Microsoft acts on Xbox shortages

By Derek Sooman on January 5, 2006, 5:07 PM
Microsoft has attracted sharp criticism due to Xbox 360 shortages that were the result of the ambitious global launch of the console. Now the company has claimed that it is doing something to deal with the situation, purporting to be working hard to deliver consoles as quickly as they can make them, and getting a third company involved in manufacturing. Celestica will join Microsoft's existing manufacturing partners Flextronics and Wistron to help meet high demand for the console. Furthermore, it has emerged that Microsoft will indeed be releasing a high definition HD DVD external drive for the 360 later this year. Whether there are plans for an integrated HD DVD Xbox 360 remains unclear. Some 50 titles for the console should be available for June.




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PanicX said:
[url=http://games.slashdot.org/article.pl?sid=05/11/03/002624
&from=rss]Microsoft Plans Deliberate Xbox Shortage[/url]
swker98 said:
finally after 2 monhts ...
nathanskywalker said:
looked good up to this point...[url]http://www.forbes.com/2006/01/05/gates-ballmer-
icrosoft-cx_cn_0105autofacescan03.html[/url]A few pros and cons[url]http://www.my-esm.com/showArticle.jhtml?articleID=1
5001687[/url]ta-da[url]http://www.businessweek.com/innovat
/content/aug2005/id20050816_595546.htm[/url]
iluvnug said:
It is actually surprising that microsoft did not release more XBOX 360 consoles considering the obvious high demand that needs to be met. I know quite a few people who could not get their hands on one since release. Personally, I did not try to get one because I wanted to wait til they worked out any bugs that would be discovered on the first batch of 360's.
MonkeyMan said:
You know, the PS3 is going to be better than the XBOX 360. The games will be much more satisfying, and they have more bigger titles than 360. Both consoles are great, but its up to you which selection to make. Personally, I'm awaiting the PS3, because the titles that Sony has lined up, is going to be absolutely breathtaking. You have to think, Sony has been in the console business longer than Microsoft, so their developers are more experienced with gaming. Anyway, I still love you Microsoft, and I look forward to your future software releases.
exscind said:
[b]Originally posted by iluvnug:[/b][quote]It is actually surprising that microsoft did not release more XBOX 360 consoles considering the obvious high demand that needs to be met. I know quite a few people who could not get their hands on one since release. Personally, I did not try to get one because I wanted to wait til they worked out any bugs that would be discovered on the first batch of 360's.[/quote]It's fairly common to not over-release so the headlines of "XXX solds out first xx hours!" can be legally printed. Microsoft knows the playing field and how to play the game, so they know how to utilize the media and hype to their advantage. [b]Originally posted by MonkeyMan:[/b][quote]You know, the PS3 is going to be better than the XBOX 360. The games will be much more satisfying, and they have more bigger titles than 360. Both consoles are great, but its up to you which selection to make. Personally, I'm awaiting the PS3, because the titles that Sony has lined up, is going to be absolutely breathtaking. You have to think, Sony has been in the console business longer than Microsoft, so their developers are more experienced with gaming. Anyway, I still love you Microsoft, and I look forward to your future software releases.[/quote]I think that's a fair assessment. XBOX 360 (the console) was made to LOSE money; meaning, what you pay is actually less than production. Why would Microsoft be so generous? They're banking on the games sold to get their money back. So to me, I would think XBOX 360 was premature in release and was not made as good as it could have been had Microsoft been willing to wait (they wanted to bring them out around Thanksgiving/Christmas season because consumer shopping = maximum).That being said, the wait for PS3 will be worth it I believe. While XBOX 360 released it early, I don't think it'll come close to PS3. For many people, me included, I'll buy at most 1 console: XBOX 360 or PS3. Microsoft was counting on the fact that many will buy XBOX 360 first and not buy PS3, thus beating the competition. I just hope PS3 won't disappoint me now :)
PUTALE said:
Hopefully MS will not be loosing it's quality (like it has that great of quality). I think buying Xbox 360 is a dumb move right now because it's expensive and it's buggy. I think it's better to wait till the bugs are more or less fixed (maybe in like 2nd or 3rd version) and the price will drop. Personally, I don't forsee buying xbox as I am playing less and less games and more on computer games if I do play any.
