Stocking mad
Retailers cope with small Xbox 360 shipments
By Tina Benitez -- Playthings, 4/1/2006
More than five months after the launch of Microsoft's next-generation console, some stores still have nil, or very few, Xbox 360 systems in stock. For Toys “R” Us stores nationwide, the demand is still very strong for the Xbox 360 systems, and, unfortunately, the stock has yet to be replenished on a regular basis, the retailer says.
“We pre-sold a limited amount of Xbox 360 systems in all Toys 'R' Us stores and online at Toysrus.com during the system's initial launch in November,” a TRU spokesperson tells Playthings. “Since then, we have been selling the system on a first-come basis.”
Nintendo and PS3As for future next-gen consoles, Nintendo Revolution and PlayStation 3 (PS3), due out later this year, TRU is planning ahead to make sure there will be enough consoles to go around. “We are working with both Sony and Nintendo to secure the best allocations possible for all of our stores during the launch of their next-generation consoles,” says the TRU spokesperson. “However, whenever a new platform launches, the initial demand is always greater than the available supply. The marketing hype generated by the manufacturers creates huge demand at launch.”
While TRU will be aggressively promoting the new consoles in store, there are no current plans to advertise or promote current or upcoming Xbox 360 games or consoles until they are available again.
Sean Harris, Electronics Boutique store manager in Los Angeles, says they have not decided what to do about advance demand for the Nintendo or PS3 systems, but they currently have a chain-wide 360 promotion running. All consumers can trade in their old Xbox games and get 20 percent off per game on any new accessory or new game for Xbox or Xbox 360. If they trade in two games, they get a new one for free.
All in the gameThis particular EB store is almost done with their 360 waitlist and has been receiving small shipments of the consoles on a regular basis. “We aren't taking any pre-orders at this time, but with the small shipments, we are just getting rid of as many as we get in.”
A Microsoft spokesperson tells Playthings that the company is doing what it can to provide supply for the demand.
“Our process is to continually supply the channel. Competitors have traditionally shipped units into the market for launch and then re-supplied many weeks or months later. Continually supplying the channel is good for retailers and consumers, because it provides predictability. Any time you release a hot product with strong pent-up demand like the Xbox 360, you are going to have challenges. We have been managing through those challenges and will continue to do so. We are in continuous contact with our retail partners and our plan is to replenish retail supplies as often as possible.”




















