Originally posted by: Gibson486
Originally posted by: LikeLinus
Originally posted by: Gibson486
It's all about making everyone do impulse buys. If everyone sees it sold out minutes after launch, everyone goes into an impulse buy mode b/c theyhave to get it they will miss out. So, yes, MS did purposely limit the supply. Look at all thhe people who spent over 1k on ebay for it. They spent that much at launch b/c they belive that MS limited teh supply. So, on impulse, they did everythign they could to buy a 360, and if that meant spending three times the amount, then so be it. This is how aggressive marketing works....If MS had such a tight supply, why would they even bother giving one away every 10 minutes?
Seriously, think this through. What does MS have to gain by limiting supplies on an Item that does not have a varying price? So what if places are charging way over MSRP, Microsoft doesn't see a cent of that! If you took the time to read forums you would see that most Gamestops had over 130 people signed up to buy systems. With them only receiving 10-20, what does Microsoft have to gain by Ebayers charging out the a$$?
On top of that, if Microsoft limitsthe system availability, then they don't sell as many games and accessories. In the end, they take a loss on the amount of units SOLD and the amount of accessories and games SOLD.
How does Supply and Demand work in their FAVOR in this instances. This is the prime time of year to sell merchandise! Parents are willing to spend loads of money. Why on earth would you make it hard to get your product!
The real problem here is the fact that the product does not have a varying sales price. It has a set price from any of the retail/online stores they sell to. So the whole jacking up price does not help them at all. That makes supply and demand pointless.
They could sell 600,000 units at $399 (while the vendor gets all the extra overage)...or they could sell over a million at $399. Do the actual math and you'd see that it's stupid to do otherwise.
Anyways, if anyone has actual proof...let us know. Otherwise it's just more BS. Sounds like an article the Inquirer needs to post!
1. By limiting supply....you put people in panic mode. They see it, they will buy it. No questions, no thoughts. That is what MS wanted. Since they sell out, people think the console is worth the hype.
2. Free adverstisements. The news showed how everyone was in line for an xbox 360. Lots of peopel on this board forgot all about the 360 launch. By putting this much media on it, you essentialy made a ocmmercial by not spending a dime.
3. Supply and demand is not a retailer to customer relationship only. It's not just, supply low, price high. It works from the supply to demand too. That is, by controlling supply, you create the demand. It just so happens that this created a demand on the non retialer market now, which is why the price is high. Just to let you know, any retailer could chrge a higher price, but it would be corperate suicide to do so.
4. It is not how many they sell at launch, but how many the sell total that matters. The peopel who pre order do want it. Lots of the people who got the system at launch just bought it for the sole purpose to resell. MS knows this for a fact. That's why they had more systems to launch than systems to fullfil preorders.
5. Why do you think MS released this system atleast 6 months earlier than any other? It's not b/c they wanted to be the first, but b/c they need to be the first. April is the time frame they expect to fullfill all preorders and demand. By that time, Sony and Ninentdo will create more speculation (possibly even give the actual specs) for the release. However, by that time, MS has already sold what they needed to sell and more than half the people who bought it cannot return it. MS knows that this console will not be able to even stand up to Sony's hype or even Nintendo for that matter.
Facebook
Twitter