TheGamer: Target and Walmart also pulling Xbox stock

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DownLikeBCPowder said:
Pulling?? No, no. Where is the clearance? What are they doing with it then?
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There is no clearance if they were allowed to send the stock back to the manufacturer. Sometimes for money but usually for credit. Since Microsoft still has a lot of things that people will buy, store credits are as good as cash anyway.

Standard procedure when something in a brick and mortar store stop selling, is you shrink the shelf space. And if it still doesn't make quota in terms of profitability, you then offer the supplier an option to pay rent to keep that shelf space for the stock. And if Xbox say no to paying rent, then the shelf space goes away.

We have been in the Internet age so long that most of us had forgotten that getting stuff on shelves used to be a struggle. Back in the day a new product would be unable to be sold in major stores if the stores don't think your product is any good. Now people with random products just sell them online. But the economics of shelf space never changed for physical stores.

In normal conditions like with SEGA, they ran out of money and thus had to close everything, way before the stores reacted. But Xbox can't run out of money in the traditional sense, so they kept hanging around while the sales of hardware dropped, until the physical stores decided they will stop carrying them for being a literal waste of space.

Z O N E said:
My guess is Microsoft is limiting the current hardware and will now focus on the Next Xbox rumoured for 2027.
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Good joke. Very funny.

You didn't see Sony pull PS4 off the shelves when PS5 came out. In fact for consoles in general you almost never cease the sales of the previous generation until years later. WiiU is the closest to a fast kill in that they stopped making the hardware in Jan 2017 and the Switch came out in March of the same year. But at least the Switch was announce the year before already.
 
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It was already said that more stores would remove Xbox from sale and I don't think it's a coincidence that they all happened more or less at the same time and right now... It's no wonder the rumors that the next Xbox is "up in the air"
 
If true it's doubtful that this is happening right before a holiday season without an official ok from Microsoft behind the scene.

Z O N E said:
My guess is Microsoft is limiting the current hardware and will now focus on the Next Xbox rumoured for 2027.
Click to expand...

The next Xbox will be a niche boxed gaming PC aimed at niche market, if they give up hardware for two years trust in their brand will be zero (it already kinda is).
 
There seems to be a divide on whether Microsoft's actions have weakened the brand or whether those actions are simply a response to the wider market. It raises a bigger question: has the Xbox brand always been weaker than Nintendo and PlayStation, or has Microsoft's approach contributed to its decline?

Another way to look at it is to imagine if Microsoft owned PlayStation. Would we see the same kind of situation, with consoles being removed from stores, or would the brand still thrive under Microsoft's leadership?
 
Horseganador said:
It was already said that more stores would remove Xbox from sale and I don't think it's a coincidence that they all happened more or less at the same time and right now... It's no wonder the rumors that the next Xbox is "up in the air"
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Running a Brick and Mortar store is tough, and one key thing is to keep things fresh and rotate the stock. If Microsoft wanted or cared enough to stop this they probably have the pull to do so. The Nextbox would be lucky if it is even available to buy in physical stores. For all we know it might end up online order-only.
 
Joel Was Right said:
There seems to be a divide on whether Microsoft's actions have weakened the brand or whether those actions are simply a response to the wider market. It raises a bigger question: has the Xbox brand always been weaker than Nintendo and PlayStation, or has Microsoft's approach contributed to its decline?

Another way to look at it is to imagine if Microsoft owned PlayStation. Would we see the same kind of situation, with consoles being removed from stores, or would the brand still thrive under Microsoft's leadership?
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Yes, and by a rather large margain. Though credit where it is due, the 360 outsold PS3 for years (although beaten at the end) and that's without the same level of brand power Sony had all over the globe. They also sold in fewer territories.
 
DeltaPolarBear said:
There is no clearance if they were allowed to send the stock back to the manufacturer. Sometimes for money but usually for credit. Since Microsoft still has a lot of things that people will buy, store credits are as good as cash anyway.

Standard procedure when something in a brick and mortar store stop selling, is you shrink the shelf space. And if it still doesn't make quota in terms of profitability, you then offer the supplier an option to pay rent to keep that shelf space for the stock. And if Xbox say no to paying rent, then the shelf space goes away.

We have been in the Internet age so long that most of us had forgotten that getting stuff on shelves used to be a struggle. Back in the day a new product would be unable to be sold in major stores if the stores don't think your product is any good. Now people with random products just sell them online. But the economics of shelf space never changed for physical stores.

