Retailers overflowing with XBONE. Production may stop

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#1 Edited by -Damien- (5115 posts) -

http://www.gamasutra.com/view/news/216199/Xbox_One_increases_Microsoft_revenues__but_its_cost_cuts_into_profits.php

UPDATE: The topic of Microsoft's Xbox business was barely raised during its investor call, with no analysts asking about it at all. Some of CFO Amy Hood's statements did imply, however, that there is more supply than demand for its Xbox consoles.

"We do expect to work through some inventory in Q4," said Hood, referring in this case to the period between April 1 - June 30, 2014. She also referred to "channel inventory drawdown for Xbox consoles," implying that manufacturing of Xbox consoles will slow or stop, to allow retailers time to work through existing inventory.

#2 Edited by Blabadon (25232 posts) -

I don't see any reason for inventory to stop being made or slowed down in year one

#3 Posted by cainetao11 (15917 posts) -

LOL. MS must be doomed

#4 Posted by LJS9502_basic (149522 posts) -

@Blabadon said:

I don't see any reason for inventory to stop being made or slowed down in year one

Because there is too much supply and not enough demand. Business 101

#5 Posted by sts106mat (18763 posts) -

Maybe they are talking about 360 consoles?

Also lol at the discrepancy between the thread title and the wording of the link

Also Lol Damien thread

#6 Posted by FoxbatAlpha (5900 posts) -

Thank you for posting all the $$ Billions $$ of profit Microsoft just cleared. Jealous Sony?

Oh and will you people learn how to post a link properly.

#7 Posted by misterpmedia (3362 posts) -

MS should recall all the unsold dusty Xbone and start using them as structural building blocks to build them more Microsoft retail stores.

#8 Posted by Silent-Assasin7 (1495 posts) -

Maybe Microsoft should buy some houses.

#9 Posted by Shewgenja (7949 posts) -

@Blabadon said:

I don't see any reason for inventory to stop being made or slowed down in year one

Then they'd have to depot their own stock while retail flushed through supply to order more. You don't do that in business. Not purposefully if it can be avoided. It tends to drive shareholders absolutely bonkers because on top of manufacturing something that cost a few hundred dollars, now your company is paying rent on sticking it somewhere.

Glad I could explain that :)

#10 Posted by SolidGame_basic (16070 posts) -

When I went into Best Buy they were begging me to buy one. I was like nah, got a PS4. Thanks though!

#11 Edited by _Matt_ (8789 posts) -
#13 Posted by Truth_Hurts_U (9052 posts) -

30% of current production should do it.

#14 Edited by Blabadon (25232 posts) -

Smh, people giving me answers like the One isn't selling fast or like the PS4 is hard to find.

You don't stop or slow production in year one. Simple as that.

#15 Posted by Shewgenja (7949 posts) -

@Blabadon said:

Smh, people giving me answers like the One isn't selling fast or like the PS4 is hard to find.

You don't stop or slow production in year one. Simple as that.

Seems to be a bigger indicator that they don't have any dramatic plans to cut the price on the device to push units if you ask me.

#16 Posted by LJS9502_basic (149522 posts) -

@Blabadon said:

Smh, people giving me answers like the One isn't selling fast or like the PS4 is hard to find.

You don't stop or slow production in year one. Simple as that.

Yes...yes you do. You don't have the books for MS....so all you're doing is fan boying the news. Obviously for them to be considering this means supply is far outstripping demand. And you'd be a moron...and lose your job to continue.

#17 Posted by StrongBlackVine (8403 posts) -

@Blabadon said:

Smh, people giving me answers like the One isn't selling fast or like the PS4 is hard to find.

You don't stop or slow production in year one. Simple as that.

You do if you have almost a million units that can't be sold fast enough.

#18 Posted by cainetao11 (15917 posts) -
#19 Edited by LJS9502_basic (149522 posts) -

@Blabadon said:

Smh, people giving me answers like the One isn't selling fast or like the PS4 is hard to find.

You don't stop or slow production in year one. Simple as that.

You do if you have almost a million units that can't be sold fast enough.

Ssh...he can't handle the truth. No tears...only dreams.

#20 Edited by misterpmedia (3362 posts) -
#21 Posted by tormentos (16510 posts) -

@-Damien- said:

http://www.gamasutra.com/view/news/216199/Xbox_One_increases_Microsoft_revenues__but_its_cost_cuts_into_profits.php

UPDATE: The topic of Microsoft's Xbox business was barely raised during its investor call, with no analysts asking about it at all. Some of CFO Amy Hood's statements did imply, however, that there is more supply than demand for its Xbox consoles.

"We do expect to work through some inventory in Q4," said Hood, referring in this case to the period between April 1 - June 30, 2014. She also referred to "channel inventory drawdown for Xbox consoles," implying that manufacturing of Xbox consoles will slow or stop, to allow retailers time to work through existing inventory.

