Somini said:
It's clear you know nothing of making money! There is a reason these companies are stumbling over each other for every extra sale. |
kirby is actually right. believe it or not but MS and Sony already have sales projections for this year, next year and probably 5 years into their consoles life cycle. They have projections if they sell less, way less, more or way more than their desired sales. Their production line capacity is set up such that it is optimized to yield the maximum profit for them. Their produciton capacity is most likely able to meat their high end projections but with the rate of the demand, both cant keep up.
You would think that they are loosing sales because they are unable to meet demand, but in their eyes, they are already doing great even if they do not meet demand. They know that this kind of demand wont last forever and that they would eventually be able to meet all the demand as time goes on. Once demand levels down to its standard level, they will still be able to opperate with the minimum cost possible.
Think about it, if they opened/built/subcontracted a shit load of production lines just to meet current demand, what would they do with the factories they built/opened/subcontracted once demand levels out? they would be stuck with under utilized factories/subcotractors and will incure more cost. Its not like they can build a factory now and shut it down after a month, they can't even subcontract for a month since these things need training, set ups, special facilites etc and no subcontractor in their right mind will say, "hey, a month of produciton? why not?" that is just bad business.
