as much (they have no reason to lie about this now). It's a silly idea that they would do that purposely when it just drives 2nd hand vendor monetary gain.
I'm so glad this second channel was made
Maybe they will also force preorders to be in person instead of online which may help reduce scalping? It takes away convenience, but maybe it helps, not sure
I've gotta say, I don't really understand why there are theories that the Switch Pro was going to be a thing. Releasing a mid-generation upgrade to a console is common for Sony and Microsoft, but Nintendo doesn't really have a track record of that outside of the handheld systems. And even then, the focus tended to be on making the system either smaller or bigger, with less emphasis on increasing performance. I may be wrong, but the only home console upgrade I remember Nintendo ever doing specifically to better performance was on the N64, and that went so poorly that a lot of people don't even know it exists. So releasing a Switch OLED model instead of a Switch Pro seems perfectly in line with Nintendo's track record. A new model that doesn't really increase performance and instead provides some other perk that a lot of people weren't really asking for, lol.
also the new 3ds, but it just proves further that its not a good idea for nintendo
Mid gen upgrades weren't a thing until last gen. It's connected to the longer and longer generations. There's literally only the PS4 Pro, Xbox One X and New 3DS. But the purpose of the mid gen upgrade is the stall flagging sales as the tech for the next gen is 2/3 years out. The COVID pandemic happened right at the typical midlife with Animal Crossing for the Switch. So, right as Nintendo would have decided on it, Animal Crossing and the Switch broke records.
@@PIKMINROCK1 While not performance upgrades, Playstation has at least been doing mid-gen console updates since the PS1. Every single Playstation has a slimmer version of it that released at another time, and Xbox is similar. I don't remember if the original Xbox ever got an updated console, but every one since has. Meanwhile, Nintendo has almost never released a new model of their home consoles. Handhelds, sure, there are a lot, one of them being a flat-out performance upgrade as well. But with the NES and SNES, I believe there are only regional differences. Outside of that, there's only 1 base model of the N64, 1 Gamecube, 2 Wiis (including the Wii Mini that hardly anybody bought), 1 Wii U, and now 3 Switches, unless I misses something somewhere. Aside from the N64 add-on, Nintendo just doesn't have a history of doing performance upgrades for their home consoles, or really hardly any updates at all. Plus, unless I missed something, Nintendo themselves have never so much as hinted that a Switch Pro was ever going to be a thing. It feels like the speculation all started purely because Microsoft and Sony did it, though we should all know by now that Nintendo doesn't do things similarly to the other big two companies at all.
Well, the Switch's OS does allow to clock the SoC higher than stock clocks. And the OLED would just have been the upgraded one, as it's using the more power efficient Mariko SoC. And the OLED Dock allows for 4K output, and the RAM it uses can clock much higher... so it's very likely that it was considered. But I don't think it was scrapped because of parts shortages.
One benefit Nintendo gets from not going ahead and doing it, is that the general consumer will experience a much bigger leap between the base Switch and its successor than if they did a mid-gen refresh.
This will be Nintendo's first true leap from the "entrypoint HD" performance in 12-13 years, which ages me a ton by just saying it. =D
@@CascoreGamer Redefining the argument to any hardware revision is silly because the Switch has already done so. You would be wrong and it doesn't why Nintendo wouldn't do a hardware upgrade. There are historical reasons why few console upgrades, namely that it would be hard to maintain compatibility with existing software and that engines weren't really a thing until the early 2000s. We don't really get flexible software profiles until after the Steam boom which lets developer designate how a game will run on weaker or stronger hardware i.e. Pro Mode.Without these evolutions, Pro consoles become impractical
The artificial scarcity stuff is so stupid. They need factories to build the console, and there are projected launch sales, they cant just rapidly make more factories if their console sells way better than they thought. Also much like servers, they dont want to build more than they need.
i remember going to the midnight release of the Switch and a guy ahead in the line bought like 5 Switches and then tried to sell them for more money to the people still waiting in line to get their own. Thankfully i was able to get one before they ran out, which they did before everyone got one, but i guess with this new mindset Nintendo has then hopefully it will turn out alright
Its not that theyre trying to mess with the customers, guys. Its just really hard to predict demand for nintendo hardware. They have a hit or miss reputation... So its a huge range of possible volume in shipments.