I am sure that means losses MS is covering the xbox one losses by joining all..hahahaha

Titanfall included + the credit to retailers to they could lower the price of the bundle to $449 is having a nasty effect,i knew there would be point where retailers would say no more,so now the stock rooms most be clean before new shipments...

#22 Edited by Shewgenja (7949 posts) -
#23 Posted by sts106mat (18763 posts) -

lol foxbat you can't coerce TC into damage controlling for you. The point of the topic is they are planning on halting the manufacturing of Xbone because channels are stuffed tighter than an 1080p buffer in eSRAM with product. They need dat PS4 cocaine crazy demand.

it doesn't say Xbone consoles... it says xbox consoles. could mean xbox360....reach higher

#24 Posted by GrenadeLauncher (3231 posts) -

Microsoft must cut price the Kinect production.

#25 Posted by tormentos (16510 posts) -
@Blabadon said:

I don't see any reason for inventory to stop being made or slowed down in year one

Maybe you need to see harder..

If the factory is pumping 1 million or more xbox one per month,and MS is selling 400K a month,there will be a point were the factory will have to slow down or shut down production.

MS selling 400k out of 1 million mean that every million units produce each month is enough to supply almost 3 months,MS still has to pay for those units,so they are spending a ton of cash in manufacturing but aren't making it back because the console is not selling fast enough,that also affect price of hardware because the more you produce the cheaper it gets and the more you lower price of production,if production slow or stop price increase as well making more even more losses.

This is something i talk about is the difference between selling to retailers and selling to consumers,ms may not be able to do all months what it did last 3,the price drop and free game will eat away profits and will landed on losses something the xbox one was design to avoid.

Maybe they are talking about 360 consoles?

Also lol at the discrepancy between the thread title and the wording of the link

Also Lol Damien thread

The topic of Microsoft's Xbox business was barely raised during its investor call, with no analysts asking about it at all.

Come one xbox business means anything xbox,the PS4 sold to actual consumers 800k more units than MS sold to retailers with the xbox 360 and xbox one combined,not a good sign at all..

#26 Posted by sts106mat (18763 posts) -

The topic of Microsoft's Xbox business was barely raised during its investor call, with no analysts asking about it at all.

Come one xbox business means anything xbox,the PS4 sold to actual consumers 800k more units than MS sold to retailers with the xbox 360 and xbox one combined,not a good sign at all..

I agree, but i haven't looked into the details.

#27 Edited by charizard1605 (54480 posts) -

Urgh, misquotations up the wazoo.

#28 Posted by killzowned24 (7286 posts) -

Stopping production? They may as well just give up now :D

#29 Edited by Heirren (15988 posts) -

The real problem with the Xbox One, or the brand in general, started way back with the 360. The direction of the device changed and was never really set in stone, or agreed with consmers. If MS is going to call the Xbox "One", in that it is one device for all your multimedia needs, they should push it as such and stop going back and fourth as to what the identity of the device actually is. If it is a game machine, stick to that. If it is a multimedia machine? Push it. Release Microsoft Office, top tier audio/video editing software; tie that stuff to an xbox gold account. I'm not being sarcastic, either. The hardware could likely run this sort of stuff--get a Wacom program; use it with Surface Pro or the Wacom Cintiq.

...really how are the people in charge of this division, making the money they make, completely fcking up?

#30 Edited by SecretPolice (21209 posts) -

Saweetness, hoping I can nab one this Christmas at bargain bin pricing... Yeah Baby :D

#31 Posted by SolidGame_basic (16070 posts) -

Urgh, misquotations up the wazoo.

says the guy who quotes pachter lol

#32 Posted by sephaien (129 posts) -

I don't think microsoft would stop production. there are still some countries that they haven't started to sell xbox one.

#33 Posted by charizard1605 (54480 posts) -

@charizard1605 said:

Urgh, misquotations up the wazoo.

says the guy who quotes pachter lol

Yes, reporting on something someone said is the exact same thing as deliberately misrepresenting a quote made by someone else. Please stop.

#34 Posted by SolidGame_basic (16070 posts) -

@SolidGame_basic said:
@charizard1605 said:

Urgh, misquotations up the wazoo.

says the guy who quotes pachter lol

Yes, reporting on something someone said is the exact same thing as deliberately misrepresenting a quote made by someone else. Please stop.

quoting pachter is a bigger offense :P

#35 Posted by tormentos (16510 posts) -
@Blabadon said:

Smh, people giving me answers like the One isn't selling fast or like the PS4 is hard to find.

You don't stop or slow production in year one. Simple as that.

But it isn't selling fast enough dude,sony sold to actual consumers 800k more than MS sold to retailers xbox one and xbox 360 combined,the xbox one was outsold by the PS4 by almost 3 to 1 in this 3 months,no matter what MS can't keep up producing endless millions of consoles to not sell them,the production continues until certain point,when they say that is that probably the first deal was strike for 5 millions by march to get probably a good price from the manufacturer,once reach MS sees that the consoles are not selling at the rate they are producing it and probably tell the retailer to stop or slow.

