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Will Sony Or Microsoft Hold Back Supply To Increase Demand?

It's a common business tactic.

You increase consumer interest by actually decreasing supply. The idea is that when the consumer sees something that's difficult to get, he or she suddenly wants it (or wants it more). I'm convinced they practice this in mediocre restaurants like Olive Garden, where they tell you there's a 15-minute wait with 20 visible empty tables. Of course, they might not have the necessary staff but that could be intentional...

Anyway, do you think Sony or Microsoft will do this? Or do you think they're doing it right now? We keep hearing that major retailers are selling out of PS4 and Xbox One pre-orders, and this happened awfully quickly. I suppose demand is really that high and Sony and MS just can't keep up. But don't I recall reports that Sony would flood the market with plenty of PS4s this holiday season? What about that manufacturing report that said Sony would have 10-15 million PS4s available worldwide in 2013?

That sounds like plenty to me, and certainly enough to cover pre-orders for longer than a few weeks. Of course, they have no way of knowing precisely how many PS4 units will be available for sale this year, but they probably have a ballpark figure. I'm just wondering if both console manufacturers are milking the hype early, which is why we're hearing from places like GameStop and Amazon that launch-day PS4s and Xbox One are sold out.

Just a thought.

Tags: ps4, xbox one, sony, microsoft

7/10/2013 10:00:49 PM Ben Dutka

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Comments (25 posts)

WorldEndsWithMe
Wednesday, July 10, 2013 @ 10:36:09 PM
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I think Sony will provide as many as they possibly can and Microsoft will have to hold back to make it look like demand for their console is higher than it is, i.e. every place is sold out so it must be popular.

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White_Mocha
Wednesday, July 10, 2013 @ 10:51:30 PM

Agreed. Sony is making it clear that they want the top spot this time around. Flood the market and post numbers sold, but hold some back for the eventual marathon that is the console race.

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cLoudou
Wednesday, July 10, 2013 @ 10:57:17 PM
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Sony needs to have units available. Holding back stock seems to be a mistake that will just give up sales to the competition.

MS can afford to hold back like World said making it virtually seem like the console is in higher demand that what it is.

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Jawknee
Wednesday, July 10, 2013 @ 11:04:37 PM
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I hope not. I haven't preordered one yet. Sony told GameStop to take unlimited preorders so I don't think so.

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Kryten1029a
Wednesday, July 10, 2013 @ 11:05:56 PM

You might want to get cracking on that. The PS4 has been in short supply at retail for weeks. Unlimited wasn't actually unlimited and when I ordered mine about a month ago, I was told that they only had two available. You might get it, but it might not be at launch.

Last edited by Kryten1029a on 7/10/2013 11:07:38 PM

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godsman
Wednesday, July 10, 2013 @ 11:13:41 PM
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Sony did not race to match Microsoft's launch window, just to hold back their sales.

I really hope Sony takes the crown and possibly see some third party exclusive return. A lot of games just doesn't make sense on the Xbox platform.

Last edited by godsman on 7/10/2013 11:14:07 PM

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Temjin001
Wednesday, July 10, 2013 @ 11:17:12 PM
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I think every store will sell out of every console they're shipped because of desperation and the re-sale market. It won't matter what console it is. Ebay loves that time of year.

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WorldEndsWithMe
Thursday, July 11, 2013 @ 12:56:57 AM

Oh yeah, make me wish I had a few thousand extra dollas. Buy and resell on ebay when they are out.

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Temjin001
Thursday, July 11, 2013 @ 1:23:11 AM

I did that for PS2 and made bank. I just happened to have great luck and walked in upon fresh shipments. It was nothing planned. I did it twice and made enough to pay for what MY ps2 costed me. I know this is a common practice now. Outside of pre-sales and bundles retailers don't charge a premium for how bad someone wants something. Resellers know better. That's what I meant by the families with their kids getting new consoles. They bring home 10, or so, and post them all on ebay and pay for next month's rent just like that. It'll happen again. I'm sure.

Last edited by Temjin001 on 7/11/2013 1:23:23 AM

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Temjin001
Thursday, July 11, 2013 @ 1:34:38 AM

oh, yah, and get this. One of the PS2's I sold was to a dude on the east coast who was part of a radio station. They had a 'win a PS2' contest and didn't realize how in demand they were as they were sold out everyone where on that side. So when it came to time to cough up the prize they had to resort to Ebay to get a hold of one. They won mine for $535 =)

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WorldEndsWithMe
Thursday, July 11, 2013 @ 12:14:26 PM

haha

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bigrailer19
Wednesday, July 10, 2013 @ 11:19:21 PM
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Personally I think its a ridiculous business decision, and I am guessing Sony will do whatever they can to keep supplies available. I mean afterall the point is to get the consoles into homes not vice versa.

