I wasn’t a business major, but I believe the pandemonium that Microsoft has created with it’s  Xbox 360  was a bad move, even if I could have gotten my hands on one. The problem is that no matter what, I will be unable to buy one until spring, because I refuse to pay more than MSRP.  Apparently,  the machine has never made a profit for the company; they’re betting that the sales of its’ software will make up for it. What good is a VHS tape without a VCR?

Secondly, the pricing model for this system was poorly thought out. There is a core system and a premium system. The audience that is a would-be buyer for the core system will most likely be buying the ‘now-discounted’ original xbox. It’s as though they were scared to present the pricetag for the premium (double the price of all previous systems) to a critical public.  Now,  both are going for over  $10k  on eBay. The company that can’t pull a profit is making scalpers very wealthy. Even those who pre-ordered won’t get it until December 20th, and that’s the safe answer.

They knew there would be a shortage. Why not set the price much higher for those who want it first? There’s obviously a market for expensive gaming systems. Control the demand, yourself. Use the same model as a car manufacturer. If too many are made, give a red tag sale. The reason that the console suffers is directly related to the games. Not because of a lack of selection (which there is) but because the gaming model is unregulated. It’s going to be a larger force for advertising than traditional tv, because the number of ad impressions made on each user is superior. Going back to car manufacturers, if gasoline was free, there would not only be more pollution but there would also be more billboards. In gaming, there are no fees paid for a lengthier experience. Not that I would be a fan of limited gameplay, but it runs parallel to most pricing structures found in other industries.

Gaming will evolve into something much larger than we see today, because these technologies will soon translate into interactivity with live video feeds. This affects the phone companies. Once people can talk to people interactively (an extension of gameplay), the video will kill the radio star. It will not be a matter of whether or not you can get the machine, but rather an issue of whether or not you can afford the fees that come along with it’s usage, making scalpers a non-issue. Why it doesn’t work like that now is beyond me.