Reggie talks more about Switch stock, urges fans not to over-bid for SNES Classic Edition on auction sites - Nintendo Everything

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Reggie talks more about Switch stock, urges fans not to over-bid for SNES Classic Edition on auction sites

Posted on September 10, 2017 by (@NE_Brian) in General Nintendo, News

FT was able to speak with Nintendo of America president Reggie Fils-Aime at Variety’s Entertainment and Technology Summit 2017. Reggie was able to comment further on Switch supply situation during the interview.

The lack of stock – especially early on – ultimately boils down to two things. First, the demand for Switch was higher than expected. Second was that Nintendo has been dealing with supply shortages of components.

According to Reggie:

I’m going to make millions of these units to flow into the marketplace. But what I don’t know is what the demand is going to be. And there is a potential that demand is going to outstrip supply.

Certainly the demand is there and the supply chain is there. Can we do more? It depends on our ability to make more. We don’t want to have a consumer disappointed by not being able to get one for the holiday season. But managing that complex supply chain is a challenge.

There is not one choke point, there are multiple choke points. I won’t go into any more detail but it’s not just one component.

Aside from Switch, Reggie also spoke about the Super NES Classic Edition. The situation with pre-orders and limited stock was “outside our control” at retailers, he said.

Reggie went on to say:

In this case, it’s not (a supply issue). I would strongly urge you not to over-bid on an SNES Classic on any of the auction sites . . . You shouldn’t [have to] pay more than $79.99.

Regarding shortages of the NES Classic Edition last year, Reggie explained that Nintendo wasn’t intentionally making the hardware scarce as a means of stirring interest. Rather, production volumes were based on the historically low sales of other retro-gaming devices from other manufacturers.

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  • MrCafecito

    THANK YOU REGGIE.
    Tbh scalpers exist just because people actually pay scalpers’ prices (and a little bit because of limited stock too)

    • I came in just to say the exact same thing.

      People need to not pay them, because if they’re sitting on the stock (that they know they’ve ridiculously inflated), they’ll drive the price down eventually, especially if someone else caves and reduces their price first and it gets bought up.

      These aren’t retailers. They’re just greedy people. Don’t feed their greed.

    • Fandangle

      Why are you thanking him? He’s part of the reason the stock is so limited in the first place.

      “Hey the SNES mini is in high demand! Just like the NES mini! Better only release limited quantities and limit preorder sales to make it look like it’s even harder to get a hold of!”

      How much do you want to bet they’ll discontinue it after a year?

      • Radish

        Ummm, you do realize that Nintendo openly stated that the SNES mini was only going to be produced through this year, and would be discontinued thereafter, right?

        There’s no bet to be had because Nintendo already confirmed this would be a limited run product.

        • Fandangle

          Ummm, you do realize that Nintendo openly stated that the SNES mini was
          only going to be produced through this year, and would be discontinued
          thereafter, right?

          Uuuh, yeah, that’s exactly what I said? Reggie was complaining that “NO ONE SHOULD PAY OVER THE LAUNCH PRICE FOR IT!” but he’s a part of the reason WHY most people pay over the launch price for it, because Nintendo are absolutely retarded, they don’t understand that scalpers exist, they don’t understand how to properly stock things, or even how to allow for preorders.

          It’s just bad business. They’re the ones perpetuating this “Artificial scarcity” myth by being dumb enough to make a high demand product and not releasing NEARLY enough of them for release.

          • Radish

            No, what you said was “how much do you want to bet they’ll discontinue it after a year?”

            And what I said was that they already confirmed this months ago. You’re late to the party.

            I don’t think it is a great idea that they are making it a limited product given the demand, but they aren’t telling us that they are going to meet the demand. Only that there will be more of them than the NES Classic.

          • Fandangle

            I am late to the party, because I avoid preordering at all costs for personal reasons.

            It still doesn’t negate how hypocritical and condescending and outright idiotic Reggie’s words are. The way nintendo is managing things these days is borderline insulting.

