pressed for time so didn't read everyone's responses yet.
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Its been long said that Microsoft was going to cut the supplies of 360s down to create more fake hype. By cutting down they created the impression that 360 was selling out like hot cakes.
I worked with video games for 5 years, and its a pretty known (and often used tactic) to create the illusion of small supply for this very reason.
When people already know the name, and they see its almost out of stock, or has been in many stores, they have more impulse to buy it now (regardless of price) where in otherwise they may wait.
I remember at my store, brand new popular titles (like Madden when that was released) we would only have maybe 5 copies on the floor. Despite the fact that we had 500 in the back room.
Cause the more we could convince someone it was hot and all 5 will sell out before he whips out his Credit Card he was more inclined to buy it right then even if that wasn't what he came in the store for. Where as if we had every shelf stocked with it, people think it'll be there later and move on.
That sense of urgency and "gotta have it now or else!" makes people spend like crazy. Its some of the logic behind green/black friday.
I have to tell you though from observing several game and system releases, albiet a relatively short time, its really hard to hype people for the next new thing lately.
I remember when Madden or NBA Live would be released we had lines outside the door wrapping around our building in the past. Now a days, a lot of people didn't even know a new one was released.
In the past, when PS2 and Xbox were released we had people camping outside days before.
The last dozen or so systems that have been released were met with almost no fanfair.
PSP, GameCube, NDS, Gameboy Micro, all were released without people even asking me for them for weeks.
In fact, we didnt even get our Micros until like almost a full month after they were released and no one once even asked me about them lol.
Makes me wonder. What are people really looking for that would make legitimate excitement? Aparently nothing that's really existing, to companies have to produce their own in hand with the stores.
There is also a second part of this though.
Companies who create consoles dont really make profit on those consoles.
Sometimes they are introduced at a slightly inflated price to cover the cost of designing them, but not much is really earned off the system themselves.
The companies make money off selling the liscenses, software, and in Nintendo's case the media, to produce games for it.
The console makers want everyone to have this system, because the more games they will buy for it and then the more money they can make via the game producers and money off additional accesories (another nintendo favorite).
A lot of companies are very relucatant to produce games for a system that isn't widely ciculated yet, which is some of the reason why launch titles always suck ass. And do for almost a year. Having only a few people own the system isn't really to the benefit of the company.
So limited supplies may just be that, limited supplies.
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