Why is Nintendo so bad at this?

The first round of pre-orders for the SNES Classic Edition went just about as poorly as you can imagine. Or maybe they went as well as Nintendo had hoped.

Nintendo won, I guess, in that every unit it made available has been sold. Walmart had already sold units before it was supposed to, only to then cancel the pre-orders. But that was almost a month ago. Pre-orders went live today at the rest of the participating retailers, and many of the sites went down under the load of hungry Nintendo fans trying to get their hands on the system.

I was able to put the hardware in my cart, only to have Target’s system glitch out when I put in my payment information. I was then told I had too many items in my cart. Then I was told my cart was empty. Then I was told Target was sold out of the systems.

Walmart’s pre-orders, the real pre-orders, were sold out nearly as quickly as they were offered.

I jumped in my car and drove to a GameStop less than 3 miles away. They had eight units they could offer for physical pre-orders. I was the seventh person in line, and number eight walked in right behind. After that came a steady stream of fans who were instantly disappointed.

And this kind of demand means GameStop gets to cash in.

Why is Nintendo so bad at this?

Nintendo may have been able to claim surprise at the success of the NES Classic Edition — though we still find that rather hard to swallow — but there's no spin in which Nintendo can possibly argue it failed to recognize the demand for the SNES Classic Edition.

We were told that more of the hardware would be manufactured, and they would be easier to track down. The fact that pre-orders existed at all is a step up from the first-day lines that existed with the NES Classic Edition.

There is no magic to the hardware Nintendo is selling; these systems are likely built with off-the-shelf innards running a SNES emulator and licensed copies of the games. The challenge for Nintendo lies in cranking out the custom cases and controllers.

Nintendo should hypothetically be able to crank out a nearly unlimited supply, and retailers shouldn’t be surprised when interest in the systems is so high it causes their websites to crash. Stoking demand with a little controlled shortage is one thing, but the madness of what we just experienced today is something else entirely.

It doesn’t help that Nintendo of Europe seemed to have things much more under control. Pre-orders were offered much closer to the hardware’s announcement, initial allocation was sold through, and that was that. Nintendo of America contributed to a situation that felt much more chaotic.

Nintendo is either inept or underhanded — the truth is likely a bit of both — but this behavior doesn’t change because there is no incentive to do better. Bots and resellers likely grabbed the majority of the systems, the publicity value of crashing this many websites is hard to calculate, and Nintendo gets another round of articles written about a piece of hardware that’s going to be impossible to find for Christmas. Everyone makes money, the fans are frustrated and annoyed, but the Nintendo 64 Classic Edition is bound to lead to the same situations.

Why change a formula that helps everyone except the people who want to pay money to play your games?

This pre-order situation feels like a calamity if you’re trying to buy one of these damned things, but it likely feels like a win for everyone else. Why is Nintendo so bad at this? Because being terrible at anticipating supply or helping customers buy hardware has only worked out in its favor so far. Until that changes, nothing else will.

And that sucks.

https://www.polygon.com/2017/8/22/16185192/snes-classic-edition-pre-order-target-gamestop-impossible

Selling out of pre orders is bad?

Maybe they short supplied it on purpose to build hype around their name. That's not unheard of, especially for Nintendo.

I wont comment on that simply because I don't have all the facts, it is what it is. I just find it amusing that when the XOneX preorders went live, I was thinking about Nintendo and how their systems were instantly sold out...this made me very anxious on Sunday lol.

All went well though. Look it sucks, and sorry I didn't read the entire OP....but what I do when I really want a product is preorder in multiple different places. Good luck getting one if you have not already

I refuse to drop any more money on Nintendo hardware until the VC is released on Switch. The fact that I need to buy 2 pieces of junk to play Nintendo's older games is crazy to me. Who the hell is asking for all these Neo Geo games???

Nintendo is a small toy company who can't afford to make more than the demand so this is the best way possible for them. By not fulfilling demands which let's be honest can be easily met by Sony or MS, they are created hype for their products.

It's probably Nintendo's biggest down fall.