          • Radish

            Well this I can agree with, though with less hyperbole. If Reggie really wanted to remove scalpers from the equation, he could have said something like “We will be shipping several million SNES Classics this fall.” He can’t just say “Don’t overpay scalpers for the SNES Classic” because that’s all determined by the free market and he can’t control that if the supply is less than demand.

            If he said that there will be several million of these (5+), that alone would deter scalpers just like they eventually did with Amiibo.

          • Fandangle

            They haven’t done anything to help amiibo scalpers though. In fact they’ve made it worse by making all of the new ones “limited editions”.

            The zelda champions ones have been out of stock for over a month and the zelda anniversary ones haven’t been found since they initially launched. Then the initial zelda botw amiibos go for an upwards of 50 bucks now. They have repeatedly been doing this, not satisfying the demand is driving up the price and the only people that benefits is nintendo and scalpers.

          • Radish

            No. First of all, Nintendo doesn’t benefit from prices spiking on the secondary market. They sell directly to distributors at a fixed price, not scalper prices.

            The Smash Bros series of amiibo used to be sold at extremely inflated prices, but now you can get them at MSRP or even less because they flooded the market with them. They’ve significantly curbed the scalper issue with amiibo compared to what it was like early 2015.

            The Zelda amiibo are harder to find because of their demand. I don’t think Nintendo anticipated BotW selling as well as it has so far. I wouldn’t be surprised if they dump more into the market and prices fall.

          • Fandangle

            First of all, Nintendo doesn’t benefit from prices spiking on the secondary market. They sell directly to distributors at a fixed price, not scalper prices.

            I don’t see how this contradicts anything I’ve said.

            The Smash Bros series of amiibo used to be sold at extremely inflated prices, but now you can get them at MSRP or even less because they flooded the market with them

            which I commend them for if it’s true, however it there are still amiibo they haven’t released like sheik or toon link and then that’s not even speaking for more recent amiibo like every single zelda amiibo after the smash ones. They fixed the problem with the old only to go back and repeat the same mistake with not only the mor erect amiibos but with the Snes mini, the NES mini, and the switch.

            . I don’t think Nintendo anticipated BotW selling as well as it has so far.

            botw has been highly anticipated since it’s first trailer. If they didn’t expect it to sell then they’re even more incompetent than I initially thought.

          • Radish

            “I don’t see how this contradicts anything I’ve said.”

            “They have repeatedly been doing this, not satisfying the demand is
            driving up the price and the only people that benefits is NINTENDO and
            scalpers.”

            Like I said, Nintendo isn’t scalping their own products. They weren’t meeting the demand, so the secondary market inflated the price. They don’t see a single extra dime from that happening, therefore it doesn’t benefit them. Only the scalpers.

            And yes, it is true about the Smash amiibo. None of them are particularly hard to find anymore. What are you talking about? I have Sheik and Toon Link, they released those back in February of 2015.

            BotW is successful because the Switch is successful. The Switch easily could have been another Wii U if people didn’t understand the concept or buy into it. So it’s understandable why Nintendo has been cautious with their sales predictions considering how badly the Wii U failed.

          • Fandangle

            Like I said, Nintendo isn’t scalping their own products. They weren’t

            meeting the demand, so the secondary market inflated the price. They
            don’t see a single extra dime from that happening, therefore it doesn’t
            benefit them. Only the scalpers.

            It still doesn’t contradict anything I’ve said. You assume I think Nintendo benefits from scalpers, and they actually do in a round about way. I’ll explain it as simply as I can.

            Say you got a product, there is a semi-high demand for it that’s easy to meet, the product is cheap. For one reason or another, you don’t release enough supply to meet that demand and then scalpers come in as they always do and drive the price up several times the amount of the initial release price. You leave it at that. You never release more of the product, you don’t meet the demand, you just leave the market to the scalpers.

            This sets a precedent.

            You announce a new product in the similar vein as the last one. this time the demand is greater, but you release the same amount of stock, intentionally limit access to the stock (block preorders, only allot a few for physical retailers) it sells out because of the precedent set.

            The precedent is strengthened.

