Xbox 360 - Massive Shortages at Launch

[Hetz]

This is going to be worse than the PS2....

http://ve3d.ign.com/articles/663/663438p1.html

EB Games is facing severe shortages of Xbox 360 stock according to one employee who wrote in. The employee, who shall of course remain nameless, stated that his Arizona store has had over 90 pre-orders, 32 of which were guaranteed to be fulfilled, until today when the EBG head office revealed that the store would receive just 16 units on November 22nd, leaving another 16 "guaranteed" pre-orderers bitterly disappointed, and another 60-odd sod out of luck for who knows how long.

While one may imagine this to be an isolated incident, our intrepid reader-stroke-EB employee contacted other stores in the local area to discover whether this unfortunate business was happening elsewhere too, and yes, it is. So, if you have a pre-order, "guaranteed" or otherwise, I suggest you contact your local EB Games to discover whether you'll be diddling with the Xbox 360 and its diminishing launch-day line-up on November 22nd, or indeed, any time soon.

Many thanks to the source of this story - we salute you!

Update: A GameStop employee located in the same area informed us that they have yet to receive confirmation as to the availability of units for their customers, but do believe that all 'guaranteed' pre-orders will be fulfilled.

Update #2: An EBG employee from Florida let us know that his store will also only receive 16 units on November 22nd, while the company as a whole will supposedly only receive around 35,000 units to distribute to all outlets across North America.

Okay, so the word is that basically on launch day, expect stores like Best Buy to have around 50 Xbox 360s each, most of which are the $399 flavor (thanks Lordservant). That's not very many, so camping in line won't help very much since there are so few to go around. I'd guess other super stores will be in the same boat who don't take pre-orders.

Stores like EB/Gamestops are going to be sold out already scrounging just to meet their guaranteed pre-orders. I'd be shocked if even those crazy multi-thousand dollar overpriced bundles ship on time.

Are we excited yet?

In theory I like the idea of a world-wide release, but with inventory stretched so thin, the only global thing we'll have in common is that no one will able to find a 360.

[Clay]

Maybe they do this on purpose to get a pack of people foaming at the mouth ripping each other apart at Wal Mart to get a 360 -- sure brings a lot of media attention!  

Besides, and I only ask this out of ignorance, is it the fault of Microsoft or of EB Games that preorders can't be filled?  Does MS promise a quota?  Or does EB Games just assume they'll get them?

[Soulchilde]

I don't know Hetz.  While I think there will be shortages I don't think it will be as bad most are reporting


Until MS release I just don't see myself getting pissed off about this.  


Top it off that we both won from Everytenminutes.com I won't be angry if I have to wait a few weeks.  Free is Free!

[ATB]

Meh. Who cares.  People need to get comfortable with the concept of delayed gratification.

[JLu]

I was already told by EB that I'm part of the second shipment...  I may try hitting a local Target on launch day; may not.  I'm looking forward to getting the 360, but if I have to wait a couple weeks, I'm cool with that.

Part of me does still think that the shortage is engineered to increase the demand.  I just can't believe that EB is only being given 35,000 units.   Best Buy also has reported only getting 50 units per store.  Microsoft needs these things in stores by Christmas so that they can be under Christmas trees.

[farley2k]

Meh. Who cares.  People need to get comfortable with the concept of delayed gratification.

That is a cute statement and all but it pretty much doesn't mean anything.  

Americans don't "need" to get comfortable with delayed gratification - in fact our consumer society is built on not delaying gratification.  Just look at the massive credit card debt if you think people are delaying anything.

And since our society is the most powerful and the envy of most other societies I would say that the concept works rather well.

[Purge]

I'd speak to the glut of the US as being enviable, but I'm in a good mood right now.

I'm in the top 10 pre-orders at my EBGames; I'm not worried.

[ATB]

And since our society is the most powerful and the envy of most other societies I would say that the concept works rather well.

Championing consumer debt?  Um. Yeah.

Edit: They won't be envying anything when the bottom falls out...

