I think he was referring to cases where console manufacturers are not in a position to make any demands because their product is not that hot. In a later post, he gave an example of a "hot" product (Wii) which is in-line with what you are saying.Leondexter said:That's not entirely true. I used to be a buyer (thankfully, I'm now inventory control mgr, buying sucks), and I can tell you that there are many products where it doesn't work that way. It's not just "I want 10".
If a product is hot--and I'll use Beanie Babies as an example of one I ordered directly--the wholesaler can place a lot of restrictions on you. Ty used to tell us what kind of fixture could be used to display the beanies, how many locations it could be sold in and for what price, which beanies we were required to order and how many, etc.
Now, legally they can't do any of that, but they can stop doing business with you if you don't comply. Most vendors are at the mercy of buyers, but if they know they have a popular product, then the situation can be reversed.
In the case of Gamestop, they most certainly are at the mercy of console manufacturers, who take advantage of it. I don't doubt at all that the over-shipping of consoles is not due to a buyer's decision, but is mandated by Sony/MS/Nintendo.
The point is both Microsoft and Sony have to give incentive to stores for better product placement, etc. so the notion that Microsoft can force stores to buy more than they need does not make sense.