Close
Are you sure? Are you sure you want to report this comment? I understand, report it. Cancel

Thompson: Kinect shortages are "absolutely not" engineered

Mon 06 Dec 2010 8:00am GMT / 3:00am EST / 12:00am PST
Hardware

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.

3 Comments

Vlad Zotta
Competitive Intelligence Advisor

13 0 0.0
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]

Posted:3 years ago

#1

Kevin Clark-Patterson
Lecturer in Games Development

292 27 0.1
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!

Posted:3 years ago

#2

Christopher Goodno
Studying Computer Sciences

12 1 0.1
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'.

Posted:3 years ago

#3

Login or register to post

Take part in the GamesIndustry community

Register now