Rumor: Is the Xbox 360 shortage deliberate?

  • By thorsen-ink, GameSpot
  • Posted Nov 4, 2005 5:03 pm PT

Source: Reports from numerous sites collated together on the hardware-happy Arstechnica. The official story: "Microsoft does not comment on rumors and speculation."--Microsoft autoresponse. What we heard: With the Xbox 360 still set for a November 22 launch, many gamers are realizing that they...

Source: Reports from numerous sites collated together on the hardware-happy Arstechnica.

The official story: "Microsoft does not comment on rumors and speculation."--Microsoft autoresponse.

What we heard: With the Xbox 360 still set for a November 22 launch, many gamers are realizing that they will be getting their first taste of sweet, sweet next-gen goodness in fewer than three weeks. However, a lot of people haven't been able to lock down a preorder of the console, which has become near impossible to get online unless you want to fork out $2,000 for GameStop's Omega Bundle.

Most gamers chalked up the 360 supply issues to general platform-launch woes. However, Arstechnica offered a much more conspiratorial theory. They propose that Microsoft is engineering the supply chain so the Xbox 360 will sell out at most locales. Why? Two reasons. First, widespread sellouts would create the appearance that the console is so popular that retailers can't keep it in stock. And actually, it wouldn't be an appearance, as it would technically be true. Then the media would pick up on the shortages, generating even more buzz about the console and giving it more free publicity.

Such a wily approach would fit right into Microsoft's publicity campaign. The company has jumped onto the viral marketing bandwagon with both feet, using the infamous ilovebees.com alternate reality game (ARG) to promote Halo 2 and ourcolony.net to give the world its first glimpses of the Xbox 360. After using ARGs to hype Xbox 360 contests, the company has now launched another one to promote the Xbox 360 launch.

Though not an ARG, an artificial 360 shortage would also set the stage for a new technique called targeted marketing. Practiced by companies such as San Francisco-based Ammo Marketing, this rather insidious selling style targets "influencers," people whose behavior others want to emulate. Companies hire influencers to use their products in the hopes their friends will see them using said product and then emulate said friend's behavior.

In the case of an Xbox 360 shortage, only the hardest-core Xbox fans will go to the lengths it would take to obtain the console, like waiting in line overnight. Eager to show off the coveted item they were luckily enough to get, these ubergeeks will become miniature 360 evangelists, inviting all their friends over to play. Then those friends go out looking for the hard-to-find consoles, locate one, and then show it off to all their friends...who then all want to get one, und so weiter.

But is there any evidence that Microsoft is manipulating supply to artificially create demand? Sort of. Arstechnica refers to several well-respected Web sites that have received e-mails from readers claiming to be retail employees. Kotaku posted a report from an anonymous Target clerk saying each location is only getting 10 to 50 units of the console. Each Target location has also been instructed to preprint a giant "Sold Out" sign in advance to slap on the front window the minute the last next-gen machine is gone.

But while preemptive signage could be chalked up to mere retail prudence, an e-mail sent to Gizmodo indicates a far more sinister plan could be at work. It comes from an alleged worker at a Norwegian store, which says that every retail location in the country is only allowed 20 360s, regardless of size. (Scandinavian social democracy in action!--ed.) To get them, "According to the reader, 'each shop or chain has to sign an agreement saying that they will sell out of all 20 consoles on the release date.'" In addition, the Gizmodo source claims "Microsoft Norway even said themselves that they're gonna use the 'Sold Out' as a marketing strategy to hype the console."

But will 360 sellouts actually generate positive hype? Well, one thing's for certain: When a platform launches with much fanfare and doesn't sell out, people notice. Just ask Sony. Despite solid sales, the PSP was branded a failure by many just because there were still plenty on store shelves during its first weeks on the market.

Bogus or not bogus?: There will be an Xbox 360 shortage, no question. Whether it's deliberate or not can't be definitively proven.

346 Comments

  • IVANdaGUY

    Posted Jan 25, 2006 8:39 pm PT

    eh, i don't tihnk it was on purpose.

