AfterDawn: News

Xbox 360 shortages causing lagging sales?

After the latest figures from the NPD Group showed that the Xbox 360 was once again lagging substantially behind its competitors in US sales, Microsoft has cited a "shortage in console availability" as the main reason for the lagging sales.

The 360 sold 254,600 units for the month while the Nintendo Wii sold 351,800 units and the Sony PlayStation 3 sold 280,900 units. The console equally trailed its competitors for January.



"Our retailers are telling us that Xbox 360 is selling as fast as they can restock, but due to this high demand, Xbox 360 is experiencing temporary shortages," Microsoft said in an e-mail. "We are working as quickly as we can to replenish inventory."

The email also threw around other stats saying that the 360 was leading in competitors in other areas of the market. According to NPD those stats are true, with "$159 million USD being spent on Xbox 360 games in January, compared to $131 million on Wii games and $80 million for PS3 games."


Written by: Andre Yoskowitz @ 16 Mar 2008 16:23

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• 31 comments

• Rudeboi

  Well thats a huge lie.
  I hit up all the malls ALL the time and I ALWAYS see 360's for sale, they are always in stock.
  It might be YMMV, but in the GTA, it's easy to find.

  16.3.2008 16:38 #1

• limelight

  I work in retail, and yes it is true. We have been sold out of the arcade and pro models for quite some time, while we still have a generous amount of the elite models in stock.

  16.3.2008 17:08 #2

• emugamer

  Well, there you go. The Elite is left on the shelves and the cheaper versions are selling out. If that's not an indication as to what the customer wants, I don't know what is. They want HD for a price similar to the Wii. They need to re-think the price of the Elite. They have the ability to catch up and to surpass Sony again.

  16.3.2008 17:35 #3

• NexGen76

  Just Microsoft crying sour grapes now that Sony has been outselling 360 for the last three months.How can there be a shortage three years after a console launch? I know there was units out there because i was going to get a elite back in Jan but change my mind because i just can't over look the RROD issue.But a Elite would go nice with my setup to bad Microsoft.
  
  
  Plus how would there been a shortage when BB & CC had specials on 360 in there ads at lease once a month after the holidays.This didn't come up to after the last NPD numbers was released??????

  16.3.2008 17:39 #4

• wheelman7

  If they are selling out of all their systems and still trailing is sales that means that if the demand wasn't so high they would be trailing by far less by now.
  
  This is also a lie, I work at Best Buy in densely populated suburbia and we have had about 80 or so Xbox's in top-stock for well at least 3 weeks now. It's the PS3's we have far fewer of.

  16.3.2008 19:35 #5

• ZippyDSM

  maybe they mean working 360s...........
  hehehehehehee

  16.3.2008 20:05 #6

• tripplite

  Quote:Microsoft has cited a "shortage in console availability"
  nah just a way to keep face.... really they did sell enough xboxs....they sold a whole lot of xbox360's and made some coin....the next gen? ho they'll be dirty little pigs
  
  
  

  
  

  16.3.2008 20:10 #7

• Sazy

  I think this report is spot on.
  
  For the entire month of February I went to both GameStops in my town everyday and they NEVER had 360's. New or Used.
  
  I got fed up and went to eBay.
  
  I think supply is affecting sales majorly.

  16.3.2008 20:12 #8

• babykeeg

  Originally posted by ZippyDSM: maybe they mean working 360s...........
  hehehehehehee
  now thats funny

  16.3.2008 20:14 #9

• DDR4life

  NextGen76
  "How can there be a shortage three years after a console launch?"
  
  The fact that a system has been out on the market for three years does not mean that it cannot experience a shortage. I have a nephew who works in retail, and he has kept me informed that for the past 4.5 months they have consistently sold out Xbox 360s and Wiis, yet the back storeroom has plenty of PS3s and they are having a hard time moving them.
  
  Is it really that difficult to believe that Microsoft may actually be telling the truth?

  16.3.2008 20:24 #10

• emugamer

  Originally posted by DDR4life: Is it really that difficult to believe that Microsoft may actually be telling the truth?Yes...he he

  16.3.2008 20:31 #11

• ZippyDSM

  Originally posted by DDR4life: NextGen76
  "How can there be a shortage three years after a console launch?"
  
