Demand for XBOX 360 will outweigh Controlled Supply

By | November 3, 2005

Microsoft’s Xbox 360 is scheduled for it’s grand unveiling on the 22nd of November, and some of you won’t get one.

What began as a rumor has escalated now to becoming a confirmed fact. Microsoft will be limiting the supply of Xbox 360 systems that will be available for opening day. The official line on this is that Microsoft feels that it is better to have a controlled release on the Xbox 360’s instead of selling everything that they have in the first week and the consumer not being able to find one for the next several months.

While there is some truth to this, the guys over at arstechnica.com have a little bit more insight into the problem.

a complete launch date sell-out would generate a ton of positive media coverage for the new console.

And really, what does Microsoft love? Positive press. Of course that could all backfire on them as it is possible that the press(i.e. bloggers) will see it as a failing rather than a positive. I want my Xbox, and I want it now could become the prevailent thought. Microsoft could lose a lot of face as many gamers wait impatiently for the next supply release of the Xbox 360.

Still, financially, it’s a smart move on Microsoft’s part. The longer the Xbox 360’s are in high demand the longer they can continue to charge that rediculously high retail price for them. Remember that when the original Xbox came out, they sold them for a loss to compete with the already steady PS2. This time around, there isn’t going to be another system on the market that can compete on the Xbox 360’s level. At least until the PS3 or Revolution come out.

[tags]Xbox 360, Microsoft, PS3, Revolution, Nintendo, Xbox[/tags]