November 22nd is here at last and most of the Xbox 360s shipped to the US have been put on sale at midnight.
As it turns out, the rumors of a Xbox 360 (360) shortage were true. We all thought it was going to be a problem come launch, we just wanted to remain oblivious to the situation.
Crunch time hit and Microsoft cut its original shipments by half, or worse. The store I purchased my 360 from was originally receiving 20 units. They now have only five to sell. Many stores, including Electronics Boutique, GameStop, Sam Goody, and the like have an unusually height number of pre-orders and not nearly enough 360s to go around. Someone screwed up and who are you going to blame? Microsoft.
I am sure Microsoft thought this through. They figured it was better to provide all three major territories with smaller quantities of 360s then to send all of the units to one territory for a massive launch. They will take less heat from all territories instead of a lot of heat from one or two territories. That is the official line at least.
This is a smart move – here is why. Microsoft has turned all the early adopters here in the US, Europe, and Japan into viral marketers. It feels a little dirty, yes, but that is what it is. Knowing that they have the PlayStation 3 beat to market, Microsoft does not have to push a huge number of units in any one area.
Early adapters will tell their friends, and readers, about how great the 360 is. When that next big shipment arrives there will be even more people chomping at the bit to buy one.
This is the plan that Microsoft is hoping to pull off. Especially in Japan where they have had a hard time selling the Xbox. Keep in mind that sales of Game Boy Advance units tops Xbox sales week in and week out in Japan.
Will their plan work? The only thing that happens in the short term is irritating loyal customers while hoping for the big pay off later. I gather this is an acceptable casualty of war for Microsoft.
Article comments
1 - Josh. I'm 17.
Screens and electronics are taking over the world, and it's scary.
Take me for example. Here I am at 3:30 in the afternoon sitting at my computer posting a comment onto some internet site that has a fully detailed description on a game console that has just come out several hours ago.
2 - Ken Edwards
That is because I got mine early. But don't tell anyone.
3 - Da Man
i was expectin a 360 day it came out but was knocked to the second shippin list cause of the shortage
4 - JIm Carwash
Oh man microsofts gay... i just wanna sit in my room for a year and play my xbox 360, but nO!!!
5 - Rob
I pretty much agree. The world-wide launch was a gamble, but a risk MS was willing to take. IF, and I repeat, IF, they can get a decent number of units in the stores before christmas, I think these first few days will be quickly forgotten. If not, then Microsoft's gamble might not pay off.
6 - Zach, 13 years
I hope they ship more 360's. I've been looking forward to the new xbox for at least 2 years. I had the chance to pre-order one last summer. Gamestop said I would be the first on list. My mom told me not to and now I feel bad that i didn't.
7 - Punkman
Microsoft claims they are shipping more units out weekly but we will see how it acutally plays out. i have a feeling if they dont get more units out fast they are going to have a lot of people pissed off at them. I know im pissed. went to a walmart and they only had core systems for release. I dont want to sit in line to have to spend an extra $200 to upgrade. Microsoft is really screwin up on this launch. Sure media looks good now but if no one is getting them in 2 weeks its gonna be all negative feedback.
8 - Adam
My brother almost got jumped getting TWO 360's on the 22nd... One for him and one for me.. :-)
Did I mention that he's my favorite brother? :-)
9 - OwnPerfection
I must say that Im really disappointed about the shortage deal.I myself have also been waiting for a couple years now for the release and for what, nothing!Sold out!Well maybe MS should have postponed the release until they had enough for everyone.What really urkes me is the whole selling them online thing.I want so badly just to have one and buttheads bought them just to sell to try to make a quick buck,get a job losers.I might just end up waiting for the ps3 if I have to wait!
10 - s
Think ill wait for the ps3 instead now
11 - unknown
wats so good about the ps3
12 - OwnPerfection
Supposbly the new cell technology shall be superior to the graphics of the 360.It will be able to produce real time graphics that will be amazing.Although I will still miss Halo so Im still undecided but still angry at MS!
13 - satan corpsepuller
I had my 360 ordered 3 months in advance only to be told on launch day that i would have to wait until April 2006 to get my preorder!!! I told the little pisshead behind the counter that I would kill him if he didn't give me my money back and finally after security came and several racist comments were shouted back and forth they refunded me and I walked away. Fuck the 360 Fuck microsoft. I used my 800.00 refund to buy two nice real shotguns and a cardboard stand-up of bill gates.
14 - Matt Paprocki
Yes, because blaming the kid behind the counter who has no control over the situation is the right course of action.
15 - RogerMDillon
That's why he is satan. Is April '06 the actual next available date or will they be trickling out?
16 - Ken Edwards
Matt got his somewhere else even though he had a pre order at EB Games. I have seen them at Best Buy. They are not in quantity anywhere that I know of. But they can be found. You do have to hunt.
The latest rumor is that they cost MS $715 a unit, and that is why production has been so low. I would not doubt that figure though.