All purpose Sales and Sales Rumours and Anecdotes [2021 Edition]

[goonergaz]

Because people seem to look at data through blinkers, the Wii was weak h/w Switch is weak h/w but sold loads, XB1X (most powerful console) didn’t sell loads = power isn’t important to a large chunk of gamers.

Microsoft think make most powerful and cheapest consoles available and it’s win/win.

Common sense dictates bar a complete car crash, this gen would reflect roughly the same as last gen due to digital lock-in and BC.

 

[Nesh]

Because people seem to look at data through blinkers, the Wii was weak h/w Switch is weak h/w but sold loads, XB1X (most powerful console) didn’t sell loads = power isn’t important to a large chunk of gamers.

Microsoft think make most powerful and cheapest consoles available and it’s win/win.

Common sense dictates bar a complete car crash, this gen would reflect roughly the same as last gen due to digital lock-in and BC.

Obviously XBOX Series S isnt selling by the truckloads either even though its cheaper and weaker.
Its a combination of performance, games and features.
Wii captured the hearts of a new market because it was different.
The WiiU sucked in the market.
The Switch would have been another WiiU if it wasnt for the performance it offers as a handheld/console hybrid

 

[goonergaz]

Obviously XBOX Series S isnt selling by the truckloads either even though its cheaper and weaker.
Its a combination of performance, games and features.
Wii captured the hearts of a new market because it was different.
The WiiU sucked in the market.
The Switch would have been another WiiU if it wasnt for the performance it offers as a handheld/console hybrid

Yes, I agree. WiiU offered nothing new and Switch is also selling to the massive Nintendo portable market.

 

[Johnny Awesome]

The time for the XSS to shine has not really arrived yet IMO. We'll see what happens. I believe we are still now mostly in the hardcore gamer phase of the generational transition.

 

[eastmen]

So I've checked big boxes by me

as of this posting

Target has zero in stock for outright purchase. I can have Game pass all access financing $25 a month and get one shipped to me.
Best buy is sold out for both shipping and in stores neat me. I have to travel about 30 miles to east hanover nj to get one
walmart currently has it in stock to ship and all access to ship
Gamestop seems to have it as an all access purchase and refurbished.

Here in the USA they still aren't easy to find and the holiday hasn't really started yet. We will see how stock is during the holiday. But I suspect its going to sell very well for them. I don't think microsoft cares how much over msrp they go for , they care how many are in peoples hands.

 

[Deleted member 11852]

Shipping costs to NA

Which explains that spot rates (that's where you need to move something unexpectedly) skyrocketed. This is in part due to a number of factors but the biggest spike coincided with the reduction in air freight, which is generally a good side gig for larger aircraft already moving passengers. Passengers stopped flying, air freight slowed then ceased in some places altogether putting pressure on surface transport who ramped up prices. Quoting your linked article:

"French container shipping company CMA CGM, the world’s third-largest ocean carrier, announced last week that it will halt all spot rate increases through 1 February 2022 in order to prioritise its long-term relationships with customers."​

Moving consumer goods from plants in Asia to customers worldwide are those long-term relationships. Sony manufacture an insane number of random products that get shipped globally and likely have 5 or 10 years contracts. Microsoft too.

Companies with long-term contracts - because they ship predictable umbers of items day-in-day-out have not been impacted much in terms of costs, only in available volume - which is find when you can't manufacture enough items anyway.

 

[Dr. Nick]

Yes, I agree. WiiU offered nothing new and Switch is also selling to the massive Nintendo portable market.

The WiiU was basically the precursor of the Switch and it was certainly offering something new for its time along with the Nintendo first party lineup. Many of those first party games ended up being ported to the Switch. It was offering something that none of the other manufactures were offering still lost. Nintendo's bet on that hardware did not workout but it was certainly unique for the time and new. I'm surprised that people are saying that it wasn't.

 

[goonergaz]

The WiiU was basically the precursor of the Switch and it was certainly offering something new for its time along with the Nintendo first party lineup. Many of those first party games ended up being ported to the Switch. It was offering something that none of the other manufactures were offering still lost. Nintendo's bet on that hardware did not workout but it was certainly unique for the time and new. I'm surprised that people are saying that it wasn't.

Ok, I oversimplified. Nothing new that people wanted. Just producing something new is not enough - there has to be a need for it. Wii widened the gaming market by getting 'everyone' involved and Switch gives you good portability and 'good enough' power to give you an 'all in one' solution to 'continue games on the move' as well as 'simplifying' the controls again. There are many more reasons for console success and failure, timing and reputation along with the price, power and USP.

In the end WiiU was overpriced, under powered and offered no USP to make it a success.

 

[Johnny Awesome]

DSoup, you're wrong about shipping costs. They are 2 to 3 times what they were before. Even for Sony and Microsoft. It's part of my job to know that.

I'm not sure how many units they can get into a container, but they are paying at least an extra $8k per container. Which is likely $5 per console.