I really don't buy into the idea of Nintendo creating artificial scarcity to increase demand.
I think what's really going on is, they just don't want to over-invest and overproduce.
On this channel there's a lot of discussion (and even praise) about how Nintendo doesn't do the hiring/firing cycles, and I think that's a good parallel.
Just like Nintendo doesn't rapidly expand its game production, and its human assets, just to cut them all back then they're not needed, neither does Nintendo want to build up its production capacity, just to aggressively prune it back when its no longer needed.
Launch demand is short term. When its unexpectedly large, they scale slowly.
The Wii Situation I think was exacerbated by what happened with the Gamecube. The gamecube was overproduced.
Nintendo had more inventory than they could sell and were forced to do big price drops.
So when Wii was having shortages, they were even slower and cautious in their response.
And to an extent that was slightly justified because when Wii sales slumped, they slumped quickly.
As long as there are no build issues like drift or burn in and the switch 2 is significantly more powerful, I don't see a future where it doesn't sell. Unless it's more than 400.
Good to hear. Depending on when the next system comes out, I'm definitely planning on picking one up.
9:13 (Kirby in background)
Ooooof trying to take a chill pill, but everyone keeps getting in your way and making you angrier, including your own past mistakes.
I’m still in disbelief of how much great Arlo content we’re getting thanks to TopicArlo! Fantastic channel!
Bot
@@QtheLaserDude nah, I’m just a big Arlo fan!
@@TheBaconBothaha you can’t blame the guy based on your name 😂😂
But yeah I agree. Topic Arlo is just so perfect, because more Arlo is always a good thing
@@TheBaconBot My mistake, apologies! The name and the somewhat generic comment threw me off.
I still dont really understand the point of this channel. He literally just talks about the same stuff he normally talks about, just at "normal" video lengths.
I feel everyone should just not buy off anything over the official price, so scalpers wont exist
I'm expecting a slight drop off for switch 2 compared to the switch, not a huge drop off but probably a similar level the NES to SNES drop off
It’ll probably be a 120m seller in the end, still a big hit
Arlo thank you for making this channel i love watching your videos while im at work
Trust me, the scalpers will find a way.
There is a reliable way to put an end to scalping, but it's not something that would make buyers or sellers happy. If they raise prices to what people are actually willing to pay for the consoles, scalpers can't go higher than that, so they can't pull their shenanigans. But if they start putting out $1000 consoles, people start asking questions the sellers don't really want them asking, like "do I _really_ need this? is it better to sit by the sidelines for the early years?" So keeping MSRP low enough to keep people interested kind of outweighs the importance of scalping, which leaves them with rushing to produce as many as they can as their next countermeasure!
9:18 The critical phrase here is "if they keep bringing the games." That's not guaranteed, that's not a foregone conclusion. That is the biggest factor in both the Switch 2's potential success but also the potential cause of shortages. It all depends on the launch day games and the launch year games and we don't know a single one of them yet.
Nintendo: I have a innovate idea to combat scalping! we made enough consoles!
me: wait... you weren't doing that?
The NES and Wii did not suffer “artificial shortages“
Y’all really have no idea how manufacturing works. The amount of units that you’re going to be producing has to be planned out over a year ahead of time. Meaning it takes a minimum of a year to react to a severe shortage. During that year, demand continues to increase while companies speculate and calculate how far they think that demand will go.
Companies always want to produce slightly less than they can sell because producing more than you can sell is a massive hit to your bottom line.
