IntroductionThe following article analyzes the initial release of Microsoft's XBOX 360 gaming system in the United States and the changes that occurred with the supply, demand, and price of the product over the months following his release. The social science of economics tells us that supply, demand and price are closely related to each other and have a significant impact on the quantity of a particular good purchased and the rate at which it is purchased by consumers. The XBOX 360 phenomenon is a clear example of the impact that changes in supply, demand and price have on the market and the speed at which goods are purchased. Supply, demand and price The law of demand tells us that “The quantity demanded increases as price decreases, other things constant, or alternatively, the quantity demanded decreases as prices increase, other things constant (McGraw 2004) The XBOX phenomenon 360 which took place in 2005 is a good example of this economic principle in action Microsoft's XBOX 360 gaming console was launched in the US market on November 22, 2005. The release came after a great deal of publicity and media hype. which ensured that demand for the product would exceed supply Quite simply, there were more consumers who wanted to purchase the product than there were The retail price for the hard drive gaming system was $399. Many consumers, however, paid far more than the $399 sticker price to purchase the system. On the morning of the U.S. release, retailers across the nation sold out of the product within hours of doors opening to consumers. In the weeks that followed, however, many consumers purchased the unit from sellers on online auction sites and even from private individuals in parking lots for as much as $1,500. The reason for this was that the supply was significantly lower than the demand for the product. In some cases, parents who wanted to ensure their children received an XBOX 360 for Christmas in 2005 were willing to pay well above retail price for the difficult-to-acquire system. In other cases, video game enthusiasts wanted to be among the first to own and play the system. News outlets across the nation showed footage of people lining up days before November 22 to secure a spot in line at retailers that would have the product available on the release date.