Microsoft issues response to 360 shortages

by Griffin McElroy { Feb 16th 2008 at 12:00PM }

We all know that the Xbox 360 suffers from a fairly high failure rate, as we've all known someone (or been someone) who has experienced first hand the devastating effect of the dreaded Red Ring. However, many of us haven't seen the widespread effect this failure rate is having on the gaming market -- in a recent convo with Reuters, Microsoft's Jeff "Jeff Bell" Bell reported that retailers are having a hard time keeping the system in stock, and that MS is "running short of product here in the United States."

Microsoft issued their own official announcement on the matter in their response to the January NPD report (the same response that those GameDaily gumshoes discovered was chock full o' statistical gerrymandering), saying that "due to this high demand, Xbox 360 is experiencing temporary shortages." We can't help but wonder how much of the shortage is caused by actual post-holiday demand for the system, and how much is caused by the high numbers of Red Ring replacements being shipped out.

Then again, we haven't bought any 360s in a while; the shortage might not be as bad as MS is making it out to be. Has anyone had a hard time getting their hands on Microsoft's console/radiator lately?

Tags: 360, demand, jeffbell, microsoft, npd, rrod, shortage, xbox, xbox360

Reader Comments (Page 1 of 3)

Undead Priest @ Feb 16th 2008 12:06PM

Even my local grocery stores sell Xbox 360's. I can walk into any other store around here and find a stack of them.

miyagi @ Feb 16th 2008 12:19PM

I know it's ancedotal but my sister-in-law has been looking for a 360 since early January (Premium) and been unable to find one locally. She ended up with a used one from Gamestop with the replacement plan. I have a friend who manages at a local Gamestop and he said they haven't gotten any Premium/Elites since January. He also hasn't received any DS's in that time. Yeah it's one store but just my experience.

Also about the shortages due to RROD:

Doesn't Microsoft just send out refurbished units not new units when they replace 360's? I know when mine RROD'ed back in August that it was replaced with a refurbished unit. I'm sure it was just a fixed RROD unit somebody else had. If that's the case then I just don't see how shortages of new units in stores could be because of failures of old systems.

MaulerX @ Feb 16th 2008 12:27PM

Where I live the Elite & Pro are near imposible to find. Heck I knew there was a shortage even before M$ said anything about it. I live in the Pocono region of Pennsylvania and on any given day you might go to Wal-mart to see a few in stock only
for them to be gone by the next day. Same with Gamestop, Best-buy etc...

DEEZNUTZ @ Feb 16th 2008 12:25PM

So those two in the pic are the idiots responsible for my 360 RROD'ing twice?

Vol @ Feb 16th 2008 1:12PM

It looks like a rather clean manufacturing enviroment. Blame the engineers of the product, not these people that are bagging the system up for shipment.

No Xbox 360's at my local Wal-Mart.

WhoMe @ Feb 16th 2008 1:15PM

No doubt there are some shortages at some places, but it sure does feel like MS is abusing that situation to save their face. If you take a look at that GameDaily article, you'll see why.

I dunno, I think MS is in trouble or at least not doing as well as they should. That one year head start obviously helped them (I don't think they'd be anywhere near where they are now without it), but I think it's just not enough.

MS is very quick to quote US numbers, a big market for sure, but anywhere outside the US the situation is a lot more dire.

Couple all of that with the PS3 ramping up bigtime...

Also where are the games for 360 for 08? Haven't heard about too many really. :s

Arttemis @ Feb 16th 2008 3:40PM

It took me 3 weeks to find an Elite at the best buys in my home city and my college town, so I was finally able to get one around Thanksgiving.

qo_op @ Feb 16th 2008 7:50PM

The shortage story was total bullshit to try and spin the fact that ps3 outsold them in January.

vidGuy @ Feb 16th 2008 12:15PM

No shortage here in Iowa; there's at least a dozen consoles for sale within walking distance of my college. Having problems with red rings, though. My roommate got his replacement on Tuesday, hooked it up, and it was dead by Thursday morning. Well ventilated and only played for about six hours.

Evan @ Feb 16th 2008 2:34PM

There aren't any 360s anywhere around Columbus, OH. None at Target, none at Best Buy, and none at a WalMart I was at this week. My older sister was looking to buy one but she couldn't find any. She ended up buying a used one from GS.

jonondaspot @ Feb 16th 2008 3:04PM

The shortages are caused by Microsoft trying to find an excuse for getting their asses handed to them by the PS3 and the PS2 in Jnauary. There isn't an excuse.

No big exclusives, the machine dies alot, Bluray victory, PS3 coming on like a hurricane...you are dead MS. Dead.

vidGuy @ Feb 16th 2008 3:54PM

Just went around town looking for deals. Two Best Buys and two Toys R Us, 1 Target, 1 Kmart. They had 3 Arcades, 17 Pros, and 8 Elites total.

