Some retailers are now being told not to accept any more pre-orders for Kinect due to a worldwide product shortage. Are Microsoft creating a stock shortage or is Kinect really that popular world wide?
Those monocle wearing ************* !
MS should have spent some of that 500 million on producing product
If MS spend 500 million on ads alone, and targets 3 mil on launch...isn't that underselling? as in...will Kinect even break even? + Move has almost reached 2.5 mil world wide in 30 days not counting japan, which probably means 3.5 mil by the time its released world wide in a space of 2 months +/- 2 weeks, yet didn't spend half that amount on advertisements (probably) I dno, just seems to me 3 mil sold vs 500 mil dollars spent is a bit...strange then again I'm not an accountant so I wouldn't know, i'm sure they know what they're doing (better than me anyway xD)
500 million in advertising is for the whole year not just launch. They want to sell more than $500 million for launch - 3 million worth of product.
You're absolutely right, visualb. It's a bit odd. I mean, 3 million sold at 150 dollars each is 450 million dollars. That means that in pure sales generation the thing won't even hit 500 million dollars if they sell 3 million. That 150 dollars from each sale doesn't all go to Microsoft, either. There's the take that the store gets, there's the distribution costs, there's the production costs, etc. to take into consideration. So they're not even getting that full 150 for each sale. So you're absolutely right. They aren't going to be profiting on it, they'll be taking a loss on it. But, do we know how long the time frame is on that 500 million dollar advertising campaign? Is it just for the same period that they're going to plan on selling 3 million? If so then, uh oh. But even still there's consolation for them. Spending that kind of money on a big ad campaign and selling 3 million in a month or two may generate a loss, but it will also generate public knowledge of the device and spread word of mouth, and while I know that current internet knowledge & word of mouth on the device from gaming nerds like us is not very positive, the word of mouth may be more positive from the soccer moms and children and end up playing with the device early in its life and that could mean the word of mouth in the public out there is good, and that can drive sales going forward. So that 500 million dollars probably also sets them up to get some free viral word of mouth man on the street type of marketing.
Ok I don't know why you guys are thinking that MS needs to sell "X" amount of Kinects on Launch to break even. The advertising is set to create product awareness. Kinect will be around for years and this is just 1 moment in product advertising and marketing. This $500 million spent now can last several years. Re-runs on Oprah and Ellen. Word of mouth. Product awareness. Additional add on sales. Also note that going by your rationals that MS "NEEDS" to sell "X" amount of Kinect on launch to compensate for the $500 million advertising budget (since for some reason you seem to think that as soon as Kinect launches suddenly the advertising for Kinect is removed and people will magically forget what they saw and heard) then MS needs to hit 3,333,333 Kinects sold. If MS sells 3 million on launch then that just leaves 333,333 units left to break even....Now remember we are not considering any additional software or hardware for that purchase...such as a new 360 in order for Kinect to work...games that will be ready on launch....ect. There is no doubt that MS is going to hit the break even point come launch or at most 6 months after launch. Anyone who doesn't think they will are just fooling themselves or are just angry fanboys upset that MS is creating another successful product that people will buy and devote more time into supporting MS than Sony or Nintendo.
you guys also have to consider manufacturing costs, R&D costs, and although MS are selling kinect for $150 they aren't getting all of that when they sell it and if callahan09 is righ,t 3 million sales wont even be close to breaking even
the materials that the product is made of not being available or maybe have went up on price due to the ever changing market - are you guys forgetting that the PS3 had a shortage when the slim was released because of that same issue. Also at people saying that MS will need to sell X amount of kinect to break even, your forgetting that the money spent on advertisement is not for one day but can be used for the entire year of 2011. Also consider that MS is expecting Kinect to move some consoles during xmas, which mean more money.
kinect is a loss leader. ms will make the money back selling software
... came here to ask about THIS, leaves satisfied.
When retailers started posting early "sold out" messages with regards to pre-orders for Kinect I thought it was far too early and the move was simply retailers trying not to get ahead of themselves without knowing how many Kinect consoles they would be receiving when they ship. Now we have confirmation that Microsoft is flat out telling retailers to yank the listing rather then putting the horse before the cart. If you don't know how many you can sell, you really shouldn't be selling them. Shortages of Kinect will be brutal come this holiday season. If it's not available, do you really think buyers are going to sit and go without over the holidays, or do you think it's more likely they'd switch to Move on the PS3 or a Wii?
It's funny the people at my local gamestop have said people have shown little to no interest in it... and they barely have any pre-orders. I'll admit this was before the Oprah show had made mention of kinect.
