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Short Supply, Panic and Stupidity Hits The Xbox 360 Market

eBayers are selling pre-orders of the Xbox 360 for the low-low price of 50% above retail, and the Enquirer says one got as high as $1,500 for the $399 console. Rumors of short supplies and sellouts of the console, which will not be in stores (even for these people) until November 22nd, is sparking a small panic among the small-brained, resulting in pre-orders for consoles like this one selling for $675.

People: CALM DOWN! You’ll be able to get a pre-order in your local Gamestop, so why go to eBay? This is completely absurd.

Okay, scratch that. Gamestop online is sold out of the 360, selling only an “Omega Bundle” for two grand with the Premium bundle, 20 launch titles, three extra controllers, faceplates, a memory unit, a year of Live Gold and a warranty. In fact, Gamestop’s cheapest pre-order (sold-out now) started at $699!

EBGames: Sold out
CompUSA: Not taking pre-orders yet Not available Taking “no guarantee” pre-orders
Froogle doesn’t have any well-known retailers claiming to have pre-orders.

Still, I’m calling shenanigans. No one knows yet if supplies will be too low, so the stores are either projecting shortfalls and allowing few-to-no pre-orders; or they are taking advantage of the panic to engage in price-gouging (I’m looking at you, Gamestop). Microsoft will likely let these stores no how many units to expect on launch day by November 2 (three weeks before), and, assuming supplies aren’t abhorently low, more pre-orders will be available.

I suggest finding a store you trust with an RSS feed on 360 availability and checking every day, and pre-ordering only what you want at standard retail price. Don’t be a sucker.
(via Gizmodo > Findory)

October 20th, 2005 Posted by Nathan Weinberg | Xbox 360, Xbox, General | 7 comments

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  1. […] Amazon is taking Gamestop’s tack of selling the Xbox 360 in expensive bundles, as a way of (a) profiting immensly off low supplies and (b) making the most out of super-high demand. All of Amazon’s bundles are $999, and some of them even come with only the 360 Core system, for some reason. […]

    Pingback by » Amazon Selling Xbox 360  InsideMicrosoft - part of the Blog News Channel | November 8, 2005

  2. You are a absolutely wrong about the GameStop preorders not panicing!
    Everyone I know has been called by gamestop automessages and told that were not going to get theirs delivered.
    I prepaid in full for my deluxe package on day 2 of the pre-order. I was number 18 on my stores list.
    The manager of my GameStop said each store is now only expecting delivery of only 12-15 units, not the 50 per store that they estimated.
    I was told by GameStop that I can expect delivery just before Christmas.
    All six of my friends and relatives that have pre-ordered through them have recieved the same call.
    I will never buy hardware from GameStop again, ever.

    Comment by Neil | November 17, 2005

  3. Microsoft doesn’t know what they are doing. Obviously having a surplus of xbox 360’s is the best money making avenue. That is the only way to prevent ebayers from selling them at triple their value and thus taking Microsofts profits from them. They have the means and the wherewithall to meet demand so why would they choose to get robbed by someone looking to pad their wallet? The publicity they get from being in short supply just isn’t comparable to the better idea of actually making more money.

    Comment by Victoria | November 22, 2005

  4. Victoria, it takes a lot of factory work to build the Xbox 360, just like it does for any expensive and complicated piece of technology. Given that Microsoft has been manufacturing them for less than a few months, can’t you understand that they simply can’t build enough consoles for everyone?

    This isn’t about economics, its about capability. There are only so many you can build in a short period of time. They do not have the “means and the wherewithall to meet demand”, and no one does.

    Comment by Nathan Weinberg | November 22, 2005

  5. maybe so, for example, refined crude oil is in short supply yet big wigs in the oil industry made whopping profits. let me tell you this, there is never a shortage of manufactured goods, it may be limited but calculated. this is a marketing strategy to push the popularity of a product and thus creating a demand. remember the n64? history repeats itself.

    Comment by Bene | November 24, 2005

    and didn’t get it delivered please contact me via email above. GameStop has elected to take inventory and sell $1000+ bundles instead of honoring its preorders through its retail location.

    If you preordred, especially this summer or earlier, please email me.

    Comment by NeilWester (at) hotmail | December 10, 2005

  7. My boyfriend bought this package and now his daughter wants a computer, we paid $800 for it if anyone is interested in buying it we will sell it instead of returning it.

    BRAND NEW UNOPENED -Xbox 360 Bonus Bundle Pack includes:
    Xbox 360 Console
    20GB Hard Drive
    Media remote
    Two Wireless controllers
    Ethernet connectivity cable
    Component HD AV cable
    Play & Charge Kit
    Game-Kameo Elements of Power

    Comment by Paula Prather | December 14, 2005

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