GameStop's DeMatteo: Xbox 360, Wii Supply Problems Possible, Less So For PS3

As part of a larger interview with Gamasutra, GameStop CEO Dan DeMatteo says that the video game retailer could possibly see hardware shortages for both the Xbox 360 and Wii this holiday season.

"I think Microsoft is having a hard time keeping up with demand on the $199 Arcade system," says DeMatteo, who believes that brisk sales for the cheapest Xbox 360 model will prevent any further price reductions in the near future, no matter the economy's condition.

"Same way with the Wii," he adds. "While we’re in stock, and we believe we’re going to be much better off than before, I think the Wii still has a chance of being a sellout this year."

Nintendo of America president and CEO Reggie Fils-Aime recently predicted that the company, with Wii production up 33 percent over 2007 at 2.4 million consoles produced per month, will be able to keep the system on shelves, commenting, "I think we've got a good shot at meeting [Wii] demand during the holidays."

As for the PlayStation 3's probability of receiving a price cut, DeMatteo notes, "Given the economic environment, [the PS3] is clearly pricey." The lowest priced PS3 model retails at $399, significantly more expensive than the $199 Xbox 360 arcade model and the $249 Wii

"That $199 price point is striking a strong chord with the economically-strapped consumer," he says. "I would have to say Sony eventually will drop the price -- I just don’t think it's going to be anytime real soon."

You can read the full in-depth interview with GameStop CEO Dan DeMatteo, which includes the company's plans for adapting to the economic downturn, his thoughts on music games seeing "softer" sales this year, and more.

http://www.gamasutra.com/php-bin/news_index.php?story=21219

when I said arcade sales are easly 50% of the sales

... I was maybe not that far ?

Well, maybe you could not be that far if it wasn't supply constrained. ;)

If Nintendo will fail to supply enough Wiis this Christmas, then the Arcade will take away a huge chuck of their potential customers.

With the Arcade selling out, it proves that price is king, and not having a plethora of extra functions.

Going into this generation, we saw the opposite - X360 Core Units (at $300) were in the vast minority of 360 sales - somewhere around 10%. Likewise, the 20GB Playstation 3 (at $500) was also a disaster for Sony.

Now, it's the exact opposite. The Arcade is selling out, and all indications point to the Arcade moving between 35-50% of all SKU sales in the United States - up from 15-20% the year prior. Likewise, the feature-less 40 & 80GB Playstation 3 have become the de-facto standard in the Sony stable.

So again, it shows that price has been a determining factor in a system's ability to move. I am glad that Microsoft slashed the prices on the Arcade, and are getting rewarded for it.

Well I hope they have enough on Black Friday as I'll be picking one up for a Christmas gift.

Ironic that, given the dramatically increased Wii supply this holiday, some people might go to a store to buy an Arcade and walk away with a Wii when they find stock is depleted.

Also, it's impressive that there are two consoles on the market which might see supply constraints this holiday. Recession, LOL?

I still see ms fazing out the current core/arcade the next year for the pro at 199, or giving the arcade a 60gig, with pro 120, elite 240

GO MICROSOFT!!!

What are load times like with this thing?  Not when first starting up your games, but say between levels/areas when no one wants to wait for 3 seconds, much less more.