Xbox Price Drops to $200

ProfBooty writes: "Just two days after rival Sony Corp. cut prices on the PlayStation 2, Microsoft has announced they are cutting Xbox pricing by 33% to $200. Nintendo still has no plans to cut pricing on the Gamecube. Now is definitely a good time to be a gamer with all 3 next-gen systems at $200. Too bad i just bought a Playstation 2 yesterday." I'd like to know if anyone has succeeded in porting a Free operating system to the Xbox.

Comments

Cost Question

[Carbonite]

What are the current production costs for the PS2, Xbox and Gamecube?

Which companies will be making money ate the reduced prices and which will be losing on each sale?

Re:Cost Question

[sammy baby]

The X-Box is definitely losing money on each sale. I don't have any hard numbers, but I'd be very surprised if they were even breaking even under the original pricing scheme.

I read an article somewhere that said that Michael Dell, upon hearing Microsoft's offer to build X-Boxes for them, essentially laughed it off. "So, let me get this straight: you want me to build these boxes and sell them at a loss? And make up the difference in software - which I don't sell?" Does anyone else have a reference for this?

Re:Cost Question

[Anonymous Coward]

Losing money? Maybe if you look at just the Xbox itself. But the console is not where the money is. They'll make it all back in the games.

I will say one thing though. I can't blame anyone for pirating these games at the prices they go for these days. $50? Somebody's on crack. I remember buying games as a kid for my Atari for $20 or less. No wonder I spent my teenage years pirating computer games... there's no fucking way I could afford them.

Re:Cost Question

[denshi]

You probably read it here:

http://slashdot.org/article.pl?sid=02/04/06/133725 0&mode=thread&tid=127

And to develop your argument, I point out that 'better manufacturing processes' here means "fit everything onto a single chip". The importance of that cannot be understated -- moving from a multi-chip board to a single-chip design means you no longer have to design, build, and test all the wire traces between chips, which is the large repeatable cost per unit (chips are essentially free once designed). And the single-chip integration means the yield comes way up, as you have only one point of fab failure, as opposed to n chips and a connecting board....and yield is *everything* in electronics.

A basic history of electronics demonstrates, repeatedly, how process changes like the above makes and breaks market share. For example, C&T, after IBM released the PC, figured out how to condense the 13 chips that ran the motherboard into 1 (the 'chipset'). As a result, C&T could build IBM PC boards cheaper than even IBM, and lo and behold, the PC clone market was born.

The only funny thing here is that Sony didn't drop the price sooner. They can probably make PS2s for $40 now; the DVD Consortium licensing might be one of the largest costs in the machine.

Re:Cost Question

[martyn s]

Did you know that those original figures included the fact that the Xbox division was paying the OS division of Microsoft almost 100 dollars for use of the Windows kernel? Don't believe everything you read.

Re:Wonder who shot first?

[CynicTheHedgehog]

According to Penny Arcade, Sony accelerated their price drop plans leaving Microsoft with no choice but to follow suit. This is a real kick to the groin for Microsoft, whose consoles haven't been doing as well as they thought and cost more to produce. Sony's probably recouped their initial losses, but I doubt Microsoft has.

Yay Sony, I guess.

Xbox Linux

[Bob9113]

The Xbox Linux Project is currently working to port Linux to the Xbox. It appears that the primary hurdle is getting past the hardware based authorization system, which does not allow unapproved software to run.

Re:What?

[Marx_Mrvelous]

I don't know if you realize this, but MS loses at least $200 per unit that they sell. So, porting say, Linux to it and use it as a desktop, you just cost MS $200. Bad troll!

The new Metroid had better be good.....

[globaljustin]

otherwise, Nintendo will not be able to compete. Ok, I'm not a troll, Metroid is not sole factor in Gamecube's existence, but it's an integral part. My question is, with this price drop eventually price Nintendo out of the market? I think Microsoft's plan is to lowball (for lack of a better word) Nintendo, price it out of the market with the X-box, and then go head to head with Playstation with the X-box II. Nintendo as an anti-microsoft hero???

Linux on the XBox

[PhilJackson]

'd like to know if anyone has succeeded in porting a Free operating system to the Xbox
Do we know if M$ has taken any special steps to stop another Os bieng used? Depending on thier licence wouldn't we be breaking the law by putting a *nix on it?

Sony Vs. Microsoft Gaming = Sony Victory

[Razzious]

I have watched this whole X-Box PS2 war rage for some time. Its amazed me that the X-box has done as well as it has actually. However I have watched Microsoft make a trend of "follow the leader" in the gaming industry and yet stay behind.

Everquest...Love it or Hate it, its been a higher success than Asherons Call. AC2 is excpected out at the end of this year just in time for the Starwars Galaxy release from Sony. We know the SWG release will pull gamers that have never considered a MMORPG before. Not to mention the "Planes of Power" release coming in November from Sony

Then wait a year and get the EQ2 and once again you have the makings of a Sony Victory.

Should Microsoft think they can kick Nintendo out of the Market, they are going to have to work harder than they did to get Netscape off of the desktop. Nintendo has continually shown it can hang in the market, and if they start pumping out new releases of the OLD SKOOL NES games, the nostagia alone will make us buy it. I have not paid attention to the GameCube really, but reading Metroid info has me ready to buy one tonight! Add to that "UP, UP, DOWN, DOWN, B, A, SELECT, START. and I have the makings of a CONTRA PARTY!

