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Why You Can't Buy A 360

Posted by Zonk on from the i-vote-for-a-space-conspiracy dept.

Slate Magazine is running a story about the difficulties of finding an Xbox 360 this holiday season. They explore the reasons behind the console shortage, and have some ruminations on Microsoft's motives. From the article: "So, supply shortages are a fact of life. The puzzle is somewhere else: Why don't companies raise prices when supply is short and demand is frenzied? Leaving aside oxygen and a few other essentials, there is no such thing as an absolute shortage of anything: There is only a shortage if the price is too low. At the moment, Microsoft is easily selling out the half-million or so Xbox 360 units (there's no official number) for prices starting at $300 for the basic package. Why doesn't Microsoft price them at $700 instead?"

4 of 168 comments (clear)

  1. uh.. this is simple by Lord+Bitman · · Score: 1, Troll

    The "shortage" is artificial in order to create higher demand for the product so that people will be in a frenzy to get them one week before Christmas (3 days from today). However, Microsoft has faced the FTC enough to know that if they also raised prices during an artificial shortage, they could face penalties for gouging. Not that being accused of "gouging" for something as non-essential as an X-Box makes sense legally, but it's a risk they don't really want to deal with while trying to eliminate the competition the old-fasioned legitimate way.

    --
    -- 'The' Lord and Master Bitman On High, Master Of All
  2. The real question should be... by BigZaphod · · Score: 0, Troll

    Why would I want one at all?

    --
    Hexy - a strategy game for iPhone/iPod Touch
  3. Re:Would it have been better PR to... by November+1,+2005 · · Score: 0, Troll
    That'll make the retailers who you're going to rely on after the initial launch happens very happy; instead of bringing foot traffic into their stores in large numbers, you've taken them completely out of the loop.

    Did you really think your little plan through? (Not that it matters, it would never happen.)

  4. Re:Would it have been better PR to... by November+1,+2005 · · Score: 0, Troll
    I think I'm being trolled here because no one can possibly be as stupid as you are acting Andy but anyway...

    Okay - so you're implying that while the consoles are scarce, they should only be sold on Ebay. Brilliant idea! Let's see - what do people buy when they buy consoles? Oh, I know - games to play on those consoles and extra controllers. Yes, high mark-up items. As I've previously said (and I'll say it again) brick and mortar stores are not going to appreciate being relegated to second class status by MS. How are they demoted to second class status? Well, as I said, if they can only provide the games and controllers but not the consoles and Ebay can provide the games, consoles, and controllers, obviously the brick and mortar stores have less to offer. You see how simple it is?

    And don't even start up with some bullshit about, "Well my name is Andy and with my tiny penis I think that people would only buy the consoles on Ebay and would go to EB for the games." because that argument doesn't matter. The fact is MS would be giving EB another competitor WHO WOULD HAVE AN ADVANTAGE OVER THEM! Yeah, they're really going to love that.

    P.S. You are probably the dumbest person I have ever had the misfortune of communicating with/at. Burn in hell moron.