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[Dec 16, 2005, 12:24 pm ET] - Share - Viewing Comments

Thanks Mike Martinez.

The Great Xbox Shortage of 2005 - Why you can't buy the one present you really need. Three words: Tickle Me Elmo.
Call of Duty 2 #1 Best-Selling title for Xbox 360.
IGN's Final Fight Streetwise Preview.
Guilty Gear Detailed.

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Re: Xbox Shortage

Dec 16, 2005, 13:41

Chris

With Microsoft's current strategy an XBox360 costs you about $700. Sure, may be able to get one for $400 plus the cost of standing in line for hours, but if you keep it you decline the opportunity to sell it for $700. In effect, it costs $700, full stop, so which people (kids? I bet the median age of consumers of these things is somewhere around 25) get them is not the question. The question is who gets all those $300 increments in price. The author proposes a mechanism which doesn't change the price consumers wind up paying but does change who gets the extra $300. I agree with the first poster that the author probably underestimates the resentment the mechanism might generate, and would add he likely overestimates the revenues at stake. Over the life cycle of the product those increments on the first handful of units won't matter, but consumers have long memories. This comment was edited on Dec 16, 13:41.

Subject

Comment [quote="Chris"Dec 16, 2005, 13:41] With Microsoft's current strategy an XBox360 costs you about $700. Sure, may be able to get one for $400 plus the cost of standing in line for hours, but if you keep it you decline the opportunity to sell it for $700. In effect, it costs $700, full stop, so which people (kids? I bet the median age of consumers of these things is somewhere around 25) get them is not the question. The question is who gets all those $300 increments in price. The author proposes a mechanism which doesn't change the price consumers wind up paying but does change who gets the extra $300. I agree with the first poster that the author probably underestimates the resentment the mechanism might generate, and would add he likely overestimates the revenues at stake. Over the life cycle of the product those increments on the first handful of units won't matter, but consumers have long memories. [/quote]

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