Xbox 360 launch down to 400,000 units?

by James Ransom-Wiley { Nov 8th 2005 at 12:45PM }

According to an EB Games employee in Southern California, his chain will only be able to fulfill 14 of 43 preorders on launch day; and he does not foresee fulfilling the entirety of these preorders until March. In addition, the retail employee estimates that Microsoft will only ship about 400,000 units at launch (in the US). Inventory estimates from Best Buy, Toy R Us, and Game Rush chains in Southern California seem to confirm this report—we've also received similar "confidential" reports from retail employees around the US.

If units do prove to be scarce throughout the holiday season, what's your limit? How much would you be willing to spend on an Xbox 360 off of eBay? What's 3–4 months worth?

[Thanks, Kiel]

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Reader Comments (Page 1 of 2)

McFleshy @ Dec 18th 2005 10:01PM

I work at a Gamestop, and in my area, the percentage is about the same. I have 130 reserves for the system, and I'm only getting 30 on launch day (that's the 399 bundle). The $299 package is 2 reserves, 2 systems.

Chris @ Dec 18th 2005 10:01PM

3-4 Months is worth not bothering and grabbing a PlayStation instead.. imho... But then again, it may just be fabricated like the "rumors" have been saying as well..

funkyflea @ Dec 18th 2005 10:01PM

We only have about 15 preorders and we can fulfill them all.

Gamas @ Dec 18th 2005 10:01PM

Looks like they're blowing their 'first-to-market' advantage.

But, as before, the real problem is that the 360 is shipping without a killer app. Hard to move hardware without a killer app, especially expensive hardware.

Mike @ Dec 18th 2005 10:01PM

I plan on getting to my EB bright and early for my pre-order. I will then sell it on Ebay for a giant markup, wait 3 or 4 months and have a significantly cheaper Xbox 360.

Chiablo @ Dec 18th 2005 10:01PM

I have a buddy who did the e-bay thing with nintendo DS's when they came out.

He went to every electronics store/wal-mart in a 50 mile radius and bought about 30 systems.

He then sold them all on e-bay and made a good $3000 profit. He's planning on doing the same with the Xbox360's, I believe he has pre-orders at every gamestop in the state.

Personally... which ever system gets modded first will be the one I get. I get more functionality out of my Xbox due to the Media Center someone made for it than I do for gaming on it.

Jack @ Dec 18th 2005 10:01PM

I would love buy one...if only I had money, plus I dont like buying launch and there really isnt any game currently for me, sometimes you get faulty ones rather wait until problems occured are fixed but thats for any console, like ps2, xbox etc. The only console every brought at launch was xbox, but I didnt get any problems.

scott Wilson @ Dec 18th 2005 10:01PM

this seems like another fake push hmmm... tickle me elmo??? If this is true why are thre still mega preorders for the omega pack on gamestop.com

Captain Obvious @ Dec 18th 2005 10:01PM

All I can say is I am very glad that Oblivion has been postponed. Now, I can comfortably wait out the holiday rush and any availability problems, if the shortages actually happen.

Charles @ Dec 18th 2005 10:01PM

360 Shortage =

Best
Viral
Campaign
Ever

Barista @ Dec 18th 2005 10:01PM

http://www.msnbc.msn.com/id/9968123/

Seems like Reuters has a differnt take..

John @ Dec 18th 2005 10:01PM

Great, MS is feeding us more bs. I don't care anyways. I had every intention of buying one at launch, but then they delayed Oblivion and I started having second thoughts. Theres not one game I'd consider buying at launch anyways. Even Oblivion was a stretch for me as I'm more of an old school RPG'er. I just bought a Nintendo DS, I'll be more than happy to spend my money on some cool games for that. I agree with the dude that posted before about MS blowing that first to market thing.

-John
http://www.deliveryblog.com/

Blake @ Dec 18th 2005 10:01PM

Is it just me, or is MS vying for a PS2 shortage repeat?

Jody Anthony @ Dec 18th 2005 10:01PM

you know, first to market be damned. if there is a shortage, it doesnt matter if they are first to market or last, they will leave a bad impression. People don't like getting screwed over.