In normal conditions like with SEGA, they ran out of money and thus had to close everything, way before the stores reacted. But Xbox can't run out of money in the traditional sense, so they kept hanging around while the sales of hardware dropped, until the physical stores decided they will stop carrying them for being a literal waste of space.
Click to expand...
Alright - but what's the rationale then for companies like Costco or Sams clearancing these systems? Why not send back for this "credit"? What is Microsoft doing with these returned items? ET-ing them?
 
DeltaPolarBear said:
Good joke. Very funny.

You didn't see Sony pull PS4 off the shelves when PS5 came out. In fact for consoles in general you almost never cease the sales of the previous generation until years later. WiiU is the closest to a fast kill in that they stopped making the hardware in Jan 2017 and the Switch came out in March of the same year. But at least the Switch was announce the year before already.
Click to expand...

Difference is, Xbox ain't selling a lot. So they will probably limit it to a few markets or places.

Elios83 said:
If true it's doubtful that this is happening right before a holiday season without an official ok from Microsoft behind the scene.



The next Xbox will be a niche boxed gaming PC aimed at niche market, if they give up hardware for two years trust in their brand will be zero (it already kinda is).
Click to expand...

The only people who care that much about the brand are console fanboys and lets be honest, they're just annoying. Xbox/Playstation fanboys are almost as bad as K-pop stans at this rate. Lol

I would love a console/pc hybrid.

MisterXDTV said:
Yeah, demand for Xbox hardware seems to be really huge....

I'm sure in 2027 it will skyrocket...

:messenger_tears_of_joy: :messenger_tears_of_joy: :messenger_tears_of_joy:
Click to expand...

Good thing I don't stan corpos and buy what I want for my needs.
 
DownLikeBCPowder said:
Alright - but what's the rationale then for companies like Costco or Sams clearancing these systems? Why not send back for this "credit"? What is Microsoft doing with these returned items? ET-ing them?
Click to expand...
It really depends on the contracts. Having a credit policy is different for every supplier. For example, in my workplace there is a supplier of products that technically is cheaper than the others for the same goods, but we don't use them unless we had to. Because for some reason that suppler doesn't take returns at all, so it ends up costing us more money if we get stuck with things we can't sell or past used by date.

I don't pretend to have any inside info on Microsoft's deal with these stores. Even if they can't return them, hypothetically the store might just send all the leftover stock to the "online" warehouse run by a different department. The idea being that the online version of the store doesn't worry about wasting display shelf space since they function much like Amazon. So you might want to see if the Xbox consoles are still available to buy online?
 
Walmart and Target will show you on their websites what is available for pickup from the store. My local target and Walmart both seem to be carrying stock of consoles, games and accessories. Not a lot, but it is still there.
 
Walmart is aggressively expanding their pickup and delivery business. So while there might not be an Xbox section in the store they will probably still have them available locally if you order it through the app.
 
Z O N E said:
My guess is Microsoft is limiting the current hardware and will now focus on the Next Xbox rumoured for 2027.
Click to expand...
"How about we disappear from retail for two years amidst rumors that we are throwing down the towel on consoles as well as multiple large console and GamePass price increases? That is sure to help us launch a new console generation later on, right?".

Morgan Freeman Good Luck GIF
 
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I wonder how many have also sold back most of their stock to MS. There was a rumour GAME did this a couple of Christmases ago to make room for more PS5s as that is what people wanted. Would make sense.
 
Like I said on other post... imagine how almost eveyone from xbox is disappointed (except who needs to be fired, of course!)... they created a product so undesirable than Wallmart (who will sell our moms, if possible) is giving up...
 
Today, we're announcing an important and exciting change for the future of Xbox. As we move forward, Microsoft will no longer produce new Xbox consoles. Instead, we're focusing our energy on what defines us best — creating amazing games and bringing them to everyone, on every platform, including PlayStation, Nintendo, and PC.

This is not the end of Xbox — it's a new beginning. Our goal has always been to connect players through great experiences, and now we're doing that without limits. The spirit of Xbox lives on in our games, our community, and our commitment to make gaming more open and accessible than ever before."


— Phil Spencer, CEO of Microsoft Gaming

------

Soon this will be a official announcement. lol
 
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