  • Da_Don_Mega

    Posted Jan 6, 2006 9:16 pm PT

    This kind of tactic is not only ridiculously sneaky but down-right appalling. I understand the company is out to make money, I have no problem with that. The problem I have is that Microsoft announces a release date and then only ships 20 units to each outlet. In essence the release date is a fallacy. When I'm told that by mass media coverage that an item with be available on such and such a date if I pre-order, I damn well better get one on the release date. Failure to uphold this is not only false advertising but a form of fraud. So basically because Microsoft is a billion dollar company, they can do whatever they want and not be ultimately accountable to anyone? What A Bunch Of B.S.

  • ruptureddrummer

    Posted Nov 25, 2005 4:29 pm PT

    I pre-ordered a 360 at a local Gamestop back in May. i was told about a week before launch that i was #5 on the second shipment but i would be moved up because i had completly paid it off. Today i called Gamestop to see what number i was since i was told that i would be moved up but when i said to the employee that i was told that i would be moved up he said that that wasn't true and that they are going by dates, not buy who has paid the most for it. Does anyone else agree with me in saying that this is total crap?! What they should have done is on the day that they stopped taking pre-order they should have orginized the list of pre-orders so that the people who had payed the most and the earlyist should have come first. Does anyone know that since i'm #5 on the second shipment am i garenteed the 5th one they get after the launch?

  • InTheMatrix

    Posted Nov 22, 2005 4:50 pm PT

    I'm surprised microsoft would rip off all those people waiting for days because they only sent stores 50 consoles. We all knew MS was sleazy but wow.

  • orionwolf

    Posted Nov 22, 2005 3:50 pm PT

    I reserved my copy back in April/May BEFORE there was even an MSRP.

    Now I'm being told that I didn't reserve it soon enough. I bought an XBox 1 year after it's original release date and I didn't have a problem with the wait. Plus I paid a whole lot less later on. Microsoft once again show's it's ass to the public with this low-ball marketing campaign. It's one thing to use alternate-reality marketing. It's something completely different to screw over their responsible loyal customers. Maybe I'll find one used later on for an even cheaper price. The less money Microsoft makes, the happier I am.

    Wolf-

  • orionwolf

    Posted Nov 22, 2005 3:25 pm PT

    I reserved my XBOX 360 at Gamecrazy (Hollywood Video) back before there was even an MSRP (sometime in April/May) and was promised by Gamecrazy that they would have ample amounts of 360's available. They planned on ordering 100 or so and stocking the entire backroom. At the time I doubted that they would get what they wanted. In reality I was right but more right than I wanted to be.

    I was in the top 10 to pre-order the console, and I'm not receiving mine on the launch date. I have been informed that I am in the next top 10 to receive my console, however, I am now debating whether to even purchase it. With the reviews for the launch titles just barely above average, I'm getting less and less excited. I didn't expect Halo to be the first game out on the console, I did, however, expect a little more than 8.0-8.8 range games for launch.

    It is looking more and more like Microsoft released the console too early, and because the launch of the 360 is too early, there are not enough games fully developed to show off the consoles real strength. After seeing the only launch game that breaks the 9.0 rating being Perfect Dark Zero (and it just barely got a 9.0), I thought I might redirect my funds to a better location. And right about then, I found out that I was short-changed by Microsoft in their higher preference for low-ball marketing, rather than making the responsible end-consumer happy.

    In reality, my computer already performs near to the XBOX 360's capabilities and although my computer is not hooked up to an HDTV, I still have more fun with it and with the games that I play on it, than I will ever have on the 360. If there is one thing that is true, it is that history will repeat itself. And in the past, computers have always been capable of more than consoles. High-Definition or no, I will always enjoy PC games more than console.

    For the most part, consumers are smarter than Microsoft is assuming. And hopefully, they will see through this marketing scam and sit back until the prices for the console have at least rolled back a bit. I know I will.

    Wolf-

  • RedvsBlue15

    Posted Nov 22, 2005 2:50 pm PT

    I wanted one and I can't because I don't have the money right now and because of the shortage I have no hopes of getting one thanx a lot microsoft.

