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Xbox 360: High Demand, Low Supply?

Posted in Hardware, Microsoft, Previews, Rumor, Xbox 360 by admin on November 6th, 2005.

November 22nd is looking worse and worse for Xbox enthusiasts. Analysts project low availability of the Xbox 360 across retail chains such as Best Buy, Walmart, EB, and Target. “Research analyst Mike Wallace predicted that only 1.5 million Xbox 360s will ship this calendar year, with less than a third of those (400,000) available in the United States on launch day, according to 1Up.com.” A resident of Florida reports that an EBGames store manager bumped him off the first shipment of Xbox 360s even though he had pre-ordered one over 6 months ago! It seems as though Microsoft is employing a rather egregious tactic: deliberately understocking retailers just to create an demand!

Another determining factor on the Xbox launch is the “shortage”. Basic psychology suggests that when an object is a rarity, it is all the more appealing. Microsoft has already heavily promoted the Xbox 360, and now with rumors of a shortage permeating every facet of the media, the Xbox craze is just beginning.

This entry was posted on Sunday, November 6th, 2005 at 4:42 pm and is tagged with target research, launch day, ebgames store, basic psychology, best buy, retail chains, florida reports, walmart, xbox 360, eb, mike wallace, november 22nd, research analyst, rarity, facet, tactic, calendar year, 5 million, xbox, enthusiasts. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback.

26 Responses to “Xbox 360: High Demand, Low Supply?”

  1. bobby says:

    i agree but i got the first shipment from gamestop. It is the silver bundle. but if you go to the gamestop website, you will see that all the bundles are sold out. Even the new one with omega deal and plasma T.V. costing alot.

  2. james says:

    In the short run, Microsoft will experience heavy saturation and lowered demand.

  3. george says:

    i dont agree. i think the xbox 360 is overhyped and does not deserve all this attention. people waking up at 12 midnight to buy soem STUPID console!!! bye the way perfect dark zero is SOOO fun!

  4. george says:

    all of u are ***!!!!

  5. POOP says:

    I THINK THE XBOX 360 DEFINITLY HAS TO MUCH HYPE BECAUSE OF THE SHORTAGE. THE SHORTAGE THAT MICROSOFT CREATED BECAUSE THEY DONT CARE ABOUT THE CONSUMER THEY CARE ABOUT MAKING MONEY WORLD WIDE IS MAKING THE SYSTEM LOOK BETTER THAN IT IS. HERE ARE THE FACTS, ITS NOT THAT GREAT OF A SYSTEM WITHOUT HDTV AND NOT MANY PEOPLE HAVE THAT, PLUS I THINK THAT MICROSOFT IS MAKING ALOT OF MONEY BY SELLING THESE SYSTEMS TO MISINFORMED PEOPLE BUT WHAT ARE YOU GOING TO DO ITS AMERICA THE LAND OF SCAMS, HIGH PRICES, AND RIP OFFS P.S. i love america

  6. SCREW MICROSOFT says:

    SCREW MICROSOFT THERE MAKING A SHORTAGE SO PEOPLE WILL FORK OVER THERE MONEY TO BUY THESE THINGS AT HIGH PRICES.

  7. hohos says:

    i get it on the 2nd shipment…who knows when that is? i live in fresno, CA. if any one knows write bac!

  8. ubersoldat says:

    “Microsoft’s Molly O’Donnell says the company has “a weekly replenishment strategy.” The first follow-up shipment “is on the way, and it should be on retailers’ shelves by the end of the week or for the weekend.”"

    So the 2nd Shipment of Xbox 360s should be on the shelves very soon, definately before Christmas (according to the article):

    http://news.yahoo.com/s/usatoday/20051129/tc_usatoday/xboxdoessecondroundof360s

  9. mine was paid for and i didn’t get f^^k xbox

  10. I emailed microsoft about the supply shortage and this is what they wrote to me.

    Hello,

    Thank you for contacting Microsoft Online Customer Service.

    Thank you so much for providing your feedback about the availability of the Xbox 360 game console. I apologize for the inconvenience you have experienced.

    The demand for the Xbox 360 has been exceptionally high and retailers will be receiving additional product between now and Christmas. The Xbox Team would like to assure you that there will be ample opportunity throughout the holiday season to purchase the Xbox 360. In the meantime, you may wish to follow up with your local store to check on the timing of incoming shipments.
    We are doing everything we can to replenish the retail channel with Xbox 360s as quickly as possible and we appreciate your patience. If you have questions related to Xbox or Xbox 360, please visit:
    http://www.xbox.com/

    I hope the above information is helpful. If you have further questions, please do not hesitate to contact us.

    Thank you for using Microsoft products and services.

    Karthikeyan
    Microsoft Online Customer Service Representative

  11. DeVoiD says:

    I think most of the posts here are from the delinquent teens! first learn how to spell, second learn how to control the caps lock key!!

    The console in its present state will never out-shadow the PC, spend about twice as much for a state of the art PC and have the advantage of the top notch games that come out. spening the money on a console, when a PC is more flexable option and of a higher quality is obviously the way to go.

    If you are worried by spyware, virus, etc, go back to school and learn. It can all be prevented from whacking your PC.

    I built my new pc, spent about $900, and I have the fastest system out there and obviously saved a bunch of money by shopping around for parts on the internet and building it myself.

