Coffee Talk #279: Sold to Retail = Blowing Smoke

Microsoft CEO Steve Ballmer impressed the crowd during his CES 2011 keynote when he revealed that the company has sold eight-million units of Kinect for Xbox 360. The only problem is that’s not how many units were actually sold.

Welcome to Coffee Talk! Let’s start off the day by discussing whatever is on your (nerd chic) mind. Every morning I’ll kick off a discussion and I’m counting on you to participate in it. If you’re not feelin’ my topic, feel free to start a chat with your fellow readers and see where it takes you. Whether you’re talking about videogames, whether Steve Ballmer is ruining Microsoft, John Morrison upping his game’s physicality, or your favorite Entourage character, Coffee Talk is the place to do it.

Microsoft CEO Steve Ballmer impressed the crowd during his CES 2011 keynote when he revealed that the company has sold eight-million units of Kinect for Xbox 360. The only problem is that’s not how many units were actually sold. Ballmer cited the “sold to retail” number — a term that’s being used more frequently by PR flaks and marketers.

It’s quite clever, though certainly disingenuous. More people know the difference between shipped and sold than ever before. More PR people are using “sold to retail” instead of “shipped” in their press releases. Internet reporters and bloggers are doing less fact checking (and less thinking, for that matter) in their race to get stories up as soon as possible. PR people know this and cleverly mask actual sales figures with sold-to-retail numbers.

Marketers and flaks are playing the press. Sure, some writers will verify whether touted numbers are shipped or sold, but it’s almost always too late. Hundreds of articles with inaccurate claims will have been posted by the time a verification email is received. Millions of readers will have been misinformed by the time a diligent journalist receives confirmation via phone.

I’ve covered games for a long time and have seen PR people manipulate journalists time and time again. The sold-to-retail gimmick is one of the smartest tactics I’ve seen in a long time. As a reader, do you trust the numbers issued by console manufacturers and game publishers? Do you suspect that most bloggers don’t bother to verify figures? Do you think PR people punk the press more often than not? Leave a comment and let me know (please)!

Author: RPadTV

https://rpad.tv

33 thoughts on “Coffee Talk #279: Sold to Retail = Blowing Smoke”

  1. i can't help of confusing Ballmer with Kevin from The Office.

    I always count on stats that say shipped to rather than sold to because you can sell something to the retailer and not ship it out until much much later. I'm interested to see how many kinects were actually sold because i saw some at Wal-mart on Christmas Eve and just recently on New Years Eve; for a hot, must have item that MS wanted it to be and for MS' supposed supply shortage i sure didn't hear about it causing a ruckus like the Wii did.

  2. No it doesn't bother me. I'm smart enough to realize the difference. Besides those sold units reflect on the income statement anyway, so as far as MSFT is concerned $$$

  3. Random comment:

    So yesterday I started playing RDR. I gave up on God of War 3, it keeps bugging out but I also wasn't enjoying the gameplay as much. It didn't seem difficult enough at times but it also hasn't changed since the first game. Another story. Anyway so I was playing RDR and started thinking to myself that the gfx were just "ok". I then realized I was hoping for a new console to come out very soon. I'm ready for upgraded gfx already. Maybe this came along as result of playing Bad Co. 2 on the PC recently with max settings but the consoles feel so dated to me already. Both of the HD machines. When RDR was starting he's riding on a train…and the textures on so many things looked flat. I want more polygons please.

    Then a second thing hit me…..this game is just like GTA:4 but with horses. I enjoyed GTA:4 because of the story. I expect the story in RDR to be good or else I won't finish it. This got me thinking though….why don't I like sandbox games anymore? I think it is because I play an MMO, which is way more fun in a similar vein to the sandbox games on a console.

    Anyway, randomness.

    1. @smargtguy

      I agree with you about RDR. I don't see why it's so highly praised. I've tried playing it but it doesn't do it. i tend to like sandbox games more than open world.

  4. Interesting how Seidenberg said 2 billion internet users and 5 billion wireless users in the world. I guess VZ sees a 2 tier internet?

    1. That could be a good motivator. Especially since the majority of people who would read an article dealing with something like this aren't always smart enough to know the difference between where numbers come from.

  6. Having a fairly strong background in advertising, I can tell you that people are basically taught to learn how to lie properly with things like this. I'm not surprised at actions like this at all, and in all honesty I completely expect it from PR/Marketing/Advertising/Academics, etc. Even in the world of academics we are taught how to cite our sources properly and use footnotes and a bibliography to our advantage. Everyone lies, and nobody really cares until the truth is actually told.

      1. i agree, there's no way the cops can be seeing these guys on the street and not arrest them. there is a law against this, right?

      2. Well, not really. There is no law that says you can't be dressed in black spandex and a cape. Battery and/or assault, however, is a different matter.

        If these "heroes" fight a criminal, the criminal can (at the very least) take the hero to court for all sorts of things- aggravated assault, battery, disturbing the peace, and probably a whole bunch of other misdemeanors.

        Why do you think that Spiderman and Batman are always running away from the cops in their graphic novels? They know that they, too can get arrested along with the criminals because fighting in public is a misdemeanor… so in essence, super heroes always seem to be breaking the very laws they preach to uphold.

        Last time I checked, fighting in public can land you up to 90 days in jail.

        But running around in spandex like a crazy person and scaring off would-be criminal; well, there's nothing illegal about that.

        -M

  9. LOL at Al Davis for firing Tom Cable after he coached the team to 8-8 after all of those losing seasons before. He improved the team and still got fired. Al Davis is senile.

  10. Everyone is touting these "sold to retailer" numbers now. I think this is the way it will remain from now on.

  11. Went to our local Best Buy at lunch. They have a literal Tower of Kinects when you walk in the store. I asked a guy that worked there what was up. They said the couldn't get any shipped during the holidays so people were placing pre orders for them and still none came in. He said they got 136 in on Monday all at once. and now they aren't selling.

    1. I think what Smartguy is trying to say is that Microsoft literally sold 5 million units, but not all 5 million units are hooked up to an Xbox or in a household. One or two million could be on store shelves, but they still count as "sold" since Microsoft has sold all of those units to stores and that contributes to Microsoft's bottom line, regardless of it ending up into the end consumer's hand.

      -M

  13. They exceeded their 5m goal. Whether or not there are 5m installed units would be up for debate.

  14. just saw a vid showing off the 3DS, they still didn't show any game footage but i still couldn't help from drooling while watching that vid.

    She will be mine, oh yes, she will be mine.

    1. Yep they announced it at CES I think (or it was just mixed in with the CES news I was reading)

    2. Next time I am in Chicago I will look you up, visit your residence, then punch you- per your request. haha.

  17. This story got picked up by N4G. Somehow it turned into a Microsoft vs. Sony flame war for some of them. Others are just ripping for being an elitist. It's all rather funny. At the end of the day, it's a nice traffic bump.

  18. Forgive my absence guys… work has been busting my ass and probably will through next week.

    I miss y'all, I swear it.

  19. What a difference from a few days ago when you were complaining how bored you were at work since there was nothing going on.

    When it rains, it pours.

    -M

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