Xbox 360's lower quantity same price!?.

[clarky003]

I thought this was an interesting article for the enthusiast's and those who have had trouble getting their hands on one.

http://www.slate.com/id/2132071/?nav=mpp

There has been a so called 'shortage' of the console for nearly 2 months.

The beating question is this , from an economist's point of view.. If there is such a shortage .. why do the prices remain the same?

Yet, for economists, the Xbox 360 crisis is more alarming than a conspiracy, because these supply shortages make no economic sense whatsoever. Despite their suspicious regularity, the shortages benefit nobody.

or.. are microsoft's xbox department just stupid?.

 

[DEATH eVADER]

are microsoft's xbox department just stupid?.

I'm cool with that notion :|, microsoft (as a whole)have never been the best marketers

 

[VictimOfScience]

"Never attribute to conspiracy that which can be explained by incompetence."

I think MS may have been a little too conservative in estimating the demand for their new console which could certainly be seen as incompetence. I also think that the problem is compounded by the fact that they just couldn't produce enough units with their foreign factories. Another plant is supposed to come online anytime now if not already so that they can sell through X number of units by March as was their supposed plan. They really are wasting a golden opportunity here, but supply and demand seem to have taken the day off.

I see the same thing going down with the PS3 later in the year, though I hope they crank them out much faster than the 360s because I actually want one!

 

[mortiz]

Well the shortages make Microsoft look like they're selling the consoles in absolutely huge numbers. Chances are that if they'd had good supply lines they probably will have still sold out for the few few weeks or months but by now, after Christmas, they'd have consoles stood on the shelves. What this "shortage" does is make it look like their console is still in massive demand and ensures that when they release a few more thousand consoles they sell out straight away.

It's an investor trick.

 

[clarky003]

lol, so basically,

they are either

A. Holding back and making it seem like they arnt meeting demand to make it look like the product has to be good because its selling out, attracting more consumer's, a ploy.

B. Are actually selling out planned purposefully, or not predicted.

But even still, why keep the price the same, even if you are pretending to have a shortage or have planned to sell out or not. In case A, yes it would mean that they would be scamming people.. but people wouldnt know any better in any scenario being told it is a real shortage.

In case B. It makes no economic sense to not up the price temporarily.

So even if it is a trick, it makes no short term sense atleast.

 

[PickledGecko]

The price is at a level where they will make the most money. Higher prices mean lost sales to those who are not willing to pay that much, which in turn works against them as too many units on the shelf and it loses credibility.

The price of a console has nothing to do with making money, they make huge profits from the games. Therfore, their motivation is not to make money from high prices, but to get as many XBox 360's into homes and flog games at a huge mark up.

 

[Dumb Dude]

I don't ever recall a console selling for higher than it did in launch. I don't see why they should start now.

 

[destrukt]

I don't ever recall a console selling for higher than it did in launch. I don't see why they should start now.

the ps2 was like $800au while the x360 premium is around $630.

call me crazy, but maybe there really are a shortage of consoles because they aren't being made fast enough, though it's more fun to be a lemming and say that they're purposefully not releasing enough and so on.

they also just set up a third manufacturer.

 

[mortiz]

the ps2 was like $800au while the x360 premium is around $630.

call me crazy, but maybe there really are a shortage of consoles because they aren't being made fast enough, though it's more fun to be a lemming and say that they're purposefully not releasing enough and so on.

they also just set up a third manufacturer.

Glad you eat everything Microsoft feeds you. No way would they still have supply shortages if they were maxing out their factories.

 

[VirusType2]

When I go into retail stores they have the system on display to play but they don't have any games or systems. a few controllers available and thats it.

however if you want one, just go to a video game store and order one.

whats the problem?