There’s No Such Thing as a Console Shortage

CCC Says: "Let’s say you own the last Oreo cookie on earth. I’m not talking about the multi-flavored, double stuffed, Christmas/Easter/Arbor Day edition either. I’m talkin’ a regular old Oreo. Maybe it’s not even that fresh. Hell, for all I know you could have found it under the sofa and it’s got little bits of hair and gunk on it. Frankly, it doesn’t really matter. The point is, you’ve just become a multi-millionaire simply because you own the last one. So, what does a stale snack food have to do with the world of gaming you might ask?

More than you might think."

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a_squirrel1701d ago

Console shortage simply means that there's less supply than there is demand. There's never 0 consoles in stock worldwide, but there can be in 75% of the stores.

mikeslemonade1701d ago

Ummmm so the the writer thinks it's just so easy to make 2.4 million PS4s?? PS4 isn't just another iPhone or iPad. The rate it's selling is being underrated in this piece. Game and console releases sell at a pace of a new summer blockbuster movie, but it's not just for one day. So just imagine in each local theater there's a packed room that wants the PS4.

GarrusVakarian1700d ago (Edited 1700d ago )

Exactly. It's like people think there are just empty warehouses everywhere lol. When demand exceeds supply (and demand for the PS4 is HIGH!) you have "shortages".

Bubbamilk1700d ago

Demand is high due to empty shelves. Can't believe people don't see it. An empty case looks pleasing in some cases. A couple weeks ago a target employee admitted to having a good amount of ps4s in the back and that they weren't able to put them on the floor until a certain date which was secret by the way.

And when I finally found one(by waiting in the snow for 3 hour in front of best buy) the manager admitted to having them in the back since before Black Friday. The same store I had went to and been denied every day for over a week.

And of course the line did indeed lead me to my ps4. But it also lead to multiple salesman with a big display. Up sell up sell up sell. It was all a well thought out plan. And until I walked out that door they were trying to get me for something else. It's truth

iamnsuperman1700d ago

"An empty case looks pleasing in some cases"

It also means a lost potential sale. Don't be stupid about retails keeping stock held back. Firstly demand generally drops over time (so holding stuff back doesn't help the retail nor the manufacturer). So a product being constantly out of stock can be quite damaging especially if it's competitior is in stock

iamnsuperman1700d ago (Edited 1700d ago )

This article is beyond stupid. It ignores the basic principles of supply and demand. The demand for products generally declines over time (without deals/price cuts or any more monetary input being used). This is why we get price cuts to increase demand. A company would be down right stupid to hold units back and they would be stupid not to produce a realistic sale figure. Because there is a competitor on the seen and if your system is sold out but theirs isn't there is a big chance you will lose a sale to them (especially when we are dealing with systems which majority of games are the same game)

There is no such thing as deliberately restricting supply. It doesn't work. Nor does over manufacturing (which Nintendo found out with the game cube). These companies make a guess how many they think they could sell/ship. They then produce that number (this is method also allows R&D to go on a bit longer). Also no company can afford to manufacter a product for 6+ months then sell it as they need to be making money back or it is a major financial risk (which is why development for these devices start 2-3 months before). Combine that knowledge with unpredictable demand and you get shortages