And happen to Nintendo as well.

#36 Posted by lhughey (4221 posts) -

@misterpmedia said:

lol foxbat you can't coerce TC into damage controlling for you. The point of the topic is they are planning on halting the manufacturing of Xbone because channels are stuffed tighter than an 1080p buffer in eSRAM with product. They need dat PS4 cocaine crazy demand.

it doesn't say Xbone consoles... it says xbox consoles. could mean xbox360....reach higher

Huh, the article, as well as others, state the Xbone sold 1.2M last quarter and the 360 sold 800k.

#37 Posted by misterpmedia (3362 posts) -

@misterpmedia said:

lol foxbat you can't coerce TC into damage controlling for you. The point of the topic is they are planning on halting the manufacturing of Xbone because channels are stuffed tighter than an 1080p buffer in eSRAM with product. They need dat PS4 cocaine crazy demand.

it doesn't say Xbone consoles... it says xbox consoles. could mean xbox360....reach higher

Or you could dream less. 360 is still quite a popular console it seems, why would they be halting production on that? lol

#38 Edited by PonchoTaco (1904 posts) -

When I went into Best Buy they were begging me to buy one. I was like nah, got a PS4. Thanks though!

Lol, I'm sure employees with zero commission were begging you to buy something.

#39 Posted by Bishop1310 (900 posts) -

@Blabadon said:

I don't see any reason for inventory to stop being made or slowed down in year one

Then they'd have to depot their own stock while retail flushed through supply to order more. You don't do that in business. Not purposefully if it can be avoided. It tends to drive shareholders absolutely bonkers because on top of manufacturing something that cost a few hundred dollars, now your company is paying rent on sticking it somewhere.

Glad I could explain that :)

Do you really think Microsoft doesn't own a good number of warehouses for storage?

Go take a look at M$'s financial statements and tell me what it says under their fixed and capital assets please. I happen to have one so I'd like to see if we're getting the same info from the same places...

Renting the space to keep product in a warehouse? lol IF and that's a huge IF M$ had to "rent" storage it would be an internal deal with a different department. In which case they simply exchange money internally, the mother company (microsoft) sees no gains or losses from such a transaction.

Of course shareholders don't like it when stock is kept back but with the system selling as well as it is, considering what M$ did to the image of the brand, shareholders that support the brand won't mind short term.

Fuck, None of you on here know what you're talking about.. Ever. Do you guys ever open books? or rely on internet forums for your information?



#40 Posted by Bigboi500 (28804 posts) -

Keep pumping those babies out so stores inventories will be overstocked. That'll inevitably lead to store sales where the customer wins despite Microsoft's inability to properly price-adjust their over-priced products.

#41 Posted by misterpmedia (3362 posts) -

@misterpmedia said:

lol foxbat you can't coerce TC into damage controlling for you. The point of the topic is they are planning on halting the manufacturing of Xbone because channels are stuffed tighter than an 1080p buffer in eSRAM.

Jesus, you should need a license to carry these deadly burns!

lol don't tell the po-po about my trap cards :<

#42 Posted by GoldenElementXL (2576 posts) -

This is another one of those Cow threads where if you question the wording of the title or say the thread is misleading you are damage controlling or a butthurt Lem. Where does it say Xbox One production?

Cows, you guys are winning. You should be better than this.

#43 Posted by Bigboi500 (28804 posts) -

This is another one of those Cow threads where if you question the wording of the title or say the thread is misleading you are damage controlling or a butthurt Lem. Where does it say Xbox One production?

Cows, you guys are winning. You should be better than this.

COWS! COWS! You DARN COWS!!! Grrr...... *shakes fist and mumbles incoherently*

#44 Edited by GrenadeLauncher (3231 posts) -

It is cute just how little profit Xbox makes in the context of the whole hardware division. They could ditch it tomorrow and it wouldn't make a difference.

#45 Edited by sts106mat (18763 posts) -
#46 Posted by nyzma23 (887 posts) -

Microsoft income is $7 billions this quarter that is the main news on microsoft today not xbox one sales ,and since when gaming become profitable for both sony or microsoft

and now compare it to $1.1 billion loss on sony this march

#47 Posted by musicalmac (22666 posts) -

I can't help but feel as though things are being greatly exaggerated...

#48 Edited by GrenadeLauncher (3231 posts) -

Looks like I hurt std106mat's feelings. Poor princess. :(

#49 Posted by withe1982 (450 posts) -

@nyzma23 said:

Microsoft income is $7 billions this quarter that is the main news on microsoft today not xbox one sales ,and since when gaming become profitable for both sony or microsoft

and now compare it to $1.1 billion loss on sony this march

GAMEspot.

The clues in the name bud. We're here to talk video games and consoles.

#50 Posted by Bigboi500 (28804 posts) -