[Mystic95Z]

Meh.... Both me and my brother have both decided to cancel our preorders due to lack of interest in the launch lineup and lackluster previews of the ones we were interested in (Kameo & PDZ).

[farley2k]

And since our society is the most powerful and the envy of most other societies I would say that the concept works rather well.

Championing consumer debt?  Um. Yeah.

Edit: They won't be envying anything when the bottom falls out...

Maybe, on the other hand if those with massive debt go down they will drag everyone else with them so why not enjoy it while it lasts?

[Starshifter]

I'm amazed at all the doom and gloom around here. :?

Just relax folks.  Everything always works out in the end.

Now let's go talk some Civ IV or Battlefront 2 or Mall Tycoon 3 or something!

[coopasonic]

I'll be driving about early the evening of the 21st checking for a store without a major line, with a fully charged Nintendo DS and iPod in hand and maybe a granola bar or two. Luckily I live in shopping valhalla, with wal-marts, targets and best buys in every direction.

I have the rest of that week off from work so no problem staying up late one night.

[ChaoZ]

Again, I'm going to say now that I plan to wait until a price drop before getting the 360...

*sigh*

See you launch day!  

[Fellow]

I swear, it feels like every new console/handheld that's close to release nowdays has these "O SHI SHORTAGES AHOY SONNIES!!!" articles crop up.

[JLu]

I forget; did the original XBox have 'shortage' rumors?

I remembe for that, I walked into an EB after 2 or 3 weeks, and got one as a bundle with three games rather easily. At the time, that made sense since of course I wanted two games anyhow, and getting one more wasn't that big  a deal.

[ATB]

Again, I'm going to say now that I plan to wait until a price drop before getting the 360...

+77

[Devil]

I swear, it feels like every new console/handheld that's close to release nowdays has these "O SHI SHORTAGES AHOY SONNIES!!!" articles crop up.

Yep!

This is a non-story.

[bluntman72]

I was first on the list at the EB Games I preordered at then they closed that location and moved the preorders to another EB so now I am 25. If I dont get one opening day then i will cancel my preorder and never shop at EB again. what really pissed me off is I did my preorder a long time ago when they very first started taking them and didnt even know price and when they moved the preorders they basically deleted it from one store and entered it in as a new preorder at the other so the date I preordered is now set to the new date and I am behind everyone at that store. they said they should be able to get me one on launch, but I will probably go wait at best buy then go by EB after I buy one there so I can make sure I have one.

if they only get 16 and I am put on second shipment I would be very pissed considering I preordered last year and expected to have on at launch.  :evil:

[Arkon]

This just In!!!

XBOX 360 will rape your family pets and burn your house down.

Why must everyone insist the sky is falling?  Have we not all been around for system launches before?  This is nothing new in the console world.  Even with Oblivion getting delayed there are still a lot of great titles coming out at launch to tide us over until Oblivion.  I will be enjoying Kameo, and PGR3 for sure on launch day.

And edit to add....

This just In... EB Employee has surpassed GOD due to having superior knowledge in all things gaming.  The unnamed EB employee is able to tell the future has set up a web service for reading palms.

[Laner]

Meh. Who cares.  People need to get comfortable with the concept of delayed gratification.

That is a cute statement and all but it pretty much doesn't mean anything.  

Americans don't "need" to get comfortable with delayed gratification - in fact our consumer society is built on not delaying gratification.  Just look at the massive credit card debt if you think people are delaying anything.

And since our society is the most powerful and the envy of most other societies I would say that the concept works rather well.

Yeah, I definitely envy those who can't wait a few days to buy a toy or rack up tens of thousands of dollars of credit card debt...

I say that slightly toungue-in-cheek as I preordered a 360 bundle, but still - what you've put forth isn't a *positive* mark in our society's favor by any stretch...

[Calvin]

So yeah, all reports have this being a fairly severe shortage in the grand scheme of console launches, but all reports also point to this being a manufactured shortage. Its annoying, perhaps bad business, and frustrating, but I think it will end up ok for most of us.

