OctaBech said:
Rath said: Sony will likely reach it if they stuff the channel in March. Otherwise I don't think it's likely. |
Quick question, what is meant by stuffing the channel, is it possible for Sony(MS and Nintendo) to force the retailers to buy and stock more than they expect to sell, especially in these troubled times?
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They can't force retailers to purchase more than they normally would, however they can throw in little sweeteners to retailers to encourage them to increase their order size, say maybe a $10 price cut per unit on orders of a certain size, or throw in a game discount that retailers can then use in their own bundles. End of the day it costs Sony money to stuff the channel, so Sony would need to work out whether it would cost them more to miss a sales target (cost would be in their share price) or to encourage retailers to purchase excess stock, at the expense of future shipments