I picked up:
Vision Live Pack (Cam+12month LIVE) = $40 at TRU
Kameo, Perfect Dark Zero = $7 each at Kmart

AJ @ Feb 16th 2008 8:51PM

And you've been checking for how long? The last 2 weeks? 2 Days? I call bullsh*t on your extensive reasearch.

vidGuy @ Feb 16th 2008 8:56PM

Who you calling out, AJ? Honestly, I haven't been counting the 360s on the shelves except for today since that was the topic here. But, I do know that I could go to any store any day of the week here in east Iowa and nab a 360. That and the fact that I saw nearly 30 systems today suggest there isn't a shortage here. I'm just throwing my anecdotal into it too.

Kyrra @ Feb 17th 2008 4:05AM

Better than when the replacement they sent me gave me the RROD as soon as I plugged it in. Screw MS and their shitty manufacturing and RMA process.

Noshino @ Feb 16th 2008 12:16PM

It isn't throught the States, its just certain parts, for example, there are people that claim that there are many shortages in NYC, but I haven't seen any shortages in many shops around south florida...

what I wonder tho, why doesn't Microsoft relocate a few thousands consoles to America from Japan...its not like they are selling like hotcakes there, hey, they still get an A for effort...

copa @ Feb 16th 2008 1:06PM

"What I wonder tho, why doesn't Microsoft relocate a few thousands consoles to America from Japan."

Maybe they have, but the problem runs deeper than a few thousand consoles.

Look, here are the two astonishing facts:

1) Jeff Bell says Microsoft 'misjudged demand' for XBox 360, so badly that there will be shortages measured in months, not weeks

2) This month, the PS3 outsold the XBox 360 in the affected areas.

This is incredible. Jeff Bell is admitting that Microsoft EXPECTED the XBox 360 to sell fewer units than what the PS3 sold in January, and planned their supply chain accordingly.

They had outsold the PS3 for 14 straight months, and had their boots against Sony's head in this space, and what was their great game plan for 2008? To save money on manufacturing costs by planning to undersell Sony.

That is a loser strategy from a loser management team. Is this what we can expect from the Don Mattrick era? Microsoft deserves to get their ass kicked this year.

SharpShooter @ Feb 16th 2008 7:24PM

@ Copa

They've been outselling the 360 in the US for the last 14 months. But worldwide the ps3 has been outselling it for months. Remember you might think the US is the world, but it isn't. Also, I don't know if NDP is America or North America, but plenty of 360s in Canada.

SharpShooter @ Feb 16th 2008 7:26PM

Whoops, replace they've with 360 and 360 with ps3.

padinr @ Feb 16th 2008 12:17PM

I had trouble finding one a few weeks back. I waited two weeks. I checked all Best Buys in the Chicago area until I found one.

MarMar @ Feb 16th 2008 12:42PM

take the metra down to tinley or joliet -- there's piles of them in best buy

Kris @ Feb 17th 2008 3:13AM

Yea, there are plenty of 360's at the Best Buy in Merrillville, Indiana (not too far from Chicago).

Kspraydad @ Feb 16th 2008 12:20PM

Microsoft Xbox shortages...a 'different' kind of bullshot.

roblc2 @ Feb 16th 2008 12:21PM

I have been looking for one since November.

mattclarkie @ Feb 16th 2008 12:22PM

Well there is no shortage in the UK. So I don't know if that is because demand is low, or what.

Raheem @ Feb 16th 2008 12:47PM

You actually haven't visited all parts of the UK, so why make that claim? West London and I've noticed a shortage of Elites.

mattclarkie @ Feb 16th 2008 3:27PM

Well retail shops always have shortages of something in the UK. When online shops have shortages in the UK, then that's when there is a real shortage.

Raheem @ Feb 16th 2008 7:36PM

Lol, you just generalized the country AGAIN.

brian @ Feb 16th 2008 12:27PM

i work at best buy in a pretty residential big area and we haven't had any elites since at least christmas and until the end of this past week we were out of all 360s for at least a week so there most certainly are shortages

Dralzz @ Feb 16th 2008 12:30PM

They aren't very common in Charlotte. Best Buy had a stack of about nine PS3's, but not 360's. GameStop had a used one, and Wal Mart was fresh out.

epownza @ Feb 16th 2008 12:31PM

is it me or was this article written really badly..

vidGuy @ Feb 16th 2008 1:00PM

Do you mean written poorly? ;)

glomgold @ Feb 16th 2008 1:55PM

No it's not just you, this article was written very poorly. Fanboyism detected in almost every sentence.

Something I always wonder about is why the 360 takes so much heat (pun intended) for running warm. I have a 360 and a PS3, and my PS3 gets 10x hotter than my 360 has ever been.

Bloo @ Feb 16th 2008 12:33PM

I know two people in the Los Angeles area who have been trying to get one for the last month with no success.

I also find it funny that the three people who see xbox 360s everywhere they go (undead priest, vidguy, and kspraydad) have a majority of their comments on wiifanboy or ps3fanboy...

AirIntake @ Feb 16th 2008 12:39PM

I can find a 360 anywhere I go (Best Buy, Future Shop, Zellers, Wal-Mart) and I've never posted any of those fanboy sites. It's not bullshit, it's just where you happen to live. You can take your tinfoil hat off now.

