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Line starts for the next X

Microsoft's latest video game console doesn't go on sale for more than a month, but it may be too late to get it in time for the holidays.

By DAVE GUSSOW
Published October 6, 2005

More than a month before the Xbox 360 video game console goes on sale, the anticipated first shipments are selling out at some retailers that are taking early orders.

"We're working on the second allocation," said Paul Koulogeorge, vice president of marketing for EB Games, which includes Electronics Boutique and is merging with GameStop. EB has a number of stores in the Tampa Bay region.

That's bound to disappoint some people expecting to have a game system in time for the holidays, because no information or timetable has been forthcoming about follow-up shipments. Microsoft's new Xbox goes on sale Nov. 22.

Video game systems are traditionally big sellers for the holidays. And when a new system comes out, the demand almost always overwhelms supply. Microsoft has said only that it will ship as many systems as possible before the end of the year.

Microsoft has been using its marketing muscle to build interest in the Xbox 360. Its goal is to overtake market leader Sony and its PlayStation 2. The Xbox will have a several months jump on its competition: PlayStation 3, expected in the spring; and Nintendo's Revolution, also expected next year.

This week, Microsoft is building interest in its games that run on the new Xbox. And it has been touting new features and specs that range from being designed for high-definition video and more realistic graphics to blazing speeds.

While that appeals to hard-core gamers, Microsoft also sees Xbox 360 as a key component for its quest to be the digital center for home entertainment.

It will offer two versions, a $299 basic version and $399 premium version that includes a hard drive. The current system sells for $150. Some retailers are offering bundles that include games and accessories that can drive the price up to $800 or so.

Price does not seem to be a problem for the early buyers. EB's Koulogeorge says demand has been greatest for the more expensive system, which he attributes to its customers being gamers who want the latest and greatest.

It also doesn't take much marketing to get interest from gamers. EB, for example, never announced that it was taking early orders. Word spread on the Internet.

At Joystiq (www.joystiq.com) a Web log devoted to games, some posters have shared information on where people could put in early orders. But Vladimir Cole, the site editor, says people shouldn't worry about shortages.

He pointed out that an anticipated rush for Sony's PlayStation Portable failed to materialize this spring.

"Product shortages are often hyped in an attempt to create a buying frenzy," Cole said by e-mail.

Interest in the Xbox 360 is high now, he says, mainly because it's closest to release. And while gamers are willing to pay higher prices, Cole says, the unknown is how the general consumer market will react.

For those looking to place an early order, Cole suggests looking for "the smallest, cheapest bundle (with hard drive) that you can find online. Right now Costco and RitzCamera.com are offering very reasonable deals on these."

And for those who can't wait, there's always eBay, the giant auction site. While it doesn't have any systems listed, some sellers are offering e-mail addresses that include Xbox 360, and even some Web sites, for those who want to be ready to offer systems for sale.

Dave Gussow can be reached at dgussow@sptimes.com or 727 445-4165.

[Last modified October 6, 2005, 01:23:23]