  The fact that a system has been out on the market for three years does not mean that it cannot experience a shortage. I have a nephew who works in retail, and he has kept me informed that for the past 4.5 months they have consistently sold out Xbox 360s and Wiis, yet the back storeroom has plenty of PS3s and they are having a hard time moving them.
  
  Is it really that difficult to believe that Microsoft may actually be telling the truth?MS is sloppy and their manufacturing ties meek and wavering I would not be surprised if its true.
  
  they ahve a huge fail rate and have a decent demand they ca only keep repairing the broken consoles so long till they break so much they can be repaired and people might start thinking a new SKU is better than being in the repair shop one every 3 months....

  16.3.2008 20:35 #12

• xblade132

  This could be true, in some areas. Couple of months back I used to see 360's all the freakin' time but now, I don't see as much but I still do see some.

  16.3.2008 20:42 #13

• vinny13

  Lol all of the consoles they ship these days go to those who have broken ones beyond repair :P
  
  And then there's the guys like my friends who buy new consoles instead of waiting for the mail lol
  
  Oh and there's plenty of 360s in my area...

  16.3.2008 20:45 #14

• DDR4life

  Lol. My, my, my. Such hating on Microsoft. I would almost suspect you guys of being biased against them. :-D

  16.3.2008 20:48 #15

• ZippyDSM

  Originally posted by DDR4life: Lol. My, my, my. Such hating on Microsoft. I would almost suspect you guys of being biased against them. :-DLooking at the 360 hardware its moronic limits and build quality its not hate its fact,it should be sub 200 already.

  16.3.2008 20:52 #16

• hade

  Quote:
  "Our retailers are telling us that Xbox 360 is selling as fast as they can restock, but due to this high demand, Xbox 360 is experiencing temporary shortages," Microsoft said in an e-mail. "We are working as quickly as we can to replenish inventory." lets think about this for a minute, being an ECO grad and using a little commonsense certainly helps. there really hasn't been any blockbuster titles released in the past month or so, so we really cannot contribute that factor to the so called "increase" or "high" demand.
  
  there are reports piling in about a 360 pricecut, so any rational informed individual would be waiting on purchasing a 360. think about it logically for a min, if person A has waited this long to transition to the 360, certainly there is no viable explanation as to why they would now go out and purchase one. not to mention the reports about a larger HDD model coming to town.
  
  i do not know of any promos going on that would encourage 360 purchases. when i picked mine up from GameCrazy, they were running a trade in deal but i am unaware of anything similar to what i received.
  
  i honestly do think the lagging sales could be due to shortages, however i believe those shortages are on the manufacturer's end. there is no viable or informative explanation supporting microsoft's claim about increasing or high demand.
  
  after three years of being released you expect me to believe that for the first time following no price cut, no blockbuster release, that the 360 is facing such HIGH demand that they are suffering from a shortage? haha hardly. not to mention that the demand level would have to be significantly higher than the demand levels seen in the previous 3 YEARS as certainly if demand was this high last year, microsoft would have accounted for this the following year.
  
  its a PR spin, they are expected to release another SKU, which cuts or divides their production output and thus we have a shortage.

  16.3.2008 21:03 #17

• fgamer

  I just laugh when people on their small little hick towns have 80 Xbox 360's still in stock and think that's representative of the rest of the market. Just because your little town got a bunch of 360's dont mean that's how it is around the US. But, I do think that Microsoft is lieing to make the PS3 surge and 360 sales decline seem irrelevant. Microsoft needs to stop poosy-footin around and drop the Elite price to $349, PRO $299 and Core $249. It's gonna take aggression, something Sony clearly understands now. Microsoft stop lieing, drop your console prices, and offer more before the 360 becomes past-tense!

  16.3.2008 22:24 #18

• PantherM

  I believe the shortage is from replacment systems being sent out that were RROD'd. But that is just pure speculation on my part.

  16.3.2008 22:27 #19

• xblade132

  "Our retailers are telling us that Xbox 360 is selling as fast as they can restock, but due to this high demand, Xbox 360 is experiencing temporary shortages," Microsoft said in an e-mail. "We are working as quickly as we can to replenish inventory."
  
  As far as the email goes, as everyone is saying, it sounds like a lie on Microsoft's behalf. Like everyone else also, I don't understand how they could be of such high demand now for the first time in 3 years.

  16.3.2008 22:42 #20

• z3rofate

  a good month after and before christmas all you could get was the arcade. what a waste. the Wii is always out of stock, whats the deal with that.
  

