360 Sells 400k Units, New Stock This Weekend 64
Next Generation is reporting an estimate of 400,000 units sold for the Xbox 360 in its first week on the retail shelves. Microsoft is planning on having more stock available as of this weekend. From the article: "It seems even the biggest retailers are in the dark. Speaking to USA Today, Circuit City's Jim Babb said, 'We knew demand would outstrip supply for some time. I have been told we'll get additional supplies, so I can only advise customers keep checking back with stores and on the website.' Microsoft is gearing up for its European launch this weekend, but many believe the shortages could be even worse over there. Retail supplies are said to be tiny, and many customers who have pre-ordered have been told that they may not receive their machines this side of the New Year."
Re: (Score:2)
Re:Shipped/sold? (Score:1)
Re:Shipped/sold? (Score:3, Informative)
I found out today that the UK's most incompetent high-street retailer, Dixons, won't be honouring my pre-order, which I made in August. After work, I trawled around central London, trying to find shops that had reserved some stock and *weren't* doing a midnight opening, from which I might be able to grab one first thing in the morning. Pretty much nowhere had any full systems. However, most places assured me they had more
Re:Shipped/sold? (Score:2)
with it. Grandparent was commenting on the local availability of core
sets in the UK.
where can i go (Score:1, Funny)
Poll? (Score:2, Funny)
It becomes obvious that the vast majority of
Re:Poll? (Score:3, Insightful)
Re:Poll? (Score:1)
We're not "lying moron sheep" simply because you somehow think most of those 400,000 people (not a lot of people considering as of July '05 there are 295,734,134 people living in the US) t
Re:Poll? (Score:2)
Re:Poll? (Score:2)
Quiet you! I'm not buying a Xbox360, but a Sony PS3!!
Now, you'll have to exscuse me while I listen to my Celine Dione CD... Hrm... And also find out why my CPU usage is at 100%!
Re:Poll? (Score:1)
I am not a lier.
I conceed the other two.
Re:Sticking with PC's I guess... (Score:2, Funny)
Re:Sticking with PC's I guess... (Score:1)
Re:Sticking with PC's I guess... (Score:2)
And the unfortunate, extremely desperate people who didn't get one before it sold out are having to pay triple the price on Ebay. Just lame Microsoft, LAME!
It isn't as if this is something like insulin and MSFT is the only supplier, you know.
Unfortunate? Hardly. Extremely desperate? Ok. "HAVING to pay triple the price"? Only if they're unable to exhibit the least iota of self-control.
It is a consumer electronics product, a luxury item, and MS played this exactly right in order to make the most out of the ma
Re:Sticking with PC's I guess... (Score:5, Interesting)
Or, more likely, it's just business. While the rude and evil theory resonates with a certain age group quite well it just doesn't stand up logically.
Microsoft, like most electronic manufacturers, doesn't own the factory that makes their hardware. They sub out the manufacturing to Pacific rim contract manufacturers like Flextronics. Flextronics only has a certain amount of manufacturing capabilities. On average those facilities are running at near full capacity. It's not in Flextronics' best interest to have extra production capacity that is just sitting around unused. Microsoft has to work out a deal with Flextronics to get a finite amount of production capabilities, more than likely givng up their 1st gen XBox manufacturing run in the process, just to get more space. They get X amount of facility and tell Flextronics that they want to launch te console on a certain date. Flextronics says, "Ok, that means you will have # consoles at launch and # consoles each week after that."
At this point Microsoft has a few options:
1) Live with that production capability 2) Sub out to more manufacturers 3) Pay Flextronics to build more space
Option 1 saves the most up front money but means a hard limit on the # of consoles at launch. Option 2 can increase the # of consoles at launch, but the availability of those consoles is dependent on the # of manufacturers available, the amount of capacity they are offering, and the price point for that capacity. Option 3 can increase the # of consoles at launch, but is time dependent (can we get the facility going in time?) and will probably end up being a monetary loss for Microsoft. They are essentially building out Flextronics's business for them.