Mike J @ Dec 18th 2005 10:01PM

It's been reported before that the manufacturing capacity is around 100,000 units per week and that they had hoped to ramp up to 150,000 later on in the cycle. For a new console entering it's initial production run the 400,000 estimate doesn't seem too far fetched and also shouldn't surprise anyone. Especially since they need to split the allotments and save some for the European and Asian markets in the weeks to come.

Enough with the "The Sky is Falling" BS.

BS Police @ Dec 18th 2005 10:01PM

I have NO RUSH to get my XBOX 360. I will not pay A CENT more to get it earlier, and I'll just wait.

Kenny @ Dec 18th 2005 10:01PM

Everyone is rushing to buy their own personal XBOX 360 to enjoy at home. I would hope this becomes a great opportunity for those without the 360 to hang out at a friend's place, like the good old days when not every American home had a TV. Seriously, more sharing and gaming with friends, rather than isolating yourself from society. Isn't gaming supposed to bring us closer together for a more cooperative/competitive experience (I know there's LIVE!, but can't beat in-your-face human interaction)

bd (formerly b) @ Dec 18th 2005 10:01PM

"Looks like they're blowing their 'first-to-market' advantage."

"360 Shortage =

Best
Viral
Campaign
Ever"

???

I'll believe the first guy. They are the first on the market, both Nintendo and Sony could launch their consoles anytime soon; and also, Elder scrolls 4 is coming out in February, and 99 nights is coming in January in Japan when PS3 will come around March/April; with a shortage of 360s, Microsoft is blowing it. Sure, it MIGHT make people want a 360 more, but it also might sell more Xboxes later at a lower price-point instead of now, let alone it will make some people consider waiting for all three systems to come out.

SK @ Dec 18th 2005 10:01PM

Great link Barista. It looks like MS is talking out of both sides of their mouth; telling investors that there will be huge sales but also telling customers via retailers that there will be limited supply. The two just don't even out. I think MS would rather not upset investors because they won't wait 3 months for profits while customers will wait 3 months for a console. I expect plenty of boxes to go around. Don't be surprised when you walk into a store to satisfy your curiosity and find one waiting there for you. My 2 cents.

stewie Gr1ff1n @ Dec 18th 2005 10:01PM

there was a shortage for the ps2 and they did alright

pennywise969 @ Dec 18th 2005 10:01PM

Quote from that reuters interview with MS Xbox CFO
Bryan Lee on 11/08/05:

"Lee declined to say how many consoles would be on retailers� shelves on Nov. 22 when the Xbox 360 launches, saying that Microsoft would have enough machines for a solid release and steady supply thereafter."

Enough machines= a ok.

Jon-Paul LeClair @ Dec 18th 2005 10:01PM

Amen BS Police (post 15)

As much as I want an Xbox 360...I can wait. I will not pay a cent more that what's necessary. Those that do are just foolish.

nod @ Dec 18th 2005 10:01PM

The shortage is no BS. It's for real this time. The EBs in my area are only getting about %50 of their first order. The managers are none to pleased about the week of phone calls ahead.

Fanboy hater @ Dec 18th 2005 10:01PM

I am so sick of sony fanboys. No you will not wait 3 months and buy a PS3. You will wait another year. The damned PS3 launch was never going to be in the US in spring 2006. Why do you think they're being vague about it?

Japan will get the PS3, that way when things go wrong with the hardware, like first batch consoles always seem to do, Sony will get a free pass because they're a Japanese company.

Me, I'm waiting for Oblivion, unless Kameo is as cool as it looks like it might be. Or whenever that mech game from Sega comes out.

HoozyerdadE @ Dec 18th 2005 10:01PM

I just got off the phone with our local EB Games store and was told that "Microsoft cut the release day allotment to all states by 75%". He said they (EB)would be calling people on the reserve list by the weekend to let them know if they would be getting a system or not. This might help you know where you stand, as he said "if you preordered in July, you probably wouldn't see an xbox until the 3rd allotment". Big mistake by Microsft - I can see a great percentage of that preorder money being moved to PS3's instead.

jedi55555 @ Dec 18th 2005 10:01PM

Why are we taking the word of an EB employee in CA? I am sure that he knows how many they will get in their store the first shipment but how would he know how many Microsoft is shipping out? Not saying that it is wrong but if Microsoft will not disclose how many will ship at launch why would they tell EB employees.

