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Smashchu2 on 27 May 2010
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thismeintiel said:
Smashchu2 said:
thismeintiel said:
@ smashchu

The article you posted mostly proves me right. Their source says that a defensive strategy was "partly" the reason. Then he goes on further to explain how much MS could profit with the X-Box brand if they were to defeat and drive Sony out of the console market. On a smaller note, this is from the mouth of an analyst, not a MS exec.

You can post definitions from Wikipedia all you want, but that doesn't refute the fact that demand for the PS3 was higher. This latest fiscal year, Sony shipped 13 mil consoles, 3 mil more than the previous FY. If demand had stayed the same, 13 mil would have been more than enough. But, even with 3 mil more consoles shipped, it wasn't enough to keep a steady supply in stores.

As for the shortages on Amazon, they only just got those a day or 2 ago. When I posted my first message on here a day before that, they were only selling them from Target. It had been like that for weeks. And before that, they were selling them from WWD. Amazon themselves got a shipment more than a month ago and were out within a week or 2 (during that time PS3 was #1 in sales in the video game category), and were sold out until now.
  • It was someone interviewing a Microsoft excecutive. The 360 is a defensive strategy
  • Oh Geez, you've got to be.......look, the fact is that demand is not increasing becuase price is decreasing. Think of it this way. Consumers don't want it more. They've always had this current demand for PS3s, but they could not realize it due to price barriers. When Nintendo releases software like New Super Mario Wii, people want Wiis more and will be willing to pay the same price for a greater quantity. All Quanity Demanded is the quanity sold at a set price level. When you lower price, you increase the quantity and this is quantity demanded. So far, Sony has never had an increase in demand
  • They had stock since your first post. I checked.

Nah, I think it's just an excuse for PS3 not lightin' up the charts like the industry wants and expected.   I do believe that there were definitely shortages created by holiday demand.  But for us to be well into May (almost June) and Sony still can't keep up with "demand" is a little too ridiculous.  The industry is just being apologetic towards Sony like it usually is.

It's hard to refute that when we see it all the time. Analyst bend the truth to make it look better then it is (Malstrom has pointed out a lot of them).

Two things make your theories invalid.  One, the Wii did have a price cut.  It happened not too long after the Slim's launch.  It was mostly a defensive move since the Slim was still beating every other console WW on a weekly basis.  But, after the Wii price cut sales jumped again for the Wii.  Of course, I could say it has nothing to do with what the Wii has to offer and just point to the price cut.

Second, and probably most important, the 360 is the exact same price as the PS3.  Actually, the 360 has a SKU that is $100 dollars cheaper than the PS3.  And yet, the PS3 has still been beating the 360 on a weekly basis.  How is that if, by your way of thinking, the PS3 is only being bought now because of its price?  Why isn't the 360 being bought just as much, or even more with a $200 SKU?  The fact is with new quality games being released and the features that come free with the PS3, demand has gone up for it.  You can sell you HW for as cheap as you want, but if their is no demand it will fail.  Just look at all the other console failures from the past.  They lowered their prices to raise "quantity demanded", but it didn't work.

And for anyone to think that this gaming industry favors Sony, is just a showing of bias on their own part.  To even think this you would have to have ignored most of '06-'08, when many people were talking about the failure of the PS3, and how it would cause Sony to have to leave the console market.  Some companies, most notably Valve, refused to even think about developing on it.  It was only after the successful launch of the Slim that many started to get on board.

On a final note, it looks like Amazon has already run out again.  You can get a PS3 on there, but only of you want to pay WWD $360.  Looks like Target ran out, as well.  Looks like Best Buy finally got a shipment.  We'll just have to wait to see how long that lasts.

Are you seriously trying to argue an economics concept? Your Econ teacher would try to choke you over this.

First paragraph neglects New Super Mario Bros Wii and Wii Fit Plus. Those did a lot more. To the second paragraph. Yes, if the two systems are at the same price and one sells more, that one has a greater quantity demanded than the other. The only thing is like last time, the PS3 was beating the 360 and then dropped down. It's likely to happen again so we'll wait and see.

And no, the game industry loves Sony. Try to find a bad thing said about Sony from any journalist or analyst. They only say bad things if they also say something good about the 360. You can find plenty of "Nintendo is doomed," stuff, but never a Sony is doomed. Go on, try it.

What I'm saying is when demand for a product is higher or if it is low supply for what the demand is the price of a used product gets closer to the price of a new if not going above it and some secondary retaillers just outright charge more than the MSRP like ones that sell through Amazon.com.  Why would people pay more than the msrp of a product unless they have some difficulty finding it?  Because the demand at the price available is higher than the supply.  Thus a shortage. Mostly a self made one by sony but a shortage all the same. 

Not sure what you were trying to get at here. Most of your sentenses are run-ons. Please use more periods and commas.

A shortage is when demand exceeds supply. If Sony supplies too little, than there is a shortage. If people buy them up too fast, than there is a shortage. The used market does not create a shortage. Supply and demand in this case would focus on the first hand market. The used and new market can be interconnected and one be dependent on the other, but we look at a shortage though the first hand market, not the second one.

Back to seeing what the demand is.   How do we know how much demand changes because of price vs how much it increased because of other changes in demand?   We don't really know.  we know the ps3 is selling more yoy most are probably from a change in price but can anyone say for sure it's all of them?  No.  Now if sales are still up yoy once we reach a year after the price cut it would be pretty clear demand is up beyond that from the price change. 

 It's common sense. If sales went up on this date and there was a price drop on that same day, it's becuase of a price drop. The only way it wouldn't be price is if it's elasticity of demand is perfectly inelastic (or close too it). This means no matter the price level, the market always demands the same quantity.

But let me ask you this. If you don't think it was the price drop, then what caused it?