[quote name='SS4Brolly'][quote name='epobirs']I suspect the shortage of PS2 and Xbox over the holidays isn't due to production problem but rather to the two companies becoming very conservative about manufacturing outlays.
Both companies have big investments going into their next generation, giving incentive to keep inventory to a minimum. On Microsoft's side, they've succeeeded in establishing a brand and becoming a serious player in the console business but there is no question that the Xbox is going to see any massive gains in installed base for its remaining life. All three systems have peaked in terms of rate of sales. Since this is a heavily subsidized piece of hardware it is better to limit inventory and insure that all units made are quickly absorbed by the retail channel and sold through.
Sony has the opposite situation. Their future installed base growth for the PS2 series is limited by its massive success. While the PStwo should continue to be sold for several more years Sony has to tie up a hell of a lot of capital in getting both the PS3 and Blu-Ray off and running. Keeping PS2 stocks to a minimum frees up capital while continuing to grow its base to the extent it is still possible.
Both companies may lose a few sales here and there to consumers buying a GameCube instead but at this late stage in the generation that is unlikely. Certainly not enough to improve Nintendo's situation with their console. For most shopper the three systems aren't interchangeable. The Gamecubes are seasy to find in stock for the same reason Nintendo's profits are down severely.
http://www.latimes.com/business/la-fi-nintendo27jan27,1,7829889.story?coll=la-headlines-business[/quote]
Thats understandable, but there's a fine line between keeping low inventory and no inventory.
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According to Sony's figures they shipped half a million more machines for Q3 2004 than they did for Q3 2003. The difference is that they started 2004 with a lot of inventory in the stores but 2005 with nearly all inventory sold. Their down revenues appear to contradict this but that likely has more to do with the PS2 sellthrough peaking in 2003. The shipments of the old style PS2 stopped sooner than most people realize due to the amount of time it took the clear the existing stock from the channel in preparation for the new model.
There has been a lot of whining about how difficult it was to get a new PS2 this Xmas but the fact is that this has been overstated because the squeaky wheels are the ones that get heard. It would be a different story if Sony had to worry about the competition catching up but that race ended a long time ago for this generation. Given the choice it is a far better thing to have your demand exceed supply than the other way around. Having your product perceived as hard to find makes it easy to resist calls for lower pricing. Once the initial engineering and production tooling costs are recovered the PStwo will be the first model of the PS2 line that doesn't sell at a loss. This means Sony can still enjoy good net revenues while gross revenues are down.
http://www.gamesindustry.biz/content_page.php?aid=6489