Sections

Thompson: Kinect shortages are "absolutely not" engineered

UK general manager unequivocal that "these things are never managed"

Neil Thompson, the general manager for Xbox in the UK and Ireland, has put an end to any rumours that Kinect shortages may have been managed to stimulate demand by making the product appear more sought after.

The shortages, he told GamesIndustry.biz, are entirely down to the vast logistical challenges involved in bringing a new consumer technology product to market worldwide Microsoft has done everything it can to ensure a continual supply of stock to retailers.

"Anyone who actually works in the business of producing new technology, especially hardware technology, will know that these things are never managed. Everyone else loves to think that they're managed, but they will know it's not. It's a function of coming to market with a brand new innovation and you have to scale up," said Thompson.

Previously, Don Mattrick had warned US consumers to order their Kinect units early to avoid disappointment, as Microsoft were anticipating stock shortages before Christmas.

This led some to believe that Microsoft was controlling the flow of hardware to retailers in order to accentuate demand an accusation which has also been levelled at both Nintendo and Sony in the past. Thompson, however, made clear that any large-scale technology launch will have to make compromises on available units in order to meet release schedules.

"The choices you always have are: do we launch in November or do we wait until February, March when we could hit some bigger launch numbers but then we miss Christmas. So you're always in this fine balance, saying 'well, we want to give people the product as soon as we can, but you can't switch on the manufacturing like water.' It takes time to scale."

"It's absolutely not a strategy, we want to get the product into consumers hands as quickly as we can because we think its exciting, it's innovative. We wanted to do that for Christmas and that's what we've done. We've built a really strong supply and resupply chain over the coming weeks."

Thompson was speaking as part of an interview with GamesIndustry.biz on the future of the Xbox 360 on its fifth birthday.

Also in the room was UK Xbox marketing manager Stephen McGill, who made the point that Kinect had seen a very accelerated release schedule worldwide, eschewing the staggered strategy which many manufacturers adopt.

"Often consumer electronics companies and games companies have staggered their launches by territory by some quite considerable margins. With Kinect we launched around the world in three weeks. That was a huge task. No region is being penalised," said McGill.

"We're trying to make sure every region has a good amount of stock every week. That can't be underestimated either."

The full interview wiht Thompson and McGill can be read here.

Related stories

110,000 PS4 and Xbox One machines sold in the UK last week

Xbox One price discounting and PS4 Pro launch boost sector

By Christopher Dring

Is HoloLens a consumer gaming device yet?

Microsoft's Leila Martine on why games developers should consider HoloLens today

By Christopher Dring

Latest comments (3)

Vlad Zotta Competitive Intelligence Advisor 6 years ago
I've written about possible shortages a month and a half ago, before Pachter or anyone else ever thought about it. Here's the proof:

[link url=http://gamaganda.net/2010/10/27/npd-group-searching-for-a-victim/
]http://gamaganda.net/2010/10/27/npd-grou...[/link]
0Sign inorRegisterto rate and reply
Kevin Clark-Patterson Lecturer in Games Development, Lancaster and Morecambe College6 years ago
I think most of it came from shops i.e. Gamestation/Game who were being really pushy at the till saying things like "We've nearly sold out" or "Have you got your Kinect yet? Be quick they're selling fast"

Bearing in mind we have only seen retail sales figures which were impressive but no mention of customer sales figures, which when/if we seen those then this can/will be put to bed once and for all!
0Sign inorRegisterto rate and reply
Christopher Goodno Studying Computer Sciences, University of Maryland6 years ago
Having a resupply method, meaning stock on hand to distribute from a local warehouse, is a way to manage in-store shortages. The few you send sell out quickly, you claim they're selling like crazy due to shortages, and next week you give the stores a few more to sell. Rinse, repeat. It's all about keeping an air of greater demand than supply on a continual basis.

I knew it was 'managed' when they, in the same day, claimed high demand and shortages due to said demand after ~1m in sales and then also upped their Holiday sales estimate to 5m. This means they have enough supply for the Holiday to sell up to 5m, likely closer to 6m. Yet, they claim shortages? How so? 4m boxes don't magically get produced, boxed, shipped, and sent out to retail in less than a month.

And, honestly, having someone say it's not managed doesn't put anything to rest, it just means they're saying something that could also have been 'managed'.
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.