Is Microsoft setting up to sell their gaming consoles direct.
The big software and gaming Company has recently introduced “Console Purchase Pilot” program that will give selected Xbox members the chance to register to reserve an Xbox Series X or Series S console directly from the company.
The move could see “significant” revenue stripped from the likes of JB Hi Fi, Harvey Norman and EB Games in the future, as well as the likes of The Good Guys who were banking on new Xbox and Sony PlayStation Consoles to drive sales late last year and into 2021.
The new program is only rolling out in the US for now, but insiders are telling ChannelNews that it will be rolled out in other markets including Australia in the future depending on the success of the US direct sell trial.
The problem for registered Xbox owners is that if they do sign up, it doesn’t mean that you’ll actually be selected to buy one of the highly in-demand consoles because of chronic shortages.
One retailer told ChannelNews “Big brands are today looking to circumvent the retailer as it is easy for them to set up a direct sell online site. The bigger the brand and the more retail floorspace they own makes it easier for them to sell direct. Microsoft’s latest exercise makes sense because there is limited supply, and they don’t really need a retailer to sell the stock they are getting from a manufacturer. This saves them at least 30 points as well as marketing and Co-Op dollars.
In their latest direct sell push Xbox customers who are desperate to upgrade their existing box will also have to use the Xbox Insider Hub app on an Xbox One console to both sign up for the Console Purchase Pilot and purchase the console itself.
Owners won’t be able to conduct the transaction on a PC, web browser, Xbox 360, or Xbox Series X / S by design.
That means that the program will be intentionally targeted to dedicated Xbox fans who already own an Xbox One console and are looking to upgrade.
Microsoft claims that the move is designed to stop scalpers.
Introduced in 2016, the Xbox Insider program lets dedicated Xbox fans give direct feedback to Microsoft and test future software updates and features ahead of broader public rollouts.