Kspraydad @ Feb 16th 2008 12:47PM

Well...it is a little late to 'prove' it since January is long past however there have been no shortages in Walmart Best Buy or EB Games in my city. I troll all three weekly looking for bargains and as I actually earn a bit of money blogging on PS3/PSP issues I keep aware of all the systems.

Different experiences I guess but the only 360 I've seen a lack of are the Elites. There are Core and Arcade packs EVERYWHERE. That isn't a shortage but a mismanagement of your supply lines.

For the record, Xbox 360 will outsell PS3 more often then not in the US this year but I don't believe it will be anywhere near the pace of last year and world wide the PS3 is and will continue to outpace the 360.

Something fanboyish in these comments?

B1gC72 - PSN: KillaKornbread @ Feb 16th 2008 12:50PM

wow that is interesting lol. since i post on PS3fanboy.com all the time and also see no 360 shortage where i live. CONSPIRACY!!!

i dont know, its probably just coincidence. to be fair, the only thing that is impossible to find around here is the Wii. i mean you can even find a DS Lite if you go to the right stores. there are stacks of PS3's and 360's in Best Buy, Walmart, Circuit City, Target and im sure plenty other places. now i only remember seeing Elites in Best Buy but i have seen plenty of everything else.

Fernando Rocker @ Feb 16th 2008 1:14PM

Well... I do believe that Wii that NPD Wii numbers are low because Nintendo redirect consoles to Japan.

http://www.gamespot.com/news/6186160.html

Chimichanga @ Feb 16th 2008 12:33PM

amazon.com and ebgames.com both have xbox 360s, there is no shortage

B1gC72 - PSN: KillaKornbread @ Feb 16th 2008 12:35PM

looky what we have here. possibly to only two Asians to touch 360's!

lol sorry couldnt resist.

but seriously, i think the shortage is just in larger cities or something because they are everywhere in the small town i live in and mid sized city i go to college in. i was thinking that all the replacements they are sending out could be cutting into their supply but im not sure exactly HOW they handle replacements so it could be anything. theyll get it fixed soon though.

B1gC72 - PSN: KillaKornbread @ Feb 16th 2008 12:44PM

wow did anybody else look at the last link in the article?

http://www.gamedaily.com/articles/news/microsoft-responds-to-npd-talks-shortages/?biz=1

it list a bunch of stats showing how the 360 is kicking ass. i had already seen most of them but the one that caught me off guard was the one that said...

"Xbox 360 has 83 titles with a Metacritic review score of 80 or higher compared to just 42 for PS3 and 14 for Wii."

my question is, what the hell is the Wii doing? how does it have all those games out and only 14 of them received a Metacritic review of over 80? i mean im not a Wii hater by any means since i do own one but that just caught me by surprise is all.

ok, carry on then.

Kspraydad @ Feb 16th 2008 12:50PM

Being out a year longer will do that....

FidliousWong @ Feb 16th 2008 1:01PM

I think cheapy said it best on the last cagcast in regards to why Wii is doing so badly in the game quality department. It practically costs nothing to dev on and Nintendo isn't going to turn down licensing money... so the shit floods. the difference between PS3 and 360 is definately that year headstart though...

Fernando Rocker @ Feb 16th 2008 1:24PM

Hopefully, with the launch of WiiWare, the shitty retail games will be over... I mean, there are a lot of interesting announced WiiWare titles (Final Fantasy, World of Goo, Eternitys Child), but, that also means that games like Chicken Shot, Anubis, Ninjabread games, can be on WiiWare.

It's more convenient to developers... they save a lot of money. They don't need to pay distribution and stuff.

Everyone wins... they sell shitry games and low prices and we win by not having the game on retail (it's embarrasing to see Chicken Shot in a retailer)

FidliousWong @ Feb 16th 2008 2:15PM

Fernando, you assume much. WiiWare isn't even going to touch that problem.

Why? Mainly, it benefits those companies to be on store shelves. It costs them a little more to do things that way but it benefits them greatly to be in a market and taking up retail space where impulse buys occur regularly (read: bargain bins). Also, your informed consumers are NOT going to be very good victims of shitty software on the digital distribution market.

Crap wii games are not going to be solved with WiiWare.

Envoy @ Feb 16th 2008 12:39PM

Yeah if there is a shortage it's not the extent that the Wii is having. I can find a 360 for you in 5 minutes.

SoulBlade @ Feb 16th 2008 12:41PM

I think MS is trying to stew up false demand, much like what people claim of the Wii shortages. I also think they're trying to save face after the recent NPD numbers.

They're a multi billion dollar company with a product that's been out for 2 years now is it? How can they have shortages? Unless they're talking about certain models like the Elite, which I heard was near impossible to find anywhere.

David @ Feb 16th 2008 12:43PM

I can confirm that there was shortage for the xbox 360 in Quebec Canada. You couldn't find any xboxes in December and January. Though, Futureshop had a shipment just for boxing day, which sold out FAST. Since last week, Microsoft sent a lot of xbox 360 to stores and there's no more shortage. On the other hand, ps3 had a surge in demand since the release of devil may cry and it helped almost sellout the 40gb since for 429$ you get ps3 and dmc. a 30$ saving.