For those of you who use 90% of your life to play Xbox, here is an economic question about the recent debut of the Xbox 360:
Why was/is there a shortage of Xbox 360's at many stores?
There is always a shortage of the most popular Christmas gift every year, and this year is no exception. The real question though is:
If Microsoft and retailers that sell the Xbox know that demand is going to very high for the Xbox 360 (which I assume they did), instead of running out of the game consoles, why don't they just raise the price to get rid of the shortage? They would then sell the same amount for a higher price and earn more revenues.
Any thoughts? I will post some articles that discuss this problem, but I want to see what you guys think on your own first.