    The xbox 360 and its 3 core CPU, bleh. My new PC, has a FBS over 1000MHz, RAM on demand and a SLI graphics card that makes the new xbox seem like a game boy! With HT and 64bit technology, and knowing a about overclocking CPU’s and video cards, I have this beast running about 5 times faster than the 360 turtle.

    My advice is to get a PC, be in front of the curve, save your money and save youreself the pain of the new controller.

    Whether MS is trying to bolster the market by understocking stores or not, a PC can do it all…… Work, games, research, etc. Lets see the new MS word for this console, or IE on it! riiiiiiiight!

    If its games youre into, get a PC and do it all!

    BTW: COD2 is much better on the PC than this hyped console…. played them both and was totally under whelmed by the 360 and its game play…

    in the end, console = waste of cash! whatever console it may be!

    DeVoiD.

  12. DeVoiD says:

    BTW: george… grow up… and the name george is totally homosexual… so I would not go throwing stones…… especially when you are in the glass house….

    what a pre-****!

    ;)

  13. kennedy says:

    ok devoid or w/e the **** your name is. I love computers and i even love to build them more. i know personally that the parts in the 360 are custom made and more powerfull than any computer on the market unless you in the military..ok the most powerfull processor around is a dual-core which i 2 cores intergrated into one. the 360 has three cores intergrated into one. you dont want me to get started on graphics card wich is running an amazing 24 pipelines at a time and the most powerful one on the market for a home cumputer runs only 12. do you even know what a pipeline is.. probaly not so listen up noob a pipeline is what smooths down the blockyness in games and makes them look more realistic. so do some research before you run your mouth on somthing you dont even know about!!!!

  14. kennedy says:

    by the way devoid i bet you had to over clock like a mother to get your pc’s processor to run that fast trust me i built my own too..i know what it takes to get a pc to run that hard..

  15. kennedy says:

    p.s. I hate stupid ppl like you your such a ******* hypocrit ok if your not interested in the 360 why in the hell are you here and i dont want any b.s about that you just wanted to come here and make fun of us because that just means you have way to much time on your hands. got some news for you bud go get laid…

    your the pre-****

  16. imperium says:

    I agree with Kennedy, the Xbox 360 has several combined components that retail computers only dream of having at the moment. And for these components, $400 is actually nothing, If one was to purchase a computer with the same specs as the Xbox, you would be looking over $2000, although one cannot doubt that a computer is capable of doing many more things than the Xbox 360. Anyway, the only thing that I agree with DeVoid is that Call of Duty 2 is slightly better on the PC. Not only can the graphics be set to a higher quality than the Xbox 360 version (although not by much), but also, a mouse is much better suited than a controller for COD2’s gameplay since one can aim faster more accurately with it than with a controller joystick.

    Other than that, like most, I’m still waiting for my “2nd shipment,” damn I have learned to hate that phrase… Please be before Christmas!

  17. Doug says:

    For those people who think Microsoft is trying to create demand and publicity for the system by sending limited #’s, you are way off base. Microsoft is in the end of the fiscal year, they lose about $130.00 on every unit they sell. If they were to have a huge # available to the US, they would lose that much more money. Yes, the shortage brings up demand but they aren’t interested in shipping huge #’s yet. When the new fiscal year comes about and in to next spring they might ( and should) profit, instead of losing $$ on the sales of the 360. It’s all about the Benjamins!

  18. ROAR says:

    all you guys suck ****

  19. ROAR says:

    all you guys must love to suck ****

  20. Reg G says:

    I have had my system pre ordered for way too long. Every time i ask when is coming to stores they say in a day or 2 and thats been since it was released. The real thing is that they just like to get you thinking it will be in a day so to keep you from getting a PS3. Luckily im a loyal xbox fan or I would get one.

  21. Meat Clever says:

    Sometimes I rub my nuts on the berber carpet in my living room… than splooge on the 360. YAYAY!!

  22. Meat Clever says:

    Maybe you idiots will realize that by Xmas, you will be able to go by one somewhere in stead of spending a grand on Ebay. SPLOOGE

  23. Yo Yo Jay Dawg says:

    In the end, the monolithic corporation known as Microsoft will rake in its billions of dollars of profit from those who love to play, and can afford console style video game systems.

    Meanwhile some underpaid people working in Chinas “factories” with hands much more nimble than mine are working their asses off in conditions that would probably make any Western European/North American cry like a spanked baby.

    I wonder if any of you ever think about these kinds of things – perhaps it’s easiest just to ignore these thoughts – welcome to the good life, especially when it’s on the backs of those less fortunate than us.

  24. my three 6ty says:

    Microsoft isn’t loosing money on every consle. If they were to loose money, they would know well beforehand and up the price 200 more dollars to $600 a consle.

  25. Trivial says:

    I am plannig to buy one and asked for a much of games and controller for christmas but after I heard that there will be no more shipments for 2 months……..thoughim sure when that next shipment comes out it shouldent be so hard to get

  26. Nikka says:

    Doug: You’re simply a case of mental dullness.

    That is the most stupid thing I’ve ever heard. Never as in never a multi-national / multi-billion dollar company such as Microsoft would release a product when they know they would be losing at every item they would sell. Microsoft would know beforehand. What they are doing is jus a simple case of people putting into use the supply and demand laws. Go learn business behavior in terms of attempts to increase consumers’ utility (Economics) and maybe you will understand what people are trying to say here.

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