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Author Topic: 360 will be scarce for some time it seems  (Read 1611 times)
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Soulchilde
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« on: December 14, 2005, 06:05:49 PM »

MS under estimated the 360 it seems

Xbox 360 Will Remain Scarce
 
Microsoft launches console in Japan, says it will be in short supply for months.

Martyn Williams, IDG News Service
Monday, December 12, 2005


TOKYO -- Shortages of Xbox 360 consoles in the U.S. and Europe aren't expected to be resolved anytime soon, a Microsoft executive said Saturday after the company launched the console in Japan.

 
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"Eventually we will catch up, who knows when that will be. Demand is just stunning, overwhelming," said Peter Moore, marketing and publishing corporate vice president of Microsoft's home and entertainment division, in an interview.


Demand Started Strong
When Microsoft launched the console on November 22 in North America, long queues of people formed outside many retailers.

"We knew we had one of the hottest products for the holidays on our hands but even I was stunned by reports the next morning of fights breaking out and guns being drawn," Moore said.

As a result, the Xbox 360 has become one of the hottest products on the eBay online auction site.

"The hunt for the 360 seems to be a keen sport now. We are replenishing the channels every week and a lot of retailers, quite frankly, took more preorders than they had stock coming in and they are only now fulfilling those. So for the consumers in Europe and the U.S. who think they can just walk up and buy one, I don't know when that is going to happen."

The consoles are currently being produced for Microsoft by two companies, Singapore's Flextronics International and Taiwan's Wistron. A third manufacturer, Canada's Celestica, will begin production in late January or early February, said Moore. All three companies will produce the Xbox 360 at their respective factories in China.


Microsoft CEO's Sons Suffer
Among those inconvenienced by the shortage has been Steve Ballmer, Microsoft's chief executive officer. Ballmer said last week that his children had yet to get an Xbox 360 because he hadn't been able to buy one and Sarbanes-Oxley rules prevented him from getting a free console.

"He's right, he's a section 16 officer that operates under Sarbanes-Oxley," said Moore. "I can't give him one, even if I had one, because he can't accept it and I don't think he pre-ordered it from our local BestBuy, which he lives pretty close to, so Steve is [out of luck] right now."

"I'm sure the Ballmer boys aren't happy with that because he has to get in line at retail like everybody else," said Moore. "He can come to my house if he needs games to play."
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Hrothgar
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« Reply #1 on: December 14, 2005, 07:16:06 PM »

Wait, they're trying to spin this as good?  I'm raising the BS flag.

Microsoft employees have an internal store to get products below retail price.  As long as he pays for it, I'm pretty sure S-O doesn't stop Balmer from shopping there.  This sound pure PR.

I seem to recall Sarkus mentioning that Microsoft cut shipments to retailers at least twice (once in summer and again before launch).  Now they're blaming retailers to overselling preorders?  That's cold.

I also fail to see how Microsoft missing all their production goals equates to greater than expected demand.  If they really want to help, they could release those weekly shipping numbers they keep talking about.
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Soulchilde
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« Reply #2 on: December 14, 2005, 07:32:52 PM »

Yeah, I think this is spinning at thier best.


About the CEO not having one it doesn't make much sense to me.  I'm sure Bill Gates have one and I can't see him paying for one.  

Anyway, the S & O law is that a fallout from Enron.  Too lazy to look it up

Funny thing Sarbanes is my Senator, DOH!
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Zarkon
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« Reply #3 on: December 14, 2005, 07:38:40 PM »

Actually, I know someone who works for MS, and I believe that the store dosen't have the 360.  I'll find out, though.
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adamsappel
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« Reply #4 on: December 14, 2005, 07:58:33 PM »

If it IS true, Peter Moore should be fired. He should probably be fired anyway. You can't promise sales of 3 million consoles in a quarter on one hand, and on the other claim you underestimated demand for the product. There are NINETY THOUSAND 360's being sold by the trickle in Japan (when they've sold how many in 4 years, 200,000?) that could have gone to US consumers. Limiting the supply in Japan might have even created a demand. MS has screwed the pooch on this launch in all three territories.

(That's not to say the hardware isn't damn cool, just that Microsoft is doing themselves no favors.)
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gellar
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« Reply #5 on: December 14, 2005, 08:13:59 PM »

Quote from: "Zarkon"
Actually, I know someone who works for MS, and I believe that the store dosen't have the 360.  I'll find out, though.