Now with that being said... the number does sound about right.

Don Key @ Dec 18th 2005 10:01PM

yeah, remember all those pisst off customers during the ps2 shortage? obviously, as sales of the ps2 prove, customers love getting screwed over.

-----------------------

in response to #13 where he said:
you know, first to market be damned. if there is a shortage, it doesnt matter if they are first to market or last, they will leave a bad impression. People don't like getting screwed over.

jedi55555 @ Dec 18th 2005 10:01PM

"Microsoft cut the release day allotment to all states by 75%"

Something tells me that the 75% they cut will magically appear on the day after Thanksgiving.

Kuroshi @ Dec 18th 2005 10:01PM

Why do we quote store level employees about stock levels? He has no Idea how many machine MS will have. If his store only has 43 reservations then he probably doesn't need that many machines. Gamestops in the dallas area are closer to 100 and some over 150 reserves. No wonder EB was bought out. Thier employees spend too much time speculating inventory and not enough time selling. BTW ms expects to sell over 3 mil units. Release day will be tight but holiday should be fine. This is not MS first big release and they didn't spend all that effort to be first out only to blow it by not filling demand.

SetupWeasel @ Dec 18th 2005 10:01PM

Ah, the "innovation" of a worldwide launch. Breathtaking!

Snap @ Dec 18th 2005 10:01PM

Why do people even care? Seriously folks, we're talking about shortages for a "next gen" system that will launch with a majority of current gen games with new paint jobs. Whoopee. Oh wait, XBox Live looks different too! {rolls eyes} Every other story on Joystiq is about the XBox 360... is this yet another feeble attempt by Microsoft at viral marketing? Hmmm.

Most people would be better served to wait until March 2006 anyway because we should know more about the Revolution and PS3 as well as there should be at least SOME original content on the 360 by then.

HoozyerdadE @ Dec 18th 2005 10:01PM

The "cut the allotment by 75%" statement was from the Central New York EB near me, not California. It's fairly obvious that if stores on both coasts are saying the same thing, then something is up. I'm sure there is no "country-wide conspiracy of store-level employees" to put out fake allotment numbers. I can also say that I've gotten much information from this EB that all turned out to be true, so based on my own past experiences, I believe this to be true as well.

BobaFett @ Dec 18th 2005 10:01PM

I would care if there was a launch title that was worth caring about.... but the idea of lining up or going on eBay to play a suitably average Perfect Dark does not appeal to me.

Consoles move when there is motivation - Halo, Legend of Zelda, etc.

Witness the PSP. Hugely hyped with little software worth playing, it was a paperweight for about six months. Now we finally see a small trickle of worthwhile titles.....

nightshadow @ Dec 18th 2005 10:01PM

blah blah blah blah blah......blah blah blah.....blah blah blah blah .....blah blah blah.....blah blah.....

thats all im reading.....and do you know why...

cause in two weeks whos gonna give a F!#%

i got mines beeeaaaaiiiitttccchhhes

JDH @ Dec 18th 2005 10:01PM

this whole shortage thing has made me want to not get a 360.

It turns me off to the entire experience.

puh_fifer @ Dec 18th 2005 10:01PM

Has anyone done the math on this? US population is just under 300 million. Divide that by 400k units on LAUNCH DAY alone.

One in every 750 Americans can buy it Nov. 22.

Start taking out people who dont care, cant afford it, imprisoned, incapacitated and the 100 diehard fanboys and I think there'll be enough to go around. And if there is a shortage, the 100,000 a week they'll be producing for us until xmas should cover it.

ChicagoOne @ Dec 18th 2005 10:01PM

Just called my local EB in Chicago and found out that they were supposed to get 48, and got cut to 24. They said they were not looking forward to making phone calls.

Jason @ Dec 18th 2005 10:01PM

i fail to see how a shortage will help bolster microsoft's position.

