NEWS - Friday, November 18, 2005

Peter Moore Slams Xbox 360 Shortage Theories

Retailers are now receiving allocations of machines that do not come close to meeting pre-orders. Some dealers say they are receiving only 25% of the machines they have already sold. The likelihood of meeting walk-in customer demand seems some weeks, if not months away. Peter Moore, Xbox 360 marketing chief said the company is doing everything it can to meet demand. He scoffed at the idea that the severe shortages are a trick, designed to hype the machine’s popularity. "I’ve seen all of the conspiracy theories. Somewhere in Roswell, New Mexico, we have a hangar where we’re stockpiling it, creating false shortages. No," He added, "It’s ridiculous. We are trying to get as many units to retail as we possibly can." He has also said that some retailers took a gamble on the number of machines they would be allocated. "A lot of retailers, I think, stretched their allocation. Individual retail store managers said, ’I’m going to take a fly that I’m going to get 200 Xbox 360s on day one and take the preorders accordingly,’ and they only got 100 or 150. Well that’s 100 or 50 disappointed people. We have to manage that." Global launch Microsoft’s target is to sell 3 million machines in the next few months. Its strategy is to keep the channel supplied with whatever stock it can, on a regular basis, rather than shipping in large numbers on fewer occasions. In order to succeed in this generation, the firm must build up as large a lead over Sony as it can, before the arival of PlayStation 3. The notion that this can be achieved by a starving retailers does appear to be fanciful. Moore defended the company’s decision to launch globally, which has clearly been a drain on its ability to fully supply the U.S. market. "You can challenge the decision, but we made a decision a long time ago that we’re going to ship this holiday in the three major regions of the world. When the dust settles, it will be proven to be the right thing, and it will become the default way that you launch a videogame console in our industry." Source: SEATTLE POST-INTELLIGENCER


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