  • slow73

    Posted Nov 22, 2005 2:14 pm PT

    Hahahaha Microsoft. Very funny. You got me. I was one of those fools waiting outside freezing my ass off. Wifey and I got to the store at about 2:30 am and we still were not in the top thirty (no thanks to the line cutters) for a 6:30 store opening. Ya know, the more I think about it, the more I think this whole sudden "supply shortage" is nothing more than a well ochastrated (sp.) marketing stradegey by MS. Think about it. How can they justify giving away thousands of free games to celeberties and during promotional contests and the in-store kiosks? They did it for the North America launch and they will no doubt do it in Europe and Japan. I saw pics of celebs with two counsels. I am not a business mogul but I would think you would have to be STUPID to give away thousands of potential sales for nothing in return. Then limit the paying customer to one per person per sale. Lets not forget, MS is in this business for one reason only. To seperate you from your wallet in order to fatten theirs. Not HELP you acquire a game system. How do you think Bill got so rich? Not by HELPING people. Then MS said the next delivery, anywhere from a few days to a few weeks away, will be more substantial that the launch order. How do they know that, especially when they have to stock up for the European launch. Do they plan to short change them even more to make up for the lack of products in this country? They obviously have more than they say they have. Think about this...the sold out theory goes like this. The give a very limited amount of machines based on geography and population. Only enough that you are assured a sell out. (Why give a place like French Lick, MT 500 machines with a pop. of 2000? You will never sell out quickly enough for that WoW factor) Once a location sells out very quickly, the "I gotta see what the fuss is about" people run out and buy the next shipment. Also this will give the fence riding buyers (i.e. curious PS2 diehards) a big push. I believe after a week or two, MS will "solve" the shortage and the machines will start pouring into the stores just in time for Xmas. I just can't wait until they do so I can get my hands on one. Ahhh, very clever
    Microsoft-son.

  • thestickman

    Posted Nov 22, 2005 9:50 am PT

    Well, if you somehow managed to get into Zero Hour, were one of the first 20 people to preorder a 360, or were one of the lucky people that got to wait in line outside of Best Buy for 40+ hours and after all that still managed to get your hands on a 360, give yourself a pat on the back. I'm hoping just as much as all 360 owners that there are no defects or recalls or anything of the sort on this new system so they can get shipped out faster. I'm just gonna sit here by the phone and starve myself of food and sleep until I get my happy little call from EB saying that they got my shipment in...

  • sparky2335r

    Posted Nov 22, 2005 6:28 am PT

    Marketing ploy or not, this shortage is ridiculous. My local Walmart got 8 consoles total and of that 6 of them were core systems. You gotta be freaking kidding me. Its not like I live in the middle of nowhere either where the demand would be lower. Microsoft should know better than this, they are going to serisouly p off their hardcore base.

  • daddee

    Posted Nov 21, 2005 10:53 am PT

    I pre-paid in full for my XBOX 360 and will not receive one on launch day. I know I'm not the only one in this position. Iwill eventially get one,but why pay in advance an still have to wait. I don't think this is a good practice by who ever is responsible. I was all hyped up! Now I'm dissapointed.

  • fleaflickerdude

    Posted Nov 20, 2005 4:32 pm PT

    Damn Bill Gates!!!.........Damn him to electronic marketing hell!!!

  • KingNemesis

    Posted Nov 20, 2005 3:26 pm PT

    I agree, he's probably getting paid to keep his mouth shut too.

  • BoriciaMVP15

    Posted Nov 20, 2005 3:23 pm PT

    Hahaha...you know whats funny...correct me if I'm wrong but...Allard hasn't even made a comment on this issue...obviously this is staged by Microsoft.

