Meeting Xbox One Demand "Will Be a Struggle," Says Microsoft

[StewShearerOld]

Meeting Xbox One Demand "Will Be a Struggle," Says Microsoft

According to Microsoft's Phil Harrison, the company is doing everything it can to "accelerate" the production of Xbox Ones.

Following the launch of the PlayStation 4, Sony assured eager consumers that the company would be able to supply retailers with enough of the console to give gamers who didn't get one on launch day at least a "sufficient" chance of finding it over the course of the holiday season. That being the case, with the Xbox One now on the market and presumably selling well, Microsoft doesn't seem able to extend the same guarantee.

"Our job on a tactical level is to ensure we get enough supply to retailers and customers as we possibly can to meet demand, and that will be a struggle but we are doing our best," said Microsoft's Phil Harrison. "There will be difficulty getting stock through until Christmas but we will do everything we can to accelerate that." While Harrison's statement is somewhat vague on how thin Xbox One supplies are going to be stretched, it's a notably less confident statement than the one made by <a href=http://www.escapistmagazine.com/news/view/129780-PS4-Supply-Will-be-Sufficient-For-The-Holidays-Says-Sony-Exec>Sony's Andy House who complimented the "good production ramp up" and "sense of supply" accompanying the PS4. "I think that we will be in good supply in the countries that we've launched in," he said.

Granted, this could all just amount to little more than different tones and levels of rhetoric. Despite Sony's claims of a proficient supply there are stories emerging of retailers selling out their stock of PS4s. That being the case, we'll just have to wait and see how well the two companies are able to get their consoles back on store shelves in the coming weeks. Either way, if you already have a PS4 or Xbox One, consider yourself lucky.

Source: <a href=http://www.mcvuk.com/news/read/harrison-we-will-struggle-to-meet-xbox-one-demand/0124777>MCV


Permalink

 

[Hawkeye21]

Well, sure, it's not like they have whole well-paid consultant divisions to make estimations on demand and plan supply chains well in advance. Because Microsoft is a small and relatively new company, right? It's not like we can expect a lot of them. It's not like insufficient supply can create a sense of urgency to push people into making purchases based on pre-holiday hype, and not on an informed choice.

 

[enex]

It's really funny once you look past "[big corporation] media message" facade and
realize how big motion and research in behind it.Yet message is trying to to convey
something entirely different.In short they are trying to have as for idiots.

 

[Guffe]

Hypotetically, which would be worse?

Sony not having enough in store to support the demand, after saying they have sufficient PS4s.
or
Xbox selling worse than they anticipate and everyone who wants a new Xbox gets one.
??

I mean, is the "anticipated loss" of money for microsoft or the empty promise of Sony a worse thing?

 

[rofltehcat]

Wait, wasn't there a news post, a month or so back, stating that they could manufacture a ridiculous amount of them? Back then everyone expected them to drastically oversupply all major retailers if I remember correctly.

 

[AzrealMaximillion]

They reduced their "worldwide" release down to 13 countries. They honestly should not be having supply issues. Working in a retail superstore I can tell you guys, we got 48 PS4s for last week's launch. We got 4 Xbox One's for today...

 

[Battenberg]

Hypotetically, which would be worse?

Sony not having enough in store to support the demand, after saying they have sufficient PS4s.
or
Xbox selling worse than they anticipate and everyone who wants a new Xbox gets one.
??

I mean, is the "anticipated loss" of money for microsoft or the empty promise of Sony a worse thing?

The XBone not selling would be worse by far, it's much harder to increase demand than to simply produce more stock. Plus aside from anything else anyone who's desperate to buy a console at launch will inevitably get over any broken promises from Sony and end up buying one as soon as they are available again.

Frankly this just amazes me, Microsoft have already shot themselves in both feet as faras the XBone goes so far with arguably the worst launch announcement in console history. Now they're pointing the gun steadily at their own crotch by failing to make sure the people that actually want the console will be able to get one.

 

[BloodSquirrel]

Well, sure, it's not like they have whole well-paid consultant divisions to make estimations on demand and plan supply chains well in advance. Because Microsoft is a small and relatively new company, right? It's not like we can expect a lot of them. It's not like insufficient supply can create a sense of urgency to push people into making purchases based on pre-holiday hype, and not on an informed choice.