  Doctor- Are you sure you both are infected with AIDS
  
  Cartman- Were not just sure, where HIV-Positive.
  
  Gotta love it

  16.3.2008 23:42 #21

• Hunt720

  Quote:I believe the shortage is from replacment systems being sent out that were RROD'd. But that is just pure speculation on my part.I think this statement is SPOT ON! And it makes the claim that the shortage is "temporary" a bit humorous... It's like saying the RROD situation is "temporary" after you have traded in your 3rd system to customer support.
  
  It makes sense that there is a shortage and ALSO a low sales rate due to the fact that when you replace a fried Xbox with a new console(which isn't always the case... i.e. REFURB) you don't get a sale on the replacement system... thus lower sales than both the Wii and PS3.
  
  ... speaking of the Wii:
  
  That system is NEVER in stock. I worked at a Gamestop (no... I'm not proud.. and YES Gamestop is the Devil) and we never had Wii.. they were gone moments after they came in and were checked into inventory. We recieved 20+ calls a day for the damn things. Now the Wii has outsold the 360 and MS claims that this is due to a "shortage" which can be directly attributed to the fact that more and more NEW systems go out to customers who need a replacement everyday. It's not like the 360 produced less systems than Nintendo all of a sudden.
  
  So in conclusion I don't believe Microsoft lied in their statement... however they still danced around the fact that DEMAND for the 360 is not the cause for said "shortage".

  17.3.2008 00:04 #22

• ripxrush

  I agree with the 1st post! any electronics store i go into (& i frequent them daily almost) there are at least 3 arcade, 2-3 pro & 5-6 Elite, so yes i see more elites (which is frustrating case my wife got me 1 for xmas & we looked 4ever 4 1) so i guess i agree with post 1&2 i am seeing both but no all out shortage! Oh i go to frys electronics, Gamestop, even walmart!

  17.3.2008 02:17 #23

• TSRSteve

  Every time I go to Target, Walmart, Best Buy, or any other place that sells these consoles I always check for a Wii. And every time they have plenty of PS3's and 360's in stock. But never any Wii's.

  17.3.2008 11:19 #24

• emugamer

  I've seen no shortage of the Elite in my area. Best Buy was fully loaded last week, as was Target. Hmm...

  17.3.2008 11:55 #25

• SDF_GR

  They just trying to win the impressions.
  Whats the reason that they cant keep up?
  What stalls them? ..... we will never gonna get an answer for that.
  BS,BS,BS
  They just wanted to turn the lights on them.

  17.3.2008 21:22 #26

• Hunt720

  Originally posted by SDF_GR: They just trying to win the impressions.
  Whats the reason that they cant keep up?
  What stalls them? ..... we will never gonna get an answer for that.
  BS,BS,BS
  They just wanted to turn the lights on them.... which lights??
  
  The proverbial "spot lights"?
  
  .. or the 3 red lights? ;-P haha

  18.3.2008 00:17 #27

• z3rofate

  lol gotta love those 3 lights. ive gotten the one light, freaked out and just turned it off and back on quick and that was the last time i saw that. aparently my HDD doesnt like my 360

  18.3.2008 11:27 #28

• vinny13

  Originally posted by z3rofate: lol gotta love those 3 lights. ive gotten the one light, freaked out and just turned it off and back on quick and that was the last time i saw that. aparently my HDD doesnt like my 360Well at $2.50 per GB (on a 20GB) you better hope they get along lol

  18.3.2008 22:25 #29

• z3rofate

  hahah, yea i guess that could be an issue. I think modding mine was the last straw, now my HDD really hates me.

  19.3.2008 09:54 #30

• wetsparks

  I don't know if anyone posted this, but the 360 has gotten outsold this year by all the gaming systems (including the PS2) and the only shortages are from the Wii and Nintendo is splitting its productions two ways and Sony is splitting theirs three ways. So this means that Microsoft is hoping everyone is idiots and won't believe their lies or they are ling about the fail rate and all their productions goes to replace broken systems.
  
  http://vgchartz.com/hwcomps.php?cons1=&r...39453&end=39523
  http://vgchartz.com/hwcomps.php?cons1=PS...39481&end=39523
  http://vgchartz.com/hwcomps.php?cons1=Wi...39481&end=39523

  23.3.2008 00:12 #31