Xbox 360: Scarcity or Sufficiency?
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The Xbox 360 has landed. And already, shortages are the watchword. Microsoft is denying vociferously that it's using scarcity to augment demand. But in an article in The New York Times on Monday, Wedbush Morgan Securities analyst Michael Pachter said that Microsoft is trying to "turn this into the Cabbage Patch Kids," by publicizing news about stores that are sold out of the next-gen gaming console. Gaming Web log Joystiq.com has long held that rumors of Xbox shortages work in Microsoft's favor. "We're not sure what's up with all of this Xbox 360 scarcity stuff, but something doesn't smell right about it. We have conjectured in the past that the whole scarcity thing is faked to incite demand, but we've also noted that perception of a shortage is enough to make that shortage real," the Joystiq folks opined. |


Comments (3)
The old Microsoft is clearly back, testing its old ways as it begins to emerge, or try to emerge, from the limits inmposed by the Microsoft Trial. Having been knuckle-rapped for another test a while back by the judge (an attempted license lock re media players if I recall), we now see another test of the regulators, albeit by the back door.By creating the kind of scarcity buzz that Toys R Us used to do, and especially along the cabbage patch doll buzz lines, the market is being smartly pumped up and regualatory intent challenged.A wise observor might ponder whether this is a kind of marketplace "talking in tongues" -- a subtext way to see if regulators care anymore and if so how heavy-handed they might be in response.None of the facts of the Xbox 360 suggest unmitigated demand. This is a very expensive toy--and moreover one that requires perpetual tithes to MS for online use--the cost of which does not imply natural shortages of product.The clever bit is that it will be near-impossible to determine if demand outstrips manufacturing capability, because this product appears to be a closed box wherein third-party firms will play much less a hardware role than in the past.
Posted by Keith Risler | November 22, 2005 10:38 AM
i have a exbox 360 and it has that dreaded
red light on it its one of the first that
ever came out and i found out there is a recall
on that model 2005 please let me know how i can
get it fixed or send me a new one ok thank you
Posted by ross gryszkiewicz | January 25, 2008 8:21 AM
i have an exbox 360 which flashes with a red circular light. it renders the machine in a no go situation, could you please advize on how to rectify this problen. the serial number of the exbox is 321735760405, the mfr date is 2006-01-27, and product id is 77097631321735760405. regards mr s breen
Posted by stephen breen | May 12, 2008 4:57 PM