All of these options have to be weighed against the expected necessary weekly production of consoles over the entire lifespan of the console. #3 is a very bad option in this light. While Microsoft could easily make a lot more consoles for launch by paying Flextronics to build more capacity there's no reason to expect that they will need to utilize that amount of capacity over the life of the console. Microsoft would pay for a short term production increase, cut back on production when supply became greater than demand, and leave Flextronics to sell that production capacity out to other companies, like Sony or Nintendo. It's definitely not in Microsoft's best interest to create production capacity for their competitors.
So, Microsoft strikes a balance between cost, # of units available at launch, and required capacity over the life of the console. That will almost always mean demand is higher than supply when there is peak interest in the console, but over the life of the console the supply:demand ratio will be as close to 1:1 as possible.
This whole equation is compounded for Microsoft because of the fact that they are trying to get XBoxes launched in all markets before the demand for them has leveled off in the first market. There just isn't enough manufacturing capacity available to ensure that all of the markets have a glut of product at launch.
Do you really think it's in Microsoft's best interest to annoy potential customers with an artificially introduced shortage? What good does it get them? The lack of available consoles isn't increasing the number of people that want a 360. It's not like Mr. Bob Suburbanite who's never played a game is suddenly saying, "All of the forum trolls are royally pissed that Bill Gates is sitting on a stack of unreleased consoles and laughing maniacally. Well golly, that makes me want one of these things!!!" Quite the opposite, actually. More than likely people who haven't been hanging pictures of 360s in their Jr. High School locker for the past two ye
Re:Sticking with PC's I guess... (Score:1)
Still confused on the sell-out history (Score:4, Interesting)
I couldn't afford PS2/Gamecube or PS/N64 when they were released, but is this usual? I sure don't remember any system flat selling out on release, so does Xbox 360 set the standard now?
Re:Still confused on the sell-out history (Score:4, Insightful)
Re:Still confused on the sell-out history (Score:5, Funny)
Re:Still confused on the sell-out history (Score:4, Interesting)
Re:Still confused on the sell-out history (Score:5, Informative)
This Gamespy article [gamespy.com] states that the PS2 actually sold 980k units by the end of the second day after launch. This is the Japanese market we're talking so it doesn't really say much after all but at least the Xbox 360 is very unlikely to reach similar figures in Japan and isn't doing it in the US which is a larger market (the PS2 has sold nearly twice the number of consoles in the US compared to Japan). The PlayStation 2 did instantly sell the 500k stock they had available during launch in the US as well though.
Another interesting little detail you can find in the Wikipedia article is that the previous opening day record was 225k for the Sega Dreamcast and we all know how well that worked out in the long run. DC's sales slowed rapidly after a good start. In any case, I think it's a little early to say anything about the 360's success after only one week.
Re:Still confused on the sell-out history (Score:2)
>
A) Do we have *any* proof that Microsoft has artificially restricted the supply? Honestly, given how they rushed this project, I'm surprised they got as many out as they did.
B) Artificially restricting supply to drive up prices/demand is not a new tactic. Check out the diamond industry.
Re:Still confused on the sell-out history (Score:4, Informative)
I couldn't find a friggin ps2 for at least 6 months after the machine was made available in the US.
Re:Still confused on the sell-out history (Score:2)
Re:Still confused on the sell-out history (Score:2)
Re:Still confused on the sell-out history (Score:2)
Re:Still confused on the sell-out history (Score:2)
How can there be a shortage when I don't want one! (Score:1, Redundant)
Re:How can there be a shortage when I don't want o (Score:3, Funny)
Yes - you're aparrently old enough to communicate with the outside world, but seemingly don't realize that you aren't the center of it.
Re:How can there be a shortage when I don't want o (Score:1)
Re:How can there be a shortage when I don't want o (Score:2)
Who are you? You don't fit into my world view.
Scandinavia (Score:2)
Wait...hold it! (Score:1, Troll)
Re:Wait...hold it! (Score:2)
Compare and Contrast (Score:4, Informative)
http://psp.ign.com/articles/604/604548p1.html [ign.com]
The PSP's launch was considered a failure after selling 150% as many units as the XBox 360
McNealy believes Microsoft could have sold up to three times that amount, putting the company halfway to its three month target of 3 million units worldwide. "I think they would have been happy to have sold another million if they could have. They just didn't have them," he said.
