The Xbox One Day One console dilemna...
So, I was reading this article. Which mentions that Amazon is buying back Xbox One Day One editions for enough to buy a PS4. But what caught my eye was the implication near the end that they were buying them back because Xbox One's weren't selling so well referencing this article.
Firstly... people should really read before they post misleading information like this. If you read the second article, you'll see that they DID NOT suggest that the Xbox One in generally might be selling poorly. But rather that the Day One edition specifically isn't selling well.
However, I disagree with both observations. Why would Amazon buy back a console, even a special edition console (at 85% of retail for that matter) if it were selling poorly? That makes absolutely no financial sense. Come on people... these claims don't even hold up to common sense.
The only reason I can think of that a company would buy a failing product back at a loss would be if there were some super terrible PR incident that seriously threatened their business or brand. And I haven't heard of such an ordeal for either Amazon or the Xbox One.
What DOES makes sense is this. Many people will receive either an Xbox One or a PS4 for Christmas this year. Many will have wanted the other system. By buying back Xbox One's at a high enough price to pickup a PS4 many people will do just this. But Amazon wouldn't bother buying back stock, especially not at such a high price, unless they felt confident that they could resell it for more. Which is probably why they chose Day One edition consoles only. The likely feel that they will be better able to sell any purchased units and at a profit, if they are the more limited edition. Which is probably true.
I do agree with one thing from the second article though. That Day One editions were not selling as well as their standard edition counterparts. In many places I'd checked in the first couple days after launch, the standard editions were sold out, but most places were still listing Day One editions in stock.
I disagree with the conclusion however that it is because these sorts of special edition consoles have lost their lustre. In the case of the Xbox One, the retail price is the EXACT same. Because a Day One edition doesn't cost a cent more than a standard edition, there is no sane person who would avoid buying an Xbox One because they "could only get the Day One edition".
Where I think the issue is, is in 2 places. Firstly, there are 2 SKU's. The people who are actually aware of this, likely just assumed availability of standard editions would be greater than that of the special edition (or perhaps they didn't even know the second SKU existed). The second is the name... Day ONE. Why assume you could find a Day One edition at a retail store when Day One has long come and gone?
Firstly... people should really read before they post misleading information like this. If you read the second article, you'll see that they DID NOT suggest that the Xbox One in generally might be selling poorly. But rather that the Day One edition specifically isn't selling well.
However, I disagree with both observations. Why would Amazon buy back a console, even a special edition console (at 85% of retail for that matter) if it were selling poorly? That makes absolutely no financial sense. Come on people... these claims don't even hold up to common sense.
The only reason I can think of that a company would buy a failing product back at a loss would be if there were some super terrible PR incident that seriously threatened their business or brand. And I haven't heard of such an ordeal for either Amazon or the Xbox One.
What DOES makes sense is this. Many people will receive either an Xbox One or a PS4 for Christmas this year. Many will have wanted the other system. By buying back Xbox One's at a high enough price to pickup a PS4 many people will do just this. But Amazon wouldn't bother buying back stock, especially not at such a high price, unless they felt confident that they could resell it for more. Which is probably why they chose Day One edition consoles only. The likely feel that they will be better able to sell any purchased units and at a profit, if they are the more limited edition. Which is probably true.
I do agree with one thing from the second article though. That Day One editions were not selling as well as their standard edition counterparts. In many places I'd checked in the first couple days after launch, the standard editions were sold out, but most places were still listing Day One editions in stock.
I disagree with the conclusion however that it is because these sorts of special edition consoles have lost their lustre. In the case of the Xbox One, the retail price is the EXACT same. Because a Day One edition doesn't cost a cent more than a standard edition, there is no sane person who would avoid buying an Xbox One because they "could only get the Day One edition".
Where I think the issue is, is in 2 places. Firstly, there are 2 SKU's. The people who are actually aware of this, likely just assumed availability of standard editions would be greater than that of the special edition (or perhaps they didn't even know the second SKU existed). The second is the name... Day ONE. Why assume you could find a Day One edition at a retail store when Day One has long come and gone?
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