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Nintendo Exec on NES Classic Shortages, Nintendo Switch Supply

Reggie Fils-Aime weighs in.

226 Comments

Nintendo of America president Reggie Fils-Aime has responded to the NES Classic shortages and discussed the company's plans for the Switch launch in March as it relates to supply.

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Discussing the NES Classic shortages (the system remains sold out basically everywhere following its November 2016 launch), Fils-Aime said it was simple matter of demand outpacing supply. But why?

"When we looked at that proposition what we believed was the adults, 30-40 years old, who grew up playing NES as a kid, 10 years old or so but had stepped away from the gaming category--that was going to be the buyer [of the NES Classic]," Fils-Aime said.

"As we thought about that, that led us to a certain level of supply."

The reality, however, was that the lapsed gamer and the "more active gamer" bought the NES Classic, leading to a demand that Nintendo didn't fully anticipate and in turn the supply issues.

"That was the maketplace disconnect that happened," Fils-Aime said. He added that Nintendo continues to make more NES Classic systems available. He said the supply issues for NES Classic have been "largely addressed," though not everyone may agree, considering the console continues to be sold out basically everywhere.

We also talked to Fils-Aime about the Nintendo Switch and Nintendo's supply plans. He reiterated that Nintendo has said it will have 2 million units in the wild, worldwide, for launch in March. The executive told GameSpot that this is a "huge amount" of volume, especially considering the Switch is not launching in a holiday month.

"We're working to make sure that the supply chain [for Switch] is robust and there is a steady flow of hardware," he said. "The one piece we can't anticipate is the demand side of the equation but certainly from a supply, we feel like we're going to be well-positioned."

Also in our interview, Fils-Aime provided a glimmer of hope about Mother 3. Maybe.

Check back soon for GameSpot's full interview with Fils-Aime.

Got a news tip or want to contact us directly? Email news@gamespot.com

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straightcur

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Edited By straightcur

"maketplace disconnect"

He perfectly described his company in those 2 words. There must be some kind of Nintendo bubble that the people working there can't seem to escape.

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crashchaos

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I hope Reg realizes that no one believes him. He does realize this, right?

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Bickle2

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Just stop lying. It's not like Nintendo hasn't been doing this for 30 years consistently. They short because they think it makes their fads.

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Slash_out

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Edited By Slash_out

@bickle2: They "short" because they can't afford to have to many consoles unsold and because they can't have too many factories lines to make their consoles to have them un-used once demands calms down, most of the time it's not a "I rent ten lines and return them once I don't need as many consoles" kind of deal. So they are stuck with a smaller output the only way to get more consoles at launch for them... would be to postpone even further the launch.

Nintendo makes games and consoles, they don't have a side business to compensate for big losses.

Geez people act as if it's easy and cheap to just "put out" consoles and as if everything is a conspiracy.

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VXXXJesterXXXV

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@Slash_out: actually the nes classic is cheap and easy to manufacture. It's a freaking raspberry pi in an nes body, nothing special at all.

The fact is had they allowed preorders and looked at market data in the months leading to its release they easily could have had enough, or during the holidays they could have had enough out. Nintendo doesn't do that though, they like "shortages" because they believe it makes the product more desirable.

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Bickle2

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@Slash_out: Not true in the slightest, they short because they have a consistent pattern for the last 30 years, including saying they couldn't make more cartridges because they couldn't get the chips, then rejecting chips given to them that independent tests verified to be of equal or better quality. Sony and Microsoft start in-earnest manufacturing 6 months before launch for precisely the reason of keeping supply as close to demand as possible.

They are a toy company in their mind, they short because they think that selling out will make your product desirable, all it does with electronics is make people's desire burn out before they get one.

That's why no one else does this, and Nintendo hurts themselves every time they do.

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rodoxthedark

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Edited By rodoxthedark

I can get one today. Don't know what they are talking about, sorry I stand corrected cant find one at all!! :)

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Tripwolf

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They can make news about their system selling out when in reality these numbers are low. They believe news about their system selling out will make more people anxious to buy their product.

Duh.

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JoshR1370

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I'm gonna have to call BS on Reggie's reason for the nes classic shortage. Indie games and retro games have made a huge comeback the last ten or so years. If anything they are bigger than ever. If Nintendo really thought that older gamers would be the determining factor in how many units sold, then they are way more clueless about what their fans want than I thought, not to mention why so many of us love gaming. This crap has been happening for years now. Nintendo teases something, we all get excited, then Nintendo holds a press release and we are all dumbfounded on how quick Nintendo could butcher a great idea.

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gruoch1

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2 million units for the US alone is not enough, let alone worldwide. Why doesn't Nintendo like money??

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johnlewis107

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Edited By johnlewis107

@gruoch1: They think they can sell more over time and keep it full-price for longer if it's constantly in the news, which is probably true.

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GRTooCool

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@gruoch1: I think they like money just fine. They're just stupid.

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Argle

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Edited By Argle

I feel like this is just turning into marketing related mental gymnastics on the part of Nintendo. Intentionally make supply less than demand, omg all our stuff is selling out what a success!

