supply
Latest
Sony says PS3 supply will be 'tight' over the coming months
We're guessing things won't quite rise to the level of shortages since during the Wii's heyday, but it looks like Sony is now sending a small word of caution to any potential PlayStation 3 buyers. As Joystiq reports, Sony's senior director of corporate communications, Patrick Seybold, says that while the company is working hard to meet consumer interest, "demand is tremendously high for the PS3 and we expect tight inventory in the coming months." As you'll recall, this follows some surprisingly strong sales for the PS3 during the holiday season (when it outsold the Xbox 360), although console sales in general expectedly slowed considerably down in January. As with Joystiq, we haven't yet heard any first-hand reports of the PS3 being hard to find at retail, but feel free to let us know in comments if you're running across any local shortages.
Nintendo: Replenishing Wii supply will be a 'challenge'
Nintendo has responded to Joystiq's inquiry into the current Wii supply issues, with Nintendo of America's Senior Director of Corporate Communications Charlie Scibetta telling us, "In the short term, replenishing Wii inventories will be a challenge." He continues, "But we are doing everything we can to satisfy consumers looking to purchase a Wii system." Analysts have already pointed out that Nintendo's console sales, despite being record-breaking, could have been stronger had there been more Wii to go around. What makes this situation even stranger is the report from early December that Nintendo actually reduced Wii production going into the holiday. For the astounding amount of success the Wii has brought Nintendo, there appears to be some serious cognitive dissonance between how much the company thinks it should produce of the console and the actual demand.
Patch 3.3: Fishing pool guarantees and what it means for the market
Wryxian has written a book on fishing over on the forums -- he originally responded to the thread with a quick link that affirmed in patch 3.3, you will never ever catch trash from fishing pools, regardless of your fishing level. If you put the bobber in a pool, you'll get what you're supposed to, no matter what (presumably to allow even low level players to do the fishing quests). But players have problems with that. First, there's the old issue of things always getting easier as the game changes -- people are complaining that they had to level with missed catches and trash, and those who level fishing after 3.3 won't. For that, I don't have a better answer than Wryxian does: that's just the way it works. The game is ever-changing, and most changes make things easier. That shouldn't devalue what you did before. The other issue is that this may destroy the fishing economy -- if even low level characters always get the fish they want 100% of the time, that means more fish in the market, which means any money high-level fishermen would have made off of rare fish will probably go bye-bye. But Wryxian says that's OK -- people will still use fish for themselves, and he believes that the pain of losing that AH sale will be solved by the bonus of always getting the fish you want. We'll have to see -- it's true that between the updates to cooking lately (and the future fishy updates we're expecting), Blizzard is making sure the secondary professions are much less exclusive, which means there has to be the balance of also making them less lucrative. Patch 3.3 is the last major patch of Wrath of the Lich King. With the new Icecrown Citadel 5-man dungeons and 10/25-man raid arriving soon, patch 3.3 will deal the final blow to Arthas. WoW.com's Guide to Patch 3.3 will keep you updated with all the latest patch news.
3GS shortages expected overseas due to demand
It's like Econ 101 with the iPhone lately, says our old friend Piper Jaffray analyst Gene Munster. Demand is high, supplies are low, and so shortages are apparently expected. Especially in international markets, there just aren't enough iPhones to go around -- Munster cites a fellow analyst's report that 3 Italia, the Italian company charged with selling Apple's smartphone in that country, is selling 20K iPhones, but could be selling many more if they had the stock to do so. Of course, they probably don't need to -- iPhone sales are already holding the company up above expectations, and Apple may even be figuring that a little demand never hurt anybody. Why sell a ton of phones when you're already selling more than you expected to? I doubt it's as mysterious as that (they probably expected to sell a certain number and it turns out there are more iPhone fans than they counted on overseas), but even if shortages happen, no one's going to be second guessing Apple's strategy. As far as straight results go for the iPhone, they haven't done anything wrong yet. [via 9to5Mac]
iMac, Mac mini supplies growing thin, refresh expected soon
Rumors of updated iMacs have been flying fast and furious lately, and now it seems like they're getting a bit of credibility -- AppleInsider says retailers, including Apple's own stores, have been told supplies of iMacs and Mac minis are "constrained" and that future orders will go unfulfilled. You heard that right -- the Mac mini, the red-headed stepchild of the Mac line, is now also officially on Refresh Watch. Combined with the rumors of revised and potentially cheaper plastic MacBooks and we're hoping Apple's about to get aggressive with its low-end pricing, but that's probably just wishful thinking. P.S.- Doesn't that seem like a lot of updates to dish out at once? The savvy rumor connoisseur would be expecting a couple random analysts to mouth off at this point, followed by whispers of an impending event and its cancellation due to "last minute issues." Gene Munster swirls his glass and predicts the MacBook will feature CableCARD slots and function as a DVR. Spring follows winter, winter follows fall.
