PS3 in Stock, Already: Demand Low

[Master of Ossus]

Ouch.

With the 2006 holiday season firmly behind us, all "next-gen" consoles are out of the gate and running. Sony has announced that the company has shipped 1 million PlayStation 3 consoles and says that they are on track for their European launch in March. Now that the mad holiday rush is over, however, Sony's challenges are just now mounting.

Without a doubt, the PS3 launch was something to behold: news stories of insanely long lines, fatal shootings and occasional muggings made it clear that in the early days, getting a PS3 was darn near impossible. Many saw the PS3 as pure eBay gold. Reality has set in, however. Suddenly PS3 speculators can't unload their units on eBay for a profit. Gaming blogs have started joking that the PS3 excels at collecting dust on shelves. Has demand really died down that quickly? We decided to find out by checking stores in the Cincinnati and Boston metropolitan regions.

The results are unambiguous: the PlayStation 3 is in stock, almost everywhere. In Cincinnati, there were PS3s at multiple Wal-Marts, GameStops, and Circuit City stores. The numbers went from only one system at the first Wal-Mart store to 15 at the second; everyone else seemed to have under ten units, mixed between the 20GB and 60GB models. If you want to buy a PS3, it's simply a matter of going to the right store or ordering from Best Buy or Circuit City online, both of which have them in stock, ready to ship. The same can be said for the Xbox 360, which is also available everywhere we checked. The Wii, on the other hand, has been sold out everywhere, with vague rumors of another shipment in the next few days.

One retailer spoke to me on condition of anonymity, and broke down his version of the situation. "It's not that we've gotten more PS3s than Wiis, it's just that no one wants them. We've seen a few returned. We have four in the store right now," he said. He also told of people coming in with multiple systems and no receipts, looking for cash back after their eBay listings failed to gather attention. "If you told me that I would have PS3s to sell and that I won't be able to get enough Wiis back in October, I would have laughed at you," he went on. He also detailed a memo from a regional vice president telling managers to put up a hand-written note telling customers that the PS3 is in stock.

Without any clear numbers outside of the 1 million shipped in North America, it's hard to say if demand for the PS3 is cooling or if supply is simply catching up. Recall that it wasn't until spring was nearly here last year that Microsoft was able to meet the initial demand.

It's not the case that the PS3 isn't selling well, however. One store manager revealed that they have sold 24 of 28 launch units, and most others who would talk to us told similar tales. Sales are strong; they're simply not as strong as many expected and a few even hoped.

The rush for the PS3 is over, and now it's up to Sony to get the games and updates needed to put the PS3 back in the minds of gamers to move this inventory. This is a marathon, not a sprint, but the widespread availability has to be troubling to Sony. When the "sold out" stories quickly become "inventory stacked to the ceiling a month later" stories, shareholders may become somewhat unsettled by how strong the competition has become.

[DPDarkPrimus]

The grey market has collapsed, and so only those who actually want to play the PS3 are buying them.

Which is... not many.

Someone stated before on a message board that the number of Wiis and PS3s sold couldn't be compared because it was a matter of every unit made was selling. But now we know that this isn't true with the PS3.

Notice that Sony continues with the practice of giving numbers of units shipped, and not units sold, like everyone else.

(Saw a couple dozen PS3s at a few stores last week myself.)

[Darth Wong]

I saw someone returning a PS3 at Sam's Club today in Toronto. She must have been really impressed.

[Vympel]

I'm surprised those poisonous little eBay sellers though they could still turn a profit this long after launch.

[Praxis]

I'm surprised those poisonous little eBay sellers though they could still turn a profit this long after launch.

What's with the anger against eBayers? They spend the time nobody else is willing to to obtain the system, if people are willing to pay the high prices for it then they earned it, if people aren't, then the eBayers took that risk.

[loomer]

Praxis. Imagine you lined up for twelve hours (Likely more) in freezing cold weather.

Then imagine some bastard buying twelve of whatever you planned to buy, just so they can turn a profit. They won't even keep one to enjoy it.

Wouldn't you be a little angry?

[Chris OFarrell]

I agree.

Sony release the PS3 as a machine people buy to play games. They use the distribution system of the various retail chains to get it to the public for that purpose, at a price they determine is the best compromise of price vs availability. People go to buy a system on launch day for that price, often only to find that someone else has taken said system, for the only purpose of reselling it for a far higher price. In short, real customers are being denied in favour of people who are going to force that person to pay twice the price.

And yes I know it takes two to get that market going, the person who brought it and a person willing to pay for it, but its frankly nothing but scummy price gouging and I have absolutely no respect for people who engage in it. And only marginally more for people who are willing to pay that much. But it means the REAL customer who has been waiting for their console which Sony or Microsoft or Nintendo promised at this price must now either wait longer for a replacement console or pay twice as much for their old console.