            Gradually repeat with several products and eventually you’ve created an artificial ecosystem of scalpers that are constantly feeding you money for your hard to find products. This will inevitably hit a critical mass and it will inevitably kill all interest as people give up hope to get the product, no one but scalpers care.

            Whether this is intentional or not on nintendo’s part, and considering how there is a thousand and one ways to prevent this from happening, they’re creating a toxic buying environment for their customers.

            And yes, it is true about the Smash amiibo. None of them are particularly hard to find anymore. What are you talking about? I have Sheik and Toon Link, they released those back in February of 2015.

            Are you being intentionally dense or are you actually that blind? The fanmade Sheik amiibo CARD sells for the initial launch price of the amiibo now.

            The demand for Sheik and Toon link were never met. They never stomped out the scalpers like they did with the other amiibo like the super mario series, the AC series never had a supply issue either, which is probably why they never released any new ones for it. You bought yours back in 2015? Good for you, you’re one of 5 people who managed to nab it.

            BotW is successful because the Switch is successful.

            No.

            BotW is successful because they’ve been continuously hyping it up since before the Switch on the WiiU. It has consistently placed on everyone’s “most anticipated” list, including fan polled ones even before the switch port was announced. It was also a dual platform release on top of that. BotW relies on the Switch like Amiibo sales rely on corresponding game releases.

            how badly the Wii U failed.

            I’m starting to think you’re either one of the few people who actually buy into all their rhetoric or you’re just being willfully ignorant here. The Wii U wasn’t a failure for nintendo, it made them money, their games sold in the millions on it. It was a commercial failure in that everyone constantly took dumps on it, most gaming websites never gave it the time of day (I’m reminded of the repeated “Mario Kart 8 is set to be the worst selling mario kart to date!” articles. Meanwhile the Switch barely has a library to call it’s own and it’s selling purely on marketing right now.) The Wii U wasn’t a failure, it just wasn’t the Wii and it wasn’t the PS4.The Wii U’s commercial failure and failure of expectations are very interesting though, but this isn’t the topic we’re talking about.

          • Radish

            Classic shifting goal posts now. It’s clear to me that you are a troll and I will no longer waste my time explaining anything to you because it’s awkward having to talk down to someone for so long.

          • Fandangle

            I literally never shifted my goalposts. I stated something, you assumed I was talking about nintendo benifiting from scalping, I outright explained it to you twice, and you say it’s shifting goalposts.

            Either address my points or don’t bother replying please. I get enough fanboys replying to me as is.

      • HandsomeCostanza

        Nintendo isn’t limiting quantities to “make it look like it’s harder to get ahold of”.

        This is what happens when joe schmoe decides he wants to play analyst.

        • Fandangle

          I never said they were limiting quantities.

          I said they’re making it hard to even preorder, which they have been doing repeatedly. Preorders is how a lot of retailers gauge interest and they base their stock orders on them. Nintendo products have repeatedly not been put up for preorder and they’ve been repeatedly cancelled and disappeared. It’s hard to find any other company in this industry that it does to.

          • Radish

            Some retailers have chosen not to do preorders because they know how easy it is for someone to game the system, EVEN IF they limit it to 1 per customer. There should be more of them in the store because of this. It’s not like they are completely unaware of the demand considering how many people call them asking if they will have it in stock. And how much their Twitter handle gets blown up.

          • Fandangle

            They think that’s easier to have a free for all after launch rather than to gauge interest and pressure nintendo to make more of an on demand product? This screams producer stupidity, retailers are almost always more than happy to take as much money as they can.

            There should be more of them in the store because of this.

            No there is always going to be the same amount. Retailers usually take shipments of a specific amount and set X amount aside for preorders X amount for online sales and X amount for physical sales, depending on their store data and an educated guess on management’s part. This entire thing screams “Producer Fluff-Up”, most retailers have literally no reason to refuse preorders, in fact I find it all the MORE suspicious that so many retailers are using the same dumb excuse which makes me thing that nintendo is borking this and not the retailers.

            This is pretty much all nintendo’s fault, trying to either cover up shady business practices or being generally incredibly dumb.