The Wii absolutely suffered artificial shortages
Amiibo suffered artificial shortages
The NES Mini and SNES Mini both suffered artificial shortages
The Switch, at launch (not later because of COVID) suffered artificial shortages
Nintendo loves artificial shortages, you are a fool to deny it
@@mjc0961 Nice tinfoil hat you got there
@@mjc0961”nuh uh. Nuh uh. Nuh uh. Nuh uh. FOOL”
@@mjc0961
Not haven’t 20 Million units ready at launch ≠ *Artificial Storages…*
It’s called being intelligent
What if Nintendo ordered 20Million WiiU’s to be made in the first 12 month of the life cycle?
They would have 7 million units that never sold and be 2.2 Billion Dollars in the RED
You only make what you know for a fact you can sell.
At no point was Nintendo so cocky in the NES, Wii, or Switch that they were willing to over forecast sales by tens of millions of units.
@@mjc0961 Me when I don't understand production
My GameStop only got 2 switch consoles in on launch day. There was definitely some shortages ahaha. Thankfully the nearby Walmart had some
the switch oled does actually have a slightly more powerful chip, i think, but 95% of that extra power is used for just better cooling. the other 5% are largely negligable
100% is used for better battery life, and it’s more than twice as powerful
If by some stretch they do supply enough, then they will have my money day one.
This topic OMG… Here’s the thing about „artificial scarcity“: If you don’t sell product you don’t sell product! There’s no money in Nintendo “refusing” to sell you the product. The goal of an artificial scarcity tactic would be to make the product “almost sold out”, but still actually selling. The Wii was IMHO not artificial scarcity. It was just Nintendo not wanting to invest into expensive extra tooling and supply chain. They conservatively ramped from 15 to 20 to 25 million per year, but doing so overnight would have been reckless. A console is a 5 year gamble. To build up massive overcapacity in year 1 that will sit idle for the next 4 years is expensive and can ruin the company.
There’s a bit more to it than that. Nintendo started off manufacturing the Wii at the same speed they would need for sales similar to the GameCube. After seeing the hype, they immediately produced them as fast as they could, as fast as they did at the peak of the nes. That still wasn’t enough, so the next year they expanded and produced the Wii even faster than they had ever produced a console before, and that was finally enough.
Don’t pretend Nintendo tried to create artificial demand with the Wii. The produced enough units to meet the expected demand, which they thought would be similar to the GameCube. Then when demand skyrocketed, they made as many as their infrastructure could produce in 2007, similar to what it was at the time of the NES. But the Wii just kept selling, so they had to expand and produce consoles faster than ever before in 2008. That was finally enough, and demand declined after that.
Yeah some people don't necessarily understand how much of a fucking juggernaut the Wii was for a few years
Additionally, Wii sales flatlined around 2010, imagine if Nintendo had produced 20 million units that year only for them to go unsold.
One of the reasons I never and will never buy a PS5. I was really raring to get one and play Demons Souls and then I just coudln't find one. Years later and yeah they are around, but it's gone. I don't really care to play Demons Souls anymore and don't really want a PS5 anymore on one account of them releasing the PS games I want on PC now.
It really is a game thing for me. I didn't have any spare money when they launched any way, but you know I was at least someone interested in Demon's Souls because of how good it looked and sounded. Fast forward to now? Honestly unprecedented for a console generation, even now years later Demon's Souls and Ratchet and Clank rift apart are pretty much all I care about. And what's crazy is, BOTH of these games can be played on other platforms technically. Like yeah, I would really like to experience demon's souls's redone assets and sounds, but it doesn't change the fact that I can play Demon's souls on ps3 (or pcs3 emulator) and it's the same experience essentially.
So with that in mind, gta 6 next year will be the first thing that I'd be interested in that isn't also on PC right away, but even then that game is eventually being ported. Idk, it just feels kinda crazy to me that seemingly the entire selling point this gen has just been "owning a PS5" instead of pushing actual games to play. I just feel like in previous generations there was way more incentive to buy a system for the games and more of a feeling that you were missing out on certain things if you just had one platform.
All I ask for the Switch's successor is that it has backward compatibility.
