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Microsoft plans to hold back shipments of Xbox 360

http://arstechnica.com/news.ars/post/20051101-5510.html

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We reported a while back that signs from retailers indicated that the Xbox 360 console will be in short supply on its 11/22 launch date, and now that information has been semi-confirmed by Microsoft. In addition to quoting various analysts on Microsoft's plans and reasons for limiting the launch date supply, this Reuters piece quotes Microsoft's CFO to the effect that the Xbox 360 won't face the same spike-then-slump phenomenon that plauged Sony's PS2 launch. The idea seems to be that would-be Xbox 360 buyers will be less unhappy with a steady but limited supply of consoles than a massive sell-off followed buy a drought.

I think there's some significant merit to this idea of doing a kind of rolling, first come, first serve thing where the consoles are steadily and predictably doled out to buyers than having a ton of lucky gamers take home units initially followed by a period where nobody can get their hands on one. That being said, Microsoft's has other motives for restricting the launch supply than what they're stating publicly. As it turns out, a complete launch date sell-out would generate a ton of positive media coverage for the new console.

Gizmodo reports that in Norway, the launch marketing campaign aims to build hype around the console by trumpeting its "SOLD OUT!" status to would-be buyers. In addition to limiting the per-store stock of consoles and having the retailers prepare to prominently note the unit's "sold out" status, Microsoft has allegedly asked Norwegian retailers to sign an agreement that they'll sell out of the consoles on the launch date.

Here in the states, Kotaku leaks the details of Target's launch preparations. From Kotaku's Target mole:

The average store can expect to have between 25 and 50 consoles the first day, but it mentions elsewhere that this number can be as low as 10. This is all determined by average store volume. I checked the computer and the consoles, games and peripherals are already in the system, so if you have a generous Target employee they can check to see exactly the amount of consoles they have in when they get the shipment.

On Nov. 22:

Every store will print up tickets representing the number of 360's and core systems they have in stock. They are also supposed to print a large sign informing customers that the store has sold out and keep it on hand.

Check out this post for more store-by-store launch date inventory details.

In other Xbox 360 news, there have been some new technical details presented the CEDEC convention in Japan. Among them are the fact that there's some differentiation in the three cores' designated functions. The Xbox 360 system software runs on cores 1 and 2, with a minimum of 5% of the processing time of each of these cores being reserved for system-related tasks like networking, I/O, etc. For console developers, core 0 will be the primary core for running game code, because they'll have that core all to themselves.

This information fits somewhat with an Inquirer article stating that game designers will be using two cores to fill the graphics pipeline. Putting the pieces together, it appears that the game's host thread will run on core 0 and the data generation threads will run on cores 1 and 2. (For more on these two terms, see Part I of my Xbox 360 tech article.)

Other details include the fact that 7GB of the double-layer game DVD media are available for storing game data, and that the HD will be used as a cache for game data.

I seriously find that to be such a stupid fucking tactic. They basicallly are going to do what sony did when the ps2 came out. Why must they do this if they know that thier system will make a good amount a money? Damn greddy microsoft! This will come back to bite them in the ass! You'll see!

Sounds like microsoft to me...

yes this will be interesting whats going to happen when it comes out, i hope to get one at least sometime soon

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Originally Posted by Slyboots

Not really stupid, it's Marketing 101 unfortunately. It's a classic ploy to sell a little bit of the new product in order to build up more frenzy over it. That way, once some of the customers has a taste of it, they're gonna want have their hands on it. I think Sony sold more PS2 using that tactic compared to Microsoft selling Xbox when they were first released.

I get the feeling that they're gonna raise the price of 360 next year.

How much more of a fucking frenzy can they make? They're releasing a next-gen console a year before any other, at least a year and a half before the "end" of the Xbox 1's cycle (my opinion), most of all - they're releasing the system here the same fucking week as Black Friday (day after Thanksgiving, notorious in the US for crazy X-Mas shopping), and of course releasing it just before Christmas. Everybody wants one, but only the hardcore fans who reserved it waay back during E3 will get their hands on it.

Blarg!

/retaillers rant

You saw how a bunch of little 12-14 years old boys and girls who love Brittany Spears?

Now imagine a bunch of overage unshaved male geek with a hairy leg for girls that love Xbox gaming?

That's how much frenzy man...

/gotta lay off the weed! :D:D:D:D:D...

scarcity is a powerful thing in the mind of the average consumer.

those on the fence about whether to buy a 360 might be tipped over the edge by the lonely 2 or 3 left on the shelf... he/she is convinced that they won't have another shot at buying it if they DON'T ACT IMMEDIATELY!!!

and don't underestimate the media coverage. those stories of overpriced ebay auctions, mad mothers running over eachother to get lil' johnny his christmas wish, people waiting at Wal-mart @ 1 AM for the next shipment to arrive... it's powerful marketing that doesn't cost microsoft a dime.

for myself, i really don't care that much... i'll be playing too much wifi mario-kart ds. :)

I was in a gaming store here in town who said they have so many pre-orders that they are sold out of 360's until January...

Very lame. If I have to wait until next year to get one, I may as well just wait and grab a PS3.

This has all happened over here last christmas coming to think about it.
Everyone wanted one, but they sold out everywhere, so loads of people bought other consoles instead.

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Originally Posted by Wingless

Everybody wants one, but only the hardcore fans who reserved it waay back during E3 will get their hands on it.

Blarg!

/retaillers rant

Best Buy , Walmart, and lots of other stores didn't take preorders.
You can get one at stores like these... granted, it will apparently be limited supply, but with persistence and good timing you can get one.

Me, I will be at Best Buy for the midnight release. Took the 22nd off.... should be playing Kameo allll day.

I'll be at wal-mart starting at midnight. the one in my college town here doesn't open 'til 7 AM. <b>I'll be there there at midnight.</b>

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Originally Posted by bookerV

your telling me

futureshop gave out xbox360 hats when you preordered........ that you have to wear in order to get a system