UK based gaming industry news website MCVUK has reported that a South African distributor has told them that major retailers are refusing to stock the Xbox 360 console.
The reason given is the console’s history of having a relatively high failure rate thanks to the infamous RROD.
“The Xbox360 has had a rather rough time in South Africa,” Apex Interactive director Quinton Davie stated. “It has been plagued with an extraordinarily high failure rate on the hardware when it was initially launched, which has seen it been removed from some of the important retail stores in our territory.”
It seems plausible that local retailers would do this, given the admin involved in having to deal with irate customers returning with bricked consoles. However, the RROD is largely a problem of the past, thanks to various hardware redesigns since launch.
What I found strange is that the article claims that the console is being “shunned” by local retailers. Anyone who has walked into a Look & Listen, Hi-Fi Corp, Game, Makro or Incredible Connection will know that this is not the case at large, and most places that sell the PS3 and Wii also sell the Xbox 360. Some stores such as Reggies and Toys ‘R Us are known for not stocking the console, and this may well be the reason.
Davie told XboxGaming.co.za that “there is concern from local distributors and retailers that the attach rate for the Xbox 360 just isn’t as high as its competitors in South Africa. The Xbox 360’s COGS (or cost for a publisher to get a game manufactured by Microsoft) is higher than that of PS3 titles, and retailers and distributors are noticing an increase in unsold stock. As an industry we are struggling to find the optimal price point for new releases, and some retailers just aren’t getting the sales they need to make it worthwhile. Both retailers and distributors across the board are noticing a change, with stock orders shrinking somewhat.”
An insider at a local distributor also told MyGaming that they have noticed a sharp decline in Xbox 360 game sales in recent months. PS3 game sales on the other hand, according to our source (who is in no way affiliated to Sony), are on the rise, and PC game sales are still relatively strong, especially on AAA first person shooters.
Has the drastic reduction of the price of the PS3 elevated Sony to a more competitive standing? Are local gamers fed up with the lack of Xbox Live in SA, as well as the history of hardware failures?
We have contacted a Microsoft representative, and are awaiting comment.
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