However I'm sure Praxis will see it rather differently as he engages in said practice. Then again, I have nothing but glee for the people who got fucked when the E-Bay market crashed.

[Ritterin Sophia]

Ebay should make it against their policies to sell a console before the demand dies down to a certain extent.

[Darth Tanner]

In defense of the eBay price gougers they only exist because people are willing to pay the higher prices, banning them will do nothing to remove the large numbers of people stupid enough to pay their prices, it will simply move the trade off of eBay.
People who lined up for 12 hours just to get a console need a drink.

[Ghost Rider]

Yeah, it's pretty funny. A few of the Gamestop's and EB's in my area won't tell consumers when they get a Wii, just that they do or don't have one in stock. Every day they get Wiis they sell them out within a few hours.

They have a sign saying "PS3 in stock" because they have 5-6 of them already(one store I know has 15), and they might sell one that day...might.

[Stravo]

I'm a Playstation guy since the PS1. Love my PS2 and my daughter and i play it every time she's over. I had my reservations about the PS3 as soon as I heard rumors of the price before its launch. When it launched worse fears confirmed and I decided to wait until the price plunged before buying it.

Then I started reading and seeing stuff about the Wii. My daughter loved playing the demo version at the local ToyRUS and now I've decided to scrap getting a PS3 altogether and will be picking up a Wii. This from a guy who turned up his nose to Nintendo stuff, never owned any iteration of a Nintendo console and I was aboslutely wowed by the Wii.

Trouble is I haven't been able to find one since the launch. I thought after the Holiday launch I'd be able to waltz in and buy one at my local electronics store. Sorry.

It's frustrating but also sort of vindicating that I'm not off on my own liking this console. PS3's are sitting on the shelves in some of the places I've looked for a Wii but no Wii's indicating to me at least that many people have been won over by the whole Wii concept.

[KrauserKrauser]

Same story as Stravo, minus the originally considering a PS3 part.

I've been looking every week for a Wii and have as of yet come up empty everytime.

I did pick up Guitar Hero II during the search and that is filling the gap until the mythical Wii appears in stores.

[Bounty]

Trouble is I haven't been able to find one since the launch. I thought after the Holiday launch I'd be able to waltz in and buy one at my local electronics store. Sorry.

It's been a month since launch. Today, I checked three stores - the answer was the same every time: no stock, all ordered Wii's are spoken for and the next shipment won't arrive for three to four weeks. Two of the clerks reassured me that they're badgering Nintendo for new units but the production and shipment just can't keep up.

This is *literally* the very first Nintendo product that I could not find anywhere. And I've bought Nintendo consoles on launch day *without preorders*.

And I wasn't even the only one hunting for a Wii; at least two other people asked for it while I was in the store. It's madness.

[KrauserKrauser]

Honestly, it's getting a bit frustrating.

I got a game for the system for Christmas but haven't been able to play it for the lack of a system.

You would think they would be able to meet demand at some point.

Sadly, that point might not be for another 3 months or more.

[Bounty]

Honestly, it's getting a bit frustrating.

I got a game for the system for Christmas but haven't been able to play it for the lack of a system.

You would think they would be able to meet demand at some point.

Sadly, that point might not be for another 3 months or more.

They're trying, but I think even Nintendo were taken by surprise on this one. Honestly, when's the last time people were hunting for a non-GB Nintendo console this badly? 1992?

[KrauserKrauser]

Well they need to try harder God Damn it!

My copy of Zelda doesn't like it when I shove it into my PS2.

[Bounty]

Well they need to try harder God Damn it!

My copy of Zelda doesn't like it when I shove it into my PS2.

Today, I came *this* close to folding and buying the GC version. Then I remembered I wanted to swing a sword.

[Sharp-kun]

Well they need to try harder God Damn it!

My copy of Zelda doesn't like it when I shove it into my PS2.

Just return it and get the cube version, you won't really miss much.

Wii is tempting but other than Zelda (which I have for the Cube) the only games that interest me are multipayer, in which case I just ask a friend to bring theirs over. It needs more good single player games.

[Uraniun235]

Praxis. Imagine you lined up for twelve hours (Likely more) in freezing cold weather.

Then imagine some bastard buying twelve of whatever you planned to buy, just so they can turn a profit. They won't even keep one to enjoy it.

Wouldn't you be a little angry?

I'd be angrier over the fact that I was apparently so retarded as to freeze my ass off standing in a line for several hours for a game machine, let alone one with such a shitty launch as the PS3 has had.

I really don't have much sympathy for those people.

But I especially wouldn't care about them not keeping one to enjoy for themselves, because it doesn't matter; they've got that particular unit, and I don't, and that will never (likely) change, so I'm never affected by whether they take their machine and play it or sell it or smash it or forcibly penetrate it. It's theirs to do with as they please.