  • BruceLeesDragon

    Posted Nov 18, 2005 10:41 pm PT

    I'm one of hundreds just in my small town that place a preorder and I will be waiting a couple more weeks after Nov. 22. I think it's BS that anybody who took the time to preorder should have to wait at all. Let alone weeks to months. If it is a ploy to jump sales it's a poor one. Its funny how I can preorder etra's and recieve them already just to have wait for my system to use these items and games.
    If I was'nt so crazy about xbox I would tell Microsoft the Hell with there system. Spring is only a couple month's away!

  • shafe716

    Posted Nov 18, 2005 8:21 pm PT

    This is brilliant Marketing if it's true. Demand will skyrocket as it did with the ps2 back in 2000, and because it's not a "real" shortage Microsoft will have pleanty of units to thow at the market once the demand blows through the roof. In all honesty there can't be a shortage unless someone screwed up drastically along the supply chain. With a company like Microsoft everything is real-time. That means that their suppliers have the same data they do, believe me they probably have the best logistics people in the business!

  • unonice

    Posted Nov 18, 2005 1:21 pm PT

    i have spent over $700.00 and now i find out i will not be able to obtain an item i have fully paid for on the official launch date. i have been told by my local retailer - gamestop - that i will not obtain an xbox 360 console until after x-mas. i am not happy. what ever happend to caring about the consumers; especially those who have already paid fully (months in advance).
    shame on microsoft and any other company that does not meet supply and demand. i will not buy into this type of muck again. it's not worth it. i have other things to do. xbox 360 can wait. if i were not misinformed i would have kept my original xbox and bought a 360 in the spring.
    shame on you microsoft for misleading the consumer. this may cost you.

  • Death_Scyth02

    Posted Nov 18, 2005 2:06 am PT

    i just love how everyone is automatically blaming microsoft for any kind of shortage on the 360. doesnt any one remember the ps2? u couldnt find one any where. they were selling for hundreds of dollars on the web. i even remember hearin about some goin for well over a grand online. but it worked, everyone wanted one cuz they thought they were so popular...they were, but thats not the point. and as for this "strategy" makin more money for MS...thats a lie. the only ones who would make money on that is the people who re-sell the 360's. someone buys its for 300 (or 400) and then re-sells it for 1000...u think they're gonna give any of that money to MS? hell no. they're keepin that $600 profit for themselves.

  • mikevenable

    Posted Nov 17, 2005 2:16 pm PT

    I just got a call from the store that I pre-ordered SIX MONTHS ago that I won t be getting mine at launch. It will be a week later before the get more in. There is definitly some truth to this if you ask me. I think it's absolutely ridiculous. It's almost criminal...but what can you do? I have no choice . If I want it then I must wait.

  • h4t3d1

    Posted Nov 17, 2005 10:46 am PT

    Well, I am not worried about the shortage as in the past for all console launches I simply got a job at a major retailer rather than waste my time and hard earned money with pre-orders like all the rest of you homos. Pre-orders are for the weak, the insecure, the ones with no confidence in their luck. Good luck on the 22 guys, I know Im gettin one - I always have. :-)

  • xxgamexxer247

    Posted Nov 15, 2005 11:06 pm PT

    I say bogus...I read another article on here that said an analyst predicted that the xbox 360 will sell 3 million consoles by the end of the year! If there is a shortage, how will they sell 3 million by the end of the year. That's like sending more than a million a month. LOL. Shortage my a**. Also i called a few gamestops and EBGames and I asked a few questions, one manager in dublin,CA said that they will be getting 100 units on launch and 75 every week after that. He said that he will also take 20 consoles and let 20 lucky gamers get those without a preorder. Hmmm microsoft....

    Personally i think that they are lying to get a high demand on this console. And there doing a great job. LOL. Mean to lie, but the more you wait for the console, the more you will enjoy it and appreciate it when you get it.

    Well all I gotta say is good luck to my fellow gamers. P.S. my brother works at a Gamestop so if you want more info please email me at jobmail0@walla.com

  • GamerDudeB3

    Posted Nov 15, 2005 1:36 pm PT

    Smart Plan from Microsoft!

  • GamerDudeB3

    Posted Nov 15, 2005 1:32 pm PT

    Woo NOOOOOOOOOO WAY. Im gona have to wait know till March cause of that.. Well at least the price will fall a litttle bit until then.

