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manny10032 said:
Post from someone on gaf. Thought id share with you guys.

Baron_Calamity
Baron_Calamity
Member
Today, 12:48 PM, Post #165
For everyone saying this is no big deal, you gravely do not understand modern manufacturing. Before I begin, I'm just talking about manufacturing realities, the console is probably going to be fine. I work in IT for a place that does manufacturing internal and external so I have some perspective on this.

Manufacturing plants aren't just some willy wonka magic fantasy place. Production lines have to be specced, assembled, staffed, and set in motion for a predetermined speed for a predetermined about of time. There isn't a speed adjustment. If you want to produce less of something, its a costly retooling of the entire line. Unless you can somehow fill production arms with similar product, say like Apple did with the Ipad 3 by fitting in the very similar Ipad 2, this is a worse case scenario. This is more costly oops than the red ring of death. Most of the time, when a product isn't selling at the rate it was expected, companies will just warehouse the extra. if they don't sell, then eventually they clearance the inventory out because even warehouses cost significant money over time. Another option is just destroy the extra inventory as it comes of the boat and hope demand picks up so you can stop doing that. Those options are still cheaper than going to the manufacture and asking for less product or even stopping production early.

When a company asks a manufacture to stop or reduce production two things are likely going to happen. The company will have to pay the manufacture for all unproduced units even though they weren't produced nor will be delivered. The manufacture will then charge significantly more to produce any future units at less quantity. They may even be an extra fee on top of that because why not? Also the manufacturer may refuse to work with you on future products


Quite the eye opener!