Thing is, it makes very little sense to wait until you can over-deliver on units to launch. Production and supply chains are things that are going to ramp up slowly, and there's no good reason to wait until you have more units available than people want to buy to start selling them. All three consoles last generation were supply-constrained months after launch.

Especially when you consider the front-heavy demand for consoles at launch- if you've got enough production to satisfy launch demand, then you'll be producing far more units than you can sell two months later when the holiday season is over and the early adopters all have theirs.

 

[Slash2x]

I live in a University town... When I went to my local Gamestop and Walmart this morning, they both have MANY Xbones on display and not a single PS4.... They guy at Gamestop even joked about me buying an Xbone instead of a PS4. When I told him no, then he said "yeah nobody wants to buy theses things. They just want to know when we are getting more PS4s"

 

[Neurotic Void Melody]

Haha. Why am i getting a hint of the lonely guy during lunch break banging on about how he has no free time cos all the girls keep ringing or txting him? Yeah yeah microsoft. EVERYONE's rushing to get your console, you couldn't possibly catch up with their demands...oh you over-cool beast! If only their were two microsofts to deal with all this enthusiasm!
Ok, i could keep that sarcasm up all day, but if they do speak truth, then all i have to say is; For fuck sake, get your arses in gear! If you are supposed to be one of the richest, largest companies around...then adjust to meet this erm...demand you speak of. I'm sure cash and resources aren't an issue for these people

 

[Arawn]

They reduced their "worldwide" release down to 13 countries. They honestly should not be having supply issues. Working in a retail superstore I can tell you guys, we got 48 PS4s for last week's launch. We got 4 Xbox One's for today...

Initially I thought this reduced market was due to functionality. They had said the kinect wasn't going to work properly in certain regions. As such I figured they'd have a larger supply for the smaller release window.It's troubling to hear that they're struggling make more. Was there a lack of units to begin with? It's been said once, but I shall say it again: this is very much like the PS3 launch.

 

[Crimsonmonkeywar]

I live in a University town... When I went to my local Gamestop and Walmart this morning, they both have MANY Xbones on display and not a single PS4.... They guy at Gamestop even joked about me buying an Xbone instead of a PS4. When I told him no, then he said "yeah nobody wants to buy theses things. They just want to know when we are getting more PS4s"

Oh wow, if you told me that just 6 months ago I would have laughed in your face, but now.....it's just weird.

Also, I find it interesting that Sony continues to claim that have plenty in stock, but it seems every store is claiming otherwise. Where as MS is claiming to 'keep up with the demand', but there doesn't really seem to be a one. I know family members and friends that are hell bent on getting a PS4, but not one interested in the X1, well maybe one(your stereotypical casual XB fan), but he hasn't purchased one yet. Again, weird...

 

[Strazdas]

They reduced their "worldwide" release down to 13 countries. They honestly should not be having supply issues. Working in a retail superstore I can tell you guys, we got 48 PS4s for last week's launch. We got 4 Xbox One's for today...

maybe they looked at pre-orders and expected the PS4/X1 ratio to be the same?

I live in a University town... When I went to my local Gamestop and Walmart this morning, they both have MANY Xbones on display and not a single PS4.... They guy at Gamestop even joked about me buying an Xbone instead of a PS4. When I told him no, then he said "yeah nobody wants to buy theses things. They just want to know when we are getting more PS4s"

hence why microsoft said they are going to "have units on the shelve for holydays". thats becuase noone is going to buy the stock.

Initially I thought this reduced market was due to functionality. They had said the kinect wasn't going to work properly in certain regions. As such I figured they'd have a larger supply for the smaller release window.It's troubling to hear that they're struggling make more. Was there a lack of units to begin with? It's been said once, but I shall say it again: this is very much like the PS3 launch.

There were rumors that they had problems and faulures with their attempt to cut corners with GPU design which cost them a lot of time and hence manufactured copies to fix, therefore they simpyl didnt have enough supply and decided to cut some countries out claiming it was kinect problem (because you can launch in 7 English speaking countries and suddenly in the 8th the kinect does not support language therefore we cant sell you the console.).