  • Fuzzdog20

    Posted Nov 15, 2005 11:38 am PT

    It seems to me that the demand for the 360 is already high! Most of the posters must not have taken Economics. Shortages do not help the seller unless they can move the price. The Key thing Microsoft is trying to do is meet the demand without causing a Surplus or Shortage. I'm guess they will have enough 360s to go around on first and second shipment!!!

  • doom_metal_fan

    Posted Nov 14, 2005 6:15 pm PT

    If they focused on making great games they'd sell a lot of 360's.They're not going sell any consoles if they do crap like this.

  • blackadoo

    Posted Nov 13, 2005 5:17 pm PT

    it's bad that microsoft is doing to true fans in the u.s.a the plan is smart but it hurts the ones like me who has been waiting this long what about the ones that paid in full why do they have to be put on hold.

  • me729

    Posted Nov 13, 2005 9:29 am PT

    Microsoft is trying to create an impression that they can make something good-- and they really can't.

  • thestickman

    Posted Nov 10, 2005 7:06 pm PT

    As far as the shortage being deliberate or not, you can believe what you want. I think I agree with what a lot of other people have said, that Microsoft just isn't as ready as they thought they were. If the launch wasn't until early January of next year the situation would have significantly improved, but waiting until then would result in them missing out on the holiday hype. I think its safe to say that they definitely knew that there would be a shortage and they didn't take any actions to prevent it, so I guess overall you could almost say that the whole thing isn't one bit shy of being planned or deliberate. I still have some hope left of getting the console at least by the second shipment, so I'll hold off on switching my pre-order for now...

  • RedLabelmn

    Posted Nov 10, 2005 12:50 pm PT

    pff ill get one

  • NeoJedi

    Posted Nov 10, 2005 11:46 am PT

    Hehe I'm not even surprised... of course there will be a shortage of XBox 360's, that's for certain. Was it planned? I wouldn't be the least surprised, this is Microsoft we are talking about here...

  • thestickman

    Posted Nov 9, 2005 6:11 pm PT

    I just got back from running up to EBGames today to finish paying off some of the Xbox 360 stuff I've pre-ordered. Sadly enough for me, I just got around to pre-ordering it around the middle of last month (late pre-order), so I was guaranteed today that the soonest I can pick it up will be next year. This particular EBGames will be getting 20 units total on launch day, 20 more in December, and 20 more "who knows when", in the words of the guy that was working there at the time. He told me he didn't even know if they would be opening early or not, and that I would be better off just getting my money back and getting one somewhere else, if I could find one and have them hold it for me (yeah right). I figured it would probably be a good idea for me to stop by another game store on my way home, and what better place than Rhino Video Games. I already knew that they weren't taking pre-orders from going in there last month, so I just wanted to ask them if they would be opening early on the 22nd. They didn't know, but they gladly told me that they were only receiving 5 units, unsure of whether any would even be premium versions, and that they'd been having 3 people a day going in and asking about it. They also told me that Wal-Mart and Target were only getting about 7 units each, and that GameStop would only be getting about 10 (a GameStop guy had called them earlier that week to let them know he would definitely be there on launch day to try to get one from them). Unless by some miracle Microsoft is able to largely increase all the stores' second shipments, I think I might have to change my pre-order to the PS3 instead. I know that might sound childish, but I just don't like the idea of paying for something before the cut-off date and not getting it within a month of its release. Hopefully pre-ordering the PS3 now will ensure my copy of that...

  • ElHypno

    Posted Nov 9, 2005 12:46 pm PT

    It is very obvious that it is an American marketing ploy. Nothing says demand like screaming and crying children and angry people. I cant really recall when I preorderd my Xbox360 because it wasnt really a big deal to me. However, I found that by purchaseing my 360 from my more gangster retailers. I am almost assured a machine reguardless of what number I am on the list. Unfair to those who may have pre paid before me but sometimes rules are just made to be broken.

