Have you ever wondered why video game companies overstock? Why do they do this? Are they trying to get rid of their inventory liquidation for many new video game titles? The answer to the latter question is no. Yes, video game companies stock to make sure that new video game titles are always produced.
Just think about it for a second. Video game companies spend millions of dollars each year producing new video games. This means that they must always have enough space in their production facilities to create these new video game titles. If they didn’t, they would quickly run out of room and be at a disadvantage when competing against other video game companies with more space and resources available to them.
That’s why video game companies’ overstock. They want to make sure that they always have enough space to create new video game titles. It’s just common sense that they won’t let their inventory go empty. If they did, they would be at a severe disadvantage to the other video game companies. This simple cost-saving strategy has allowed them to increase the amount of video game titles that they produce.
Now, you might wonder how this is good for you. Well, consider if you will all of the money that you have spent on video game consoles. Not only have you spent thousands of dollars on these video game consoles, but you also have spent quite a bit on accessories such as controllers, game bags, and the like. While not very expensive, these items add up to a significant amount of money and are a necessary part of playing video games.
Now consider the fact that video game companies overstock because they can afford to do so. When a new game is created, it comes off of a production line. To release the video game in a reasonable amount of time, producers need to purchase many materials in bulk. As such, video game companies know that they will not get as much inventory on hand as they would like, which is why they often overstock.
While it may seem that video game companies are trying to charge too much for overstock items, the truth is that they are simply trying to make more money. It’s a business, after all. So, rather than giving away products to make more money, they choose to overstock to sell those products for less. In the end, you should thank video game companies for creating great video games at such a great price!