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GameStop: Kinect, Move 'In Very Short Supply', Wii-Like Launch Environment
GameStop: Kinect, Move 'In Very Short Supply', Wii-Like Launch Environment
November 18, 2010 | By Leigh Alexander

November 18, 2010 | By Leigh Alexander
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New motion control devices from Sony and Microsoft are flying off the shelves, says GameStop -- and the retailer says it's an environment that reminds it a lot of the Wii's game-changing launch.

GameStop president Tony Bartel says customers should expect supply constraints over the holiday, and that Kinect in particular is helping drive console growth for the Xbox 360. Last month, Xbox 360 was the only console platform to see year-on-year growth, and Bartel expects that trend to continue thanks to Kinect.

"We definitely do see a new customer coming into our stores," he told analysts on the company's financial results call to investors. "And it is selling hardware as well."

Kinect's software attach rate thus far looks "very high" too, says Bartel. "Kinect Sports and Dance Central -- they're definitely the expanded-audience type games, and those are attaching extremely well."

The company says it's "excited" to see the environment around both platform-holders' motion controls heading into the holiday season. "Not only are we excited with Kinect and Move in very short supply, but we also like the fact that they are bringing in an expanded audience," adds Bartel.

The company's executive chairman, Dan DeMatteo, says customers are saying that Kinect has motivated them to bring their Xbox 360 "from the son's room down to the family room so they can use it as a family, which is a great indication of what's happened."

At the launch of Wii, Bartel recalls, once the holidays came around "we had customers following the UPS truck to our stores. I think you're going to have the exact same thing with Move and Kinect... you're going to have customers following the UPS truck to our stores."


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Comments


Leon T
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By this time during the Wii's height you could check any retailer and they would be sold out. The numbers reported for move and kinect so far don't indicate that anything like that is happening.



Maybe the totals for this month and next will show something different.

Ian Uniacke
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I agree. Something fishy here.



Although Kinect has definitely been selling at a blistering pace so far.



Also his comments about Kinect Sports and Dance Central don't match up to estimates of sales that I've seen.

Merc Hoffner
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It also doesn't quite fit in with what I heard on stand alone vs bundled. I read stand alone is going gang busters, but bundles are only doing alright. That means this is currently hitting more with the core gamer, and the casuals are still a bit slow to buy in, which would tie in with the kind of tie ratios I saw - not quite so awesome with a strictly non-core lineup.

John Gordon
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Anecdotally I see plenty of Move and Kinect devices available at my local Gamestop. Whereas I hardly ever saw a Wii for most of 2006-2007 and part of 2008.

Amir Sharar
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Do remember that you cannot gauge demand with supply. MS did make it clear that they were expecting a demand for 3-5 million, and so we are seeing shelves with a healthy supply of units.



A good example would be a local big box retailer that was sold out of Kinect peripherals, getting a supply of 60 in their next shipment. You never saw such a large shipment of units for the Wii during its launch.

John Gordon
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Yeah you're exactly right, and I think this hits on an important point. This article is trying to make the Kinect launch sound like it's the Wii launch. In truth they have very litte in common. Nintendo genuinely made too few consoles. Microsoft and Gamestop are trying to make it sound like there will be short supply for Kinect, but that's a bunch of crap. If Microsoft is shipping 5 million Kinects then there will be plenty to go around. The fundamental way these two launches are handled are as different as night and day.

Leon T
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@John

That is just silly.



How in the world did Nintendo make too few consoles when they were selling 500k or more a month and 10 and 9 million a year for two freaking years? That makes no sense at all. Even the first full year it sold more than the 360 and PS3 combined. How do you make too few consoles and sell more than your competitors combined?



Well maybe you were taking about the launch only.



I believe that Nintendo shipped 4 million Wii's worldwide for its launch. That is one million less than Kinect. Kinect is an add on and the Wii is a console. The console costs more to make and ship.



Even if you were talking about the launch Nintendo still did not ship too few consoles.



If Kinect is going to have a Wii like launch it will sell out before the holidays are over just like the Wii did. Kinect has a advantage of already having an install base over 5 million to sell to plus new customers. It was also launched earlier in the month than the Wii was. The Wii only had new customers, because you can't assume that everyone that own a gamecube was going to buy a Wii ( that didn't work for to well with sony thinking ps2 buyers would buy a ps3.).



With the amount Microsoft is spending it should sell out. Time will tell.

John Gordon
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The Wii had a huge console shortage for a long time. Regardless of how many Wii's were sold there was a huge shortage at first, because there were still people wanting more. During holiday season for 2006-2008 it was a given that a person could buy a Wii at a store for $250 and resell it for $400. There were clearly too few Wii consoles available. Shortages are not based on the raw amount sold, but rather if the amount supplied is less than the amount demanded.

gus one
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Bought the 250gb bundle. Absolutely brilliant fun with the kids. Kinect Sports is just pure brilliance. And that's coming from a hardcore gamer with his own overclocked rig. This old guy will also be having a huge laugh with Dance Central and the family this weekend.


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