They better get their shit together for the Switch this holiday or they are going to seriously miss a chance to flip this generation on it's head.

I don't think it's that Nintendo is necessarily "bad at this", instead I think it's something that they purposely do. They still retain the toy company mentality of limiting their product availability to make it so that whenever they bring something to the market they want it to have that hot got to have it aura around it.

X1X preorders sold out in NYC. I was told today on SW "WiiU preorders sold out too".

Something tells me the X1X will be very easy to find on store shelves within a week of launch, and this tiny SNES will be impossible to find up until the day it is discontinued in 2018.

As long as it is legal, Nintendo will continue to do it whether gamers like it or not.

Something tells me the X1X will be far more manufactured than this SNES mini also. Artificial shortage created by choosing to not manufacture by Nintendo.

Yes, I was not intending to paint Nintendo in a positive light there. The shortage of the NES mini was ridiculous, and I'm sure the SNES mini will be more of the same.

Sony and MS wouldn't have been able to do it either.

It makes no sense! They're trying to create demand for a product that already had high demand the second it was announced!

In 2 months everyone can expect a "We understand demand is very high for SNES. We did not foresee such high demand," or "We do not have enough parts to meet demand" corporate BS statement.

All it does for them is lose them money and make fans angry. Instead of creating a product for scalpers, Nintendo could have easily put this product in 10 million people's hands and taken that $800 million to the bank. Instead they're empowering scalpers and shutting the door in 10 million people's faces.

Its not a new strategy. Well unless you are in your 20's I should say.

E.T. the movie, not game, was held back from a home video release so it could be rerelease in theaters more than once. They knew the minute its released on VHS (at that time) nobody would pay to see it in theaters every 5 years. NES mini will be released again in 2020 is my bet.

Nintendo does this on purpose.

Nintendo actually are the scalpers themselves. They short supply and sell them through ebay/amazon for $500 each.

Notice all those SNES consoles on sale? Ever take a look closer at who is selling it? Nintendo employees!

@onesiphorus: Then find a lawyer willing to work on a class-action. If you though, remember to leave Switch out of it. As much as this sub denies it, Switch is not a case of artificial demand.

This is disappointing. If this trend continues I won't be able to get a Mini N64. That's the only one I'm interested in. I hope they get it together because I really want one smh

Demand is not dependent on supply.

It would just be nice if they could figure out a way to screw over the scalpers. If not for scalpers most people that want these could probably have one. Normally I buy pretty much every console/handheld, but I passed on the NES mini for the same reason I will (have?) passed on this. I have those consoles and all of the games on them I'm interested in (except for Starfox 2) and they still work fine. But scalpers have been ruining gaming since the internet came to be. Maybe going forward they could figure something out akin to what they do with concert tickets these days? IDK, but be mad at the scalpers, not Nintendo.

Nintendo just dont like money. I thought y'all knew. Nintendo is in it for the greater good.

LMFAO

I got a preorder through Amazon because I happened to be up early. From what I've read, the issue with the online preorders is bot-related. They need to get the spammers and scalpers under control.

Not sure what you're getting at? I'm just trying to say they're losing a ton of money and angering fans by not selling a ton more of SNES's after the NES couldn't even hit store shelves before it was sold out.

But they're not making the demand. They're not even making 5% of the demand!

The states alone could easily sell through 2 million of the things on launch day. 100,000 isn't gonna cut it.

I had no difficulty preordering one in Australia. Maybe this is an NoA problem?

Amyway, what's more concerning is that Nintendo still isn't even close to meeting Japanese demand for the Switch...

Yea just US as usual...preordered it as soon as the rumour was confirmed to be real..1st on the list at the store I preordered from. Paid in full 2 weeks ago.. There is quite a demand though even AU at least that's what I was told by the store. :P

They better have enough Switchs for Mario Odyssey launch that's all I am saying. :P

Yup...agree. :)

Nintendo aint what they used to be

The most likely reason is either one of the following:

1. Nintendo are deliberately limiting supply to create more demand.

2. Nintendo can't afford to meet demand.

Interesting, there are state laws on how much scalpers can charge for concert tickets, but no laws on how they can charge for video game systems or other "hot" products.