    While I'm sure this story will be taken with some offence, please try to keep in mind that your video game retailers of choice did not "screw" you in any way. The employees of many of the shops are being told that thier pre-sales are not valid and they must be given to the customers. They are probably as unhappy with this situation and trust me when I tell you a hell of alot more unhappy than the customers. Because lets face it, some customers can be brutal. The poor retailer gets called every name in the book, sometimes in several differnt languages.

    The card board displays are in the most imminant danger, because nothing makes an angry gamer happy is to kick the card board Nintendogs,Dead Or Alive 4, or Xbox 360 display flying across the store. This is almost as scarey as the time I showed up really drunk to EBgames and plowed through the Master Chief chromium Halo 2 display after one of my many pre-christmas parties the next morning at about 11:00 am after I stopped drinking that night.

    Please dont go crazy on your poor video game/anything retailers that night or in the morning because you still have to buy your games from them when you get your Xbox 360 in September 2006, You might even be so lucky to get one by the time Halo 4 comes out. Those who didnt get one at launch will feel really cool because you will have had Kameo for about a week, and maybe one of those cool USB controlers for two or three. What fun everyone can have with the power of imagination. To be super cool I would suggest the "Pre-Xbox 360 kit" It comes with a DVD of the Xbox 360 load up screen, and some duct tape so you can tape the controler to your original Xbox to pretend as though your haveing fun jamming your fresh new Xbox 360.

    Play safe, play smart, Shop S mart.

  • Thesilverpimp

    Posted Nov 8, 2005 8:38 pm PT

    *shacking fist to Bill Gates*
    Why you.............grrrr...i just might get into the PS3 clan...did i just said that?

  • kubrick_11442

    Posted Nov 8, 2005 6:57 pm PT

    i work for a blockbuster store in the UK and we have recently received orders to either refund the pre-order amount or ask the person if they could wait until early 06 for there 360, because we are not getting a single console, not one, i then contacted other stores in our area and they were told to do the same. looks like it might be hard finding a 360 after all.

  • ewjim

    Posted Nov 8, 2005 2:55 am PT

    Mwahahahahahaahhahaha!!!!!

  • enteyager25

    Posted Nov 8, 2005 1:48 am PT

    okay, sure i can understand the idea of a conspiracy, and maybe even pretend to make sense of why they make a shortage of units. Most importantly, i think i understand that most of us may not have anything better to do than talk about how the gaming establishment is trying to screw us over.
    There is a contest, the every10minutes contest, wherein 9,000 some units will be given away from beginning to the end of the contest. If they are really making a shortage intentional, why would they give away so many units. Even if Microsoft doesn't give them away until next year or what not because of a shortage, it doesn't make any sense that they would give away atleast a couple mil once you figure in the games these winners would also buy, when they could free up those units to sell in light of a shortage. If its intentional, thats just bad business and i honestly think microsoft can't afford to take part in some ultra risky manuever that could piss off a lot of potential buyers when the playstation 3 holds some pretty intimidating promises that may or may not be true. And i'm pretty sure microsoft is well aware of that fact.

  • TheCabHatter

    Posted Nov 7, 2005 8:14 pm PT

    Wow. Microsoft is really going the lengths, eh?

  • m14c79

    Posted Nov 7, 2005 2:04 pm PT

    Maybe the whole idea of it being a "planned shortage" is actually the plan itself!

    This will lead people to buy bundles like at Best Buy (10am CT, wed. Nov. 9th), in order to believe they will actually get one!

    Microsoft would have known that we would find out about the "planned shortage", so it could actually be planned that we are to think that it was planned, and that would lead us to believe that the shortage is confirmed. So when we find one in the stores, we will think, "wow! I actually found one! I'm so lucky! "

    But in fact there may actually be plenty.

  • vperrone

    Posted Nov 7, 2005 1:57 pm PT

    just got a call from my local eb games (tampa)....It seems my 50.00 down to hold the pre-order is not enough...the sales associate told me that I would be guaranteed a system SOMETIME AFTER the 22nd....he doesn't know the exact date!!!!