[Andrew Mallon]

A 'manufactured' shortage? This Christmas will be the only time Microsoft has no competition in the next-gen console space and they know that they can sell almost every console that gets put on a store shelf. Why the hell would they deliberately limit production or sit on inventory? Microsoft needs to build as big as a lead as they can before the other consoles launch.

I understand the allure of thinking J Allard will be thumbing his nose at eager consumers while sitting on a stack 360s in a warehouse, but buzz over the 'hot Christmas toy' does not translate into sales in February through July. Microsoft's going to get every 360 they can make on to store shelves before Christmas.

[mytocles]

I was first on the list at the EB Games I preordered at then they closed that location and moved the preorders to another EB so now I am 25.

 This is the suckiest thing I've heard in this whole mess, Bluntman.  I'd feel exactly the same about it too!  I'm number 3 (behind 2 employees) and if I got flipped back to 25, I'd be more than steamed!

Good luck to you...  

[ChaoZ]

A 'manufactured' shortage? This Christmas will be the only time Microsoft has no competition in the next-gen console space and they know that they can sell almost every console that gets put on a store shelf. Why the hell would they deliberately limit production or sit on inventory? Microsoft needs to build as big as a lead as they can before the other consoles launch.

I understand the allure of thinking J Allard will be thumbing his nose at eager consumers while sitting on a stack 360s in a warehouse, but buzz over the 'hot Christmas toy' does not translate into sales in February through July. Microsoft's going to get every 360 they can make on to store shelves before Christmas.

That's not exactly the point.  The initial "launch" date is somewhat of a ruse. Release a small amount, sell that out and push out new stock first or second week of December. Profit!

Think about it, if you have stacks upon stacks of 360s at stores, the gift won't seem popular or exclusive enough. The scheme is to con people who don't know much about gaming (the fabled "casual" gamer).

To corporations, consumers are idiots.

It's a gigantic snowball effect. A manufactured shortage puts a sense of urgency to everything. There's bound to be tons of parents who simply latch on to hype train.

[Calvin]

+1 Chaoz.

[Guy Incognito]

Plus shortages mean that they can have insane bundles forcing you to buys games you aren't interested in and add-ons with high profit margins  :wink:

[Andrew Mallon]

A 'manufactured' shortage? This Christmas will be the only time Microsoft has no competition in the next-gen console space and they know that they can sell almost every console that gets put on a store shelf. Why the hell would they deliberately limit production or sit on inventory? Microsoft needs to build as big as a lead as they can before the other consoles launch.

I understand the allure of thinking J Allard will be thumbing his nose at eager consumers while sitting on a stack 360s in a warehouse, but buzz over the 'hot Christmas toy' does not translate into sales in February through July. Microsoft's going to get every 360 they can make on to store shelves before Christmas.

That's not exactly the point.  The initial "launch" date is somewhat of a ruse. Release a small amount, sell that out and push out new stock first or second week of December. Profit!

Think about it, if you have stacks upon stacks of 360s at stores, the gift won't seem popular or exclusive enough. The scheme is to con people who don't know much about gaming (the fabled "casual" gamer).

To corporations, consumers are idiots.

It's a gigantic snowball effect. A manufactured shortage puts a sense of urgency to everything. There's bound to be tons of parents who simply latch on to hype train.

This makes no sense, given how supply-constrained Microsoft is with the 360. There's already more demand than supply this holiday season, so there's no reason to sit on any consoles to generate hype. There won't be stacks of 360s on shelves unless Microsoft manufactures significantly more 360s than analysts expect.

Incognito's post seems logical to me, though. If Microsoft can up the average total price of each 360 sold through bundles, I can see why they'd slowly dribble out the limited stock they have over the course of the holiday seasn.

[happydog]

Problem is that Microsoft isn't selling bundles, the stores are. The only way the bundle could help MS is if the stores are convincing people to buy something that they wouldn't buy otherwise. Which I suppose is possible.  :? Unless MS sees it as getting people to buy more games sooner. But if that was the case I would expect to see that launch list already. Color me  :?

[Sarkus]

That's not exactly the point.  The initial "launch" date is somewhat of a ruse. Release a small amount, sell that out and push out new stock first or second week of December. Profit!

