“Retailers are calling for a price cut on the Xbox platform. While being faced with some heavy critism from retailers, Microsoft is standing firm on hardware allocations.
It was announced a few weeks ago that the worldwide launch of the Microsoft Xbox 360 was going to be more difficult than expected. As a result, retailers have reacted to their low initial hardware allocations.
In the announcement some weeks ago, Microsoft’s UK regional director Neil Thompson explained to the MCV that allocating was going to be tight, atleast for day one. Thompson further explained, “we absolutely are going to replenish before Christmas. I could make the whole world or the UK wait four months or I could satisfy some of the demand on day one. That’s what we chose to do. You’re damned if you do, you’re damned if you don’t” Thompson said to the MCV.
From the sounds of it, it does appear that many people are going to be disappointed until the end of the year. Thompson, however, emphasized that the Xbox 360 is not the only option for retail this Christmas. Thompson believes that retail will have a great season and that retailers should be looking at how they can cross-sell the original Xbox platform (Now wait a minute. Sell the former Xbox platform? Did Thompson just say that?)
Some retailers are calling for an Xbox price cut on the old platform. However, there is concern that Xbox will underperform this Christmas without a price cut, and speak concerns for the future of Xbox as the value will decrease as Xbox 360 is releasing.
Get ready for a tight Xbox Christmas season this year”