          • Radish

            Retailers that have brick and mortar stores would prefer the customers buy in the store. Why? Because if the customer is already in the store, there is a chance they will buy something else while they are there (either as impulse or planned). Online you don’t have that same pressure because there’s no effort involved in getting there.

            Like I said, retailers know the demand for the SNES Classic. They will order as many as Nintendo or their distributors allow them to buy. They know they will easily sell every last one of them.

            It’s also possible that Nintendo is trying to enforce a 1 per customer limit (many people who tried to pre-order more than 1 already had their order cancelled) with their retailers because they know they won’t satisfy demand.

          • Fandangle

            Retailers that have brick and mortar stores would prefer the customers buy in the store. Why? Because if the customer is already in the store, there is a chance they will buy something else while they are there (either as impulse or planned). Online you don’t have that same pressure because there’s no effort involved in getting there.

            I don’t see how this has anything to do with what i said. Especially since it’s only nintendo products that seem to be treated this way.

            Like I said, retailers know the demand for the SNES Classic. They will order as many as Nintendo or their distributors allow them to buy

            I’m pretty sure it’s just nintendo making stupid small amounts of everything like they’ve been doing for a long while.

            It’s also possible that Nintendo is trying to enforce a 1 per customer limit (many people who tried to pre-order more than 1 already had their order cancelled) with their retailers because they know they won’t satisfy demand.

            I see this a bit differently. I see two definite possibilities. Either the higher ups at nintendo are mentally retarded and genuinely don’t know how to deal with scalpers (literally all they need to do is make more units of it. There is literally no reason they shouldn’t. There was no reason to discontinue the NES mini either. To kill scalpers all you have to do is make more of your product and make it more readily available.) or they’re just greedy A-holes and they’re setting a precedent of low quantity and high demand so future products will sell much much more because of this stigma they’ve made.

            Either way no one should support this practice. Be it corporate greed or incompetence.

          • Radish

            My first point was just that some retailers would probably prefer more foot traffic than more online traffic (site crashes are not helpful for business, and foot traffic leads to spillover purchases) AKA more stock in store vs online pre-orders.

            Regardless, since Nintendo just announced they would make more beyond this year as well as NES Classics, this is no longer an issue.

          • Fandangle

            My first point was just that some retailers would probably prefer more foot traffic than more online traffic (site crashes are not helpful for business, and foot traffic leads to spillover purchases) AKA more stock in store vs online pre-orders.

            so they make an unprecedented decision to make it intentionally hard to get a hold of products?

            Regardless, since Nintendo just announced they would make more beyond this year as well as NES Classics, this is no longer an issue.

            I can already hear the prices on ebay dropping. I’ll wait to see if they actually fix it or if they’re just gonna make some pathetically small amount. It still doesn’t help the pre-order issue.

          • Radish

            I’m not sure what you mean by “intentionally hard to get hold of products”. Are you suggesting that having pre-orders makes it easier for the customer to get one? I mean, it makes it easier for the customer who’s using a bot to clean up their supply. But most of us have no chance with pre-orders.

            At the store you still at least have a chance. There’s nothing unprecedented about that.

          • Fandangle

            Limited in store stock, no preorders, limited online stock, I mean, the only way for it to be any harder to get a hold of is if nintendo exclusively sold it inside their in studio shops.

            I mean, it makes it easier for the customer who’s using a bot to clean up their supply.

            This is ridiculously unfeasible, and pointless. And to top the crappy cherry on top, the only reason people are scalping it now is because Nintendo has been releasing limited supply of pretty much every single product since Amiibos were first launched. Scalpers flock to situations like this, and nintendo’s incompetence (or greed) paved the way to it.

            But most of us have no chance with pre-orders.

            I’ve literally never heard of situations like this ever except for extremely limited release figurines or limited edition merchandise like SE edition games. but even then pre orders usually last a few weeks or more, and often up until release. Nintendo is the only company I’ve seen that have had this product THIS difficult to get a hold of.

            At the store you still at least have a chance. There’s nothing unprecedented about that.