Sony release the PS3 as a machine people buy to play games. They use the distribution system of the various retail chains to get it to the public for that purpose, at a price they determine is the best compromise of price vs availability. People go to buy a system on launch day for that price, often only to find that someone else has taken said system, for the only purpose of reselling it for a far higher price. In short, real customers are being denied in favour of people who are going to force that person to pay twice the price.

And yes I know it takes two to get that market going, the person who brought it and a person willing to pay for it, but its frankly nothing but scummy price gouging and I have absolutely no respect for people who engage in it. And only marginally more for people who are willing to pay that much. But it means the REAL customer who has been waiting for their console which Sony or Microsoft or Nintendo promised at this price must now either wait longer for a replacement console or pay twice as much for their old console.

Oh that's right I forgot that you were entitled to get a PS3 on such a date at such a price. Silly me.

Look at your word choice: "[console manufacturer] promised at this price", "pay twice as much for their old console". I could be wrong but I'm pretty sure Sony never promised you could have a PS3 for $600USD on some given date, they just said the first units would start to be sold by then at that price at certain retail outlets. Nothing more. It's not yours yet, and anyone who buys one can do whatever the hell they want with it, including sell it off to someone who's willing to shell out a thousand dollars just so they can have one at the earliest possible time without having to stand in line for twelve hours.

Maybe it's just me but it seems to me like there's a serious undercurrent of entitlement that seems to run through a lot of the posts slamming the eBayers.

However I'm sure Praxis will see it rather differently as he engages in said practice. Then again, I have nothing but glee for the people who got fucked when the E-Bay market crashed.

You know, just because someone argues that an action isn't wrong doesn't mean that that person engages in said action themselves. I fought (and lost) a huge thread over wireless network security arguing in favor of wireless network intruders while having never engaged in the activity myself.

Ebay should make it against their policies to sell a console before the demand dies down to a certain extent.

On what grounds? Did I miss the bulletin wherein speculation was declared inherently evil?

[Max]

PS3's demand may be low, but at least it won an Emmy. *cries*

[Darth Wong]

On what grounds? Did I miss the bulletin wherein speculation was declared inherently evil?

It is economically non-constructive. Somewhere, at the root of all economics, somebody has to be producing something in order to generate wealth, hence the importance of productivity. Pure speculation moves wealth around, often with profound benefits to those who know how to manipulate circumstances, but it doesn't actually generate a penny of wealth for society at large. It is a parasitic economic activity.

[RedImperator]

Praxis. Imagine you lined up for twelve hours (Likely more) in freezing cold weather.

Then imagine some bastard buying twelve of whatever you planned to buy, just so they can turn a profit. They won't even keep one to enjoy it.

Wouldn't you be a little angry?

You're free to buy it at the market price, as opposed to the MSRP, on eBay. It's not like he's buying them so he can throw them down a hole. If you wanted it enough to freeze for 12 hours when you could have just waited a few weeks and gotten it anywhere, you want it enough to pay above MSRP. Otherwise, you're just whining.

If this was food or antibiotics, the anger at the speculators would be justified. But a game console is a luxury. Nobody needs it. If someone has to wait to get one because speculation has driven the price out of his range, that's too bad. I'd like to own a Cadillac, but those are out of my price range, and unlike PS3 buyers who got beaten to the punch by speculators, the price of them isn't going to fall in the next few weeks.

And besides all that, most of the speculators got hosed. Even if you are mad at them, now's the time to lean back and enjoy the schenfreude.

[Master of Ossus]

On what grounds? Did I miss the bulletin wherein speculation was declared inherently evil?

It is economically non-constructive. Somewhere, at the root of all economics, somebody has to be producing something in order to generate wealth, hence the importance of productivity. Pure speculation moves wealth around, often with profound benefits to those who know how to manipulate circumstances, but it doesn't actually generate a penny of wealth for society at large. It is a parasitic economic activity.

But these people are providing an actual service by standing in line for 12 hours. Just like during the Oil Crises of the 1970's, when there were long lines for gasoline and some people whose time was very valuable instructed their secretaries to wait in gas lines for them. It's just transferring who has to do the waiting involved to make up for the shortage that Sony's price created in the opening days and weeks of the release. They are actually generating for society by accepting the drain on their own time that others would have to pay for. It's just like someone paying someone else to wait in line for them to get a system.

[atg]

One of my relatives tried to get a Wii last weekend, the store she went to said that based on their orders/reservations on them as compared to how many they are getting in every week, it would be 6 months before she could get hers.

Apparently there are a lot of stores in Adelaide with the same situation.

[Stravo]

Frankly, no game system is worth spending 3-4 times its cost just to have especially with the meager offerings out there right now in terms of game selection. I'd prefer to wait the few weeks or months for it to become avilable at the usual price or hell even later on when the price inevitably comes down. I was happy with my PS1 until the PS2 came down to something like $200 2 years back. I refuse to be gouged for something that will inevitably become available.