Amazon says PS3 Slim already facing supply shortages, Sony disagrees
Been holding off on that PS3 Slim pre-order, waiting for Sony to tell you that this whole PS2 backwards compatibility issue was just a big misunderstanding, and of course Sony will keep trying its best to reintroduce PS2 compatibility into the PS3? Well, you might want to rethink that strategy, cowboy, because Amazon is warning of "shortages of this product across the US." It's already limiting Slim sales to one per person, and has a more lax five-Slims-per-person strategy in the UK. Meanwhile, Sony in Europe is saying not to worry, since it has "trucks and trailers" of the new console already on the road . We just don't know who to believe these days, but if you're not prepared to wait past September 1st for a crack at the Slim, you've got some deciding to do. Read - GamesIndustry.biz Read - MVZ
Wii shortage finally nearing its end, says GameStop exec
We never, ever thought it'd take this long, but we've finally received a sign that the Wii supply and demand might be nearing some equilibrium, almost two and a half years later. According to GameStop SVP Bob McKenzie, the retailer now has a couple weeks' worth of supply, which seems to be fairly unprecedented given the numerous shortage stories we've heard over the console's 852-day lifespan. That's not to say the console's popularity is waning -- it's still topping US sales charts, and according to NPD, pushed over 750,000 units last month. So now that one shortage might be nearing its end, how about Nintendo find a way to keep Wii Fit in stock?[Via Joystiq]Read - McKenzie on Wii supplyRead - February NPD figures
GameStop on Wii: 'Three years later, we finally have enough'
Three years and countless lives lost later, it appears that Nintendo's Wii has finally found equilibrium in the epic battle between supply and demand. GameStop SVP of Merchandising Bob McKenzie, speaking with embedded reporters from Gamasutra, expresses the company finally has enough inventory on the shelf, with at least a couple weeks worth of supply.As for software, McKenzie sees EA Sports Active being another hit for the console, stating that the pawnshop conglomerate was surprised by the popularity of Wii Fit. Although this talk of Wii sales equilibrium sounds lovely in March, that doesn't guarantee it'll hold true once the holidays come around. But, at least, the concept of balance in the Wii supply chain is a tangible idea after all these years.
Cheap Blu-ray players a rare commodity in Europe
Blu-ray Disc sales may be up a staggering 396% in the UK, and the BDA may be bullish about BD's success in Europe as a whole, but Europeans looking to buy in cheap as we Americans have recently been able to do may be out of luck (for now, at least). According to a new report from Reuters, "a scarcity of cheap Blu-ray players combined with the effects of a recession are expected to delay take-up of the Blu-ray format in Europe." It's suggested that supply issues earlier in the year could mean that those relatively cheap BD decks in the US may not make their way to Europe before the big holiday shopping season. Screen Digest analyst Richard Cooper even went so far as to say that these factors "[could mean that] the format is unlikely to move much beyond the early adopter market this year." Granted, no one really anticipated BD going from niche to mainstream by the time CES 2009 got going, but a scarcity of affordable players sure won't help matters.
