Time for me to vent on this.
Microsoft's Peter Moore told the Seattle Post-Intelligencer they aren't "stockpiling" Xbox 360s.
Moore may have felt his comments were necessitated by recent statements Game Crazy's parent company, Movie Gallery in their financial loss posting. Movie Gallery said, "Movie Gallery has recently learned that, its initial allocation of the new Xbox 360 consoles will be below original expectations ... We believe this issue to be industry-wide."
Moore didn't actually answer the question, which is some version of "Is Microsoft causing an intentional supply shortage to hype the product?"
Marketing wise, this could work out well. Think about it: If M$ can create a perceived "gotta have it" penumbra for the console in the first shipment, and the second shipment hits before December 22, the Xbox 360 could become the "gotta have it gadget" for the 2005 Christmas gift-giving holiday.
On the flip side, Microsoft's still losing money on each of these consoles. A slow, multi-territory launch accomplishes a dual goal of initial worldwide penetration, and slow ramp up of financial impacts. In addition, it could be the new Xbox 360 services (Live, Marketplace, and Arcade) aren't ready for a heavy loads, and need some ramp up.
Maybe it's a combination.
In either case, it's hurting retailers and consumers.
Interestingly, this shortage isn't limited to Game Crazy.
Like I said earier, GameStop left me a polite automated message this week, letting me know their shipment of Xbox 360s were "less than expected".
Yesterday, both circuitcity.com and walmart.com listed, sold out of, and delisted Xbox 360s within 15-20 minutes.
I also hit local stores last night to see what the skinny was for next week. A summary is below, but be sure to call and check with your area store to find out their launch plans (and good luck finding someone who knows what the hell they're talking about).
Fry's Electronics:
- Midnight release: No
- 11/22/2005 Open Time: 8 a.m.
- Kiosk: No
More importantly, they didn't have their consoles yet, and he said they didn't know how many of each package they'd be getting, if they would be doing bundles, etc.
Check out the picture of Xbox 360 accessories below, and though it looks impressive -- it's not.
Their are 6 columns of first-party accessories, and #1 is all the same wired headsets, #2 is the universal controller (the same one that for a limited time comes with the Premium package), #3 is 3 rows of the same two faceplates, and #4-#6 are just two cables -- S-Video and Component.
Even more, they have empty display banks for the accessories they thought they were going to get (there are no third party accessories, like the Mad Catz or JoyTech controllers, and a massive amount of first-party accessories (wireless adapters, VGA cables, etc. are missing).Circuit City:
- Midnight release: No
- 11/22/2005 Open Time: 10 a.m.
- Kiosk: No
Not only have they not received their consoles, they haven't received their accessories, nor the number of titles they thought they were getting. Two open display banks set aside for the Xbox 360 look pretty dismal. (As an aside, they did have one third-party accessory, tucked behind the current-gen Xbox cables -- a Monster fiber optical cable for the 360 -- which other than color should be the same as a Xbox fiber cable.)
Hastings:
- Midnight release: Yes
- 11/22/2005 Open Time: 9 a.m.
- Kiosk: No
Summary?
Sure, this is a limited sampling, but the story is "The picture's not great."
The Friday before a Monday midnight launch, and stores don't know what they're getting, and can't make any commitments to their clientele.
Seems like communication could be better.
I'm off to Best Buy, Target, and (shudder) Wal-Mart to see what their area story is. I'll hopefully report soon ...
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