Problem is the scalping is still going to happen with the special editions/ cool items. I didn't have an issue getting a switch because I luckily had saved taxes since I had heard rumors that there was going to be a handheld mainline system and got excited.
I did want to get the Animal Crossing Switch but that got scalped up to 500, I think you can get one now for the regular price from the scalpers but I'm not condoning their logic that they can just turn around and sell it for exactly how much they paid for and break even.
It would be cool to get the things I want but alas, it is what it is.
This man has been on a streak of videos on this channel!
it will suffer from shortages if its a hit
It would bring my heart so much joy to see scalpers buy a ton of switch 2's and not be able to sell them
9:00 what a wild sequence of events in the game while arlo was talking lmao
That is actually hilarious
That is good to hear that they don’t see shortages for the next console being significant or anything like that!
That is a challenge only Nintendo fans can stand up to.
I am buying consoles since mid 90s. I never ever bought the console in its launch year. I wait for the mid wave. At that point there is enough good games to buy second hand, as well as to get a better price of the console (like a budle or what not). Therefore, this fall I will buy PS5 and play some games until I wait for GTA6. I still have some Switch exclusive games to play, so before 2026 or even 2027 I won't buy Switch 2. ❤️
Kirby failing like five times to get ice power...
I am pretty cynical about Nintendo and I might be wrong but I think Nintendo was truly caught off guard on how successful the Switch could be at launch. Nintendo's console sales are kind of a mess from Gen to Gen and they just came off of the Wii U which was Nintendo's second biggest flop ever.
Honestly im hoping smyths and argos does a reservation system as extra security of switch 2 preorders in-person and ofc with metroid prime 4 beyond day 1 hopefully (switch 2 version)
I can remember I pre-ordered the switch on gamestop‘s website and then I had to wait 2 months after the release to finally get it?? What‘s the point in pre-ordering then. I hope the situations better when the successor comes out
I mean I can't afford one anyways and its probably gonna be expensive. Early consoles are hackable though so its probably worth it to get it early.
They never manufactured shortages. These consoles make their real revenue selling games not the one time purchase of a console. They are basically saying they forgo making money for investors to seem like it’s in demand, and then later sell the console instead of doing it from the start. It’s absurd
His point about providing enough units is proven with the SNES Classic.
The NES Classic was scalped to hell, you just couldnt get one. And there was definitely a lot of FOMO purchases if you did happen to see one in the wild
The SNES Classic though was muuuch more widely available. As a result, scalpers lost money. They bought loads of units and couldnt flip them.
I don't think nintendo ever purposefully under manufactured any console. After the gamecube flop they just didn't enticipate that the wii would sell that well it was also a very diffrent concept for a console having those motion tracking controlls. It's also not a good thing to under produce your product if it's not you profiting out if wich they wheren't it just costs them not having as many potental impulse buyers and reputation.
No one does
@@chiquita683 Not when it comes to consoles but their is luxury brands who have limited launches not because they are scared they won't sell well or have enough to make more of the products just so that they can sell their goods as more exlusive then they actaully are.
With the N64 and Gamecube they had two flops in a row on their hands so I can't really blame them for making lowball estimations.
Arlo just casually jinxing himself there at the end. You hate to see it.
for a second i thought that Nintendo would force providers to ask clients to show their ID and setting a limit of sold consoles to 2 per person or something like that
Dictatorial measures would fix the scalper problem
The problem with that is online orders.
Imagine the switch 2 ends up being the TV only switch people were talking about when the switch lite dropped
Nintendo has started to stock things again, I mean after like 3 years they restocked the nso n64 controller and its not so,d out anymore
I remember predicting the Switch sell better than the Wii U, but not gangbusters and predicting a what I thought was a generous 40 million units. As it turns out I was only off by about 100 million😅
Shocking when supply and demand is responded to well. People demand a product… so you supply them with it.
I'm really looking forward to the next console, but even then I'm probably not going to go for the preorder, I'll get it no doubt, but I think I'll play it safe and try to wait until the first round of updates drops.
