Analysts: hardware shortages intentional

The industry-tracking NPD Group released its US retail sales data for January late yesterday, and the numbers showed slumping hardware sales down 25 percent year-over-year. The Wii and Xbox 360 in particular sold short of analysts' expectations, as Nintendo's console led the field slightly at the 274,000 mark, with the Xbox 360 bringing up the rear with sales of 230,000.

Today (February 15, 2008) a number of analysts sent investor notes out explaining their take on the numbers, suggesting that Nintendo and Microsoft made decisions that they knew would lead to shortages.

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power of Green 3661d ago (Edited 3661d ago )

I think MSFT must have underestimated the demand of the Elite, people wanted the best the 360 had to offer. Not convinced that MSFT had some secret" 360! ready to launch and scrapped it. XBL is growing fast I think they were looking at what was happening with Sony's Consoles that were over $400 and made the call not knowing people would wan't the Elite and the Elite only so soon.

I think the botton feeding media and Sony fanatics did some research and are now trying to make due with any bad news they can as long as they can Hence the "MSFT is lieing" vs the current "MSFT did it on purpose." tone change of the subject.

DiabloRising3661d ago

Aren't you sick of this topic yet? Honestly. So you agree that they are choking supply to possibly install a new SKU, correct?

Then would I be correct in saying that come next month, I won't be hearing you calling Sony a liar as they claim that the 360 beating the PS3 in next month's NPD is due to stopping sales of the 80gb in preparation for the Dual Shock packed systems, correct? Constrained supply due to a new SKU, only true when MS does it?

The gaming GOD3661d ago

There is a lot of double standard going on around here

Silellak3661d ago

Double standards and hypocracy are the life-blood of internet message board debates, especially when it comes to console wars.

InYourMom3661d ago

Read his comment again. He did not say he believes there will be a new SKU. "Not convinced that MSFT had some secret 360! ready to launch and scrapped it."

I'm not for making excuses, the PS3 beat the 360 and who cares what the reasons are the result is a +1 for Sony this month.

DiabloRising3661d ago

Ah, InMyMom is right. I still disagree, as the 80gb PS3, which is $500, is outselling the $400 model almost everywhere. And the double standards on both sides remain. It's sad.

power of Green 3661d ago (Edited 3661d ago )

I Don't even read is sh*t I was just giving my opinion on why I don't think this was done on purpose *unless it has connection with GDC creating hype*. Other than that I think MSFT did not know the preffernce shift of the Elite was so great and would come so quikly.

People wan't the best something has to offer.

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Superiorrior3661d ago

I've heard enough of this crap, Microsoft under estimated Sony, and it nipped them in the ass.

Silellak3661d ago

Microsoft should just have their little elves sneak into every gaming store, shove a hard drive into the Arcade editions then scratch out "Arcade" and replace it with "Premium".

BAM, no more shortage.

...why does no one ever like my ideas? :(

DiabloRising3661d ago

I like your idea, I think the arcade model is a joke. Harddrives should be standard. Would definitely make cross platform development interesting.

power of Green 3661d ago

Sounds like a great Idea. I agree.

Still can't ignor the growing prefference of the ELITe some gamers will not settle.

Silellak3661d ago (Edited 3661d ago )

One of Microsoft's two giant mistakes with the 360 was not making a hard drive standard for all SKU's. They got it right for the original XBox (which I didn't own) and then screwed the pooch with the 360. Not sure what they were thinking there. It's not like hard drives are expensive. Knowing there is a hard drive to stream data to/from is incredibly benefical to game developers.

Having a standard HD in all models could've gone a long way towards remedying any potential DVD9 issues, too.

The other huge mistake, if you were wondering, rhymes with "Rushing a console to the market before properly stress-testing the design."

power of Green 3661d ago (Edited 3661d ago )

They'll lose I promise! if MSFT doesn't start marketing the console and its games hyping up things.

Yes they need to make a bigger HDD standard, 20 and even 40 gigs is too small. I'm already useing 40 gigs, useing the HDD for games will require something closer to 100 gigs and more.

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name3661d ago

The launch of the PS3 only had 200,000 units available. AT LAUNCH. And people still gave Sony their punishments for not selling as much as anticipated by all. However, at THIS point in each console's life cycle, "shortages" are a terrible excuse. Particularly the Xbox 360, since it's the oldest console of the bunch. It just seems suspicious that NOW they have shortages?

Nintendo isn't exactly trustworthy either. How many damn months can you have shortages? Just put more consoles out there if you know the demand is high. That is..if they want the demand to go down in the first place. In a way it does extend the lifespan of the Wii. If everyone who wanted a wii got it on christmas then it's likely for the 360 and PS3 to outsell it every month after that. And then all the pundits and analysts will be going on and on about the wii bubble bursting. It's a smart move, but really annoying for consumers.

I highly doubt that Sony would ever purpously have shortages. If you remember Jack Tretton's comments on the launch of the PS3, he said there were easily a million people ready to buy a PS3 at launch, but they could only supply 200,000. This supply issue also was the cause of the 60 GB PS3's EE in America. Hardware shortages give you nice damage control when your console isn't selling, but it doesn't work if there are STILL CONSOLES LEFT IN EVERY STORE.

Silellak3661d ago

Eh, I've heard quite a few people say the only 360's they can find right now are the Arcade SKU.

Really, if there's going to be a shortage during the year, it WOULD be right now - the Christmas season just ended, during which a lot of consoles are sold in a very short amount of time.

My theory? Microsoft thought the Arcade SKU would sell better over Christmas than it did, so they made too many of those (to compete with the Wii) when they should've been making mostly Premiums and Elites.

Even though the PS3 only had 200k units at launch, there was no shortage after that, and it still didn't sell terribly well. Because people quite simply didn't want to pay $500-600 for a system with few games out during a time when the winner of the HD-media format war was still very-much undecided.

That's why Sony got the heat - because in late December onwards, it was pretty easy to find a PS3, yet they still weren't selling.

hfaze3661d ago

"Even though the PS3 only had 200k units at launch, there was no shortage after that, and it still didn't sell terribly well. Because people quite simply didn't want to pay $500-600 for a system with few games out during a time when the winner of the HD-media format war was still very-much undecided."

I would say that nine million units worldwide in a little over a year even with the ridiculously high price and none of the heavy hitter exclusive titles out yet selling pretty good, all things considered...

We'll see how things play out this year with MGS4, and FF XIII (hopefully) due out. I doubt that the PS3 is going to run away from the competition this generation the way the PS2 did, but it will do just fine...

Archaeox3661d ago

Its wierd since PS3 outsold the box in 07, hell Im even surprised, with all the negative press and stuff

But realy you make a good point, why would a 2 year old console barely start having shortages

Eretik3661d ago

But anytime PS3 is everywhere and XBOX360 is everywhere.

+ Show (1) more replyLast reply 3661d ago
avacadosnorkel3661d ago

MS was going to put the HD-DVD in there.

The game changed overnight with Warner's move out of nowhere

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