Rage_3K_Moiz said:
The Xbox 360 will be a cheaper and more powerful alternative to the PS3 when the latter is launched, just like the PS2 was to the original Xbox (although it was not more powerful).
i82much said:
Good. Right now at best buy, employees aren't even allowed to buy the console when they're not working, because of the supply
asphix said:
All opinions and preferences aside, you cant argue one system over the other yet. ESPECIALLY this round. And when it comes down to it.. whats the point anyway? Who cares?! Buy what appeals to you.. Both systems have hard hitting lineups. Ps3 has Metal Gear solid 4, Final fantasy 12, the new Unreal Tournament among a few others. x360 has Gears of war, Lost Odyssey, Blue Dragon, Halo 3 among others. Revolution even has some great games lined up that will excite gamers around the world.Microsofts online implementation and increased Eastern Developer support will push the console to be more of an influence than ever before. Give it a year or two and you'll see. Both x360 and ps3 will look relatively the same, and until we see in game footage and not scripted demos I will continue to stress that you cant comment on ps3's graphics as of yet with any legitimate backing.Back on topic, I think the release of an HD-DVD expansion is great. I expect it to cost the same as the hard drive expansion ($100.00) and will be a nice way for users to fully enter the HD movie era. I wouldnt be surprised if when production costs drop they release a version with the drive integrated along with integrated wifi and the like.And I'm also not much of a conspiracy theorist. I think Microsoft has been doing everything they can to get consoles to whoever they can. Have they messed up? Yep.. but no one is perfect. Its great to see they're trying to do something about it!
mtyson8 said:
They are only hurting themselves. I dont know why the wouldnt keep up with the Demand right away. Unless, the have a plan to make em scarce, which in turn makes people want them more, then a boom of them and they sell even more.Also, the HD DVD internal drive on future models is essential.
luismigilbert said:
maybe microsoft wasn´t expecting that kind of response from market...i agree with asphix "Buy what appeals to you.."
mentaljedi said:
ABout time! ANyway, i agree that the PS3 is going to be champion but i don't understand y so many people don't like the revolution. Okay, the controller is wierd but because its so different, it really needs to be judged hands on. The xbox and ps3 are smilar to their predecessors so you know what to expect but the revolution needs another take so you really shouldn't count it out. I am split between Revolution and PS3 maily because Nintendo have got my attention and the whole Blue-ray fiasco going on. Anyway, i'm going to wait until the price drops down enough and i'm also going to wait until i can get hands on. THEN i will decide. Patience my friends, patience. Still... IF i can get my hands on one to try lol. Hopefull we won't have shortages of the other consoles too...
flavin said:
[b]Originally posted by exscind:[/b]I think that's a fair assessment. XBOX 360 (the console) was made to LOSE money; meaning, what you pay is actually less than production. Why would Microsoft be so generous? They're banking on the games sold to get their money back. So to me, I would think XBOX 360 was premature in release and was not made as good as it could have been had Microsoft been willing to wait (they wanted to bring them out around Thanksgiving/Christmas season because consumer shopping = maximum).That being said, the wait for PS3 will be worth it I believe. While XBOX 360 released it early, I don't think it'll come close to PS3. For many people, me included, I'll buy at most 1 console: XBOX 360 or PS3. Microsoft was counting on the fact that many will buy XBOX 360 first and not buy PS3, thus beating the competition. I just hope PS3 won't disappoint me now :)[/quote]u know that the ps2, xbox were also sold at less than what it cost to make them. im preety sure all consoles r this way. and the ps3 will be the same way. the companys lose TONS and TONS of money in the first years of a new console but they only do this because they plan to make the money back and more with the games that r sold.ps. i hope the ps3 doesnt disapoint me either.
Race said:
Regardless of which console will be best, I still don't see the business sense in drastically limiting supplies. (Best Buy got approx. 40 units per store??!!.....seems ridiculous) From the looks of things, MS could have sold another million, or more units before the holidays, thereby getting customers committed to a console, and therefore, games that run on it. I've had a lot of people tell me that they're so upset about the whole 'shortage' thing, and since they couldn't, and still can't, buy the 360, they're going to wait for a different, and possibly better system.Personally, I prefer PC games.
xerowingsx5k said:
[b]Originally posted by Race:[/b][quote]Regardless of which console will be best, I still don't see the business sense in drastically limiting supplies. (Best Buy got approx. 40 units per store??!!.....seems ridiculous) From the looks of things, MS could have sold another million, or more units before the holidays, thereby getting customers committed to a console, and therefore, games that run on it. I've had a lot of people tell me that they're so upset about the whole 'shortage' thing, and since they couldn't, and still can't, buy the 360, they're going to wait for a different, and possibly better system.Personally, I prefer PC games.[/quote]From what I've learned in economics, lowering the supply of the 360 will keep the prices high and from what I've heard, Microsoft is still losing money. Possibly a way of minimizing loss so they will have a shorter loss gap to cover when releasing games. Or this could be how Microsoft sells 360s to people to "bug test" for them.
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