Peter Moore On Xbox 360 Shortages

In a surprisingly open interview with Seattle PI reporter (and blogger) Todd Bishop (Questions Surround Xbox 360 Shortage), Peter Moore addressed ongoing rumors that the shortage of Xbox 360 consoles was planned to create media hype. 

Gotta give him credit.  He's a big fan of being as open as possible, and he's directly responsible for our recent emphasis on connecting with online community.  I think you can take this interview as a good indication that he's setting the stage for more dialog, less posturing. 

I've been reading the buzzing threads on message boards, listening to grumblings in podcasts, and hopping from blog to blog.  I've been tempted to jump in and comment directly, but also didn't want to make comments that would only fuel speculation (or get me fired... :) ).  So I was pleased that the interview addressed head-on the questions that have been echoing around. 

The Seattle PI story tells all sides of the shortage issue, including individual retailers who initiated their own presale programs and frustrated gamers who may have to wait weeks before getting a console. 

Peter flatly denies that this is a marketing ploy.  "I've seen all of the conspiracy theories. Somewhere in Roswell, New Mexico, we have a hangar where we're stockpiling it, creating false shortages."  I'll echo his words by emphatically saying we're building as many as we can as fast as we can, and we're getting them into retailers hands as quickly as possible. 

Peter suggests that “initial shortages are common when video-game consoles are released, as and in the past, however, the major console makers have lessened the effect by rolling out their machines worldwide over a period of many more months.”

Our strategy has always been to accommodate gamers worldwide: "You can challenge the decision, but we made a decision a long time ago that we're going to ship this holiday in the three major regions of the world. I think when the dust settles, it will be proven to be the right thing, and it will become the default way that you launch a video-game console in our industry."

Peter is just as frustrated as retailers and customers are.  "It's difficult. A lot of retailers, I think, stretched their allocation. Individual retail store managers said, 'I'm going to take a fly that I'm going to get 200 Xbox 360s on day one and take the preorders accordingly,' and they only got 100 or 150. Well that's 100 or 50 disappointed people. We have to manage that."

It makes it tough for everyone who has waited so long to get their hands on an Xbox 360.  It's particularly tough because gamers who are the most enthusiastic, the most passionate, are the very ones who put their names on the pre-order lists, who put money down to make sure they got their consoles early.  From the day we announced our launch date, they've been counting down the hours, only to be told they have to wait even longer.  I'd be frustrated and angry too.  Every day I get calls from friends, co-workers, and family, asking about availability.  I wish I had a secret stash, or an inside tip I could give.  But the fact is, it's going to be tough to get a console for several weeks. 

For those of you on the wait list, who are being told your consoles are coming later, I really do wish it were going to be a lot easier.  As a professional marketer, I can tell you that it's frustrating for everyone here too.  We've been doing all we can to build demand, and it's hard when supply falls short.  The good news is that manufacturing is running at full capacity, and replenishments are expected to continue steadily. 

Sounds like a canned response when I say "thanks for your patience, we understand your frustration."  But it's shared by Peter, and a lot more folks here in Redmond.  And it's sincere.