Amazon had a promotion today wherein they were going to sell 1,000 $100 Xbox 360 Core Systems to 1,000 lucky customers. It's a giant loss leader, and you can bet that everyone and their mother who knew about it was banging away, hoping to score the deal.
How did the "loss leader" play out? It was more of a "lost packet" leader, if you ask me. Amazon's entire site buckled under the weight of the promotion, and was completely inaccessible for over 20 minutes from four different testing locations (Chicago, Boston, Indianapolis, New York, with 9 testers reporting). The site was noticeably slow at 10 minutes before 11AM PST, when the promotion was set to start. T-minus 5 minutes, and the site simply stopped responding. Amazon did not appear to host this promotion in a sandboxed environment, so when the throngs of users came, they managed to render Amazon inoperable as a whole, at least in the US. Maybe that was the plan, but we somehow doubt it.
Was the promotion a success? Surely some lucky people scored the deal, and maybe those same people bought a bunch of other stuff in typical loss-leader fashion. From where we sit, however, we wonder if the money lost to 15 minutes of downtime was really worth it for Amazon.