Billy Idol
Legend
I need a new Killzone (target) trailer with Kaz stating it is real time to get hyped...
Global launch is useless if you push the tech at all.
X360 had huge shortages and sold only 150k in USA first december even if it didnt sell much in Japan.
Global launch is useless if you push the tech at all.
X360 had huge shortages and sold only 280k in USA first december even if it didnt sell much in Japan.
Europe gets all the best cheeses and cured meats.
No there's a market for consoles but it won't be growing or expected to grow at the same rates when previous generations of consoles launched.
Console and game publishers have to adjust to this reality.
ETA: From the WSJ article reporting that Sony will announce the PS4:
Global economy is bad.
Europe is Sony's strongest market. They should not treat us like this.
Hardly their fault. USA is one country and one strategy. Same for Japan. Europe is tens of different countries, requiring different marketing strategies, most times different electrical plugs, different laws to respect when launching a new product and countless other issues. It's always been like this, and not just for videogames.
"Whereas others have shipped significant volumes for launch and then resupplied many weeks or months later, our process is to continually supply the channel on a regular basis," Liddell said. "We believe this is the better approach because it provides predictability to retailers and consumers around product availability."
Worldwide, Microsoft expects to sell as many as 3 million Xbox 360 consoles within the first 90 days of launch
From that article:
So basicly they tried a JIT distribution at launch which failed badly. Luckily for them they were launching unapposed, a luxury neither will have this time.
A JIT distribution does work though, eventually, so what's needed is a bigger initial launch cache. IMO to feed a WW launch, there'd need to be double the 3 mil MS tried with the 360. With a production capacity of 1 million per month, to build up the requisite cache would be 6+1 months or a production start of May for a November launch. If you wanted to supply each of the 3 regions an additional 1 mil units in 30 days after launch, you'd need an additonal 2 months or a production start of March. That's next month!!
Yeah, it's pretty simple maths. There's a %age demand per unit of population in a region. Let's say it's uniform (which is isn't) and for any territory, there's 1% who'd be happy to buy your console at launch and 0.1% who'll buy per month after. That means 3 million in NA, 3 million in EU, and 1 million Japan for launch day, and 300k a month in NA, EU, and 100k in Japan. To launch worldwide needs 7 million in warehouses and a production amount of 700k pm. If you are making 700k pm, that's 10 months of stockpiling required!So basicly they tried a JIT distribution at launch which failed badly. Luckily for them they were launching unapposed, a luxury neither will have this time.
You need to account for two other things if you want to use the 360 numbers as a baseline. First, MS ridiculously over-estimated the demand they were going to be able to create in Japan and ended up shipping a lot of units to Japan that ended up just sitting on shelves. Ideally, you want to balance your shipments in such a way so that if your going to be supply limited, you are supply limited everywhere. And secondly, manufacturing problems caused by the switch to lead-free solder (and the failure of MS's engineers to account for it in their design) probably caused them to miss their production targets, both for the initial run and for the subsequent re-supply runs.
Yeah, it's pretty simple maths. There's a %age demand per unit of population in a region. Let's say it's uniform (which is isn't) and for any territory, there's 1% who'd be happy to buy your console at launch and 0.1% who'll buy per month after. That means 3 million in NA, 3 million in EU, and 1 million Japan for launch day, and 300k a month in NA, EU, and 100k in Japan. To launch worldwide needs 7 million in warehouses and a production amount of 700k pm. If you are making 700k pm, that's 10 months of stockpiling required!
MS and Sony will have looked at the numbers and decided whether the returns are worth the investment in delays or limited stock. I think launching close to a rival means a safe wait-and-see approach from consumers, so missing Christmas for Sony while MS have Durango on shelves in Europe probably won't be a massive loss. There's only a small contingent of peeps who'll be in the market for 'a next-gen console' at Christmas and not care which, and buy whatever's available. I might be completely wrong on that.
.