Are Microsoft and Sony Fibbing About Shortages?

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Andy Chalk

One Flag, One Fleet, One Cat
Nov 12, 2002
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Are Microsoft and Sony Fibbing About Shortages?


The word on the street is that both Kinect [http://www.amazon.com/PlayStation-Move-Starter-Bundle-3/dp/B002I0J4NE/ref=sr_1_1?ie=UTF8&qid=1291069206&sr=8-1] could be in short supply over the holiday season, but analyst Michael Pachter thinks that Sony and Microsoft might just be playing games in order to crank up demand.

Remember how tough it's been over the years to come up with a Wii during the holidays? And how it seemed like, no matter what Nintendo did to maximize its production capabilities, it could just never keep up with the insane demand? Industry analyst Michael Pachter is pretty sure Sony and Microsoft do, and he thinks that they might be trying to use a similar tactic to generate interest in the Move and Kinect motion controllers.

"I think both companies would very much like for consumers to believe that their devices are highly sought after and difficult to obtain. That usually works to spur demand," he told IncGamers [http://www.incgamers.com/News/26136/move-and-kinect-shortages-are-manufactured-says-analyst].

But the numbers just don't add up. "Sony shipped 2.5 million units in the U.S. and Europe, and their sales are nowhere near that level," he continued, "so I'm not sure how they can reconcile the fact that units shipped far exceed units sold."

He said Microsoft appears to be doing a better job of managing Kinect inventories than Sony is with Move, but that both companies appear to be following the same basic strategy: putting out truckloads of console bundles while keeping a tight rein on standalone units. The ready availability of bundles ensures that the price of the standalone controllers won't break the $300 mark on eBay, he added.

Even discounting the apparently out-of-balance numbers Pachter quoted for the Move, my inherent distrust of huge corporations leads me to suspect that he's probably onto something. Not that this transgression is as serious as, say, lying about dumping toxic sludge into the water supply for 20 or 30 years; after all, Nintendo has very clearly demonstrated that sometimes, the best way to sell your stuff is to not have quite enough of it to go around. Can we really blame Sony and Microsoft for wanting a piece of that action and maybe cooking the books a bit to get it?


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Gxas

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Sep 4, 2008
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Lie to me all you want, I won't buy into shitty gimmicks. Motion controls and 3D are worthless, in my mind.
 

zombie711

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Aug 17, 2009
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I didn't want a wii because other people wanted it. I wanted one for it's awsome games and virtual console
 

RatRace123

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Dec 1, 2009
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Oh my god, a company is lying in order to increase its profit?
Color me shocked!

I wouldn't doubt it, if there's anything that can increase sales its the threat of your children bitching you out on Christmas, because you didn't get the next big thing.
 

mad825

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Mar 28, 2010
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Lying? no, I do not think they are. Bending the truth? yes.

This article has brought-up some shameful truths about some escapists, some people cannot tell the difference between a gimmick and a fad.
 

Kenjitsuka

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Sep 10, 2009
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I'm sure if the competitor is almost outselling the other one will magically pull out more units to keep in the race. After all, what is better than a big text stating: "This seasons #1 selling useles gimmick! (You must own one to be cool!)".
 

Credge

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Apr 12, 2008
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Gxas said:
Lie to me all you want, I won't buy into shitty gimmicks. Motion controls and 3D are worthless, in my mind.
I thought the same thing until I played the fighting game in Sports Champions for the PS3 and then NBA 2K11 in 3D.

Now, after playing Tumble, I welcome both with open arms.
 

Dogstile

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Jan 17, 2009
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Another victory for captain obvious. These aren't exactly truthful companys here mr pachter
 

Atmos Duality

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Mar 3, 2010
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Ephraim J. Witchwood said:
It's a legitimate business practice. Have something people kind of want, and control the availability to the point where demand rises.
That's how a cartel operates; they decrease supply to increase demand, rather than saturate the market (which is what Sony and Microsoft WOULD do if they weren't vying for the Christmas market rush. Remember: They make far more profit in game royalties than system sales), and it is NOT legitimate. It's dirty. Legal, but dirty.

Even if we were to boil that down to ethics, they're still flat-out lying, which obviously isn't ethical.

While this might make sense to a firm who doesn't give a shit about ethics (most corporations don't. It pays to play as dirty as you can without getting into trouble with the law), that doesn't make it right/legitimate.
 

mjc0961

YOU'RE a pie chart.
Nov 30, 2009
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I still can't believe people think they do this on purpose. I mean, yeah. If I was Microsoft, Sony, or Nintendo, I would do my best to keep people buying my products from me. I would make sure that if people want to buy my product, they wouldn't be able to go to the store and just pick one up, and instead they can go buy one on eBay from someone else who is selling it for way more than its worth, and that someone can get away with it because I let them by purposely not making and shipping enough to stores. And I would do this because just like Microsoft, Sony, and Nintendo, I hate making money.

 

Outright Villainy

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Jan 19, 2010
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I imagine the mircorsoft and sony meetings went like this:
"Gentlemen, copy everything the Wii did and we'll be just as successful.
Everything."