Why does Nintendo create artificial demand?

If you wanted to buy a Nintendo New 3DS XL this holiday season, you’ve probably noticed they’re hard to come by. That’s because Nintendo of America artificially creates a higher demand for these hand-held game consoles by purposely not making enough to satisfy the demand. Why? How does this benefit Nintendo and its shareholders? I see how it helps eBay and Amazon scalpers, but not Nintendo.

The Nintendo New 3DS XL has a manufacturer suggested retail price of $199.99. Try buying one right now at that price. You can’t, not from a standard retailer. They’re all sold out. You can find them on the secondary market, but not at that price.

Why does Nintendo create artificial demand? - Bent Corner
What good is buying an abiibo Pit figure if you cannot buy the game console it interacts with?

I just don’t get it. Nintendo can’t make money from selling games and game accessories if consumers can’t get their hands on the game console. If you want to buy a Playstation 4 or an Xbox One, there’s really nothing hard about it. You just go to a store and buy one. That’s not the case with anything made by Nintendo.

When the Nintendo Wii first came out ten years ago, they were very hard to obtain. People who had no natural interest in the gaming consoles would search stores for them so that they could then post them for sale on Craigslist. People needing a Wii for Christmas presents for their children would happily buy them from a scalper on Craigslist.

This scheme on Nintendo’s part seems so short sided. What they should be doing is flooding the market with their consoles. Once consumers have the console, they’ll then be in a position to buy games, from retailers and directly from Nintendo through their digital download store.

It’s like the razors and blades business model. Companies sell the razors at a loss, but make up for it with selling lots and lots of disposable blades. I’m not saying Nintendo should be selling New 3DS XL consoles at a loss, but they should make enough for people to actually buy them.