    He went on to say, this will give me a little more time to bring any pre owned games in for trade toward 360 games/console....sure....hmmmm....let me get right on that.....NOT

  • jiggerkiller

    Posted Nov 7, 2005 1:51 pm PT

    its a great idea if its true.
    they dont have much to offer in games and it harly is backwards compatible, so it would help them het hype while they put the finishing touches on their console.

  • geelw2

    Posted Nov 7, 2005 1:47 pm PT

    of COURSE it's true. having worked in retail as management for a while a few years back, it's practically a rule to be short on launch day. the nonsense about "not being able to meet demand" can only come from three reasons:

    1. the console is being rushed to market too early, so the factories can't make enough, period.
    2. the company didn't anticipate the demand for the system and has been caught off guard (um, how long has microsoft been in business? i don't think so...)
    3. they're spreading the systems thin because of #1 and also because they're launching in so many territories in a short time span.

    you'd figure that after all these years, companies would look forward and use the usual facts and figures available to produce enough product so as many people who want can get. however, shortages actually work in their favor because any consumer hysteria creates more demand. look at gas as an obvious example. and yes, you can say, "but people NEED gas- they don't NEED a 360." nevrtheless try telling that to the people waiting on line for a day and a half in the cold. this season, the word consumer stands for:
    Crazy Obstinate Nut Seeking Microsoft's Exciting Ride or something like that- i've always hated acronyms... or is it anagrams? i'm tired.

    hell, even if there are 5000 people who scream loudly on launch day after striking out and going home empty handed, "I'm NEVER buying a microsoft product AGAIN!!!!" microsoft knows for that number, 5 times as many new consumers are looking at the crowds and ticking memos in their blackberrys: "GET XBOX 360- it must be good- crowds HUGE." i bet those giga-thousand buck bundles are going to fly out of stock after that...

    there's a way around shortages that;'s so obvious, it's stupid. why not do pre-orders before the console is made while the magazines are hyping the system a year before? combine that with the usual market forecasting on demand, the usual magazine/website hype and other kooky stuff they don't want joe consumer to know about and produce systems accordingly and stagger the shipments, letting people know when they can expect to hit the stores. hell, if it can be done with things like cars, fruit baskets, music equipment, furniture, computers, and a ton of other products, it can be done with game consoles. crowds generate hype- hype generates news, news generates interest, interest generates sales. there's no way around it... unless riots break out and people start losing limbs. that's not good pr.

    a side question- how many systems are they GIVING away in contests, promotions or to celebrities who won't use them? 9,000? 10,000? that's a lot of moolah. hell, half of those could go to people on day one with cash on the barrelhead who'd be more likely to be pleased than someone who scored a system from luck or showing up on the red carpet at an awards show. how many of those giveaway systems are going to show up on ebay and pay for someone's rent or drug habit? let's check on the 22nd and report back with some fun figures, ' kay?

    then again, it's a double-edged sword. you have to promote a new product like the 360 so people will look at the "old" xbox and want to trade it in... um, despite it being in its best year and not even maxed out by a developer yet, to boot... oh well, at least the price of xbox games will drop like a stone tied around a gamecube and a thompson drive...

    as for targeted marketing- yup- it works. look at the halo 2 launch. in addition to all the ilovebooze (renamed because obviously, some drunkard thought it up, and too many other drunkards fell for it) generated viral hype, game stores spent a day or two calling up all the people who reserved the game and telling them to show up at midnight so they could get their copy as if the game would sell out even if they had a reserve and wanted to pick it up the next day. i was in a gamestop while the clerks were calling people up and telling them to show up at midnight, not the next day because 'they weren't sure if they were getting enough copies." oddly enough, i had asked the manager how many copies they were getting and he looked at me and said, "oh, we'll have enough, trust me"

    in the area where i live, a few hundred people had the regular edition reserved, but in-store, the employees were trying to push the limited edition on them at the register because they had a huge amount of them ready to go that weren't reserved. then again, by that weekend, they had a ton of returns on the game from people who blew through the single player campaign in one sitting, didn't have xbox live and didn't want to pay for it, either thanks to no broadband connection, credit card or other reasons.

