Notice how the people that say "Hey, we've got plenty of 360s here!" are always from New York or L.A. or some other well-populated area? Just because Long Island and other relatively affluent well-populated areas have 360s doesn't mean there isn't a shortage. If the Walmart in the middle of Oklahoma's back country doesn't have them, it's a shortage. And don't forget how HUGE a player in retail Wal-Mart is, and think about what communities they are typically located and most influential.
If you are supply constrained, it means you are going to send the 250k units you DO have to well populated areas that consume lots of electronics - towns of 500k+ rather than towns of 8k, right? You're going to put the limited supply in front of the most people to make sure it's sold through.
When you replenish the inventory, you stock the middle of Wyoming and you aren't constrained any more.