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RossRichard

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Edited By RossRichard

If the NES classic edition supply has "been largely addressed", then why can't I find one anywhere? Also, the whole "supply and demand" argument is really pretty stupid coming from him considering they sold 200k of them during the holidays when they could have easily sold 10x that amount.

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wolfpup7

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@RossRichard: I'd like a confirmation that they're actually continuing to build it.

It sold out in less than 60 seconds in November, and hasn't been seen since...

2 million worldwide for Switch doesn't sound like much either. Glad I got my preorder in...

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coreekymon

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@wolfpup7: For what it's worth I got mine this month so they are putting them out still. That being said I only got mine because I work retail. We got 4 of them in and they sold out in like 20 minutes. Half of them were bought by associates too, me and another guy, which I do feel bad about. But in my defense my only advantage is that I'm there in the store for several hours five days a week, it went out on the floor with me not having any prior knowledge of us getting them in, I just got lucky and was on break so I was able to buy one. Still I do feel bad about it, it's pretty hard for any normal customer to get their hands on, just have to be extremely lucky and be there when we put them out on the floor.

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wolfpup7

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@coreekymon: Thanks for the report, and I'm glad SOMEONE is managing to get one. 4 though!

Well, at least they're still trickling them out. I'll keep checking...

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jtmellon

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Edited By jtmellon

@coreekymon: I don't think you have anything to feel bad about. Now if you bought it to put it on ebay at a jacked up price of 200 then you should feel bad, but if you purchased it to play and enjoy it, no.

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wolfpup7

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@jtmellon: Yeah, I agree.

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ConsoleHaven

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@coreekymon: And how much did you and your associates sell yours for, out of curiosity...

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coreekymon

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@consolehaven: I can't speak for my coworker, but I kept mine for myself. I wouldn't scalp, I've had my share of trouble with scalpers in the past, I wouldn't sink to their level.

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ConsoleHaven

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@coreekymon: Sorry. My question was in poor taste. I wouldn't judge you if you did, though. I've scalped Xbox 360s. In my defence, I haven't done it since and I included games if the price went way above what I was targeting equal to the value of the overage. In any case, Nintendo should handle preorders and only sell the first shipment to gamers who have had a nintendo id for a few years and have purchased games in the last year.

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thingta42

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No this line - we believed was the adults, 30-40 years old, who grew up playing NES as a kid, 10 years old or so but had stepped away from the gaming category--that was going to be the buyer"

translate into. - We didn't expect all the 30-40 year olds to sell us out and then scalp the item preventing genuine buyers from being able to get it.

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Megaman_Omega

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The supply was too small because they didn't think that the "more active gamers" would buy the NES Classic? lmao.

*facepalm*

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Simba13

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@Megaman_Omega: Why WOULDN'T you want to buy a trophy, from the days when Nintendo was relevant as a successful gaming company?

It's a piece of history, in so many ways.

Those were the days, Nintendo was the market leader AND affordable .

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dhaynes25

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Scalpers are getting PAID!

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Avr-X

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I tried pre-ordering the Switch Friday the 13th. Unfortunately, everyplace I called were already sold out.
Tried again today (1/15) and still no luck.

I set up a few e-mail notifications with a few online companies, but otherwise I'm not going to go crazy. I want to say I'll try to get a Switch eventually but I'm not so sure. I'm a bit disappointed with Nintendo (again). This company has a history of under-supplying consoles; This feels like Nintendo and their old tricks. If they do create artificial demand for publicity (Who knows for sure?) Then it's "shame on us" if we, the gamers, fall for this crap again.

Why doesn't the Big N learn from it's past mistakes? Speaking of the past, does anyone else remember before the Gamecube was released, Nintendo said they learned from their error with the Nintendo 64 and distancing themselves from 3rd License Party support? Yet, it happened again with the Wii U.

For a company that has a lot of promise, they seem to shot themselves in a the foot,... a lot.

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ConsoleHaven

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@avr-x: I know it feels good to get a new system the day it releases, but there are so few games at launch. I'm surprised at the demand for the console, to be honest. It's pricey (in CDN $460 tax inc) and one of its best features, portability, is hampered by a short battery life. In any case, best of luck finding a Switch, and don't get too caught up in the moment and buy one from a scalper :)

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Avr-X

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@consolehaven: I'll probably wait until the stores have it in stock (and I don't have to fight anyone for it). It's not worth getting crazy over.

I'd never give my money to a scalper and I wouldn't support that practice. Although it doesn't seem illegal (apparently), folks purchase certain item's with the sole intention to grossly profit on a consumers inability to find said item in stock. Scalper's tend to make a ridiculous profit off bad corporate planning an the inability for consumers to deny themselves instant gratification.

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wolfpup7

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@avr-x: You had to preorder Switch pretty fast the day it went up. (Was that Friday?) It sold out everywhere within minutes to hours, although that's still much better than NES Classic did, so I hope that's a good sign...

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Richardthe3rd

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I'm sorry, but this has been a repeated issue for them throughout the years.

It's obvious this is intentional, but it's not like it's something they can admit to without taking a huge PR hit.

