I need a console but they are nowhere to be found for MSRP. The real story here is that the price is too low, leading to scalping and supply problems.
There's a pandemic going on right now which has driven up gaming demand for obvious reasons. As people return to work (hopefully), that demand won't be quite as strong. In fact, it may not be anywhere near as strong. That's probably the first reason you can find plenty of consoles selling at MSRP, but completely out of stock.
Since the pandemic hit in the US early in 2020, and consoles weren't due to be released for at least another six months, console manufacturers had plenty of demand statistics to go by, and could have probably ramped up production. The real unknown for them, was probably trying to find a reasonable price point during a pandemic when a lot of people (including gamers) are unemployed. In the end, they made the decision to sell the lower end console at a loss.
Having plenty on the shelf and only the rich kids showing off their $2499 consoles? I seriously doubt that MSRP would convey well right now.
Subsidize razor to profit off blades (Score:3, Insightful)
Consoles are loss-leaders. It's commissions on game sales they really want.
Re: (Score:3)
Consoles are loss-leaders. It's commissions on game sales they really want.
Exactly. I'm not sure how the concept of a loss-leader is so foreign here. Grocery stores have done this for decades to get you in the door.
IMHO, the price isn't low enough. Provide the console for free. Charge for the games. You'll probably get more customers that way.
Re: (Score:2)
Re:Subsidize razor to profit off blades (Score:2)
I need a console but they are nowhere to be found for MSRP. The real story here is that the price is too low, leading to scalping and supply problems.
There's a pandemic going on right now which has driven up gaming demand for obvious reasons. As people return to work (hopefully), that demand won't be quite as strong. In fact, it may not be anywhere near as strong. That's probably the first reason you can find plenty of consoles selling at MSRP, but completely out of stock.
Since the pandemic hit in the US early in 2020, and consoles weren't due to be released for at least another six months, console manufacturers had plenty of demand statistics to go by, and could have probably ramped up production. The real unknown for them, was probably trying to find a reasonable price point during a pandemic when a lot of people (including gamers) are unemployed. In the end, they made the decision to sell the lower end console at a loss.
Having plenty on the shelf and only the rich kids showing off their $2499 consoles? I seriously doubt that MSRP would convey well right now.