kirby007 said:
outlawauron said:
kirby007 said:
outlawauron said:
Daffy said:
"Good thing that Sony is more concerned with Shipment numbers than sell-through, seeing as that they don't get paid for every PS3 sold, but every PS3 shipped."
Well in fact it isn't good thing. If you ship more consoles than retail dealer can sell-through, then you risk that all shipments will be canned and there will be huge discounts of you product when retail dealer warehouses are full. If you don't crush the price below all production costs or put total stop to production you have very VERY bad problem in your hands.
Motorola did have same situation when they did try to compete with Nokia in low cost mobile phone models and filled retail dealer warehouses faster than dealers could sell-through. that bad jugment make Motorola drop from second biggest mobile phone manufacturer to third...fourth...fifth...somewhere below all other phone manufacturers and they are still dropping. So NOT GOOD!!!!
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It's the same with MS and Nintendo. All they care about it shipping to retailers.
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all they care about is making money...
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Exactly. And they get that money from shipping their product to retailers.
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So they aren't losing money with every console they ship?
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What does that have to do with what he said?
Yes, they lose money with every shipped console, but what does that have to do with retailers paying them for the consoles? It's not that complex.
Retailers pay Sony for consoles, Sony ships consoles. Sell-through is irrelevant as they don't get their money from us, but from retailers. Yes, they lose money on every console sold, but that doesn't mean they don't get paid for shipping their consoles to retailers.
