Manipulating Supply and Therefore Demand

Friday, 13 October 2006 at 5:00 am Pacific USA Time.

In early September, Sony announced that although they had promised to ship 2 million Playstation 3 units to the US for holiday sales this year, they’d only be able to ship 400,000.

I’m not going to bother pretending I’m surprised. Obviously, this is meant to create even more of a fever and buyer insanity over the "limited" numbers that will be available. People will kill themselves in stores, and probably bid the thing to twice the retail price on eBay.

This is one of those situations where Sony will be pleased and those who have one to sell will be pleased, but consumers will be frustrated and overspending. These tricks are one of many reasons I do everything I can to avoid buying anything made by Sony.

Did the Playstation 3 really need this? Was buzz waning? Did the geeks, schoolchildren, and general population of our country stop wanting this item? Even at 2 million units, I think people would have gone bonkers. That would have been 2 million sales to Sony rather than 400,000.

Then again, will any of us REALLY know how many Sony ships and sells? They could say 400K and then ship 3 million, and watch them all sell like mad. Truly mad.

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Categories: That's Bad Marketing

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One Response to “Manipulating Supply and Therefore Demand”

  1. PS3 Froum says:

    The main problem with this sales tactic is that people who cannot wait end up paying well over the odds. Sony don’t benefit from this so I don’t see why they bother.
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