I can confirm that.  I bought mine from Walmart.  I get some accessories from the store, but even those have been farely scarce to trickle in.

MS employees don't even get a discount on the original Xbox.

gellar
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« Reply #6 on: December 14, 2005, 09:57:16 PM »

Quote from: "gellar"
MS employees don't even get a discount on the original Xbox.

Makes sense.  Since Microsoft is losing money on the hardware, it wouldn't be financially sound to offer a discount on the hardware, even if only to employees.
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Zarkon
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« Reply #7 on: December 14, 2005, 10:32:46 PM »

Thanks, gellar, and I can confirm it as well, neither Xbox or 360 are available to MS employees in their store.
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Kevin Grey
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« Reply #8 on: December 14, 2005, 10:44:15 PM »

That Ballmer stuff is such BS.  How much is he worth again?  Pretty sure he could pick up one off of Ebay in a snap.  

Also didn't care for this little gem:

Quote
"The hunt for the 360 seems to be a keen sport now. We are replenishing the channels every week and a lot of retailers, quite frankly, took more preorders than they had stock coming in and they are only now fulfilling those.


So now scattered reports of a few units in a few Targets across the country is "replenishing the channels"?   Way to shift the blame to the retailers, especially since most of the major chains don't even take preorders.
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Temjin
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« Reply #9 on: December 15, 2005, 12:29:46 AM »

Wasn't Moore the guy in charge of advertisements for the Dreamcast?  That alone speaks volumes.  

I thought the whole idea of Microsoft doing away with the five-year console cycle and moving to four was to get a jump on Sony.  How can they do this when they can't place consoles into wanting hands?
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« Reply #10 on: December 15, 2005, 03:36:54 AM »

Quote from: "Kevin Grey"
Way to shift the blame to the retailers, especially since most of the major chains don't even take preorders.


I have to admit that that statement chafes a little.
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« Reply #11 on: December 15, 2005, 05:19:40 AM »

Quote
We are replenishing the channels every week and a lot of retailers, quite frankly, took more preorders than they had stock coming in and they are only now fulfilling those. So for the consumers in Europe and the U.S. who think they can just walk up and buy one, I don't know when that is going to happen.


That's what pissed me off too. What an ass. Or I should say, what an idiot PR whore.
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Jumangi
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« Reply #12 on: December 15, 2005, 05:24:38 AM »

I don't see what's to chafe about. Has anybody shown any proof that MS guarenteed x number of 360's to retailers then didn't deliver? The bottom line is retailers like Gamestop just took anybody's money who came in for pre-orders without having any clue as to what they were going to get then they blame MS.

The MS hate does go a tad overboard at times...
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Hrothgar
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« Reply #13 on: December 15, 2005, 06:39:53 AM »

I don't have any hate for Microsoft.   It just seems they're being less than honest here.

I believe Sarkus is the manager of a Gamestop.  From a prelaunch thread (where I was trying the same argument to defend MS):
Quote from: "Sarkus"
Quote from: "Hrothgar"
If you preordered during the summer, whoever was taking the order was doing so before they knew how many they were going to receive in their allocation.  Of course that's risky.  On the one hand, you prove to Microsoft that you have demand.  On the other, Microsoft is under no obligation to fulfill that demand in the first shipment.


That's not true at all.  I know for a fact that both EB and GameStop were given "sure thing" numbers back in June that they used to determine reservation quantities.  It was only in late September that MS began warning that they might not be able to meet those numbers after all.  That's when both chains (and everyone else who was doing pre-orders at the time, including WalMart online) stopped.

Sold out is sold out.  Shipping enough to GameStop and EB to cover 90% of the pre-orders would achieve the same "shortage" marketing hype and do so without alienating core customers.  What we have instead is the situation that arises when you miss your manufacturing targets by a wide margin.
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« Reply #14 on: December 15, 2005, 07:16:01 AM »

I hear GameCrazy is getting some in this week (hollywood video)
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Kevin Grey
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« Reply #15 on: December 15, 2005, 11:42:41 AM »

Quote from: "Jumangi"
I don't see what's to chafe about. Has anybody shown any proof that MS guarenteed x number of 360's to retailers then didn't deliver? The bottom line is retailers like Gamestop just took anybody's money who came in for pre-orders without having any clue as to what they were going to get then they blame MS.