I haven’t watched the video yet but I just really need to say this where it matters, please for the love of god, make it so your consoles have to be shipped to you after ordering, I’m not saying don’t sell more than 10 to someone, I’m not saying start developing it when someone orders it, just please make it so when I want to buy it, I can just order it online, and that’s if I don’t find it irl, cuz it’s crazy that someone can preorder a console and people who didn’t get screwed
I’m a little more hopeful. The switch got a slightly better CPU after the initial wave of consoles came out so it might be worth waiting a year or so if that’s an option for some. You can potentially get a cheaper console (Black Friday sales etc) with better/revised internals.
8:15, its also very possible that Nintendo just wasnt first on the list to get the chips, it probably went, govermental uses/megacorps/chip manufacturers themselves, than civilian necessities use, then non essential things like consoles.
The shortages of ps5 wasn't solely because of the pandemic. There was a major need for new semiconductor facilities for years as they couldn't keep up demand. The gpu market is a good example, it was very hard to get any newly released gpus before the pandemic because of the supply issues
Retailers would have to limit sales of consoles behind a membership program like Best Buy has.....which they wont.
If Nintendo makes enough consoles vs. demand, scalping isn't profitable in the first place. If scalpers can't scoop up enough product, then they are competing against retailers, and if they scoop up too much, they compete against each other for those buyers actually willing to pay 2x the price there. It's a business model that is only viable when supply is sufficiently limited.
@@Metallicity Scalpers will buy by the pallets worth if given the chance. What has to happen for them to throw in the towel and not bother is for Nintendo to somehow be able to restock most retailers on a daily basis, which I just don't see happening.
@@sweetfeathery They won't buy any if they will be forced to sell most of them for the same price as they paid for them. There isn't one giant coordinated network of scalpers, if someone is trying to sell Switch 2's for $500, and some other asshole charges $400, they're both going to sell zero if enough other scalpers price consoles at $350 to fill whatever gaps in retail exist. And nobody wants to be stuck with "pallets" of product that they can't sell.
"One per customer" is a good countermeasure. Of course you can just come in again the next day, or maybe just an hour later with a different outfit or send a friend. But it significantly increases the effort to scalp and gives normal customers more time to get what they want
I feel like Nintendo has probably seen the damage that shortages caused to the PS5. So I wouldn’t be surprised if they just sit for a while making more and more consoles so they can have a huge launch.
I really hope Furukawa is right and this remark doesn’t come back to bite him later
I’ll believe it when I see it
It’s a lot easier than it sounds
I get why shortages happen.
NES: they literally had to sneak it into toy stores using ROB and still bundled it with the zapper later so there wasn’t a guarantee they’d all sell if they made too much in a country where one state had more people than all of japan.
Then of course less sales each gen then on till Wii with GameCube needing to stop being made so they didn’t drop the price lower than 50 just to get rid of stock cause nobody wanted the system.
So Wii having a shortage was them going “well no was got the GameCube so will they really want this GameCube with motion controls” and so took a while to catch up to demand.
I’m guessing switch didn’t have this issue (till the pandemic) because with no handheld console going into production it meant Nintendo could focus on just switch since 3ds sales fell so much they could just make 2ds for a year and be done completely
I think the plan is to have 10 million units ready to ship day 1
The rumor goes “10 million units ready for QUARTER one”
Even if they will limit one per customer, IT WILL BE NOT ENOUGH
10 million will be enough
After watching this video I want to play Kirby and the Forgotten Land and I’m gonna do that when I get home
That’s a great idea, my second favorite game on switch
True masterpiece
Wouldn't the obvious solution be a preorder after the switch successor gets revealed? Or heck, even an interest poll on the Nintendo website
An interest poll could work, but only with a very long hype cycle. They would have to announce, reveal, and present the thing, do a whole marketing campaign, do the poll, and THEN start making consoles. The hype cycle would have to be 2 years.
