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Microsoft’s Big Mistake

December 9, 2005 by David

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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