            Yeah, lemme get up, drive all the way to gamestop to get a toy or a system that is the successor to a limited run system that now goes for 100+ bucks on ebay made by a company that makes several products that regularly sell out and now go for 100X MSRP because they can’t meet demand.

            I’m sure they wont sell out of the two SNES mini systems that nintendo allotted them by the time I get there, assuming I go on launch day. I’m speaking from experience I don’t live in a particularly well populated area, but not only was all THREE walmarts sold out, but both gamestops and the best buy were sold out of all the BotW amiibos on launch, but also the newly released smash amiibo day 1. You can scream scalpers all you want but in the end the scalpers are just a sign of nintendo either intentionally failing to meet demand to drive up demand for their other products or they’re just so fluffin incompetent that they don’t know how to meet the demand and thus creating a ridiculous collectors market that is likely to burn out long before it should.

          • Radish

            Troll keep trolling away. Go back to your Wii U, it’s begging for your attention.

          • Fandangle

            I already beat all my Wii U games, it’s why I don’t own a switch because I’m still waiting for it to get more than leftovers. I’m currently playing my 3DS and my Vita a lot more though. and I’m buying a PS4 soon.

            But please do move the topic further and further away from the original subject and do nothing but sling insults my way. Those sure are convincing arguments that will surely bring me to your understanding of things and enlighten me to a new viewpoint.

            This is why I hate posts like this. You’re so surface level, you don’t care about actually convincing people or using logic, the second anyone puts up an argument you just go all crosseyed and scream “Troll!” The fact that you instantly latched onto my comments about the Wii U is fairly hilarious and telling though. It makes you seem like an idiotic console warrior.

        • Xabier

          It wouldn’t be the first time they get involved in something like this: http://www.nytimes.com/1991/04/11/business/nintendo-to-pay-25-million-in-rebates-on-price-fixing.html?mcubz=3

          That said, it’s not just them. Much like the artificial gas crisis that popped up recently, it’s people’s lack of common decency and sensitivity that, at least in part, causes this problem.

    • Rob Feight

      Don’t. Buy. From. Scalpers. Period.

  • carlos holguin holguin

    they should have at least 5 million of units for holiday season.. these will sell like hot cakes (lol im kidding i know thats a lot)

    • Vigilante_blade

      I actually think 5 million would completely sell through.

      • Tlink7

        If 5 million is profitable, Nintendo would have made 5 million

        • Vigilante_blade

          Really? becaus enow they ar elosing out on sales: E.g. profit.

    • Billy Bob Throrton

      where did you get the number 5 million,not 3.not 4.not even 6,but 5. It’s so dumb that in the last 3 or so years every youtuber and random idiot is,all of a sudden,a market analyst. When real market analysts come up with estimates they usually have evidence as to why they’d think so. they don’t just think about for one second and then blurt out whatever number pops in their head.

      • Carlos

        Why are you taking him so seriously, and what makes you think he’s trying to be a market analyst? He just spouted a number, it’s not like Nintendo is actually going to make that many or listen to him.

      • Stuart

        Dude he just said he was kidding,relax…

  • Stuart

    As much the Snes pre-order situation is bad now…Don’t rush yourself to pay way more money than you should on scalpers. At least wait for this thing to be out so you can judge how actually hard it is to get one.

  • Roto Prime

    Make enough bloody SNES classic for everyone then Nintendo >•<

    • Carlos

      I’d rather not have a bloody one, lol. JK.

  • Aline Piroutek

    “We don’t like money. It is up to you to pay all this money to scalpers”

    • Billy Bob Throrton

      Nintendo ARE the scalpers. Publicly sell it for 80 but privately scalp them for over double that.

      • you probably believe the earth is flat too, dont you

  • Vigilante_blade

    Since it is not in Quebec, I will actually pay far more than the MSRP just because of shipping, but I’m holding youa re your word, Reggie. I will try and ship one to Ontario. You better not screw it up this time. Please.

  • Exy

    If Reggie wants the common consumer to only pay MSRP for his own products, he needs to get on national television and be on his own company’s commercials. Nobody except the people who read sites like this will ever see it, and they’re the ones who know better anyway.