Dont mind the rambles and ramp up, it's all good
Beautiful thumbnail, Arlo
It did take me until like, May or June in 2017 for Switches to be in stock near me.
Stopping scalpers is very difficult and requires some cooperation on part of the retailers to not allow the sale of several consoles at once. Some kind of limit is needed. As long as Nintendo produces enough consoles and retailers put a limit on the amount of consoles 1 person can buy, hopefully it can stop most of the scalping.
Yeah tbh I struggle to think of a scenario where leaving a store with more than one physical console even makes sense.
And like, say you've got twins etc, just buy another console at another store 🤷♂️
It sure is sad for the scalpers 😢
Anyways
It’s simple:
* Limit sale of Switch 2 to one per customer/account.
* New accounts made in the last year, no purchases on the eShop and have almost no play history will be prohibited from purchasing a Switch 2 to prevent scalpers from making hundreds of accounts to buy one for each. Accounts that were made over 365 days, have a semi consistent play schedule and/or made multiple purchases will be marked as regular and be allowed to purchase one.
* New accounts who want to buy one will need to fill out a questionnaire to customer support asking for it. If it’s genuine and passes an AI check, then they’ll be given an exemption code and buy one. Any scalpers trying to do multiple questionnaires on the same IP address will be blocked.
* Reselling won’t be prohibited on sites like eBay or Facebook marketplace. But if any that do show up that are twice the selling price, the price and availability of the original store front will stop any panic buying.
Problem, this limits switch 2 to only switch owners. People have been holding out on buying a switch and still don’t have one BECAUSE of switch 2.
With Nintendo's new Interdimensional Transportation System or ITS, you can pay Nintendo for the system and the new system will materialize if your home.
I will be very happy if Scalpers are sad and miserable with their 50 consoles in their basement when Nintendo has no shortages 🥰
analogue triggers are industry standard too...
the switch 2 is gonna be called the 2witch, pronounced like “twitch”
When people can actually buy your products
9:15 it worked with the SNES so it'll work again, simple as that
Great Stuff, as always!
I look forward to buying the console 6 months after it comes out, but here's hoping it'll be sooner. Can't stand scalper's actions.
Seeing the title and thumbnail, literally one quote popped into my head.
"Confidence!... A fool's substitute for intelligence." - Jim Carrey as Dr Robotnik in The Sonic Movie 1.
Not that I trust Nintendo, but thats a very bold claim for them to make.
It’s really not that hard to just make enough. Not a big achievement. If they plan to make enough, they’ll make enough fairly easily.
Honestly, I keep hearing this produce more units, but I personally always felt it was an issue of bots. Am I mistaken or anyone else worry we will still have shortages anyway?
Worst case scenario, there are enough scalpers to buy all of the oversupply, but because there’s an oversupply regardless they can’t sell it for more than a 20% markup
Nintendo has no incentive to underproduce a system. More gamers having access to it means that more games are being sold.
I think they simply have confidence for the first time.
Nintendo is very humble and the Wii u really shook them.
It's not hard to predict a much more powerful Switch, would be welcomed with open arms 🙂
Believe me, the Switch 2 is going to be hard to find, for at least a couple of months post launch. It's arguably the most anticipated piece of gaming hardware ever, no escaping that.
Believe _you?_ I’m not saying you’re wrong, but like, who _are you?_
@@jackatk are you mentally challenged? It's an expression which emphasizes someone's opinion on a subject. Jesus...
Ever? No way, I can imagine a lot of people and families that aren't picky about hardware upgrades won't care for a while, Nintendo will even keep supporting Switch 1 when Switch 2 comes out
@@MusicJunkie37Considering no console has ever sold more than 5 million in its first quarter, yes it’s the most hyped up system ever.
@@jackatkHAHAHAHA
Lets go Arlo new switch soon
Limit how many a customer can buy? 🤷🏽♂️
on their end sure, but they cant just tell every store chain in the world what to do with their stock
Considering how much Walmart hates them, a minimum of one retail store will not listen to Nintendo on that one