What Nintendo is doing to fight bots and scalpers during the Switch 2 launch

Cal Jeffrey

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Reseller frenzy in 3, 2, 1: Although Nintendo has not set a solid release date for the Switch 2, we know it will be out this year. Regardless of when the handheld finally arrives, the looming threat of scalpers is an unwelcomed "new normal" that the company says it's ready to combat.

On Tuesday, Nintendo President Shuntaro Furukawa told Japanese News outlet Nikkei that the company has learned lessons from the first Switch release and that scalpers would not pose a problem with the Switch 2 launch. Furukawa-san promised there would be enough units to go around.

"We will take all possible measures based on the experience we have accumulated to date (regarding scalpers)," Furukawa said. "We will prepare enough products to meet the demand."

We can only hope.

Despite promising to double production of the original Switch shortly after release, Nintendo struggled to supply enough handhelds to satisfy the demand. Between scalpers and customers, there was never enough to go around, and the chip shortages during the Covid years didn't make it any easier. Even toward the end of 2021, over four years post-launch, Nintendo still struggled to keep up with demand.

This time is different, though. Nintendo has been preparing to deal with high demand even before officially announcing the gaming device.

The company's primary weapon against scalpers is to have a stockpile of units ready to ship on day one. It had initially planned to launch the Switch 2 in Q4 2024, but in February last year, it decided to push the launch into 2025 specifically to have a head start on production. It reiterated this plan last July. The idea is to have so many available units that it can satisfy consumer demand despite the scalpers.

"As a countermeasure for resale, we believe that it is most important to produce a sufficient number to meet customer demand. This idea has not changed since last year," Furukawa had said.

However, this philosophy only works if Nintendo has enough stock to satisfy consumer and scalper demand. Since Nintendo is not the only retailer selling units, this task is easier said than done.

As we have seen in several past launch periods, outlets like Best Buy, Target, and others do little to keep their online sales in check. Even recently, we have seen online inventories sell out to scalper bots instantly. Resellers have tools that give them a considerable advantage over the average consumer.

What would help is for Nintendo to ensure that brick-and-mortar stores have an ample supply. There were no physical sales during the PlayStation 5 and Xbox Series launches. Outlets excused themselves from putting units on store shelves for fear of spreading Covid, even though they still had Black Friday sales that packed the house anyway. So, consumers were forced into online queues to try to beat the bots.

Of course, that plan requires retailer cooperation, so it's still outside of Nintendo's control. What are the odds that the Switch 2 will have enough units at launch to beat the scalpers? Let us know in the comments.

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I'm sorry, but I don't believe Nintendo would come up with a working strategy against scalpers, since Nintendo themselves love to create demand.
I agree. Plus, there are too many factors that it can't control. As I mentioned, retailers LOVE when things sell out immediately. It's instant profit rather than profit over time. And they have no incentive to stop that. Retailers could not care less who gets their inventory. They say they care about the problem, and some (far too few) use ineffective bandaids to "fix" the problem, but scalpers just find a way to circumvent mitigations. Scalpers are happy, retailers are happy, and customers are screwed.
 
I'll tell you a secret that Nintendo won't...

They really could not care less because a sale is a sale and scalper money is identical to yours, spends just as well.
 
I mean...I could tell you how to stop scalping...it's pretty simple. Ban online sales for the first 3 months making it in store only and lock it away. Hire security if you have to. Then everyone who's not a scalper gets a fair shot and the scalper gets to stand in line as well.

Pretty simple.
 
There is no way a company will be able to stop scalpers. You can limit the units sold, but that mitigates 1 person from scalping too many units, but it does not stop scalping. Assuming 50% of the people plan to resell at a higher price, that is 50% of units being scalped. And this makes sense even to someone who will eventually want a unit of Nintendo Switch 2 because you can buy at MSRP, sell higher for profit, and then buy back at MSRP when the supply stabilizes. The only way to stop scalpers is for people to stop buying from them. No demand, no supply.
 
I'll tell you a secret that Nintendo won't...

They really could not care less because a sale is a sale and scalper money is identical to yours, spends just as well.
The problem is that Nintendo is a game company, they don't make money from scalpers. Infact, in Nintendo's business model, Scalpers hurt game sales
 
The problem is that Nintendo is a game company, they don't make money from scalpers. Infact, in Nintendo's business model, Scalpers hurt game sales
Yes they're mainly a game company. However it's unlikely they'll sell the console at a loss. At worst they'll sell it at break even but since they don't need to they're very very likely to make a nice modest profit on it.
So yeah, if they sell out immediately that's good for Nintendo. Scalpers might delay game sales a tiny bit but don't prevent them from happening, no money lost there.
If anything it'll take pressure off their servers as the devices getting into hands of people is more spread out and they get to cut some costs there.
 
My prediction is $80-$100 for a game and $600 for the console. And you know what, it will still sell out hard for months. I don't even game anymore really and I'd probably pick one up.
 
Honestly, I dont recall any Switch or nintendo console shortages in previous launches. They seem to have enough hardware released to meet demand.

Its not like Sony who artificially keeps it limited to drive hype up.
 
I'm sorry, but I don't believe Nintendo would come up with a working strategy against scalpers, since Nintendo themselves love to create demand.
The only counter thesis here is Nintendo only (typically) only sells one console to one fan (and sometimes less than that, in the case of families and couples). But they can sell as many games as they can publish and consoles they sell. The more consoles in the hands of actual gamers, the more games they sell, and games are where they profits are for Nintendo.

So while Best Buy, Target, et al have no incentive to sell consoles to consumers (over scalpers), it is very much in Nintendo's interest.

As a side note, this is part of the reason why the PS5/XBSX generation has felt so lackluster. The first few years those consoles were out, almost no one could actually get their hands on one, so not only the launch games covered pre- and next-gen games (as is typical), but even later releases covered both gens because devs and publishers realized that the market for PS5/XBSX was small and would remain small for years. This is why it only now feels like new games exclusively launch for the PS5/XBSX, over 4 years after launching.
 
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