Why Nintendo Had No Choice But to Axe the Beloved NES and SNES Classic Editions

As a life-long Nintendo fan, I was first in line to snag the NES Classic Edition on launch day back in 2016. Like many, I was blindsided and incredibly disappointed when Nintendo abruptly discontinued production in 2017 amidst massive shortages. The follow-up Super Nintendo Classic suffered the same fate the next year.

So why did Nintendo pull the plug on these massively popular retro consoles that tapped perfectly into gaming nostalgia?

Nintendo Vastly Underestimated Demand

Quite simply, when planning production volumes Nintendo failed to accurately predict the incredible consumer appetite for miniature plug-and-play versions of their most iconic systems.

As Nintendo of America President Reggie Fils-Aimé admitted: "We just didn‘t anticipate how incredible the response would be."

Fils-Aimé later confirmed they referenced sales data for previous retro consoles like the Atari and Sega Genesis flashbacks when developing their business strategy. However, those niche third-party throwbacks lacked Nintendo‘s unmatched stable of first-party classics.

Actual demand for the NES and SNES Classic Editions exceeded even the most optimistic projections. Limited supply persisted from launch through discontinuation, disappointing legions of nostalgic Nintendo fans.

Supply Chain Issues Prevented Nintendo From Catching Up

In the statement announcing the NES Classic‘s discontinuation, Nintendo cited "limited resources and production capacity" constraining their ability to produce enough units.

Veteran studio head and industry insider Casey Pelkey provided additional insight:

“Nintendo clearly didn’t anticipate the demand. And once that genie was out of the bottle, the supply chain couldn’t adjust quickly enough. They didn’t have flexibility to scale production.”

With key components like the custom controllers made specifically for these products, Nintendo‘s suppliers undoubtedly struggled to shift capacity to meet demand. This severely hindered efforts towards resolving shortages.

Discontinuation Aligned With Nintendo‘s Business Strategy

While surprising to observers, ceasing production of the NES and SNES Classic Editions isn’t entirely out of character for Nintendo. The company has a long history of rolling out limited-edition novelty products to enable quick nostalgic cash-ins from hardcore fans.

A great example is the rare Pokémon Mini system released in 2001, which sold under 200,000 units worldwide before being discontinued. Like the Classics, it tapped into nostalgia but was never envisioned as an ongoing evergreen product line.

“This fits Nintendo’s MO,” remarked Marco Dillon, a veteran game marketer. “Capitalize on retro hype quickly then move focus back to strategic growth areas.”

Indeed, Nintendo’s key business priorities like growing the Nintendo Switch naturally took precedence over continuing the supply-constrained Classics.

Scalpers Cashed in on Scarcity

The chronic shortages turned the NES and SNES Classics into hot commodities. Opportunists bought up the minuscule retail stock to resell on eBay at ridiculously inflated prices.

This scalping ran so rampant that secondhand prices often exceeded what the actual systems cost brand new. Scarcitybred money-making mania.

Meanwhile Sega handled retro console supply far better with the Genesis Mini in 2019, producing enough units to meet demand. This nicely foiled resellers and profiteers.

Will Nintendo Resurrect the Classics?

So now that supply chain constraints and internal resource limitations have (hopefully) eased up on Nintendo, any chance of the Big N producing more NES and SNES Classic Editions to delight fans?

Who knows – but I’m crossing my fingers! Nintendo could make a killing by gauging interest and directly selling special production runs through their website. I’d buy one in a heartbeat!

So in summary, Nintendo clearly fumbled forecasting demand for these nostalgic retro consoles. But discontinuing the NES and SNES Classic Editions did align with strategic business priorities amidst supply struggles. As a fan I’m disappointed but understand why it happened. All we can do is hope Nintendo changes their minds someday!