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Microsoft’s Big Mistake

December 9, 2005 by David Leave a Comment

Low Supply Shaping Up as Big Problem

An article on ABC New’s website goes over how Microsoft might have ruined its place in the Next-Gen console line-up by not producing enough consoles for those interested, and thus ruining the buzz, and sales fever they had built up with all of their marketing campaigns.

Analysts say Microsoft, which announced a goal of selling up to 3 million Xbox 360s by year’s end, may have missed a big marketing opportunity.

“On one hand, this was Microsoft’s opportunity to really take advantage of having the next-generation market all to themselves and not having enough product is a squandered opportunity,” said Ross Rubin, director of industry analysis for the NPD Group, which tracks the gaming industry. Rubin says that with Sony’s new Playstation 3 not scheduled to come out until spring, the extremely competitive console market was primed for the Xbox 360 to make a big splash.

But not having enough units to fill pre-orders, and lacking the consoles to stock stores in time for the holidays, may mean that when the PS3 is released, the 360’s head start is rendered moot.

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