Sony needs to send Microsoft an e-mail that states clearly "You're in OUR world now"

This is new to MS

[mslinux]

MS developes software. There is no expensive 'manufaturing' process in software development, at least not when compared to hardware. All they need is code, some CDs and card board boxes. This is one reason they have made sooooo much money. There isn't that much over head in what they do. Hardware development is different, much different. The profit margins are lower, much lower. Labor costs are higer, etc. There are too many variables that MS can't control which can influence the price of the parts in the Xbox i.e. earthquakes in Taiwan drive up microchip prices. So my question is, how long can their bank account support this kind of loss? And, when will Bill get tired of a reduced income? You have to admit, he has gotten use to making a lot of money ALL THE TIME, not just during the 'good' quarters like average companies. And my comment is: this is a good example of a monopoly in action. They take a huge loss (because thay can afford it) put their competitors out of business, and then raise prices. I think it's the begining of the end for MS. IMO, Their entry into game consoles is a desperate attempt to penetrate other markets before they loose all of their software business to open source, but it's to late, and they can't play on a level field. But one thing is for sure, Bill is gonna have to learn to live of less.

Re:Where did you buy it?

[srvivn21]

Gee. Read Penny Arcade much?

And I quote:

It was said that we'd see [Nintendo GameCubes] at around the one-fifty mark, but who knows if they'll be satisfied with a fifty dollar difference between themselves and their competitors, which cuts their prior advantage in half. You know what I'd like to see? I'd like to see 'Cubes sell at one-fifty or one-seventy-five, and include a GameBoy Advance with that little cable thingy that hooks them together. I mean, I'm just talking. I have no idea if something like that would even be feasible, but it seems like a fantastic way to differentiate themselves.

Perhaps it was just a good idea that multiple people came up with simultaniously. Perhaps "Tycho" stole your idea. Who am I to say?

Actual Price Difference

[donnacha]

The difference isn't that great, you're forgetting that Americans have to pay an additional sales tax, varying depending on which state they make the purchase.

The British VAT (Value Added Tax) of 17.5% is built into the British price.

American Price: $200 = £138

True British Price: £199 - £35 VAT = £164

The Price Difference: £164 (British) - £138 (US) = £26

That extra £26 is necessary for two reasons:

1. As a buffer for the downwards adjustment that the British Pound will have to make before joining the Euro.

2. To compensate for the lower number of expected games sales per unit sold in the UK as opposed to the US; Americans find happiness and personal worth by buying things they don't need and are less discerning about the quality of the games they buy.

So, not such a bad deal after all.

the dreamcast has great game selection

[AtaruMoroboshi]

What crack are you smoking?

I bought a Dreamcast late last year and I've aquired all of these games for under $30 each, most at $14.99 or less:

Chu Chu Rocket
Space Channel 5
Sonic Adventure
Street Fighter Alpha 3
Marvel vs. Capcom
Crazy Taxi
Jet Grind Radio
Resident Evil: Code Name Veronica
Sega Bass Fishing
Sega Marine Fishing
Shenmue
Soul Caliber
Virtua Tennis
Sword of Beserk
Typing of the Dead (hilarious! type at zombies to kill them!)
Dead or Alive 2
Power Stone (AMAZING 3-D fighter, a genre I'm only kinda into, this game is serious fun. I got it for $8.99 last week and have been playing it non-stop!)

There are a lot of seriously awesome games for the dreamcast that while you might have to search a bit, are worth the effort. Here's my list of games I'm currently tracking down (some are still easily availible, I just can't drop $300 on a dozen games right now.):

powerstone 2
seaman
sega bass fishing 2
skies of arcadia
granda II
shenmue 2
Street Fighter 3: Third Strike
Marvel v. Capcom 2
Capcom v. SNK 1
Capcom v. SNK 2
bust a move 4
house of the dead 2 (and light gun)
samba de amigo (and special controller)
alone in the dark 4
sonic adventure 2
crazy taxi 2
tony hawk pro skater
tony hawk pro skater 2
fatal fury: mark of the wolves
Bangai-O
Bomberman Online
Giga Wing 2
Gunbird 2
Project Justice (rival schools sequel)
Dance Dance Revolution (and dance pad)

now, i realize hunting high and low for games isn't most people's idea of a good time, but if you're up for it, the dreamcast is WELL worth the effort. Not to mention all the neat hax0r things you can do with it, like boot linux, burn your own boot discs and play nes emulators...

the fishing controller and keyboards are easily availible, as are memory cards and additional regular controllers. Aracde stick controllers are a bit rarer.

the dreamcast is well worth the investment.

I do plan on getting a used ps1 to play metal gear solid, final fantasy 7, and dance dance revolution (easier than tracking down the import only DC version), so I see your point about if you're only going to buy one console, but I think for me, that one console would be the dreamcast. I'm starting to be fond of it in the way I am fond of my iBook, which says a lot.

.

Price fixing?

[Merlin42]

Ok IANAL by any stretch of the imagination.

What exactly is the definition of price fixing? It seems that with other products manufacturers can only state an MSRP(manufacturer suggested retail price, but with consoles (and to a very slightly lesser degree games) the manufacturer gets to choose the price that stores sell it for. Why is this?