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Artificial 360 supply limitation and pre-arranged "sold out" status

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  • User profile image
    Cairo

    http://arstechnica.com/news.ars/post/20051101-5510.html

    Gizmodo reports that in Norway, the launch marketing campaign aims to build hype around the console by trumpeting its "SOLD OUT!" status to would-be buyers. In addition to limiting the per-store stock of consoles and having the retailers prepare to prominently note the unit's "sold out" status, Microsoft has allegedly asked Norwegian retailers to sign an agreement that they'll sell out of the consoles on the launch date.
    Cheeesy

  • User profile image
    Manip

    I put this in the same category as spyware bundling; you gain a short term increase in profit/sales but at the cost of your longterm customer happiness.

    Microsoft might increase the likelihood of their customers buying a 360 right now, but when they release the NEXT generation console sales might decrease as customers move to a more honest supplier like Sony or Nintendo.

    Not to mention if Microsoft miss the pre-Christmas sales boom, people might go elsewhere like a PSP or PC .... Who knows.

  • User profile image
    eddwo

    It does seem a bit odd.
    Normally people try to sell as many products as possible, and make sure that everyone who wants one can get one. Microsoft seem to be aiming to ensure that not everyone who wants one can get one, and to produce a lot of hype over it being "sold out" to try to make other people who hadn't considered buying one wonder what they are missing out on.

    Seems like they are risking their most likely supporters in order to attract a long term wider interest. It might be good for them in the marketplace but it will lead to a large number of disappointed fans this Christmas.

  • User profile image
    Tensor

    I dont think this is odd at all. Its standard practice. Build the hype - make it look like your product is so much in demand you cant keep up - that raises awareness because all the news in the run up to Christmas will be how this years must have thing is the 360. It raises prestige. Its marketing 101.

  • User profile image
    Manip

    Interesting because I've taken marketing 101 and limiting supply to increase demand wasn't suggested unless you wanted to push up the price (which Microsoft aren't). In fact such a move works to decrease demand as people drop off who can't afford the price being asked.

    Not to mention people getting alternate Christmas presents that ARE in stock..

  • User profile image
    Michael Griffiths

    Manip wrote:
    Interesting because I've taken marketing 101 and limiting supply to increase demand wasn't suggested unless you wanted to push up the price (which Microsoft aren't). In fact such a move works to decrease demand as people drop off who can't afford the price being asked.

    Not to mention people getting alternate Christmas presents that ARE in stock..


    They're artifically limiting demand to gain media coverage.

    I'd wager the supply opens up early-mid December, after a couple of weeks of "We're all out."

  • User profile image
    daSmirnov

    Limiting Xbox 360 supply on purpose is nonsense.

    I was told by a Microsoft rep on Tuesday that they're expecting to reach normal stock levels in March for the UK - when they're planning on doing a big advertising push.

    Why would they be doing this in March when they could be doing it in November or December?

    There just aren't enough units to go around, this is launching all in three main regions within a couple of weeks of each other, of course stock is going to be limited.

  • User profile image
    Larsenal

    Tensor wrote:
    I dont think this is odd at all. Its standard practice. Build the hype - make it look like your product is so much in demand you cant keep up - that raises awareness because all the news in the run up to Christmas will be how this years must have thing is the 360. It raises prestige. Its marketing 101.


    You're absolutely right.

  • User profile image
    PerfectPhase

    Manip wrote:
    Microsoft might increase the likelihood of their customers buying a 360 right now, but when they release the NEXT generation console sales might decrease as customers move to a more honest supplier like Sony or Nintendo. 


    You did read the Sony are lying devious (I need to watch my language)s thread?

    Don't kind yourself, they're all as bad as each other, they all want you cash and will do anything to get it.

    Stephen.

    EDIT: what's with this editor, all my formating keeps vanishing?

  • User profile image
    Detroit Muscle

    It's just spin. MS forecasts show demand for the xbox360 is lower than expected, so MS will release less units, to make it appear as if they are selling as fast as they can be built.

  • User profile image
    Larsenal

    Beer28 wrote:
    Too bad the competition has real fans that aren't paid, and has buyers to sell out their systems for real.


    You're right.  There are no XBox fans.  And I naively thought the email with "GET A FREE XBOX + $500 CASH" was SPAM!  Boy was i wrong!

  • User profile image
    PaoloM

    So you prefer a company that installs rootkits on your system when you pop in a CD?

    That's really nice, isn't it?

    Sony IS the devil. Microsoft has a lot to learn before getting to that level.

  • User profile image
    BenZilla

    :rolleyes: @ Beer's comments.

    Let's not start on G4 the bastion of honesting reporting, but i'll clear up some of the facts for you.

    Microsoft did NOT employ all the crowd, the only people who where blatantly actors were the guys sitting behind the execs(you know the  beautiful people)

    Sony and Nintendo both place people in the crowds to woop and cheer for them, it's standard industry practice.

    Let's move onto the OP, you should read what Sony did the PSP launch if you think what Microsoft are doing now is bad! I can't find the article at the moment, but they forced retailers to buy $150 worth of PS2! games(usually the stinkers that did not sell very well) for a PSP shipment, and then there was the "zomg we are going to be sold out" talk, which turned out to be blatantly false and Sony fell well short of their targets.

    This is standard practice for all the console makers, but because it's Microsoft it's suddenly "OMFG" time.

    I'm suprised you like sony so much beer when some of your biggest complaints against microsoft hold true against sony(vendor lockin, not an open design, correct me if im wrong but sony's linux offerings are poor to non exsistent) In the other topic with your PSP, what is all the branding on the products? It's all lockin from sony. UMD, the memory stick is sony(IIRC you might be able to get some memory stick from another company) and I honestly don't know about how the music transfer works, but knowing sony you have to use some crappy file format with some god awful piece of software.

    BTW this is BenZila, I can't seem to get my account mailed to me.

  • User profile image
    BenZilla

    Whatever, no getting through.

  • User profile image
    billh

    I'm sure Beer will not have to deal with a pre-arranged "sold out" status with his Linux boxes.  By the way, why would anybody want to pay for a box with Linux on it when they can get the OS for free and put it on their own hardware?

  • User profile image
    billh

    Beer28 wrote:
    Because when they unwrap it out of the box, everything will automatically be preconfigured for games on the x86_64, loaded with many built games, and the refurb laptops will be preconfig'd for wireless. Loaded with mplayer for firefox, configured for 3d ect...

    They get the machine, pre-config'd. They're also loaded with ruby gnome-art standard and compositing.

    It takes hours and hours to make a bland SuSE or FC distro into the beautiful screenshots you see on gnome sites on the web.
    That's part of why the config once install everywhere is going to be important.


    And you are going to offer service contracts to these people if they want something upgraded...right?

  • User profile image
    Minh

    Beer28 wrote:
    Because when they unwrap it out of the box, everything will automatically be preconfigured for games on the x86_64, loaded with many built games...

    Games like Doom 3 & Quake 4 & um... uh...

  • User profile image
    BenZilla

    Yeah Tux Racer is free and that's good Expressionless

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