Wait a minute...why are they pulling preorders if they're so confident this would sell? They spent so much money on advertising and now they're not even confident with their product? ...What's going on?
If you did not, chances are you won't even read this comment. With that said, they are pulling pre-orders because demand is exceeding supply prior to release. It has nothing to do with the quality of the product!
I read the article. What amazes me is that Microsoft is creating all this hype and you people are falling for it. And that's not what the article said. "Of course we don’t know if this means that Microsoft isn’t releasing enough stock into the retail channels or if the demand is just simply greater than the supply which is exactly what every new product wants to happen." Now go ahead and slam disagrees like you guys always do when heaven forbid someone criticizes Kinect.
MS hyping their product makes perfect sense, since they are trying to sell you a product? I have yet to see a company not WANT to create hype for their product. If they do, I doubt they will exist for too long. Falling for it is such a ridiculous term. Did you fall for it when you purchased your PS3? Everybody places value on a product differently, and if you are in the US, you have 30-days to return the product in most cases if it isn't up to snuff. With that said, it is no difference than you going around hating on MS/Kinect except MS is making money and you likely got no stake in it other than perhaps your pride and feelings!
I don't even know anyone buying and the game my bro works at has not sold a single one.
funny thing is I only know one person interested in buying Kinect.... So either its in very limited supply (PS3 launch limited) or this is the hype train rolling along. In a few weeks we'll know the truth
When I went into pre-order Fable 3 I encountered one guy who was curious about Kinect. Now whether or not he was serious is another matter. It certainly seemed like he was ready for it to land, but I just don't know if he was being sarcastic with the clerks. Every time I've been in that is the only time I have ever encountered anyone talking about Kinect.
casuals are buying it folks, people that are not like we. I would be surprised if it was otherwise to be honest. I guess thats what MS wanted
Can't see casuals spending $300.
Casuals were spending $249.00 USD on a Wii when it first launched. Not to mention if you got a second Wiimote you pretty much just spent the same amount of money as a 360/Kinect Bundle.
Is Microsoft even marketing that a 360 is required for this? From all the ads I've seen, if you don't follow gaming you "could" think that kinect is a stand alone device.
"Casuals were spending $249.00 USD on a Wii when it first launched. Not to mention if you got a second Wiimote you pretty much just spent the same amount of money as a 360/Kinect Bundle." If people are getting a Kinect are casual, it is save to assume they do not have a console. When the Wii came out, it was the cheapest available. When Kinect comes out, the Wii is still the cheapest. If casuals don't have a preference, why would they pick up a Kinect over a Wii when it costs double?
yea it cant be denied kinect will sell millions to bad it wont be for gamers and more for kids and will be full of gliches
Last time I checked, kids were gamers too.
MS should have no problem reaching their 3ml target then.
500M in advertising and constant threats of it being "sold out"... yeah, I wouldn't be suprised. I mean Apple sold 1M iPads at launch, I didn't know there were 1M retards, but apparently there are.
Bubbles for you.
Actually, given the appearance on Oprah, if it was marketing before, it's probably really a shortage now. Appears you and MS understimated the power of an outing on Oprah!
I really want to see how this does on release. I mean MOVE sold pretty well (better than i expected) but was classed as a failure by SONY. So im wondering what microsoft's "success" marker is.
I'm pretty sure Sony said they were "happy" about the sales of Move. It was the the "other side of the fence" who kept on saying it was a failure...
ClownBelt is pretty sure. Okay, how about a link with an actual Sony statement then?
That's an easy request, ct03 (maybe this would be a good time for lmgtfy, but I'll just post the relevant results instead): http://www.psxextreme.com/p... http://www.eurogamer.net/ar... http://weblogs.variety.com/...
I don't know what lmgtfy means, but thanks for the sources. Posters on N4G claim all kinds of random crap which they usually don't back up because they can't. Edit: Alright, I just googled what lmgtfy means. Quite ironic, but then again why would I waste my time looking for sources when that's the job of whoever made a claim.
im sure will sell out
My local Hmv have sold out they had a massive 6 to sell
They're only doing this to try and be the next Buzz Lightyear toy scenario this xmas. If they tell people they can't have it they only want it more. Clever, but very shrewd
Kinect will be huge - no doubt. I can't wait for certain titles. The casual stuff for me and my girlfriend and the core stuff in 2011 look very very good. Especially Horror-games will be a blast.
Here we go again, since is seems PS3 fanboys is aloud to troll in freedom these days might aswell jump in. Move and Kinect are failures and only retarded meth monkeys would buy em.
