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Re:Nintendo Discontinues the NES Classic Edition by bnj on Thursday April 13, 2017 @03:52PM (#14110377)
Maybe it was eating into attention for the switch

Or maybe in additional to supply issues it was relatively expensive to produce?

Re:Nintendo Discontinues the NES Classic Edition by handruin on Thursday April 13, 2017 @04:25PM (#14110620)
Tough to say for sure regarding taking attention from the Switch but from what I've seen the Switch is still selling out very quickly from retailers. That makes me believe there is still high demand.

It could be that their virtual console once-released may be in competition for sales of classic games.