    granted, this probably won't happen at all with the 360, but imagine all the folks who DON'T know the difference between the two systems, get the core system and one game for their kid, get to the register and find out the have to shell out MORE money for a memory unit? if they don't get told that, or say, "'eh, screw it- he can just leave the system on" (something i heard at the register back in the n64, dreamcast, and ps2 launches, btw)- they'll be back in the store a few hours or a day later to sold out product and accessories. which is good for microsoft's press releases, but not so good for those who didn't know the drill...

    g.

  • StriderNickolas

    Posted Nov 7, 2005 12:01 pm PT

    Hrm,I believe that since they have rushed the launch quite a bit they might nto have enough 360's already developed...And it seems that no store has said which system they'll have more of:the Core or the...Dang,forgot the name of the other >

  • Crossefire00

    Posted Nov 7, 2005 11:59 am PT

    I was on the first shipment pre-order at EB Games. Then Microsoft told EB that they will only receive half of their initially reported first shipment which means that I will not receive my console on 11/22. I'm pretty pissed off about it since I already shelled out the money. There's talk that the second shipment will be one week later. It's probably a smart ploy on Microsoft's part but they shouldn't have intentionally shorted the first shipment that's already been paid for. Oh well, maybe I'll go for the midnight launch and then get my money back from EB.

  • bklapmeyer

    Posted Nov 7, 2005 11:24 am PT

    50% of rumor control has become wild speculation that Microsoft is acting as a profit making corporation. WOW WEE! Wild rumors are here! Shame on rumor control.

  • Guru-Nator

    Posted Nov 7, 2005 11:21 am PT

    MicroSoft has more than enough money already, so why the world go to lengths like that just for an extra couple of dollars? Oh yeah, cos they're brains are smaller than that of my french teacher

  • RSnakeSolid

    Posted Nov 7, 2005 11:18 am PT

    This would be complete bull if this marketing scheme was on purpose because lets look at the facts, the XBOX360 is coming out in under a month now so surely this would make an ideal Christmas present for any hardcore gamer, Christmas time would mean mahoosive sales for Microsoft and a hoax shortage sounds like a good way to lose alot of money and then people go buy PS2's and then the PS3 comes out and Microsoft are officially screwed.
    I have pre-ordered my XBOX360 for a Christmas present and if I don't have it at Christmas then i'll tell Microsoft where they can shove their XBOX360..

  • Guru-Nator

    Posted Nov 7, 2005 11:15 am PT

    Poo...I asked for an Xbox 360 for Christmas. It was already unlikely with huge sell-outs on the launch dates but now I seriously doubt it. Anyway, I also doubt that it will work, that plan is a bit...hopeful and unlikely to work, so why not just cram the shops full of 'em?

    P.S. Anyone know if I can change my username?

  • brucefdavis

    Posted Nov 7, 2005 10:59 am PT

    Could this be Microsoft's way of mitigating it's losses? Everyone knows they're gonna lose money on each console they sell, at least for a while. What better way to fatten up profits than to limit sales of the console - but have plenty of accessories and games available at launch. My other concern is that Microsoft has said they will manufacture more of the $399 bundles than the core system, but how will we know? Panic stricken parents everywhere will gladly shell out an extra $200 in accessories so the kids aren't dissapointed come Christmas. Bill Gates, you evil genius!

  • brightboy

    Posted Nov 7, 2005 10:54 am PT

    It don't matter to me cause I know that even if I tried to get a Xbox 360 I would not be able to cause I am sure that ever store has already sold oout of 360's because of preorders. Even after a couple of week after the release date I am sure that none of the store would still have any Xboxs on stock to buy.

  • satansboss

    Posted Nov 7, 2005 10:49 am PT

    yes this is really not good. i mioght not be able to get one now and that was the only thing i wanted for x-mas. i will pe pissed if i cant play my friends b/c of microsofts stupid decision to make a shortage

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