Analyst: Move/Kinect shortages are fiction

By Fred Dutton Published 29 November, 2010

Pachter calls platform holders' bluff.

Microsoft and Sony are manufacturing shortages of their Kinect and Move add-ons to ignite consumer demand, according to retail analyst Michael Pachter.

The Wedbush Morgan motormouth told IncGamers, "Yes, I think both companies would very much like for consumers to believe that their devices are highly sought after and difficult to obtain. That usually works to spur demand.

"Sony shipped 2.5 million units in the U.S. and Europe, and their sales are nowhere near that level, so I'm not sure how they can reconcile the fact that units shipped far exceed units sold.

"I do think that Microsoft is managing supply a bit better," he added, "and keeping standalone Kinect supply tight to make sure that there is a steady supply through Christmas. They have shipped a lot of console bundles, to ensure that the eBay price doesn't get above $300 for the standalone unit, but supply of the standalone remains tight.

"Sony are trying the same strategy as Microsoft with Kinect, making sure that there are plenty of bundles, but controlling supply of the standalone controllers."

Earlier this month both Microsoft and Sony claimed that their peripherals would be in short supply over the Christmas period following stellar launches.

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About Fred Dutton

Fred Dutton is Eurogamer's US news editor, based in Washington DC.

Read more articles from Fred by visiting the Fred Dutton archive page.

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Comments (40) Latest comment 1 year ago

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  • altitude2k #1 2 years ago

    Well, yes...

    Although the Move thing was a bit odd. It's been out a couple of months already and very much in stock everywhere. Any shortages had already been overcome. MS come out and say that Kinect is selling out (plausible, but unlikely), and suddenly Sony are all like "Oh...oh...us too" when it's actually not likely at all.

  • Roamer #2 2 years ago

    Remember the PS3 launch, Sony?

  • Miths #3 2 years ago

    It's from Michael Pachter - my natural instinct is to assume he's just making stuff up, although I guess in this case you could argue that at least there's a 50/50 chance he's right.

  • onyxbox #4 2 years ago

    "Analyst: Move/Kinect shortages are fiction"

    No... You don't say.

  • lavalant #5 2 years ago

    I've seen these in stock everywhere, the only shortage I heard about was from MS and Sony.

    I think we're all a bit smarter these days to fall for this rush panic buy, but I'm off to queue up for the 3DS just incase.

  • azeldazel #6 2 years ago

    i work for game in the UK, we just sold out of standalone kinects on Saturday, move however has loads of stock in my store, make of that what you will.

  • Toothball #7 2 years ago

    I wasn't sure whether I wanted to get a Kinect leading up to the launch. I hadn't pre-ordered anywhere, and all the shops were claiming that their launch allocation was all accounted for. So I decided to leave it up to fate. If there were some, I'd get one. If there weren't then I'd save myself the asking price. Launch came and went, and I found myself in HMV on a Saturday afternoon. Early signs seemed to indicate that they had plenty and when I got to the counter was able to get one without any trouble. Checked some other places on the way back and it was much the same all over.

    I'd be inclined to agree that there are plenty of them out there.

  • thesnowman #8 2 years ago

    In the US I tried to get a standalone kinect on the day after thanksgiving and I couldnt get one. Amazon, target, walmart, and gamestop didnt have any. However Walmart put out an add that they were getting a shipment in on the saturday so i went down and got one for the boy.

    There is definetly the perception over here that it is the 'must have' toy of this xmas.

  • Fab4 #9 2 years ago

    So to be an 'analyst' all you have to have is the ability to use common-sense? Can I have an application form?

  • flaming.carrot #10 2 years ago

    My local PC World had loads of stocks of Moves and Kinects on Saturday - no one seemed to be flocking to buy either of them.

  • altitude2k #11 2 years ago

    There are some places online (Play, ShopTo, Tesco) that are still out of stock. I went to get one this weekend and couldn't get one in my local Tesco store, Gamestation, or one of the Game shops I went to. Luckily there was another Game that did actually have some. I think that there is likely plenty of stock around, but it's quite patchy.

