Holiday season may see console shortages, says Sebastian

Posted Oct 31, 2007 at 9:05AM EST by QJ Staff

Listed in: News Tags: Colin Sebastian, Lazard Capital, Nintendo of America, Reggie Fils-Aime, Sony

The holiday season is almost here, and we'll most likely see lots of console units and gaming software end up underneath the Christmas tree and in the Christmas socks of all good children. However, too much demand that outweighs the actual supply is always a bad thing.

Analyst Colin Sebastian from Lazard Capital Markets said that there will indeed be a general hardware shortage, not only for the Wii (as mentioned by Reggie Fils-Aime in his statement that there will be a Wii console shortage this holiday season). Explained Sebastian,

Holiday hardware demand may outstrip supplies. We believe one of the themes from the upcoming holiday period could be hardware supply constraints, driven by ongoing strong demand for NintendoÂ’s Wii and a shift in Xbox 360 unit sales from 4Q into the September quarter, while SonyÂ’s PS3 and PSP may benefit from lower price points.

So aside from the almost-inevitable Wii shortage, we may also witness shopping brawls over who gets the Xbox 360 or the PlayStation 3? Certainly not an impossible scenario, what with the release of the more affordable PlayStation 40GB SKUs, and quite possibly the newly launched Xbox 360 arcade SKU, which is aimed at the casual market.

Via Next Generation

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