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ConsoleHaven

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Edited By ConsoleHaven

@Richardthe3rd: I disagree. Nintendo is a traditionally run Japanese corporation. They did some projections and number crunching and 2 million seemed to be the critical volume for launch day with x number to follow month to month. I don't think any product manufacturer enjoys seeing their product sold for 2x as much on Ebay following launch.

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jinzo9988

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Edited By jinzo9988

@consolehaven: That's partly why they have so much money in the coffers. They don't spend stupidly like some companies, one of which I won't name that lost a collective 3 billion dollars over 10 years trying to get their Xbox division off the ground DESPITE selling 80 MILLION consoles and had investors begging them to get rid of the division.

A lot of people like to think Nintendo has this grand strategy of intentionally underproducing despite their estimates to create buzz and good PR that their products are selling out... but could it actually be that they're estimating and they're estimating wrong? Could it be that they're going online and reading feedback like "Nintendo sucks", "It's for kids", and "Why would I buy this when I can just emulate the games for free" and they have their expectations lowered for that reason? It wasn't until recently that they began losing money. Is it not within the realm of possibility that they're taking a more conservative approach to balance their finances instead of just fucking mindlessly throwing money at something? That's the other side of the argument that I never hear anybody make, and it's just as possible as the one everybody likes to parrot.

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ConsoleHaven

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@jinzo9988: Yep. Nintendo has no other product to sell than handhelds and consoles. Selling at a loss for MS and SONY but having a huge install base potentially boosts sales of products from their different divisions. Also, MS and SONY have access to lower cost manufacturing than Nintendo which means that even making a console just as powerful as PS4 and X1 would end up selling for more than they do now. Nintendo is in a really tough spot and have to be extremely creative to stay relevant and profitable.

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Tr4newreck

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oh please what a blatant lie, they are masters at 'artificial scarcity'

its like he pretends we haven't seen this show before... amiibo's taught them a good lesson in marketing and supply, as in, pretend there is none and get your customers in a frenzy over the damn things.

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GRTooCool

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@tr4newreck: Exactly. Fool me once... (Wii) shame on you. Fool me twice... (Amiibo), shame on me. And now the 3rd time with the NES Classic? **** that. The crazy thing is... people will still fall for it for the 4th time with the Switch! Yikes.

(For the record, I only bought the Wii and regretted it. Didn't care for Amiibo junk. Then I wanted the NES Classic but with it unavailable, don't want it anymore. Then I still pulled for Nintendo to bounce back with the Switch but that looks like it ain't happening. Bummer.)

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wolfpup7

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@GRTooCool: You mean the Wii or the Wii U?

They're both "must buy" if you like Nintendo's games, but obviously since the hardware's a generation old (in both cases) they didn't get much 3rd party support.

Switch is different in that it's a portable and will inherit 3DS/Vita support. It still won't be most of the same games from One/PS4, but should hopefully have pretty solid 3rd party support-seems to have just what I'd expect already announced for it. I won't be surprised if it's better support in the long run considering it'll inherent all of 3DS AND Vita's support, AND of course have all of Nintendo's support instead of half of it, AND we may see more than that too-like it won't surprise me if Bethesda only ever releases Skyrim, but it's possible developers who haven't supported portables before will do more than that.

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japanesemeowth

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that's BS with capitals if you ask me nintendo!!!!!!!!!!!!!

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Rufus_the_rat

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This guy just continuously tells half truths. He knows darn well that Nintendo understocked it deliberately, just like they did with Amiibos, the first Wii and other systems through its history.

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Simba13

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@Rufus_the_rat: Lets face it, you don't rise high in any company by NOT towing the party line.

Why would anyone expect a corporate "yes man" to say anything other than what he is told to say?

That's what he gets paid for!

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ConsoleHaven

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@Rufus_the_rat: How entitled are we that when we can't get our hands on something we want right now because of product shortages that we point our fingers and yell fowl play. Shame on you all!

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BLKCrystilMage

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I never really understood the rationale behind paying for something like this, since you can get all this and more for free with a five second google search.

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jinzo9988

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Edited By jinzo9988

@BLKCrystilMage: Some people don't want to be criminals? Some people actually want to hold an NES controller in their hands and relive the magic? I dunno, I think it's a simple thing to understand.

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Argle

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@jinzo9988: Criminals....LOL. You must feel bad every time you jaywalk.

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BLKCrystilMage

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Edited By BLKCrystilMage

@jinzo9988: Calling people who emulate games from 30 years ago criminals is like calling people who litter criminals. Technically it is true, but nobody on earth is going to prosecute for it unless you shove it in their faces. If anyone really cared about getting rid of NES emulation, they would have DMCA'd it out of the search results, not let it sit on the front page.

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Guimengo1

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Edited By Guimengo1

Reggie has never appeared to have been qualified for his role, which is disappointing given how Satoru Iwata was also disappointing at the helm of the company.

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SuperKlyph

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Nintendo is REALLY bad at supply and demand. Right now you can't buy a 3ds, Nes Classic, or preorder a Switch.

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Ditronus

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Poor scalpers won't find a profit.

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SimplyTheeBest

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People should just check their MAME folders, the better versions are probably in there.

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