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X-box 360 pre-order shortage on purpose?

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Gamespot said:
Source: Reports from numerous sites, collated together on the hardware-happy Arstechnica.

The official story: "Microsoft does not comment on rumors and speculation."--Microsoft auto-response.

What we heard: With the Xbox 360 still set for a November 22 launch, many gamers are realizing that they will be getting their first taste of sweet, sweet next-gen goodness in less than three weeks. However, a lot of people haven't been able to lock down a preorder of the console, which has become near impossible to get online unless you want to fork out $2000 for GameStop's Omega Bundle.

Most gamers chalked up the 360 supply issues to general platform-launch woes. However, Arstechnica offered a much more conspiratorial theory. They propose that Microsoft is engineering the supply chain so the Xbox 360 will sell out at most locales. Why? Two reasons. First, widespread sellouts would create the appearance that the console is so popular that retailers can't keep it in stock--actually it wouldn't be an appearance, since it would technically be true. Then the media would pick up on the shortages, generating even more buzz about the console and giving it more free publicity.

Such a wily approach would fit right into Microsoft's publicity campaign. The company has jumped onto the viral marketing bandwagon with both feet, using the infamous ilovebees.com alternate reality game (ARG) to promote Halo 2 and ourcolony.net to give the world its first glimpses of the Xbox 360. After ARGs to hype to Xbox 360 contests, the company has now launched another one to promote the Xbox 360 launch.

Though not an ARG, an artificial 360 shortage would also set the stage for a new technique called targeted marketing. Practiced by companies such as San Francisco-based Ammo Marketing, this rather insidious selling style targets "influencers," people whose behavior others want to emulate. Companies hire influencers to use their products in the hopes their friends will see them using said product and then emulate said friend's behavior.

In the case of an Xbox 360 shortage, only the hardest-core Xbox fans will go to the lengths it would take to obtain the console, like waiting in line overnight. Eager to show off the coveted item they were luckily enough to get, these ubergeeks will become mini 360 evangelists, inviting all their friends over to play. Then those friends go out looking for the hard-to-find consoles, locate one, show it off to all their friends, who then all want to get one, und so weiter.

But is there any evidence that Microsoft is manipulating supply to artificially create demand? Sort of. Arstechnica refers to several well-respected Web sites that have received e-mails from readers claiming to be retail employees. Kotaku posted a report from an anonymous Target clerk saying each location is only getting 10 to 50 units of the console. Each Target location has also been instructed to preprint a giant "Sold Out" sign in advance to slap on the front window the minute the last next-gen machine is gone.

But while preemptive signage could be chalked up to mere retail prudence, an e-mail sent to Gizmodo indicates a far more sinister plan could be at work. It comes from an alleged worker at a Norwegian store, which says that every retail location in the country is only allowed 20 360s, regardless of size. (Scandinavian socialism in action!--ed.)To get them, "According to the reader, 'each shop or chain has to sign an agreement saying that they will sell out of all 20 consoles on the release date.'" In addition, the Gizmodo source claims "Microsoft Norway even said themselves that they're gonna use the 'Sold Out' as a marketing strategy to hype the console."

But will 360 sellouts actually generate positive hype? Well, one thing's for certain--when a platform launches with much fanfare and doesn't sell out, people notice. Just ask Sony. Despite solid sales, the PSP was branded a failure by many just because there were still plenty on store shelves during its first weeks on the market.

Bogus or not bogus?: There will be an Xbox 360 shortage, no question. Whether it's deliberate or not can't be definitively proven.

link

If this shortage is on purpose then I believe it's a very bad strategy.
 

Steve

revelations1 17
I sincerely don't think that's correct. J Allard and co. have said that they're pumping out as many 360's as they can, and no Gamespot article can convince me that they aren't. That's Sony's "strategy". *looks at PSP*
 
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WinterSnowblind

Guest
Why is it a bad strategy? It's the same thing Sony has done with every single one of their systems. Release them for Christmas, make only a limited supply to increase demand, and it'll eventually get to the point where EVERYBODY want's one, just because they're hard to find for a while. Anyone remember the PS2's going for thousands on ebay?
 

vaerna

Well-Known Member
*Cough Cough Hack Hack*....law of suppply and demand.....roll in those dollars.:p
 

Solla-chan

Coral Eye Trainer
Hmmm, very interesting. Though, I think that Microsoft had this planned all along, so that they can dominate the market during the holidays. O_O
But either way, it's bad news for video game stores, and their employees. o_O;
 

vaerna

Well-Known Member
Well.....guess what....I think we have one already on the way... :D
 

Bulk

Well-Known Member
hmmm, supose. That makes sense and I was surprised where I live when the 360 instantly sold-out so it does make sense. I've heard of this marketing tacktic before and it seems to work.
 

ghost master

the kawaiist thing
Shadowfax said:
Why is it a bad strategy? It's the same thing Sony has done with every single one of their systems. Release them for Christmas, make only a limited supply to increase demand, and it'll eventually get to the point where EVERYBODY want's one, just because they're hard to find for a while. Anyone remember the PS2's going for thousands on ebay?
I remember that a lot of people stole PS2's and would break into cars for them. Although I don't think there is as much hype formed like it was for the PS2.
 
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The Battousai

Guest
This tactic is used for most console launches, PS2's and N64's were nearly impossible to get at launch and these systems sold pretty well. Microsoft is not doing anything new here but hopefully they replenish stock soon after launch or there will be a bunch of unhappy people who skipped work/school to get one (not me though, I'll wait till after launch, it will be hectic). I bet this launch will be like PS2's, I lucked out with this one though and got the last one at my circuit city (I'll never forget October 26, 2000, I waited on line after school to spend my birthday money + allowance and nabbed the last console the guys in back of me were so mad that an eight year old got the console before them LOL ).
 

vaerna

Well-Known Member
Let you know how it plays when it arrives.....*snickers*
 
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The Battousai

Guest
Vaerna did you reserve or do you hope to luck out like I did five years ago, not trying to upset you but your chances are slim if you didn't pre-order. If you get one enjoy if you don't too bad. I'll wait for either A. a price drop B. HD-DVD drive C. Halo 3/ Gears of War/ KOTOR III if it uses live/ other strong blockbuster titles D. see what sony or nintendo offer before buying eventhough I don't like the paths they are taking like how sony wants the playstation line to become massive multimedia players over game devices and how nintendo wants to be all innovative and dream up console designs and controllers. I'll still wait and see before buying a console as haste makes waste and I'm dropping a good bit of money for one, I ended up selling that ps2 I waited in line for this year mainly because of how crappy my system worked, every once and a while I would get a DRE or my game would freeze up it was mainly a dvd player but I bought a toshiba one and finally got rid of my buggy ps2. Now I have an xbox which I play often and trying to sell the gamecube which I hardly play, super smash bros. slowly started to get repetitive after that being the only game I played on gamecube in the last two years (had it since 03).
 
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