Why does nintendo do this...[underproduction]

Well how many games sell 400,000 copies in one week? Not many. Sure its Mario and all, but most companies hope for million sellers and most of the time that takes nearly a year to do. 400,000 in one week is a really big number if you ask me. I am thinking that Nintendo did not think they would have to have sent out more then that, I bet they thought they were overproducing. And you know they will ship more next week, people have had to wait a hell of a lot longer for new shipments of games. I don't think Nintendo was trying to pull anything. And if they did ship 1,000,000 million copies in one week and they only sell 400,000 in one week what would be the point? I have a feeling this is how every company does things.

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Originally posted by Master
mattvanstone knows nothing about supply and demand. Lets just leave it at that.

PS: Not that I'm an economics wiz, but I digress...

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Yeah..I know nothing.

If you can sell 600K of something, ie, the demand.
and you produce only 400K of it, ie, the supply.

you are losing money.

If your beloved MS made 10 XB's, that wouldn't be less than demand and not yeild money that they could have?

what's to know beyond that 'master'.

Many of you are acting like this shipment of 400,000 copies are the only copies that are going to be made.

Take for instance a shunned customer who went out to pick up Sunshine release day with no pre-order (Lucas, for example ;) Just kidding...). They can't find it anywhere release day because all of it is preorders, and the game seems more "rare." This increases the chances of that person spreading the word about the game in an attempt to find it, and it also almost guarentees they'll pick it up next time they see it for fear of not being able to find it later (which does wonders for someone on the fence of whether or not they should indeed get it).

The demand will not be met on release date, but supply will grow over time as the demand increases, even if only slightly, simply due to there not being enough the first around. If people see plenty of extra copies at a store, they figure that store will have those for a while, and they could perhaps skip on that game for now and come back later (be it for whatever reason, like thinking of using the cash for something else). That person might then simply wait for a price drop or get a used copy, which would mean Nintendo would make less or no moeny from that person. In large groups, that adds up.

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Originally posted by mattvanstone


Yeah..I know nothing.

If you can sell 600K of something, ie, the demand.
and you produce only 400K of it, ie, the supply.

you are losing money.

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not, really, those 200k people wont magically stop wanting a high caliber product like Sunshine if there are none in stock, seeing those empty shelves and playing his friends will only make him want more, and as the marketing team at my work put it, "create a stronger buzz."

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Originally posted by MechDeus
Many of you are acting like this shipment of 400,000 copies are the only copies that are going to be made.

Take for instance a shunned customer who went out to pick up Sunshine release day with no pre-order (Lucas, for example ;) Just kidding...). They can't find it anywhere release day because all of it is preorders, and the game seems more "rare." This increases the chances of that person spreading the word about the game in an attempt to find it, and it also almost guarentees they'll pick it up next time they see it for fear of not being able to find it later (which does wonders for someone on the fence of whether or not they should indeed get it).

The demand will not be met on release date, but supply will grow over time as the demand increases, even if only slightly, simply due to there not being enough the first around. If people see plenty of extra copies at a store, they figure that store will have those for a while, and they could perhaps skip on that game for now and come back later (be it for whatever reason, like thinking of using the cash for something else). That person might then simply wait for a price drop or get a used copy, which would mean Nintendo would make less or no moeny from that person. In large groups, that adds up.

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Exactly... not. When I couldn't find Morrowind the day it came out, I stopped looking and gave up until I just happened to see it when I was out. After I hadn't found it, I didn't care if I got it and was pissed. If I don't find SMS the day I go to the store with my money, I might not get it this year. When the market is overflowing with exciting, overhyped next-gen games, not grabbing what you can get as fast as you can is really stupid. Then again, Nintendo was stupid enough to keep SM64 at $40 til they stopped making it, and have garuanteed they will never be king of the hill again, so maybe they really do only care about GBA... We all know GC is their last console... :evil: :p

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Originally posted by MrKasualUltra2000


not, really, those 200k people wont magically stop wanting a high caliber product like Sunshine if there are none in stock, seeing those empty shelves and playing his friends will only make him want more, and as the marketing team at my work put it, \"create a stronger buzz.\"

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They might still want it, but unfortunately for Nintendo, that paying customer just settled for a 3rd party game with their $50 and they won\'t be buying SMS for awhile now.

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Originally posted by EThugg


They might still want it, but unfortunately for Nintendo, that paying customer just settled for a 3rd party game with their $50 and they won\'t be buying SMS for awhile now.

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good point, but...

im POSITIVE, companies like Nintendo, MS, etc...have done adequate market research that produces results such as only 10% of the gamers who went out pick up a HIGH CALIBER (thats the key word in my thesis) game like SMS would pick up another game if Mario was not in stock...

it is not because the factory cannot produce enough, end of story.
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(btw. i know people, both adults and kids (actually 2 kids and 3 adults) who are picking up Cubes right now in anticipation of Mario and have already pre ordered)

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Originally posted by MechDeus

That person might then simply wait for a price drop or get a used copy, which would mean Nintendo would make less or no moeny from that person. In large groups, that adds up.

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I am guilty of this actually. When I see a game in the stores and it's usually plentiful (and I usually don't NEED to play it) then I wait for the price to drop. As soon as FF Anthology started disappearing from stores, I started getting worried. This is why I picked up my copy off ebay, in case none could be found. For Mario Sunshine, you really can't settle for anything less if you're intent on playing it. Most people know that Mario games = good games. So why waste money on a new Army Men game in its place?

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Originally posted by MrKasualUltra2000

"when demand is met. demand dwindles"

economics 101

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You apparently didn't do too well in Econ 101.

Companies aren't interested in maximizing demand. They're interested in maximizing profits.

Neither supply nor price change demand. They simply determine how much of demand is met.

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Originally posted by Master
mattvanstone knows nothing about supply and demand. Lets just leave it at that.

PS: Not that I'm an economics wiz, but I digress...

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I am. I have a B.A. in Economics from Rutgers University. I got an A in every single Economics class I've ever taken. MVS is right.

Supply cuts can increase price. If Nintendo was selling SMS :lol: for the yen equivalent of $150, then supply cuts *might* make sense. They're not. Supply changes do not affect demand, and even if they did, supply cuts would hurt demand, not help it.

Sweet jesus..what has the world come to. burgundy is agreeing with me, and he makes more sense than me...

goddam.

:P

MD: Like I said earlier, the demand effect of hearing "I can't find game X" is completely cancelled out by the alternate effect of "I have game X, and it kicks ass."

I can't believe MVS and EThugg are the only ones making sense in this thread.