Read what I wrote again- I'm referring to retailers like Best Buy, Target, Walmart, Circuit City, etc - most of those don't take preorders and they aren't receiving significant resupply until maybe this week (three weeks after launch).  For MS to try and act like the lack of units in the retail channel is due to EB and Gamestop (most of which haven't been resupplied at all) still filling preorders is absurd.
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« Reply #16 on: December 15, 2005, 01:34:07 PM »

Apparently Costco received a new shipment just now.
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« Reply #17 on: December 15, 2005, 02:22:46 PM »

Quote from: "Jumangi"
I don't see what's to chafe about. Has anybody shown any proof that MS guarenteed x number of 360's to retailers then didn't deliver?


No, but I can tell you that in the few weeks after I was hired by Gamestop in late October there was a sudden and dramatic shift in what was believed at the store level.

Quote
The bottom line is retailers like Gamestop just took anybody's money who came in for pre-orders without having any clue as to what they were going to get


And we have seen proof of this where, exactly? It isn't like stores had preorders in the thousands of units. The numbers we've received are....well..very small.

And so I find myself on the phone with frustrated customers who want to be able to explain to their kids why there aren't going to be big shiny boxes under their trees at Christmas for them to unwrap. At this point, it doesn't matter where these people get units from, I just want them to be able to get them. I do make a point of telling them that if they do find a system elsewhere that we can assist them with their game and accessory needs.
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Zarkon
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« Reply #18 on: December 15, 2005, 04:09:55 PM »

Quote from: "Kevin Grey"
Quote from: "Jumangi"
I don't see what's to chafe about. Has anybody shown any proof that MS guarenteed x number of 360's to retailers then didn't deliver? The bottom line is retailers like Gamestop just took anybody's money who came in for pre-orders without having any clue as to what they were going to get then they blame MS.


Read what I wrote again- I'm referring to retailers like Best Buy, Target, Walmart, Circuit City, etc - most of those don't take preorders and they aren't receiving significant resupply until maybe this week (three weeks after launch).  For MS to try and act like the lack of units in the retail channel is due to EB and Gamestop (most of which haven't been resupplied at all) still filling preorders is absurd.


BTW, here's your 'significant' resupply at our Wal-Mart, which, granted, is small.

14 Xbox 360s at launch (12 core, 2 premium).
6 360s on resupply (all premium).
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Jumangi
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« Reply #19 on: December 16, 2005, 01:15:27 AM »

Nobody's still shown any proof of MS ever promising certain numbers. That one quote isn't proof its what a single person claimed. To me its still a simple matter of Gamestop and EB just taking money from people before they had any idea of what they could actually offer. Also anybody who put in a pre-order at a store like that and being like say #50 or higher in line but still thinking they were getting one on launch day was dreaming and should have known better anyways.
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Kevin Grey
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« Reply #20 on: December 16, 2005, 01:41:30 AM »

Quote from: "Jumangi"
Also anybody who put in a pre-order at a store like that and being like say #50 or higher in line but still thinking they were getting one on launch day was dreaming and should have known better anyways.


How about #23?  That's what number my GS preorder is and I haven't received one (luckily I got in on the Walmart deal a few weeks back).  I was somethiing like #40 for my PSP and got that on launch day.  

Hell, about $#11?  My GS received a grand total of 10 systems and have had no resupply since.  Was #11 dreaming and should have known better?
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« Reply #21 on: December 16, 2005, 01:52:58 AM »

Quote from: "Jumangi"
Nobody's still shown any proof of MS ever promising certain numbers. That one quote isn't proof its what a single person claimed. To me its still a simple matter of Gamestop and EB just taking money from people before they had any idea of what they could actually offer. Also anybody who put in a pre-order at a store like that and being like say #50 or higher in line but still thinking they were getting one on launch day was dreaming and should have known better anyways.


I think you're on to something. I bet it was MS's plan all along to only ship enough xbox 360s during the holiday season to meet a small fraction of the demand.  Even better (or smarter), continue to only trickle new units to major retailers at 6-10 units every 3 weeks for a month or more after launch.

Does that make any sense?
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« Reply #22 on: December 16, 2005, 03:59:13 AM »

Quote from: "Kevin Grey"
Hell, about $#11?  My GS received a grand total of 10 systems and have had no resupply since.  Was #11 dreaming and should have known better?

Agreed. And at my Gamestop, #14 was reserved at the end of MAY. Did people really think you had to preorder 6 months in advance for a console?
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