  • natashaspice #12 2 years ago

    Don't know about kinect so I can't comment on that part but I've been trying to get a stand alone move controller and it's hard to get one checked amazon uk and it's seems they have up the price for some reason. not buying at that price seeing as I got the starter pack for less than that.

    why am i being negged go check for yourself if you dont believe. their must be a reason why all of a sudden the price jump 20 quid each.
    Edited by natashaspice at 29/11/10 @ 20:10

  • Vyggo #13 2 years ago

    "So to be an 'analyst' all you have to have is the ability to use common-sense? Can I have an application form? "

    The real "trick" is to make people believe you are better at common sense than themselves, which is no small feat in a world filled with self proclaimed experts.

  • monkeylite #14 2 years ago

    Michael Pachter: Look at me, I am making stuff up again.

  • altitude2k #15 2 years ago

    @TonyCorleone

    I guess Sony are up shit creek too for releasing Move.

  • StooMonster #16 2 years ago

    Any shortages are PR, there's no way they would hold back inventory ... as evidenced by plenty of it being available to buy.

  • captain_Carl #17 2 years ago

    Really? Quite a few people on GAF are sayin that Move is quite hard to find in the US

  • Rack #18 2 years ago

    @Fab4 This isn't his actual job, no-one pays him for saying this stuff it's just self-promotion. As long as people pay attention it works just as well if he's spectacularly wrong as right on the money.

  • GrizzleBoy #19 2 years ago

    The ironic thing about the comments section in regards to this topic, is that people were always saying that the limited stock numbers were probably fabrications, but rabid fan boys and defence force type posters continually shot them down.

    Now, thinking that these shortages were fictional is common sense all of a sudden.

    I guarantee that if this article was aimed at either Move or Kinect and not both, there would be the same "omg stfu fanboy hater!" comments that we saw at launch from the overly defensive fanboy types.
    Edited by GrizzleBoy at 29/11/10 @ 19:15

  • Vyggo #20 2 years ago

    @Grizzleboy

    I still don't believe they'll artifically create shortages as that makes little business sense. I will however believe that they'll shout from the rooftop that they have shortages if one shop somewhere sold out, even if they have a surplus in others stores.

    There is a clear distincting between pretending you have shortages and purposedly holding units back to create a real shortage, which was what most of the "conspiracy theorists" were proclaiming microsoft did.

    Also my personal experience was that for the first week it was actually sold out where I live, but since then it seems they have gotten enough new units that you can get a stand alone Kinect in pretty much any shop again.

  • GamerG #21 2 years ago

    I dont believe that at all, MS will want to get Kinect out in as many hands as possible for the Christmas party season so that the maximum amount of people get to play on it

  • Dizzy #22 2 years ago

    My local shops have run out of standalone Kinects. Bundles seem to be the easiest way to get it... I am sure that is part of the plan.

  • Vyggo #23 2 years ago

    @Dizzy They are probably really betting on (hoping for?) new customers during christmas sales, instead of just selling Kinects to existing xbox-ers. Pachter's theory about them doing it to keep ebay prices down for the stand-alone versions seems far fetched. Might be a nice by-product of having enough bundles in store, but as a strategy... I don't know

  • RobTheBuilder #24 2 years ago

    Good to hear someone say what we are all thinking.

  • RobTheBuilder #25 2 years ago

    Good to hear someone say what we are all thinking.

  • makeamazing #26 2 years ago

    Yeah i dont think either has REAL stock shortage issues. Maybe, just maybe in small markets there might be a lack of devices, but in general we have move thats been out a while, which shouldnt really have shortage problems (unless Sony are selling way more move stuff than anyone actually knows), and Kinect, well MS have already said they intend to sell 5 million before Xmas, but apparently dont have that stock to sell (apparently).

    The biggest problem for MS and Kinect, is i dont think they expect Wii to be so strong, and i think they are going to take a sting out of the tail for Kinect.

  • StooMonster #27 2 years ago

    GrizzleBoy: The ironic thing about the comments section in regards to this topic, is that people were always saying that the limited stock numbers were probably fabrications, but rabid fan boys and defence force type posters continually shot them down.