Analyst sez iPhone 3G production could fall 40% in Q4
No clue if you've been paying attention the past few months, but quite a bit of belt tightening has been going on. Granted, Apple's been making out just fine, but a fresh report from the doors of FBR Research asserts that it may be cutting its Q4 iPhone 3G production in the wake of a global spending slowdown. It should be noted that a 10% cut was already on the table, making this 30% larger than anticipated. According to the report, the firm's reported decision to scale back production "suggests that the global macroeconomic weakness is impacting even high-end consumers, those that are more likely to buy Apple's expensive gadgets." As we restrain ourselves from thanking Captain Obvious, we should also point out that this may not be nearly as big a deal as the numbers make it seem -- maybe it overshot Q3 production in order to guarantee 100% service levels in all markets, for instance. How's that for analysis?[Via Silicon Alley Insider]
Nintendo cranking on Wii production for the holidays, still making no promises
Hard to believe, nay, mind-boggling, that two full years after Nintendo launched the Wii in America we're still looking at shortages. In the midst of "economic turmoil," no less. Back in April, Reggie Fils-Aime proclaimed that he was "passionately upset" about the difficulty consumers were having in finding Wii consoles, and now that yet another holiday season is upon us, it's clear that he's made some changes. In a recent interview with the Los Angeles Times, he admitted that Wii production was up from 1.6 million units per month (during this time last year) to 2.4 million units per month (now), though he wouldn't go so far as to say you'd have an easy time finding one. In fact, he stated that "once you see [a Wii console] on the shelf, you ought to buy it." Also of note, those still scouting a Wii Fit may be in luck, as the Big N could decide to ship more units to America rather than Europe now that the greenback is gaining strength versus the euro. Good luck hunting -- we'd recommend you start looking, um, yesterday.Update: Looks like Ninty's already turning up the burners -- that's a heretofore-unbelievable shot of Wii stock at reader Roberto's local Best Buy in West Paterson, New Jersey.[Via GameDaily]Read - Reggie Fils-Aime interviewRead - Analyst's take Wii Fit shipments
Reggie: Wii production up; holiday supply might not meet demand ... again
So sayeth the immortal Pete Burns, "You spin me right round baby, right now, like a record baby, round, round, round, round." In an interview with Los Angeles Times, Nintendo of America President Reggie Fils-Aime has hinted that, yet again, the supply for the Nintendo Wii might not meet the demand this holiday. The Regginator (a nickname noted in the article) said that production is up 33% over last year, from 1.6 million consoles per month to 2.4 million. We've talked about Wii shortages once or twice before. "One of our competitors' projects," he said (we're thinking he meant Sony), "they will sell 10 million consoles worldwide this year. For us, that's three months of production." By his numbers, it would actually be closer to four months, but when you're dealing with multiples of infinity all day long, math tends to get a little fuzzy. We still find it hard to believe that there's still potential shortages after 708 days, but the sales numbers seem to suggest scholars will need to create a new number system for sales calculations.
App Store Trends: Prices race to the bottom
Last spring, TUAW asked how much you would pay for iPhone software. Well, it looks like $0.99 and $1.99 are the new $39.99 and $49.99 as far as mobile distribution goes. The App Store bucked the trend of high-priced phone software and now is ratcheting those prices down even further. Developers are responding to high application supply and dwindling demand by lowering their prices across the board. As the App Store novelty wears off and consumers forget about once-"hot" items, the typical price tag continues dropping. Games that cost $9.99 at launch are almost universally $4.99 and less. Apps like Koi Pond proved that $0.99 can generate a lot of sales. Short term sales are quickly being eclipsed by long term price drops. We typically get our tips about upcoming price changes directly from developers; 148Apps has introduced a automated price drop detector. As the App Store continues to evolve from "get rich quick" to make money slowly, devs are working to find that sweet spot -- charging enough to earn a living but not so much that they aren't out-competed. Based on these downward pricing trends, I expect ad-supported apps to really start taking off soon, the way they are doing in the jailbreak world. If developers can't build their revenue stream from charging higher prices, they may turn to alternative monetizing models instead.
Gamestop VP says Wii supply will be 'much, much better' this holiday
We're getting some conflicting viewpoints on the Wii supply this holiday season from Gamestop's upper management. While CEO Dan DeMatteo is of the mind that there is no end in sight for Wii shortages, one of the company's vice presidents is telling us a different story. It's VP of Merchandising Bob McKenzie, to be exact, and he thinks that things this holiday will be ""much, much better than it has been the last two years."McKenzie elaborated further, saying that he can't guarantee they "will be in stock every day throughout the holiday season," but feels confident that the "current flow we've seen coming from Nintendo on Wii hardware" will help them meet their business model. Some of our readers point out that they see Wii consoles sitting on shelves collecting dust all of the time, but what about areas with dense population such as major cities? Will they be seeing some relief finally? We guess we'll just have to wait and see how things go in the next couple of months.[Via Joystiq]
Gamestop VP: Wii supplies looking 'much, much better' for holidays
Remember way, way back (two weeks ago!) when GameStop CEO Dan DeMatteo said there was no "near-term end in sight for Wii shortages"? Well, one of his employees, VP of Merchandising Bob McKenzie, seem to have a decidedly different take on the problem, telling MTV Multiplayer's Stephen Totilo that the Wii supply situation this holiday season will be "much, much better than it has been the last two years."While not directly contradicting his boss, McKenzie seemed much more hopeful about the supply of systems for the crucial months ahead. "I can't say we will be in stock every day throughout the holiday season," he said, "but I can tell you that the current flow we've seen coming from Nintendo on Wii hardware makes us very confident that we will meet the business model that we've got."What's a potential Wii owner to do with these conflicting messages? We recommend playing it safe by taking a large tub of beef jerky and a few gallons of bottled water to your nearest GameStop and refusing to leave until you get the thin, white system you crave. It's a foolproof plan -- but when the police ask, tell them you came up with it yourself, OK?