I'm a retarded meth monkey. Anyone else?
so...I'm in *goes out to buy some meth* Oh I don't have any motion controls btw...but I do love me some meth monkeys! =P
Phantom disagrees to a correction of a misspelling? I hope you don't think it was supposed to be spelled the other way?
it looks cool but not a buy for me,because 1.the price,not gonna have enoough money cause of the q4 releases. 2.the lack of games,dont get me wrong there are lots of games but just not what i would play. 3.not sure if i want to stand while gaming,which i normally do after work or after exercising and after writing. 4.not a fan of motion gaming,i own all the consoles,havent touched the wii,my bro plays it,didnt buy move 5.i hate oprah.
This is odd business. Surely they should WANT pre-orders, and then satisify those orders. It's up to the companies (such as Amazon) to then distribute those units fairly.
This could either be two things. Number 1: Their truly is a shortage of kinect whether that is due to not enough manufactured or extreme high demand. Or Number 2: Microsoft are deliberately sending out small quantities of kinect and thus creating the illusion that it is a very popular product and so word of mouth spreads. From what I am aware of, this is not unheard of as some companies will purposefully do this, because when a consumer sees sold out, they must be thinking what makes it so fantastically good.
They said they were producing 2 mln Kinects per month. They probably stopped the second, maybe the third one. If Kinect fails or doesn't really take off it could be another HD-DVD debacle, pure madness to produce so many expensive peripherals without the absolute certainty of selling them out.
At my GameStop, we have 8 pre-orders. Call your local GameStop and ask. I want actual results.
I went to our GS and cancelled my pre order for FO and they were still taking pre-orders for Kinect this week. Also if any is in need...I just ordered something on Amazon and they are still taking pre-orders
man yall need to listen to some PAC "so many hatas in da world....dont hate on what yall cant play glad i dont have to wait for preoders
trolls tears are delicious
Currently MS and Sony have just casual games for Move and Kinnect and therefor i am not interested in either of them since i feel i have that in the wii but when the hardcore games comes with the support for thoose devices then i might buy either one or both.
^ I support this comment 100%... Show me the games and I will open my wallet. Until than, totally not interested
So MS says supplies are limited and they're accused of creating a shortage, while Sony claims Move will be in short supply but nobody thinks twice? BTW "Are Microsoft creating a stock shortage or is Kinect really that popular world wide?" Isn't even in the article.
i bet if they decreased the price by 1 dollar itll sell more
I just want to know what is so crazy about shortages and why are the PS3 fanboys so concerned? Every console launch comes with massive hardware shortages lasting sometimes years (Wii). Why is this different, especially when it probably takes more than 500 millions to advertise a new console.
When Microsoft claims to possibly have a shortage of something everyone here jumps on it and says it's a lie, yet when Sony says they have or had a shortage everyone thinks it's because their products are sooooooo in demand? It's ridicules. Cant wait to get "clear" results of Units sold for Kinect, it's going to be big. If they sell 2 million on launch day, we'll know 2 million unique people bought one. Unlike the Move, which they are counting the PS Eye, Nunchuk and each wand as a "unit sold" lol
Weren't you just in the Move article doing the same thing you're complaining about in this article?! Quote: "Sony is just creating hype and saying "Shortage" There isn't a shortage, it's all just a smokescreen. I can go into any store and buy Move. Nice ploy by Sony to try and use this tactic again...." Hypocrisy at it's best.
that the shortages could be M$ not making enough or people are actually buying it.
Theyre trying to create the same hype that the Wii had when it first came out. Keep it in low supply, that way people will talk about it yet wont be able to buy one because their "sold out". After seeing people play it at the MS Store in Littleton, CO and now seeing these new adds coming out that show no gameplay at all, I can see what their up too. The thing lags and its extremely noticeable. And I wouldnt doubt if Sony is trying to do the same.
The tech in terms of gaming control is weak. Everyone knows it can not compare with Move in terms of accuracy and speed. So if the 500M is used in advertising, do you really think they will be able to make it up in terms of sales? Their own target of around 3-4 million will leave Kinect in the red. So it is for the life of Kinect that this advertising is. Problem is - with the budget titles that they try to sell at premium prices, it surely is going to sell few games per publisher / title. I mean - are you planning on getting all 110 Sports titles and all 50 Dance titles? And with the real play videos it is kind of laughable. It is really poor titles - nothing like a Gears of War or Halo type sales that can be expected from any of these titles. It just looks more and more like a monumental flop. If they ask to pull pre-orders, then why the marketing campaign? It just seems unreal.
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