It is easy to make a claim like this without having anything to base it on. I don't work in retail but I have heard that only about 5%-10% of preorders were 'lost' by the 360 shortage; one person I know was saying that their Microsoft rep gave him the impression that they were trying to be just shy of the preorder numbers to ensure a sell out (possibly a paranoid delusion, I don't know). This would imply that for every person who pre-ordered 2 would have walked in in the first week expecting to purchace a system (a highly unlikely situation).
Re:Compare and Contrast (Score:2)
Re:Compare and Contrast (Score:1, Insightful)
Basically, how he tells it is that every time he asked the Microsoft Rep how many XBox 360s they would get the Microsoft rep would answer "well, how many pre-orders do you have?" At first he thought that Microsoft was going to try to match all of the pre-orders they made to that point in time, but after he was told that his store (and every store in the area that he
What do you mean, "could be"? (Score:3, Informative)
What do you mean by "could be"?
Stores in the UK have been taking £20 deposits on consoles, with the £20 purchasing a "guarantee" that you'll get one tomorrow, 2nd December. Many of the stores have undercompensated for the shortages. I have been guaranteed one - but many people are complaining of calling the store they preordered from, only to be told that the store hasn't had ANY consoles in, no games for the system, no accessories and no promise of delivery.
Our local ASDA (owned by Wal-Mart now, fancy that) have a queue system in place. You preorder for £20 anytime since July. You turn up today at midday (12 hours before it goes on sale) and they may give you a ticket, depending on how many consoles they have in stock. If you paid and didn't get a ticket because you were too late, you can get a refund or wait as a reserve. People check the queue every hour, and if a ticketholder isn't in line for two of these hourly checks, their ticket is passed to a reserve.
In other words, the store is FORCING you to queue for 12 hours to get hold of a console that they guaranteed you'd receive on launch day when you preordered months ago.
Our local branch of GAME took 280 preorders. They have 32 premium systems and 10 core packs. They have ONE VGA cable. ONE Play N Charge kit. TWO extra wireless controllers. No wired controllers. No headsets. No Xbox Live subscription or points cards and they only have enough copies of PGR3 to satisfy the successful preorders.
And they're the biggest store that sells games for miles. I've called 14 stores within a 20 mile radius to reserve Kameo and Tiger Woods. Nobody has any left over after preorders. Luckily my PGR3 is safe, but if you just preordered the console and managed to get one - you might not have anything to play on it...now tell me, how hard is it to use an existing process and supply chain to duplicate standard DVD discs and get them to stores. I can buy King Kong for Xbox from any store I choose...most have a ton of copies of it...but I can't buy King Kong for Xbox 360 anywhere. Work that one out.
Re:What do you mean, "could be"? (Score:2)
Exact same problem here.
£20 deposit taken, from Dixons in my case, back in August. Phone call from them at lunch time to tell me to forget it. If I'm lucky, I *might* have it by Christmas. But don't get your hopes up. I go into the store and the arsehole manager basically laughs in my face.
The only thing keeping me from saying I'll never darken the door of another Dixons again as long as I live is the knowledge that all high street chains have some stores which are worse than others. Back
Re:What do you mean, "could be"? (Score:2)
Do you *really* think the shortage is on purpose? (Score:2, Insightful)
With the news of faulty power supplies and other hardware issues, I really believe that they were rushing to get them out there, and they would have mo
Re:Do you *really* think the shortage is on purpos (Score:2, Interesting)
Will the new consoles fail? (Score:1)
Plus, the ne
Re:Will the new consoles fail? (Score:3, Insightful)
Re:Will the new consoles fail? (Score:1)
Re:Will the new consoles fail? (Score:2)
My "political inclination" would be to say that anyone taking a check from the feds because they need it to put a roof over their head and food on their table ought not to be buying videogames anyway. So, either you offered that as a complete non-sequitir - a "free shot" at the US government - or some people should have their benefits cut.
Re:Will the new consoles fail? (Score:1)
No 360 Joy in Philly (Score:1)
1. 2 K-Marts
2. Toys 'R' Us
3. Target
4. Best Buy
5. Wal-Mart
6. FYE
7. Electronics Boutique
8. Game Stop
No 360s. Best estimates were "maybe right before the holidays", "January", or my favorite "March!"
I j