Why does every type of next gen console or graphics card sell out instantly upon release?

Question

I see people every day posting about their graphics card that is like a lottery ticket to acquire one. Same with day one releases of next gen gaming consoles

Could they produce enough of the product to meet demand prior to releasing it? That’s seems like poor business practice to me

In: Technology

Answer 1

I guarantee that they have more than enough product to meet the demand. In an economy that relies on supply and demand to set prices, it makes sense to withhold product to maximize profits.