It's frustrating. In most circumstances, I can't beat people to a store or online marketplaces on short notice. So, I'm effed. I want Nintendo to take my money. They just have to let me give it to them. It was hard enough to track down a Switch.

Because Nintendo systems are like toys like those Hatchimals, Furbies, Tickle Me Elmos, etc. and along with the nostalgia and fomo mentality & supply constraints whether artificial or not, trying to get this could be a headache. Also there are some dirty scalpers out there who uses stupid bots to order these up just to resell at insane increased prices because Nintendo fans will cough up the dough. Some people gotten smarter though and isn't fall for the hype.

@onesiphorus: What I meant was, for instance that Gaga woman came to Vancouver and the wife had scored us floor passes at a ridiculously cheap amount because she's awesome at internetting. Keep in mind not every artist does this, but the tickets were linked to her credit card and she couldn't have sold them as they wouldn't have done anybody else any good. We could have retired off of the proceeds if they could have been sold- but we're not those kinds of people. I have opened every Amiibo, and every crazy special edition game/console ever. Resellers ruin everything, and I won't have any part of it. Now such a practice would have negative implications as well as far as resale but if the big three had a similar practice with consoles and handhelds that would at least render scalping them useless.

Nintendo knows people want it. If Nintendo's plan was to sell as many as they can, this is not how you do it, and since Nintendo isn't retarded, I think they know that.

In short, Nintendo don't want to sell that many SNES minis. Why? I have seriously no idea. Since they probably don't hate money, could it be because the SNES mini can hurt their future VC plans? It must be something..

Read the underlined portion. You expressed a falsehood.

So... I'm changing my position. Nintendo is guilty of artificial scarcity with Switch, 100% confirmed. The latest Japanese sales confirm it beyond even the slightest bit of doubt. I'm sorry to everyone I insulted over this.

Nintendo: "Don't worry we'll make more this time."

Liars.

To a small extent, it can be. There have been cases like fast food restaurants where mass production has lowered the price per unit and lowered wait times for customers, increasing demand. There are also cases where a shortage can temporarily increase demand because people believe they will be able to resell the product at a profit.

I still don't see the appeal, almost any ancient potato pc can emulate snes games if you want to play them. You can even play them in the living room if you want.

But then again I still have my snes with all these games in a box someplace. If the game cartridge's batteries haven't died my saves might still be good haha.

Same. I wouldn't pay a penny more than retail for one.

It's funny.... Nintendo is as bad at business as they are good at business. It's great for them that every single unit is sold out before they make it, but it's also bad that they're going to stop making these things at the end of the year. They're losing out on literally millions of dollars. Asinine.

That what gamers get for supporting Nintendo. Perhaps if they voted with their pockets and not buy Nintendo products because of these practices, Nintendo may change its ways.

@JustPlainLucas: more like "Nintendo's as bad at business as they are good at making games".

I've rarely seen such a strange dichotomy.

If bad business equals being one of the richest companies in the world...then ok.

Just pre-order it and you got nothing to worry about.

Everyone's looking out for number one after all.

@iandizion713: nope, only not as rich as they could be if they'd get their act together.

Yeah, I'm pretty miffed about this too. It's really dirty to stealth drop pre-orders like that.

My opinion is that scarcity of a product in Japan drives demand. Like how you see lines around several blocks in Japan. In a collectivist society in many Asian countries, seeing everyone line up for something makes it seem more popular than it is. That drives news of shortages and popularity of the device. Which make more people want to be part of the "in crowd".

They think everywhere is like Japan and we all enjoy the "luck" element in getting their toy. They think not having something you want makes you want it more and talk about it more. They've done this intentionally since the NES days folks. Nothing new here.

That said, I think they've shot themselves in the foot in the West, because we simply will get annoyed and stop buying or reading news. I'm sure their strategy works here to some extent, but I question whether the lose sales overall here. if they just made more, would their overall sales increase versus a drip feed?