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MS Worried About Meeting 360 Demand
GamesIndustry.biz has an article up right now indicating that, at least in the UK, Microsoft is worried about meeting demand for the 360 because they think so many people are going to want to buy the console. From the article: "We feel as a company we've done the groundwork to get to a point where we can do the global release; we feel we're going to deliver and have a great Xmas...Will we execute well so retail will have good volume? Yes. But I don't think we're going to meet demand as people are going to come into this platform in a big way."
*cough* hype *cough*
Sounds like the beginning of a false demand being rumored to guarantee scarcity later on from frantic parents. What better way to create a sense of urgency than to start saying now, 5 months before launch, that the demand might not be met, and reinforce realtors to push the "Make sure you preorder to lock your availability in!", or "Don't disappoint little Johnny buy now because it might not be available for a long time." crap. It is just a vicious cycle being whipped up by M$. That way they can honk their horn about many preorders there are and blah blah blah...... I just shutter to think of the next XBox/MTV crossover event.
So, does anyone else remember the marketing ploy enhancing the desirability of Cabbage Patch Dolls? Once again, genius marketing.
(any guesses how inflated the price will be once the perception is out there the 360's will be "rare"?)
Its a marketing ploy , they are trying to drum up numbers by making it seem rare.
quite an old trick really
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So preorder today or you won't get one until 2008!
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That sound like exactly the sort of thing I would want to have in the press if I were Microsoft. Report that theoretical demand is high and that you may not meet those theoretical numbers, which causes an upswing in pre-orders, which results in high demand, which you report.. Wash, rinse repeat. Smart.
...Seriously though, this has to be the pinnicle of marketing hype; when you release a press statement saying you're "concerned" you may not have enough units to supply the incredible demand for it.
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By dropping these comments and hinting at the impending explosion of their new console, Microsoft is just giving off the impression of its popularity. If things get repeated enough, its always in the back of your mind when you hear it mentioned.
I have no doubt that this console will sell very well. I do doubt that Microsoft is going to allow a retail shortage to occur.
Is that your intent? Thought so.
Don't blame Durga. I voted for Centauri.
I see all the comments so far are basically saying this is a deliberate part of Microsoft's hype campaign.
They're probably right.
However, there's one indication I've seen that Microsoft's predictions might not be so far off the mark. I play FFXI; a MMORPG with a high (I'd guess about 40%) proportion of Japanese players. I've had conversations with quite a few Japanese players who are actually pretty exicted about the 360. Given the original X-Box basically vanished without a trace in Japan, this could be a potential indicator that the 360 is destined for bigger things. At the very least, it seems that Microsoft's deliberate targeting of Japanese developers is at least going some way towards achieving its intended effect.
we're going to struggle carrying all tho cheques to the bank, especially if we are laughing at the time...
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This is one of those /. discussions in which every post, excepting the first, can be justly modded Redundant. Since we all had the same exact same thought, what can we actually discuss?
If brevity is the soul of wit, then how does one explain Twitter?
Let's see... Sony underproduced the first run of the Playstation deliberately.
Then they underproduced the first run of the PS2 deliberately to claim it was "selling out."
Then they did the same with the PSP... as well as underproducing decent-sized Memory Stick DUO cards and then jacking the price up 200%.
I detect a subtle pattern here. Couldn't tell you what it is, though.
Let's look at the alternate option: MS is angling for their console to be the big thing. They're releasing it with NO competition, onto the busy holiday season, so there's definitely going to be competition for the units. Of course they want to have large numbers of preorders, because it's a marketing point.
Of course they want to get as many units out onto the street as they can. Only someone who actually has a unit is likely to be receiving and/or buying a game for it.
Yeah, it's a marketing spiel. But I'd rather they tell us right now, that they'll get as many as they can out the door and see what happens, rather than have them claim (like Sony did) that they had more than enough while secretly holding stock back in a warehouse just to create the illusion of scarcity.
First, they've got both Sony and Nintendo releasing behind them. Even though the Xbox 360 and the PS3 have comparable specs, if the PS3 releases later, it's bound to have slightly better technology, which will draw some of the pure technophiles away from purchasing an Xbox 360 right away. The Nintendo camp has said the Revolution will be fully backwards compatible, appealing to a lot of older gamers who grew up with the NES and SNES. Add in the fact that the Revolution will likely have a much lower price tag and it seems to me that some people may be drawn to that as well.
I also wonder if the Xbox 360 will have any big launch titles like the Xbox had with Halo. If not, why buy an Xbox 360? Not to mention that a lot of people have said it won't be backwards compatible, or will only be partially backwards compatible (I can't recall if this was ever confirmed as certain or not). If this is true, then they can't rely on their catalogue of games from the Xbox to tide people over until some of the big games come to the system. Because the Revolution and the PS3 won't come out until later, it gives developers more time to crank out launch titles. Not to mention that both of these systems will be backwards compatible with older versions of the Company's consoles (the Revolution backwards compatible to a time when some of us weren't even a twinkle in our father's eye).
