system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why does Nintendo create "artificial demand"

This was brought up when amibos came out, but it seems relevant again with the switch. Why do they create fake shortages?  I thought it only profited scalpers? Is Nintendo purposefully doing it, if so why, what does it gain them, and why do they still do it if everybody knows?
gpt
There is no evidence they have **ACTUALLY** created fake shortages, this story pops up with virtually every console launch (I remember it for the Playstation 2) but the economics behind it don't work.

Nintendo would not make more money by having people fight over a limited set of existing devices. You're right, it only benefits scalpers.

They simply make devices that sometimes get really popular and have a hard time manufacturing enough to meet demand. Remember, Nintendo has to *spend the money first* to build the devices before it can sell them and make it back. It's hard to convince the Ninty finance guys "yeah let's build ten billion of them" until they can prove there's a demand for ten billion.