Sony strong arming distributors and retailers!

[koconutmonkey]

Just got off the phone with my distributor, and Sony will not release the PS3 slims to them unless they guarantee a 1.5 attachment ratio for their systems. This means I had to purchase an additional 15 items to go with my 10 slims! Not just any PS3 accessories or games mind you, only Sony branded stuff! Worst part is that I just opened a box with 8 accessories from sony!! Grrr.

My distributor said their board was pissed at Sony, but obviously relented to the pressure.

[lost]

I guess this is how they deal with the loss on the console and why that Sony dude suggested we look at the 'whole picture' including games and accessories.

[bean19]

Can you not return unsold Sony accessories?

[greenapple]

I guess this is how they deal with the loss on the console and why that Sony dude suggested we look at the 'whole picture' including games and accessories.

I'd also take it as a sign that the slim numbers are limited.

If you have limited stock, you sell it to distributor as favorably as you can. If they had more stock, I'd assume they'd sell to any distributor who would pay for it.

[Johan]

It's business, and they're generally good at it. I'm sure if you could, you would "strong arm" your customers into paying double on products they buy from you to increase your profits, right? Nobody would blame you, if you did so legally.

Money. Filthy lucre. It makes the world go round, I suppose.

[bean19]

Johan - lol. You are such a hypocrite. If this was Microsoft, you would be frothing at the mouth and going on and on about how they are insanely selfish. Not that this isn't greedy (or wouldn't be greedy if Microsoft was doing it), but you definitely have a double standard.

I think greenapple is probably right that Slim numbers are extremely limited and they might be using this as a control to make sure that retailers don't stockpile what they expect will sell out.

[Roc Ingersol]

I doubt it has anything to do with supply control and everything to do with Sony wanting to make certain quarterly numbers and the Slim gives them the leverage to do so.

I'd be surprised if similar terms didn't exist for the other consoles and this just represents Sony ratcheting up their ratio a bit, because they can.

[Johan]

Johan - lol. You are such a hypocrite. If this was Microsoft...

Are you high? You should ask TeeCakes about how much I love Sony (um...NO) and hate MS (um...NO). :rolleyes: I'm a corporate agnostic. I don't give a crap about companies, and they rightly don't give a crap about me. Produce a product I like? I buy it. Simple.

Really...who in the world are you referring to? The only problem I have with MS is that they produced a borked POS product in the 360. Other than that, and the initial DRM issues that went with dead 360s, I like MS for the products they produce which I enjoy (several). Sony also makes some awesome camcorders.

Wow. You're confusing. :confused:

Oh, and to reinforce some reality here...it's a BUSINESS and if the businessman complaining in the OP could do it, he/she would charge more to make more. Period.

[Roc Ingersol]

Also, historically, when a console is supply limited the manufacturer just puts hard caps on retailer orders.

So even if the supply of the Slims is low, adjusting this ratio is mostly just Sony exercising some new-found leverage.

[Demo_Boy]

or the store could just not carry the sony slim.

Customer: "Got any PS3 slims which you are going to make no margin on?"
Staff: "No, sold out. But the Elite is now 299. Better."
Customer: "Ok Ill get that. "

[koconutmonkey]

It's business, and they're generally good at it. I'm sure if you could, you would "strong arm" your customers into paying double on products they buy from you to increase your profits, right? Nobody would blame you, if you did so legally.

Money. Filthy lucre. It makes the world go round, I suppose.

Yeah my dist. was pissed but they relented and let their customers deal with it. We can choose not to order them, just as everyone can choose not to buy a blueray player and watch hi-def movies... 21st century monopolies gotta love em

[oldjadedgamer]

or the store could just not carry the sony slim.

Customer: "Got any PS3 slims which you are going to make no margin on?"
Staff: "No, sold out. But the Elite is now 299. Better."
Customer: "Ok Ill get that. "

It is true. To the store, they win if you walk out with a PS3 or a 360. They couldn't care less since you're still making a sale.

[Blackstone]

Is there any precedent for this type of behavior with respect to consoles? I am not in the business.

[TeeCakes]

The PS3 Slim will be the hottest console on the market for the immediate future, Sony's just striking while the iron's hot.

And LOL @ Johan being a Sony apologist! :D

[bean19]

@Teecakes - I think the PS3Slim will do well too, and if supply is low, it will sell out and that will result in Xbox 360 sells. That's a pretty shit position for Microsoft to be in though. They shouldn't have to depend on their competitor's new unit selling out before they sell any units.

And LOL @ Johan being a Sony apologist! :D
That's not at all what I'm saying. He is not a Sony apologist, but he definitely is someone who believes that Microsoft is a super-greedy corporation (perhaps correctly, they don't have any qualms about trying to make money). You know he would have been talking about how greedy Microsoft is had it been Microsoft strong-arming retailers instead of Sony.

To a degree, Microsoft has earned their negative brand image by releasing operating systems that don't add much (or actually suck like Vista) and charging ~$200 for them. They also bundle in IE and have done all sorts of things to destroy or diminish competition. So to a degree I understand the double standard, but it IS a double standard.

[Lard]

Is there any precedent for this type of behavior with respect to consoles? I am not in the business.

Nintendo did it with the NES and SNES.

[Roc Ingersol]

It is true. To the store, they win if you walk out with a PS3 or a 360. They couldn't care less since you're still making a sale.Actually, they do better if you buy a system that leads to you buying more used games.

While that might seem to favor the 360, I'd imagine they have a glut of used PS3 inventory due the slowing hardware sales. And if the Slim is bringing in new customers, that gives them a fresh chance to move that product.

[Tintivilo]

I like to poop and pee!