Gamestop CEO: Wii shortages have no 'end in sight'
GameDaily recently sat down with GameStop CEO Dan DeMatteo to discuss, well, things that a CEO of a huge company would discuss. What is of note to us Wii enthusiasts, however, is his grim outlook for the future. He doesn't see store shelves stocked full of Wii consoles anytime soon, unfortunately. "I don't see a near-term end in sight for Wii shortages, not unless they really ramp up supply," DeMatteo said. "I think they've ramped it up 20 percent or so, but Nintendo is fairly cautious by nature. They ramped it up 20 and it's still evaporating."This is only one man's opinion, but based on how much money he probably makes each year, we're sure his estimate is better than ours. So, for you holiday shoppers that have someone on your list asking for Wii, better get to hunting one down now. In little over a month, we're sure they're going to be a lot harder to track down.
Making/Money: Economic Equilibrium is MIA
When I first started playing MMOs I was in college. I'd bounced from major to major but ultimately settled on Economics (from a starting point of Medieval and Renaissance Studies - how'd that happen?). Like other economists in games like EverQuest and Ultima Online, I was thrilled to find a lively economy and interested to apply classical economic models in the study of it. The most basic of these models is the typical supply and demand curve. Any economic model starts with price and quantity. The higher the price, the more suppliers want to sell but the less consumers want to buy. As the price decreases, more consumers are interested in purchasing, but fewer suppliers are able to produce profitably. In theory, there is a magical level in the middle where supply and demand meet. That is equilibrium (see graph). What I have since found, which is furiously debated by other economists in the field, is that the typical supply and demand curves do not fit well with the economies of most MMORPGs these days. Depending on the game, add-ons used, and availability of additional market data, there may be sort of invisible caps to the price, and thereby the quantities, of goods traded. Furthermore, auction house fees and vendor sales act much in the same way as taxes or subsidies in real world economies.
iPhone 3G shortage could last for a month
Contrary to other analysts' rosy comments about Apple's supply chain, Gene Munster from Piper Jaffray is estimating that shortages in the supply of iPhone 3G handsets will last until mid-August. Munster said that he'd wager "we'll see problems for another two to four weeks," adding, "early demand has been more than [Apple] expected." Apple's own supply-checking tool reports that a little over a quarter of Apple Stores had iPhone 3Gs to sell today. The hardest model to find is the black, 16GB version. It was available in only 18 stores worldwide. AT&T stores are also "nearly out." [Via Macworld.]
Nintendo says the Wii well is 'nowhere near dry'
How long the Wii will remain a rupee-making juggernaut remains a question for debate, though according to Nintendo corporate communications director, Charlie Scibetta, players will continue to nurse tired limbs in their living rooms for some time."As long as publishers and our own first-party teams are able to get good use out of the technology that's there to make gameplay experiences people will like, it's going to be a legitimate console," he told us, adding that "the well is nowhere near dry in terms of what this console can do." Unfortunately, one thing the console can't seem to do is stay on store shelves, though he spun the scarcity as best he could, stating simply that "we're just trying to get as many out there as quick as we can."
What happened: AT&T on iTunes activation problems
CIO.com interviewed AT&T spokesperson Mark Siegel, who confirmed that Friday's activation server outage was due to massive worldwide demand. This may not come as a surprise, but it's the only official comment we've heard. "The iTunes software appeared to have been so overwhelmed by demand [Friday] that customers were not able to go through that final stage and sync their iPhones," Siegel said. Apple has not commented on their servers' performance on Friday. Nor have we learned any more about the other great mystery: the details behind the rocky MobileMe transition that lasted Wednesday through the weekend. The CIO article also discusses Apple's physical supply chain for the iPhone 3G, and how it performed for the rollout. Analyst consensus: top notch. "Good job to Apple for mastering the physical supply chain so well that you have this high-profile launch and your problems are not on the physical side -- you have product in stock," said Kevin O'Marah, chief strategy officer at AMR Research. [Via Reddit.]
