Because software isn't something tangible that must go into the shelves. If you sell 1 or sell a billion copies the difference in costs is negligible. Completely different for physical objects where you need to produce just enough or if you make a nice cartel you can produce less and increase the prices.

Artificial scarcity…

But seriously, production for physical goods, you slow down because there’s too many on the shelves. I’m more talking about digital goods like app development. For them Production means features. The only time you scale back is that you either don’t know what features your buyers want, you can’t sell what you have produced, you have no bugs (which never happens), or you are trying save money/balance budgets where you don’t make enough to pay for the development teams.