Horacio Rousseau, Ph.D.

I

Associate Professor of Management, FSU

Tag: nintendo-switch

  • Nintendo and the Genius of Scarcity

    For a while, I’ve wanted to write about how Nintendo always plays “a game of scarcity” in its new releases. This is partly because my kids and I greatly enjoy their family-oriented games like Mario Kart and Super Mario, and the upcoming release of Switch 2 is a good time to review this tactic.

    Nintendo is many things: a beloved gaming giant, a cultural touchstone, and, perhaps most interestingly, a master of human psychology. How do you get grown adults camping overnight, obsessively refreshing browser tabs, or paying five times retail on eBay for a plastic figurine of a plumber? One way is to master scarcity.

    Nintendo’s relationship with scarcity isn’t accidental. It’s strategic. The company’s playbook for product launches has reliably leveraged artificial, temporal, geographic, and event-driven scarcity. These different types of scarcity all translate directly into elevated demand, frenzied consumer behavior, and (free!) media hype.

    Artificial Scarcity: Making the Rare Even Rarer

    Remember the Wii? In 2006, Nintendo launched the modestly priced console with such limited supply that even a year later, it was still a white whale. You couldn’t simply walk into a store and buy one. Customers had to hunt, chase delivery trucks (yes, this happened), or pay double on eBay. A decade later, Nintendo repeated the script with the NES Classic Edition, shipping absurdly low quantities to retailers, creating a near-instant sellout. Why? Because they understand that nothing sparks desire quite like unavailability (see Robert Cialdini’s masterpiece book on Influence). It’s a masterclass in the scarcity “principle”: we desire what we can’t easily have.

    The amiibo figures of 2014 are another prime example. Nintendo intentionally produced limited runs of certain obscure characters, ensuring instant scarcity. Popular figures like Marth and the Wii Fit Trainer quickly became collectibles, with resale values skyrocketing to $70 or more. Nintendo later apologized for underestimating demand, but the lesson was clear: scarcity turned plastic figurines into gold.

    While effective, Nintendo walks a fine line between genius and foolishness. Analysts estimated Nintendo potentially left billions on the table by undersupplying products. But Nintendo doesn’t seem to be maximizing for sales. They’re aspiring for cultural impact, too. Sellouts generate headlines, build brand mystique, and ensure Nintendo products retain high value for years, even when hardcore gamers say their tech is often outdated.

    Temporal Scarcity: Buy Now or Miss Out Forever

    Nintendo has even ventured boldly into digital scarcity. For Mario’s 35th Anniversary in 2020, the company released “Super Mario 3D All-Stars,” a limited-time compilation of beloved classics. It vanished from digital and physical shelves exactly six months later. Why limit digital copies? Because limited availability accelerates buying decisions. People who might wait to buy, or never buy at all, suddenly felt compelled by a ticking clock.

    The strategy worked: the compilation sold over 8 million units in six months, driven by urgency and media coverage that reminded fans of the looming deadline. Sure, fans grumbled about “manufactured FOMO,” but they also bought in droves. Nintendo effectively weaponized nostalgia and urgency, something previously only perfected by Disney’s infamous Vault.

    Geographic Scarcity: Exclusive Means Desirable

    Nintendo also strategically uses geography to intensify demand. Limited editions, special bundles, or even entire game releases often remain exclusive to specific regions, leaving global fans envious. Take the Zelda-themed scarf bundled with “Hyrule Warriors” in 2014—only 300 were sold in the U.S., exclusively at one store in New York. Fans camped out, making it a massive media story.

    Sometimes, Nintendo withholds entire games, like “Mother 3,” a critically acclaimed title never officially released outside Japan. Fans have petitioned for decades, turning the game into a mythical “forbidden fruit.” This geographical exclusivity feeds into Nintendo’s mystique, maintaining a fervent international fanbase eager to experience anything the company creates.

    Because Nintendo isn’t just selling products, geographic exclusivity directly influences identity-driven consumer behavior, fueling passion and loyalty.

    Event-Based Scarcity: Be There or Miss Out

    Nintendo also knows events turn products into trophies. From pins offered during special anniversaries to exclusive swag at events like E3, limited event-driven availability turns even small trinkets into coveted collectibles. In 2020, the website crashed under demand when Nintendo offered commemorative Mario pins through its loyalty program. Fans who missed out voiced frustration loudly on social media. But guess what? They showed up for round two anyway. Events amplify engagement, create buzz, and strengthen community bonds, even when that bond involves shared frustration.

    Nintendo also uses loyalty programs like My Nintendo, rewarding players who complete missions with exclusive physical merchandise. The limited availability of these rewards further cements a feeling of exclusivity and accomplishment among fans who manage to snag them.

    The Double-Edged Sword of Scarcity

    Is all this scarcity brilliant or cynical? Maybe both. Nintendo undoubtedly creates cultural events around its products, leveraging scarcity brilliantly. Fans get excited, engaged, and even annoyed, yet always come back for more.

    Still, this strategy has risks. Frustration and resentment are real. Scalpers profit off limited supply, and unmet demand means potential revenue lost. In the NES Classic case, Nintendo baffled many by discontinuing production at the height of its popularity, seemingly leaving easy money on the table. Yet, Nintendo seems comfortable playing the long game. Scarcity maintains its brand’s allure, preserves pricing power, and keeps the company perpetually relevant.

    Final Thoughts: A Controlled Frenzy

    Nintendo’s scarcity strategy is less about immediate sales maximization and more about cultivating ongoing cultural capital. It understands scarcity as a tool for shaping consumer behavior, brand loyalty, and long-term engagement.

    For all the frustration and madness this strategy generates, Nintendo remains uniquely skilled at creating moments consumers desperately want to be part of. In doing so, Nintendo transforms product launches into events and ensures the brand stays at the heart of gaming conversations. Maybe Nintendo’s biggest achievement isn’t selling millions of games but convincing customers that lining up at midnight to chase something elusive is a normal, even enjoyable part of gaming culture.

    Will Nintendo Use Scarcity for the Switch 2?

    Recent statements from Nintendo of America President Doug Bowser indicate that Nintendo plans sufficient manufacturing to meet Switch 2 demand through 2025, aiming to avoid severe shortages like those experienced by other console launches. Yet, despite reassurances, the Switch 2 sold a record-breaking 3.5 million units in just four days, immediately sparking stock shortages. Retailers such as Walmart responded by imposing purchase limits and scheduling staggered restocks.

    Supply chain constraints and tariffs may complicate availability throughout the year. Nintendo appears committed to balancing demand with production, avoiding the extreme artificial scarcity of past launches while managing controlled shortages to maintain consumer excitement. Expect manageable stock fluctuations at launch, but perhaps not the prolonged and severe droughts seen with past Nintendo consoles.