John @ Dec 18th 2005 10:01PM

I am #13 on the list at my local EB games, and they are able to fill 61 of 113 pre-orders, and expect to have the rest filled by mid-december so they can begin selling to walk-in customers. Something else to keep in mind guys is alot of these 360's have been pre-ordered on impulse. They expect that up to 20 of the pre-orders that they have taken in will be cancelled due to the people not having the money in time (they were quoting from past experience with systems like the PS2) Something you guys have to keep in mind is that M$ IS doing everything they can to get as many on store shelves as possible, but this is the FIRST time anyone has done a worldwide release. So not only are they selling tons of these things to Americans, but also Japan and Europe as well. That wouldn't fair to well with Japanese and European gamers if M$ went out of there way to fill every pre-order in the states, and then ignored the rest of the world.

James Emberton @ Dec 18th 2005 10:01PM

So how come no one is saying that the 10000 or so being given away on every10minutes is getting cut? You mean to tell me that they will take care of promo units before bought and paid for units? Makes no sense to me. I think it's all hype.

James Emberton @ Dec 18th 2005 10:01PM

Dean @ Dec 18th 2005 10:01PM

Got a call from EB Games yesterday saying even though I have my premium system paid in full (as well as two more controllers and two games) I will not be getting my system on the 22nd because of MS. Honestly, what does a pre-sale mean anymore????

JollyGreenGiant @ Dec 18th 2005 10:01PM

#30 "I would care if there was a launch title that was worth caring about.... but the idea of lining up or going on eBay to play a suitably average Perfect Dark does not appeal to me.

Consoles move when there is motivation - Halo, Legend of Zelda, etc."

Guess what buddy? I don't think we'd be talking about a shortage if MS wasn't able to move the consoles. Get a clue. BTW - I don't know too many people who are waiting for Perfect Dark but I know a lot of people waiting for PGR3 and COD2.

Necrophiliac @ Dec 18th 2005 10:01PM

"I will not be getting my system on the 22nd because of MS. Honestly, what does a pre-sale mean anymore????"

It means that EB/Gamestop can accept deposits of $50-$400 for far more consoles than they can REALISTICALLY expect to recive on launch day and collect 4-8 weeks worth of interest on all that money.

Necrophiliac @ Dec 18th 2005 10:01PM

Correction: 4-6 MONTHS of interest^^

Tiremfej @ Dec 18th 2005 10:01PM

"According to an EB Games employee in Southern California, his chain will only be able to fulfill 14 of 43 preorders on launch day"

The first sentence is key there. Some people need to get a big ole' life and start accepting the fact MS is coming with a good machine that's going to give the PS3 a good run, no matter how many false rumors are put out.

Tiremfej @ Dec 18th 2005 10:01PM

Let me clarify; the first sentence is key on #40, becuase it's a Gamestop employee!!! I didn't realize they held all the answers....maybe the should start working for websites like this one!!!! Or perhaps they should start managing their own store, give me a break.

Snap @ Dec 18th 2005 10:01PM

"BTW - I don't know too many people who are waiting for Perfect Dark but I know a lot of people waiting for PGR3 and COD2."

LOL. CoD2 is a POS. Guess you boys don't keep up on your reviews. Let's spend $500~ on a current generation game that is getting "average" reviews. Oh, it's on 360 that makes it SOOOOOOOOOOooooo much better.

LOL. Keep telling yourself that. Denial sells XBox 360's.

BobaFett @ Dec 18th 2005 10:01PM

Hey JollyGreen - the only reason we're talking about a shortage is because the videogame industry claims shortage on everything.......

I'm looking at a box for Halo 2 a few weeks before it comes out. Employee comes up 'Hey man. You better preorder that if you want to play it when it comes out.' I don't. And I walk in the day it comes out and they have a pile to the ceiling.

PSP comes out. Hype. Hype. Hype. Boo hoo for everyone cuz there's not enough to go around. Bought mine off the shelf a week after it came out. Which was a mistake.......

Now the 360 shortage has all the fanboys in a tissy. The way to get someone to want something is to tell them they can't have it. Human nature being a greedy bastard and such.

Call of Duty 2? Project Gotham? These are your must play launch titles? One word - weak......

Hope you get your 360 and enjoy it greatly. But I won't fight the hordes until they give me something 'next gen' to play.....