Fact of the matter is, for those that may be on the fence about which console to get, or those who just want a new console, this type of business practice can make the decision for them. And for those practicing it, well youve lost a sale.

Last edited by bigrailer19 on 7/10/2013 11:20:24 PM

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kraygen
Wednesday, July 10, 2013 @ 11:56:09 PM
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If amazon really is sold out of xbox one's than I would say it's fairly obvious that MS is already doing this.

I think in the meantime sony will be having a hard enough time trying to keep up with actual demand.

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Underdog15
Thursday, July 11, 2013 @ 12:00:46 AM
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I made 3 grand (well, 2 grand profit) on selling a PS3 pre-order a week prior to release. What happened then, and what happened with PS2, and XBOX360... there was a shortage... pre-orders sold for way too much... then the weekend before, national news comes on and says there won't be a shortage afterall.

Happens every time.

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PC_Max
Thursday, July 11, 2013 @ 12:06:15 AM
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Comes down to how many Sony has or is producing. What quantity they have contracted or promised to the various vendors on top of that. So it is possible certain vendors exceeded expectations and will have to back order from Sony and wait until the stocks come in.

Sony knows they are in a good position, upseting consumers with no stock... not sure it will work out for the good this time. They need to quench the dry thirst of the "need to buy" people out there before the peak interest wavers a little.

Keep Playing!

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WARxWOLF
Thursday, July 11, 2013 @ 12:39:53 AM
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i say let MS hold their cablebox as long as they want , gamers will buy ps4 instead . who wants to pay $100 extra for CCTV inside the house ?
lol

Last edited by WARxWOLF on 7/11/2013 12:41:26 AM

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ethird1
Thursday, July 11, 2013 @ 1:22:09 AM
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Sony will not. The 3rd party developers will whine until the cows come home if they do.

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xnonsuchx
Thursday, July 11, 2013 @ 3:44:07 AM
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I know for a fact that Nintendo did this with the Wii as I knew people who worked at Nintendo and knew their warehouses were packed with them while retailers were sold out.

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___________
Thursday, July 11, 2013 @ 4:43:58 AM
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WTF would they give the ok to take as many preorders as they can, to then restrict the number of units available on release?
common sense dude!
demand is through the f*cking roof, they dont need to resort to this to try get interest up.
will antivision restrict supplies of ghosts to try boost demand of that, even though its going to be the biggest selling game of the year, if not of all time?
what a stupid question!

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Troy Powers
Thursday, July 11, 2013 @ 6:38:42 AM
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The only time it makes sense to limit supply is when you want to increase price. Demand/Supply=Price. If you're not planning on changing the price of your product, creating false demand is stupid. For every potential customer that walks into a store and can't find your product, that's money lost and potential that said customer might buy your competitor's product instead.

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trumpetmon65
Thursday, July 11, 2013 @ 10:55:02 AM
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it's worked before, but one thing I do notice is that I haven't heard any stories about unsuspected shortages or some skirmish in Africa causing some sort of metal to be hard to get, or units being hijacked by Iraq. So I think overall the "shortages" will not be substantial.

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trumpetmon65
Thursday, July 11, 2013 @ 10:56:06 AM
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by the way, I think I may have stolen my avatar from someone who uses this site, if so let me know and I'll change it for the sake of lack of confusion.

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WorldEndsWithMe
Thursday, July 11, 2013 @ 12:15:51 PM

Haven't seen it before, I think you're good.

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Ultima
Thursday, July 11, 2013 @ 3:49:23 PM
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Sony would be foolish to do hold back supply to increase demand and, last I checked, Microsoft -can't- hold back supply because they're supply constrained as is. Not gonna happen.

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PHOENIXZERO
Thursday, July 11, 2013 @ 7:16:43 PM
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No, this idea of holding back stock to "increase demand or hype" is a fallacy, any supply issues will be legitimate. The moment they have stock "ready to ship" it's best to get it out because the moment it's sitting in a warehouse somewhere they're losing money. It's much better and profitable to keep the supply stream steady.

Last edited by PHOENIXZERO on 7/11/2013 7:16:59 PM

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