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Microsoft Plans Deliberate Xbox 360 Shortage

Posted by samzenpus on from the fight-over-it dept.

An anonymous reader writes "To ensure an immediate "sellout" of the Xbox 360 on launch day (therefore getting lots of media buzz about their new console), Microsoft will simply restrict the supply down to a trickle. My favorite part of the article: "In addition to limiting the per-store stock of consoles and having the retailers prepare to prominently note the unit's "sold out" status, Microsoft has allegedly asked Norwegian retailers to sign an agreement that they'll sell out of the consoles on the launch date." Looks like it's not a rumour.

12 of 451 comments (clear)

  1. Woah... by Seoulstriker · · Score: 1, Informative

    This just in, Slashdot proves that it has no shortage to the number of dupes it posts.

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    1. Re:Woah... by Short+Circuit · · Score: 2, Informative

      Did you notice that the editor's blurb has a link to the previous article, citing it as a rumor?

      If you get confirmation, it's no longer a rumor. If it's no longer a rumor, it's news.

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  2. They're more environmentally friendly by jkind · · Score: 4, Informative

    Pretty cool interview with mechanical engineeer for the 360.. You can almost sense his disgust when talking about the environmental standards the new system has to live up to:
    http://www.xbox.com/en-US/hardware/xbox360/xbox360 theguts.htm

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    1. Re:They're more environmentally friendly by Bert64 · · Score: 4, Informative

      I like the comment from the microsoft engineer:

      > If you only have one supplier, you have less price negotiation leverage.
      > Multiple suppliers keep the prices competitive. The other thing is that
      > this time we own the IP on the chips. So we can make them at our own foundries.

      So it`s good for microsoft to have multiple suppliers so it keeps the prices they pay competitive, but they build their own products to make it as difficult as possible for other suppliers.
      They are openly benefitting from a competitive marketplace while trying their hardest to take these benefits away from their customers.

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    2. Re:They're more environmentally friendly by 99BottlesOfBeerInMyF · · Score: 2, Informative

      WHOOOOSH!

      That was the sound of the previous post's point zipping right over your head.

      The original poster did not argue that multiple suppliers for every possible component is a good thing or that MS or anyone else should not do it. Obviously it is advantageous to any business to have multiple suppliers for everything they need and to use parts built to standards to ensure that they are getting the same thing from any given vendor. The advantages to price, availability, and future planning is enormous.

      What the previous poster was pointing out is that while MS intelligently makes sure to secure these benefits when it is a purchaser, it pooh-poohs them when it is the seller and one of their potential customers wants those advantages. A perfect example is the Mass. Open Office format issue. The state wants to use a standardized format so that they can take bids from multiple companies and thus get a better price, better availability, and can insure they get the same thing and thus will always be able to get the part. MS has been saying it is not fair to ask for a standardized part and take bids from multiple vendors and instead of bidding on supplying what the state wants, they have launched a PR campaign and have been trying to pressure politicians into going with them as the sole vendor for a proprietary part and thus losing all those advantages.

  3. Re:Boo Microsoft! by Anonymous+Writer · · Score: 2, Informative

    Apple too. Yes, I love Apple (so gimme all your mod points), but they do seriously oversell their products when they know full well they won't be able to meet demand.

    I didn't think this was a marketing gimmick, but a result of Apple practising just in time manufacturing. IIRC that has been their modus operandi for years. There was that period when they actually weren't producing or selling iMacs because they weren't getting the processors on time allegedly, and that wouldn't be a wise marketing gimmick.

  4. Re:Boo Microsoft! by B'Trey · · Score: 3, Informative

    Hype. "It's selling out! It's popular! It's cool! I have to have it." And, mysteriously, just in time for Christmas, the second batch is manufactured and delivered and on the shelves. Better grab it NOW, before it sells out again and your child is the only one on the block who didn't get a spiffy, nifty, brand spanking new Xbox for Christmas!!!

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  5. Re:Deal With It! by Yahweh+Doesn't+Exist · · Score: 3, Informative

    the difference with the iPod is there is no artificial low supply. the day the iPod is announced you can order one at the online store and you know that within a couple of weeks you'll have one. they ship as quickly as they're made. there's no talk about "selling out" - in Steve's talks it's all about the number actually shipped.

    here with the x-box it's a case of "omg get to teh store the first second it opens or you'll nevar evar get teh one!!!!11 evar!!!1". they don't care how many are sold just how quickly the first batch are sold.

  6. Re:Moderator refresher course by Anonymous Coward · · Score: 1, Informative

    If the Slashdot editors had bothered to read their own games section, they would have noticed that the story they were duping, and refering to as independent confirmation of the exact same rumor, was 2nd from the top. And if you look at that post specifically, half of the mod points are as "funny" which as we all know don't really count for the poster of the remark. The incongruous happenings are wholly in response to the various methods the powers that be have contrived to herd ever more clever cats.

    Also I like the AC aesthetic.

  7. Re:They're more environmentally friendly - RoHS by marcop · · Score: 2, Informative

    Summary of RoHS legislation from Farnell.

    Basically, most electronic products shipped to Europe and operating under 1000V (military and medical products except for now) must not contain 6 restricted substances. One of the biggest is lead. There is a large push in many electronic industries to convert their electronic products to RoHS compliant products. It's a lot of work.

    Sony and Nintendo have to do this too if they want to sell their units to Europe. From a general industry trend, Japan tends to be ahead of the game compared to US companies in terms of RoHS preparedness.

    Eventually most of the entire world will have this type of legislation.

  8. Ebaying a console! by ajservo · · Score: 2, Informative

    Good luck with that all you potential vultures!

    I saw through this last year with the DS and the PSP.

    1 of 2 things will occur, neither good for you.

    1. There will be too many consoles and the extra console will sell off at or below cost.

    2. There will be SO many other people doing what you're doing that you won't be able to stickout from the crowd, and any potential profits to be made on the sale will get eaten from competition.

    The idiots who start auctions out on items at 200% or higher of retail cost are the ones who'll learn the lesson hardest.

    Good luck!

  9. Re:All of these are a scam by Jonny_eh · · Score: 2, Informative

    PGR3 and Perfect Dark: Zero look pretty good.

    Did anybody know that Halo would be so frickin awesome when the xbox launched? There may be a dark horse in the launch line-up.

    I think people with HD TVs will be the first people to buy this system. We HDers have been wanting HD games for a very long time. So far, the xbox has been the only system to provide them (very few though).

    If I had the money, and wasn't in my last year of school, I'd line up to buy it.