http://www.crn.com.au/News/73836,harvey-norman-synnex-to-distribute-microsofts-xbox.aspx

By Leanne Mezrani
14 April 2008 10:47AM
Tags: synnex | xbox | microsoft | ingram | micro

Microsoft has announced to retail partners that it has signed an agreement with Synnex to distribute Xbox consoles in Australia, effectively ending the exclusive arrangement with Ingram Micro, said Harvey Norman.

Luke Naish, general manager Computers and Communications at Harvey Norman has confirmed to CRN that Synnex will provide the retail giant with Microsoft Xbox consoles and other gaming accessories. Previously, Ingram Micro held exclusive distribution rights to Microsoft Xbox consoles in Australia since 2005.

“We’re waiting to see what the commercial terms are but I’m optimistic the Synnex proposition will be competitive. On the practical level there are good gains to be made for us as Synnex provides next day delivery. They also have local warehousing in Western Australia which gives our Perth stores immediate access to stock,” he said.

Naish speculated that Microsoft’s decision was most likely financially motivated. He added that the move may be part of a concerted effort to boost sales of Xbox in Australia.

“For Microsoft to decide to change distributors there must be good commercial reasons behind it,” he said. “Microsoft will make sure it achieves a result, it’s not going to sit back and let Nintendo and Playstation take over, it will come out swinging.”

While Synnex and Ingram will not confirm Microsoft’s plans, it is believed the changes will be implemented by mid-2008.

Intresting... very intresting, Microsoft is changing stratagies

Is this good or bad?

 Red 1:  There are shortages in West Australia?  That is how i understood this, if they are having problems with access to stock then how come we have not heard of this??

Red 2: Any word on exactly how?  This change seems to have no impact on competing with PS3 and the Wii. 

It increases competition and the ability to quickly allocate stock as needed. The impression I've got is that Australia at large doesn't have a shortage but they have had trouble getting pro's to stores in certain areas that sell out quickly.

 makes sense though i don't see this making much of an impact if this is all they did.

No I don't think it will have a huge impact on it's own. Its just another thing no. It all so goes a step further towards completely disproving that report that claimed Australian retail was on the verge of dumping the console.

Or the opposite?  maybe the old supplier didn't feel they were getting enough out of the deal? - not enough stock being shifted?  too much stock in warehouses generating no revenue? or a break down in the relationship (very common that kind of thing..) etc. etc.

In all likelihood, it's a combination of a number of factors that's lead to MS swapping 1 supplier for another supplier - with no noticeable change to the consumer and probably no great change for MS.

So there were shortages of XBOX 360 in Australia?

Like I said, I don't think there was ever a general shortage like in the USA, but I do think Microsoft was having trouble keeping certain areas fully stocked on a regular basis due to distribution problems.