Not a show stopper, but still $50 million for Sony, for instance.

All rough estimates...

 

[Deleted member 11852]

DSoup, you're wrong about shipping costs. They are 2 to 3 times what they were before. Even for Sony and Microsoft. It's part of my job to know that. .. ..Not a show stopper, but still $50 million for Sony, for instance.

You say this but none of Sony's financial statements make any reference to "shipping and handling" (as Sony phrase this in other reports) - particularly their 2020 annual report. At all. Everything other COVID-19 triggered cost adjustment is covered in detail and shipping isn't mentioned.

What does that tell you? Most likely that Sony in the middle of a fixed-cost transportation contract. ¯\_(ツ)_/¯

 

[Johnny Awesome]

Maybe, but it depends on when that contract runs or ran out.

 

[Deleted member 11852]

Maybe, but it depends on when that contract runs or ran out.

Sure, and that's true for everybody. The article posted was about the blip in spot rates, not the type of long-term contracts that you would expect Sony to have.

CMA CGM said they would "prioritise its long-term relationships with customers." which will be companies like Sony, Samsung and other big global shippers. Shipping companies aren't going to crank the costs for those customers because they have been good customers in the past and they'll want them as good customers in the future. In services, you have take the rough with the smooth, which may mean sometimes eating some profits or taking some losses to keep your good customers as customers tomorrow. If a big customer walks, you may not be able to fill that massive capacity with spot orders so you're moving vessels under capacity and losing money.

 

[Shifty Geezer]

Shipping companies aren't going to crank the costs for those customers because they have been good customers in the past and they'll want them as good customers in the future.

Hmmm. Why are shipping companies nice like this unlike, kinda every other service provider?! Insurance - hike up prices for existing customers. Telecoms? Fab deals, but only for new customers. Why aren't 'shipping containers' on GoCompare/CompareTheMarket?!

 

[Deleted member 11852]

Hmmm. Why are shipping companies nice like this unlike, kinda every other service provider?! Insurance - hike up prices for existing customers. Telecoms? Fab deals, but only for new customers. Why aren't 'shipping containers' on GoCompare/CompareTheMarket?!

I think you have mis-read the article iroboto posted, because it's a testament to how the shipping industry have been cranking up costs for smaller and occasional shipping clients because demand outstripping supply means the predictable mercenary commercial response, and it's nothing to do with actual costs of doing business.

If you're wondering why these rules don't apply to bigger companies with long-term contracts, consider that around 85% of the total surface shipping capacity is provided by the ten biggest shipping companies, and their capacity is vastly consumed by about 60 global companies. A big client driven away means a massive loss of revenue, which you simply couldn't replace - basic logistics of dealing with one big customer is simpler than dealing with 3,000 smaller customers - so capacity goes unused and that means losses.

Yeah, it's basic greed. Big customers getting a better service in any industry is nothing new.

 

[iroboto]

right. Amazon and other companies like that; products shipping from China not only is extremely expensive but the time to deliver goods is months.

Whereas, big customers that are delivering normally, like consoles, the price point hasn't officially changed for retailers (except those looking to gouge), and stock comes in monthly.

 

[Shifty Geezer]

I think you have mis-read the article iroboto posted...

Didn't even read it. This wasn't obviously enough of a joke for you? "Why aren't 'shipping containers' on GoCompare/CompareTheMarket?!"

 

[Deleted member 11852]

Didn't even read it. This wasn't obviously enough of a joke for you? "Why aren't 'shipping containers' on GoCompare/CompareTheMarket?!"

There's nothing funny about shipping containers, dammit. They've serious things for serious people. So are the ships that ferry them.

 

[JPT]

There's nothing funny about shipping containers, dammit. They've serious things for serious people. So are the ships that ferry them.

Bahh, thats why I always ask for trains (trains, planes and automobiles), but of course the one time we actually used trains from China. it got delayed due to bad weather, in Germany.....

 

[Deleted member 11852]

Bahh, thats why I always ask for trains (trains, planes and automobiles), but of course the one time we actually used trains from China. it got delayed due to bad weather, in Germany.....

They aren't pillows!

 

[eastmen]

https://www.businessinsider.com/most-popular-game-console-black-friday-2021-xbox-2021-11

An unlikely video game console is dominating sales on one of the biggest shopping days of the year: The $300 Xbox Series S console from Microsoft, according to the Adobe Digital Economy Index.

Though Sony's PlayStation 5, Microsoft's Xbox Series X, and Nintendo's Switch OLED models remain the most highly sought after consoles, chip shortages and high demand have rendered them nearly impossible to find.

The Xbox Series S, on the other hand, is readily available at a variety of retailers right now — from GameStop to Best Buy.

Among the "over one trillion visits to U.S. retail sites" measured by Adobe, the Xbox Series S was among the top selling items thus far for Black Friday 2021.

going to be a big holiday for microsoft.