Pach-Attack: Cut Supply, Raise Demand

GT:Is under-shipping consoles a legitimate strategy? Michael Pachter responds.

[Chaostar]

Can't watch vid because I'm at work and using phone but, imo, holding supply only works if the consumer doesn't have a second option. There will be a lot of people who might go looking for one console but go home with another thanks to stock issues.

With the consoles releasing so close I'd say it'd be a mistake to hold anything back.

[Heisenburger]

Exactly brother. I was telling my roommate that he should pre-order PS4 because Amazon and Gamestop were sold out.

To which he replied sarcastically "Do you REALLY think they are already sold out? It's just like that episode of Futurama where Fry went to buy a phone and they salesman pretended that they just had one left. Then it cuts to a truckload *of them being dumped."

I then said "Right. Except I just went and ordered my PS4 at Best Buy. See how your little theory falls apart?"

By the way my friend and I jokingly try to out Alpha-male each other. It's just how we joke with each other.

:)

*typographical error yo

[LackTrue4K]

i enjoy Pactcher's videos much more then his dam tweets.
in his videos he explains things much clearly.

lol....when he answered the Mario 3D, "who cares..."
i think his hinting about Nintendo's low sales! haha..

[rainslacker]

The first 5 minutes or so is surprisingly informative. He didn't really speak of intentionally holding back supply, just that supply is short due to the way they're produced.

Otherwise, in principal, having seemingly short supply can increase demand, as it seems like it's more popular. Wii is a good example, although supply was short mostly due to the initial demand being much higher than anticipated. Something he touched on indirectly. Nintendo tried to make the Wii U seem like it was going to be in very short supply to increase demand, but that obviously wasn't the case.

Otherwise he did make a few sparse predictions, 100K X1 units in Japan I had a good laugh at, but not as bad as his normal predictions.

[FamilyGuy]

Terrible idea at a consoles launch, you end up loosing lots of sales to resellers on ebay an such. All that extra money those ebay buyers spend on getting the console could have been spent on buying more games and accessories too so they'd be losing out in that aspect as well.

Proper advertising, glorifying the must-have features, having a quality product that owners praise are all better ways to raise demand.

LMAO @ the 3D thing at the end. When he said noby cares I was thinking to myself, "What about all those millions of 3DS owners that might expect the new mario to actually be in 3D?". It really would be confusing. Why even call it 3D? Nintendo really screwed up on that one.

[SniperControl]

Patcher..........blah blah blah blah blah.
Why do we even entertain anything this man says?
Nothing he has "analysed" has ever come to frutition.

[Kenshin_BATT0USAI]

I'm beginning to see a trend here... People don't watch any of his videos. Most of what he says is actually dead on correct. lol

[ZodTheRipper]

I wouldn't call it correct, he just gives things a new perspective. Sometimes he's right, sometimes he's completely off track, but it's still interesting to watch since he has a very business oriented view on things.

[Kenshin_BATT0USAI]

I completely agree Zod. Most people who write articles are either amateurs or journalists, but what he says, like you said, is very straightforward and business-like. It's pretty interesting.

[McScroggz]

Awesome explanation for why the whole idea of creating a supply shortage on purpose is bunk. Well said Pach!

[nupes98]

Calling the woman from Game of Thrones a Mutt. really. sexist jerk