hermes said:
3- Nintendo has the idea that sales (as in saling for cheap) negatively affect the value of their properties. To them, the mere idea of Nintendo games in a bargain bin (both literally and figuratively) is akin to an insult. That is, again, rooted on the idea of preventing the situation that drove Atari to near bankruptcy and Atari games to be nearly worthless by not overflowing the market, but they were established in the 80s (when things like online sales, ebay or Internet didn't exist) and hasn't been revised since then. That is why you rarely see sales of (new copies of) old Nintendo games in sites like amazon, or games getting discounted in their digital stores even years after release. That is also why when Nintendo released mobile games, they make it at several times the price of regular mobile games.
Nintendo aren't alone in this. Apple has had the exact same philosophy ever since Steve Jobs became CEO again. iPhones, iPads, Macbooks and iPods are not the kind of things you see on sale very often Tesla also have a similar policy in that Musk places a lot of weight on the idea that everyone must pay the same amount for one of their cars; the people selling them aren't allowed to negotiate and cut deals like most car dealers. You'll also see it with films from Disney, which tend to be consistently expensive on Blu-ray, even when they're years old (that includes their franchises like The Avengers and Star Wars, as well as their western releases of Ghibli films).
In terms of console pricing, I don't think Nintendo can really afford to eat a loss on consoles the way their competitors can. Sony and Microsoft have the infrastructure and expertise needed to make powerful multi-media machines (both on the hardware and software side) and then make money dealing with other companies on services for those machines. Nintendo really just have the games and the consoles, so they need them to make profits.
I think this also kind of leads to them understocking. If they figure out what they need to sell and then stock enough to meet that, they'll be safe. Having them selling out costs less than producing too much stock, and they probably figure most people will buy later anyway when they come back in stock. That said, they've still clearly improved in this regard. The Switch has outsold the Wii on opening weekend and given that they both sold out, that obviously means there was more Switch stock to go around.