    • I would say some of the people on gaming sites know better. I’ve seen people on gaming sites said they paid at least $150 for the NES Classic. (Which shocked me tremendously, cuz wow.)

      But I do agree that this is the kind of info they need to spread better. Put it on Facebook and Twitter. Probably not TV, because I don’t think *that* casual of a consumer is going to pay that much if they know the stores are selling it for so much less, but yeah.

      • Aline Piroutek

        Welcome to Brazil. $200 here.

        • Yeah but people in Brazil can still buy off ebay from any region/seller, can’t they?

          But yeah, I get that. It’s harder to judge what should be a fair price.

  • Blanco8x8

    If you still believe that Nintendo’s low supply is a scam after reading this, then you are a lost cause.

    • Vigilante_blade

      It is either on purpose, or their are incompetent.

      You do understand that PR is almost never honest, right?

    • Tlink7

      People who believe in conspiracy theories are lost causes irregardless 😛

  • Mormegil

    “You shouldn’t [have to] pay more than $79.99.”

    …if you can find it. Which you probably wont, so then you’ll have to pay more.

  • fox_whisper85

    That’s nice, but that doesn’t really mitigate the issue, does it?

  • man that box is confusing to me

  • Bart

    “production volumes were based on the historically low sales of other retro-gaming devices from other manufacturers.”

    Would it hurt to have some more self confidence sometimes? I mean, you’re freaking Nintendo, of course an official NES mini would be way more popular than something by another company, it’s a thing of legend.

    (On the other hand, easy for me to say in hindsight I suppose…)

    • Jaxon Holden

      After Wii U, I don’t think they had reason to be “self confident”. And NES Classic could have just as easily been ignored by most. People could have said “eh, it’s neat but I’d rather have them as VC, don’t need another box under the tv, etc”

      • Bart

        I disagree, on both points… *shrug*

    • Tlink7

      I don’t think retro gaming is really that popular IRL. Nostalgic old farts are just overrepresented on the internet 😛

      • Bart

        Well of course we are. :p

        But hasn’t the succes of the NES mini shown that it kinda sorta is? And the impending success of the SNES mini… Popular enough!

        • Tlink7

          I do believe Nintendo is producing more SNES minis than they did NES minis. I don’t think they’d pass up free money xD

  • Addy

    “…I would strongly urge you not to over-bid on an SNES Classic on any of the auction sites…”

    Who’s going to listen to you? That just make your “consumers” do it even more.

  • Pepperkeet

    Dont blame the scalpers blame Nintendo for making 12 units and selling out instantly.

    • FutureFox

      That’s like blaming a bakery for not making enough cupcakes. The reality is if people have the money and time to buy up stock they will. Simple as that.
      And before anyone says, “that’s not the same” realize that first it is the same, just on different scale. Nintendo a) doesn’t have unlimited resources to support a third hardware release indefinitely (3ds, Switch and minis) to end of life b) its their plan to make limited runs, just as it is a baker’s plan to make a certain number of cupcakes. Any more would require more resources than what is planned and accounted for.

      When a bakery runs out they say, “we’re sorry. We’re out.” When Nintendo runs out then…..(why bother finishing this).

  • Marc

    Then make more of them…

  • Hey Reggie: you can skip the N64 Classic, but put out Gamecube Classic and I will send all my money personally to you.

    • R.Z.

      No he can’t !
      >:-(

  • PachterStation

    Reggie continues to live in the clouds of Super Mario World. Scalping should be against the law. Saying that, Nintendo could make these mini consoles until the dogs are barking at them, then sales will plummet. I’d put money on it that Nintendo are holding back on Switch consoles. Nintendo’s history speaks for itself.

    • Evan Gustavson

      Pfft. Scalping should be illegal? If anything, Scalping makes it so that only those that truly want a product get it.
      How? Because those who want a product enough will either A. Beat the scalpers to it, or B. Be more than willing to pay scalper prices for it.
      Clearly, if the scalpers beat ya to it, they want the money more than you want the product.
      Which explains why you’re complaining about