While it's entirely possible that Nintendo is fostering demand through limited availability, it doesn't look so much as "don't put out
too much stock" as it does "only increase production by
this much." Of course, this can be to either control demand or control costs of manufacturing and inventory. Hopped-up outputs and inventory overstock kill profits if not leading to losses when it is mismanaged. They are running a business after all. You can't blame them for being careful and efficient. These are big numbers we're talking about here. Look at how they're outselling the competition.
Think what you want, but if you look at the numbers, Nintendo is doing a
far better job putting game systems into homes than anyone else. They're doing just fine.