To me it just seems that Microsoft is looking to get the Xbox 360 a little bit of press. They want people to start discussing it again. A clever marketing gimmick, but little else.
With targeting one billion players I would worry, too...
At least Sony wasn't stupid enough to brag about not meeting demand *before* the Playstation2 came out.
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Yes, but this time they are going to take hype to a new level. I just got a contract from Bill Microsoft to kill 6 customers as they wait in line to pick up their pre-orders.
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...I'll be taking pre-orders shortly for the fifth printing of my new, yet-to-be-written novel. You know you want to read it, because I say so!
why? forty-two.
Yes, i can see the hype engine in play here, but there is one bit of a valid point to this. Microsoft is actually planning a global launch. In the world of video games, the two major markets are the US and Japan. Europe is slightly behind that. Microsoft is saying that there could be a problem in meeting the European demand. This could very well be the case if Microsoft makes sure the demand for the US and Japan are met.
If nothing else, making a claim like this will increase pre-orders. This could be used in Microsoft's favor, however. If they can see where the demand is the largest, they can smartly distribute units on release day . . .
Think of the children!
To be honest, it all depends on the price. Personally, I would buy a 360 on the launch day if it is under $299 (Canadian, ~200-225 American) and it has at least one good game; on the other hand if it is above that it better be fully backwards compatible or have 4 or 5 good games at launch (in particular if it ends up being in the $450 Canadian range).
while this is nothing more than hype, similar to that of when halo 2 was released (btw i went to best buy at 8 pm and got a special edition copy with out having to wait in line...)
the y still have one less person to worry about as i wont be buying one... i am personally waiting for the revolution from nintendo...as they are the only real gaming company left...
sony and MS are trying to sell gaming as a fad, the next hip thing...nintendo just wnats to push units to push games...look at the hype machines from all 3 companies...the two major players this year an undoubtly MS and sony...all they are touting is graphics capabilities...while nintendo realizes that they cant compete in that are so they dont...instead focousing on gameplay. when i play a game on any system, i want to enjoy my self. and frankly...i havent been enjoying all the BS hype from the 2 evil mega corps.
Suprisingly (or possibly not), when people hype a product like this saying "people are going to come into this platform in a big way" it usually backfires. If this 360 isn't everything and more than consumers are expecting, word will get out quickly. I call it "viral anti-marketing" - if you predate your customers and don't meet their expectations.
Don't think that a small group of dedicated individuals can't change the world. It's the only thing that ever has.
MS is still new to the industry and hasn't produced a game console like this with custom components before. Taking into consideration the early launch date and they need enough consoles to spread around the world...that's a pretty tall order.
Of course they are going to have a shortage. It's a well known business strategy. "A little shortage is a good thing." It's working with the laws of supply and demand to a companies advantage. A company doesn't even have to announce the shortage to reap the benefits of one.
They're just trying to make everyone want one.
If they were really concerned about being unable to meet demand, they'd just raise the starting price, and/or try to increase production. There will be no shortage unless they've decided to create one.
Even Bin Laden himself has written us and says he wants one, so we're also planning on using them in the war against terror to persuade evil men of the virtues of democracy.
Oh, and did we mention Dr. William Dentist says it's good for your teeth?
I've been told by my managers at the local game store to continue taking preorders for the 360 although we're already well into reserving units from the second wave. The first wave is targetted to come at the release date, an unspecified number of units as far as I know. The second wave is supposed to come immediately following Christmas, again this is all second hand from my manager who talked to the Xbox rep a couple days ago.
What this does say to me is that there is going to be a shortage before the holidays, what it doesn't say is whether the shortage is intentional on Microsoft's part or just high demand. Regardless I recommend everyone going out and reserving a unit if they want one anytime soon because I've been told to tell customers that I can't promise a unit for them until March unless they reserve one now. Of course that could just be my manager taking advantage of a lonely retail associate just to make a few more dollars.
I think this lets us in on the third step..
Step 1) Buy an xbox as soon as you can
Step 2) Sell it on eBay near Christmas for $100s over list price to some Midwestern mother who doesn't know any better and just has to have it for her spoiled kid.
Step 3) PROFIT!
"That's no box...that's a cube!" --Obi-wan Shenobi, Console Wars
Maybe Microsoft should consider switching to Intel, if they are worried about being able to deliver enough units.
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Last Christmas huderdeds if not thousands of people didn't get there x-boxes until February. Why would people go out and buy a new console when they just bought one. Personally I think that Microsoft shouldn't give up on the X-box just yet
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