    There's a difference between (a) actual limited stock due to supply constraints, (b) PR, i.e. saying there's limited stock when there isn't, (c) and stories of Sony/Microsoft/Apple intentionally holding back stock to stimulate demand in some fantastical marketing strategy.

    I simply don't believe any business would do the later, i.e. (c) as it is too risky and makes no business sense because the benefits are intangible and unquantifiable versus the real cost of holding inventory and not turning it into revenue. What's the IRR on this fantasy?
    Edited by StooMonster at 29/11/10 @ 20:03

  • varkdm #28 2 years ago

    It's amazing how Pachter is always talking shit and making stuff up.. until he says something that you agree with or suits your own agenda.

  • makeamazing #29 2 years ago

    @varkdm, some of us actually like Pachter and have no hidden agenda AND agree with alot he says, but some people always like to hate on this guy for doing his job, whereas the game sites are the ones that print what the guy says. Not everyone is some angry teen that gets mad at someone having an opinion.
    Edited by makeamazing at 29/11/10 @ 20:27

  • Poppert #30 2 years ago

    Sony and Microsoft is fighting to make headlines in the press. Meanwhile it's kind of funny to see Nintendo quietly winning the race.

    Wii Sport Resort outsells Kinect Sports and Sport Champions - in all regions in the world! Wii Sport Resort nearly even outsells Kinect Adventures! I suppose we will only have to wait another week for that to happen... Further, Just Dance 2 is outperforming Kinect's Dance Central by far.

    (Source: VGChartz)

  • influenceuk #31 2 years ago

    MS have a stock pile of Kinect's and are waiting for holidays so there is a rush. or so i have been told :)
    It's just the retailers making up these "stock issues" as always. Create hype generate sales... as many others have said its common sense!

  • peterfll #32 2 years ago

    I remember five years ago I wanted a 360 a couple of days before launch and couldn't get one for love nor money. Yet Amazon seems to have plenty of Kinnect in, and a quick scout of a couple of central Lonodn Game shops suggest they do too. Just saying ....

    Update; Amazon look like they have sold out, but Play can still get you one within a week.
    Edited by peterfll at 29/11/10 @ 22:49

  • lucky_jim #33 2 years ago

    Why does nobody run news articles on me when I state the obvious or speculate wildly? That seems to be all this Pachter guy does.

  • gjgjg #34 2 years ago

    This guy either states the obvious or talks rubbish from what I can tell. I guess if he's the only one saying it then he'll get quoted...

  • dirtyvu #35 2 years ago

    I can't believe Pachter gets paid to use a magic 8-ball... "I predict that the WiiHD will be out next year" (made the prediction 3 years ago). "the Wii and 360 will fall in sales when the PS3 begins to dominate globally". "Sony and MS will both have to drop prices to catch up to Wii sales" (can any observation be any more obvious??). He says things that the common gamer on the street can say. there's no additional insight that he ever provides. It's just his predictions that he throws out there, almost to see what sticks.

  • Vyggo #36 2 years ago

    "This guy either states the obvious or talks rubbish from what I can tell. I guess if he's the only one saying it then he'll get quoted... "

    So if you agree with him it's obvious, if you disagree it's rubbish... Interesting.

  • Bluetooth #37 2 years ago

    Hey guys, I'm sold out. Why does no-one want me? :(

  • raion #38 1 year ago

    That reminds me of a store I went to, and their policy regarding the Wii when it was new. There would be only one on the shelves and an announcment would chime quite often saying something on the line of "We'd like to remind you that we're down to the last Wii; hurry up!". And then you hear the clerks go "They bough the Wii, take out another one".

  • 00.00.01 #39 1 year ago

    Please Michael Pachter...predict the weather. Snow maybe? White X-mass?

  • drxym #40 1 year ago

    Amazon.co.uk has certainly had a shortage of PS Move controllers. I had one in my basket for £32 last week but it was removed because it sold out. There weren't any in Amazon stock until today but now they're back for £39.99... Thanks Amazon but I think I'll pass at that price. Some Amazon Market sellers are charging even more. The Move pack is out of stock too but some scalpers are charging £65 for it. On principle I would tell these people to go to hell.
    Edited by drxym at 30/11/10 @ 10:44