q Amazon limits pre-order sales of 120GB PS3 – TGDaily

Amazon limits pre-order sales of 120GB PS3

San Francisco (CA) – Amazon has limited pre-order sales of the 120GB Playstation 3 to one unit per household. The online retailer explained that it had experienced overwhelming demand for the slimmed down console.

“As you may know, the PlayStation 3 120 GB is in great demand, and there are shortages of this product across the US,” Amazon explained in an official statement. “In an effort to provide as many customers as possible with the opportunity to purchase PlayStation 3 120 GB, we are limiting the total number of PlayStation 3 120 GB units that can be purchased. As a result, each household may only purchase one PlayStation 3 120 GB unit.”

EEDAR analyst Jesse Divnich told TG Daily that limiting pre-orders of new consoles was a “common practice” amongst retailers.

“Most retailers choose to limit new console purchases to one or two units per household. Remember, retailers don’t really generate profit from console sales – the markup is literally nothing,” said Divnich. “However, stores do make money off of controllers, cables, games and other peripherals. In any case, there is no reason a single households needs more than one or two PS3’s. Anyone interested in buying more than that likely has ulterior motives and would set off red flags.”

Divinch also noted that he expected a 20 percent increase in short-term 120GB PS3 sales.

“A dramatic increase or spike of short-term sales is quite common whenever a new console is released, especially if it is accompanied by a significant price cut,” added Divinch.

According to Divinch, the $299 price point will likely become the new standard for next-generation consoles over the next year.

“Both Sony and Microsoft are acting like 12th round boxers, so exhausted (in this case, financially exhausted) over the three year battle for next-generation supremacy, that neither are likely to deviate from the $299 price point for some time. It is possible that both consoles may reach a $249 price point 12 months from now, but that will likely be the lowest prices will get in the next two years,” said Divinch.

“Both will continue to increase the size of their hard-drives and likely add additional hardware and software features to appeal to consumers. It would not be out of the realm of possibility for Microsoft to include Project Natal as a standard attachment with all Xbox 360 systems in 2011. The same goes for Sony’s new motion controller that is currently in development.”