Yield, production problems... being thrown around a lot it would seem in the time that I haven't been around and honstely, everything I've read about is is plain stupid.

No one can really say that MS is having yield/production issues unless someone who works there comes out and say it.

Also, to clear things up, supply issue is not the same as produciton issues/yield issues

Say MS' factories has a production capacity of 50,000 Xbox One units per day (this came out of my ass by the way). We don't really know what their acceptable yield is but, for the sake of the discussion, lets say that their daily target is 95% with a variance of +-5% of factory capacity, so their acceptable yield/production is 45,000 - 50,000 units. If MS is producing 47,000 - 49,000 units per day, then they are within their standards and therefore they DO NOT have produciton/yield issues.

Production/yield isseues would arrise if they are not able to produce units within their set limits. Say, they have been outputing only 40,000 units/day, then they have issues/problems.

Supply issues on the other hand is, as hopefully everyone here knows, is not being able to meet demand due to MS not being able to produce more units. Say, the demand for Xbox One is 60,000 per day, and since thier produciton capacity is at max only 50,000, then they DO HAVE supply issues.

Also, to address the strategy argument that its stupid for MS not to ship to this and that territory and so on and so forth because they ahve production issues blah blah blah... that argument is plain stupid.

MS has marketing and research teams that have already studied all of the supposed terrirories that they were suppose to release in. With the knowldege that they can only supply so much units, then they have to cut some countries from the launch. Obviously, they would be launching in the countries that they have found, based on their marketing reaserch, will yield the most sales. Frankly, its a good move by MS to only focus their available stocks in the countries where in they know that they will sell well or even sell out of their shipments. It wouldn't make much sense to divi up their available stocks just to include the other countries that they believe will not really gouble their Xbox Ones up. If they did that, then the US and the other countries that really want the Xbox One will have even less stocks and will have even more supply issues while the countries that are just so-so will have stocks liying around not selling.

None of us really know if Sony can make more PS4s as compared to MS and the Xbox One, but one thing is clear. In the countries that both consoles launched respectively, there is very high demand and everything that they ship out is selling out fast.

Now, please quit it with the produciton issues/yield problems equating to supply and demand... since you know, clearly, there is great demand for both and both do not have the supply to address the demand.

The more you sell...the more you make.........Only selling in 1 territory versus WW is never a good thing.

how do i make more money if making one xbox one more costs more due to setting up another production line?

this is better worded then i even could and pretyt much spot on!

with only one but if we believe current vgc numbers it looks like sony can make more ps4s (2.1 mil(timeframe production?) vs 1.5 mil( timeframe production?)) ( sony started the production earlier then microsoft? )

Too bad for Greece... I wonder when it will launch there. Few people care though... Greece is Sony-land

WTF does this have to do with anything?

this is the core of making money

It's clear you know nothing of making money!

There is a reason these companies are stumbling over each other for every extra sale.

But if the other contries/territories are Sony land...and if these territories/countries have a history of not really buying your product, like Japan, then there really isn't any point of prioritizing these territories is there?

Its sales/marketing basics. Sell where there is high demand first and worry about other places later. Its like opening a Mcdonalds...do I open one in the US or do I open one in Vietnam? Obviosly, our market is the US, then open there first, and Vietnam afterwards.

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.