Think about it, if you have stacks upon stacks of 360s at stores, the gift won't seem popular or exclusive enough. The scheme is to con people who don't know much about gaming (the fabled "casual" gamer).

Except the part where they screw legitimate pre-order customers at those retailers who already have guaranteed sales lined up.  That's what bothers me most about the "intentional shortage" theory, if it's true.  They could accomplish the exact same goal by supplying reservation only quantities to retailers that have pre-orders and then limit supply to those who don't and still create hype demand for casual gamers without pissing off the thousands who were already willing to put down $50 to ensure getting it day one.

They are playing a dangerous game if they have intentional shortages, worldwide launches they can't/won't supply, a weaker by the minute launch list of titles, and an apparent unwillingness to reveal which "top titles" are actually backwards compatible.  

It's 20 days until launch MS, get off your ass.

[stiffler]

Problem is that Microsoft isn't selling bundles, the stores are. The only way the bundle could help MS is if the stores are convincing people to buy something that they wouldn't buy otherwise. Which I suppose is possible.  :? Unless MS sees it as getting people to buy more games sooner. But if that was the case I would expect to see that launch list already. Color me  :?

From what was said in another thread, MS is making the stores order two titles per console or they won't get their allotment (Microsft Norway, at least).

Put me in the "I would like to buy one but can't find it so give me option B" camp.  I'd buy the damned thing if I could but won't go scouring the Earth to find one.

And consumers are idiots.

[Zarkon]

Shortages seem to be confirmed.

Our Wal-Mart, which is admittedly a smaller store...is getting 4.

Luckily, one is earmarked for me, which'll go in layaway, so I"ll have one on December 14 at the latest.

[Hetz]

Yep, this shortage looks to be legit.

I'm going to be making a lot of money on Ebay with my preordered console! I preordered back in mid-May and am guaranteed for launch, plus I won a system on that everytenminutes thing.

It pays to prerorder early people. After the PS2, I learned my lession, looks like many people are going to be learning theirs the hard way come Nov 22nd....

[Arkon]

Interestingly, neither of my local eb's are hearing anything about this manufactured shortage from the district manager/corporate, nor has their allocation been cut.

[Eco-Logic]

Indeed.  

After a discussion with my wife last night, I quickly realized she will not let me give away my preorder, so we listed it on eBay last night.

I apologize to happydog and Grahmn for misleading you all in anyway.

She put the $50 down though so she made the decision!

[Zarkon]

No layaway for me, it seems.  Can't earmark 'em.  So...instead of December 14, make me a day one purchaser. ;p

[JLu]

If this shortage is legit, and I get mine in any reasonable amount of time, I could be convinced to ebay mine if they are going for enough extra.

Personally I don't believe the shortage rumors though.  I've been wrong many times before, but without a lot of these right out of the gate in time for Christmas, the launch will be considered a failure.

[Andrew Mallon]

It pays to prerorder early people. After the PS2, I learned my lession, looks like many people are going to be learning theirs the hard way come Nov 22nd....

I know there's going to be shortages this holiday, but I'm still not convinced there's going to be long lines the morning of the 22nd. If MS ships between 350,000 and 500,000 at launch I'll bet it'll take a few days for them to sell out, especially at a $400 price point.

[happydog]

Indeed.  

After a discussion with my wife last night, I quickly realized she will not let me give away my preorder, so we listed it on eBay last night.

I apologize to happydog and Grahmn for misleading you all in anyway.

She put the $50 down though so she made the decision!

No worries, I had already made the decision that I wasn't going to take you up on your offer. Thanks anyway.

I think I'll be in line release day. I'm pretty sure I'll be able to get one. But even if I don't I'll still get one soon enough.

[Calvin]

Yep. I too am going to be in line release date. I find it very hard to believe at 400$ this thing is going to sell out completely at walmart, target, etc so quickly.

[StitchJones]

Exactly.  the fact that its $400.00 plus the fact that it will hit before Thanksgiving leads me to believe that the first few days, you'll be able to fine one pretty easily.  The day after Thanksgiving though,all bets are off.