Why would a company discontinue a product that is in high demand? (sales, profit)
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If a company makes a product that lots of people still want, why would they decide instead of giving more of their customers/consumers what they want just to discontinue it?
It came out on November 11, 2016 in North America and Europe and ever since has had a HUGE reception mainly due to lack of availability. To this day even though it's MSRP is $59.99 they sell on eBay and the like at much more. Selling at $300 and above. Yet today it was announced they are discontinuing it: Nintendo NES Classic discontinued in North America - Business Insider
Seriously, what the hell?? Perhaps someone with more experience can explain, but if a company is selling a very highly valued product that TONS of people are willing to spend lots of $$$ on, wouldn't the last thing you would want to do is just flat-out discontinue said product? I understand having manufacturing difficulties and as such having a difficult time getting enough of them out, but to just end selling a very sought-after product that loads of people want and have had a difficult time getting as-is seems all kinds of stupid and scummy.
Because some products, no matter the demand are only limited runs. WHen that run is up, the molds/etc are broken down, never to be made again.
Some items are also fads.
They aren't looking for continous demand.
If you want it, pay the $300 on the bay. If not, be quite and suffer in silence.
But why make limited runs of a product in the first place? Shouldn't all that matters to companies is that they keep getting lots of money from said product?
Simple. So they can bring it back in limited quantities next Christmas and run the whole thing again. Artificially increase the value and desire for one. Nintendo did it with a few models of the Amibos (spelling is probably off) in North America too.
OP, have you ever taken an economics course? What you've written is a prime example of the intersection between price, demand, and scarcity. Limiting the availability of certain products can benefit companies.
Simple. So they can bring it back in limited quantities next Christmas and run the whole thing again. Artificially increase the value and desire for one. Nintendo did it with a few models of the Amibos (spelling is probably off) in North America too.
This. Seen this a lot, sure all of us have.
They put something out, say it's 'limited', watch as everyone scrambles to get one, then say "ok, that's it, it's gone forever!" And all of those who didn't get it are disappointed.
Until some time later, just like a Barbara Streisand 'Farewell Tour', they bust out with the same product and say, "We have just a few more of these" which is usually even less than the amount that they had the first time they had their 'limited' sale, and then they sell every last one of those for a price more than is reasonable.
The funny part is that people could have bought this at a garage sale for about $10, games a dollar each before the company decided to put some out in "limited" amounts.
Want one? Wait for the furor to die down. Then watch them appear in garage sales again.
I don't know the circumstances of this specific product, but a reliable rule of thumb is that every dollar invested must compete with every other way the company can invest that dollar. Sometimes there is a better way to spend the capital associated with continuing to produce, distribution, and support a legacy product. Sometimes some other, more profit-contributing product or offering is harmed by the continued offering of a legacy product.
I would assume since they are doubling production of the Nintendo Switch, they had to cut production of the classic
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