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Xbox for $99? Xbox 2 in 2005?
TimeForGuinness writes "CNN is reporting that Microsoft's Xbox may be on the verge of a substantial price cut, falling from $179 to $99 by Labor Day, and Microsoft will launch its next generation console in late 2005 - a year earlier than has been previously rumored. That would put the Xbox 2 on store shelves up to a full year before Sony's PlayStation 3."
This nice thing about consoles is that you didn't have to worry about constantly buying new ones. Count on Microsoft to fuck that up.
Why not get a second hand one now? And give none of your money to Mikerowesoft.
Yeah so I can get an XBox for 99, the good games are still 50$......
So Long and Thanks for all the Fish.
So whatever you do, don't bet on Xbox dropping to $99 or seeing Xbox Next/2 in 2005. And don't complain that Microsoft lied to you when neither of these things happen.
This just speculation.
Schnapple
I seem to have heard a similar rumor about the price of the iPod mini being $99, and look how that turned out.
Microsoft is already selling consoles at a rather hefty loss, and there's only so much to be gained by selling them at an even bigger loss. Even Microsoft doesn't have bottomless pockets, and the problem with selling a product as a loss-leader is that the more you sell the worse your short-term financial hit is. Selling a product as a loss-leader assumes that the people who buy that product will buy additional services at a higher markup later.
The problem with moving the cost of an X-Box to $99 is that you're hitting a market demographic that's far less likely to spend the $$$ to get something like XBox Live or a large number of additional profit-gaining accessories.
Now, if Microsoft came out with some deal that you could buy an XBox for $99 if you commit to 6 months or a year of XBox Live, that might work. Elsewise don't be lining up at the store to get your $99 XBox...
Although Microsoft has money, I seriously doubt they'll try to do what Sega did. Primarily because it is a huge risk, and that seems to be the tone of the article. Pretty much, if they pulled an early release stunt it would either make them or break them. First off, with their next console they have to try and ensure that they are not in the red like they are with the xbox.
lower the xbox's price down to $99 will not necessarily make people go out and buy one. That's still $100, and the holiday season is over with.
Sega may not have been in as strong a financial situation as Microsoft, but the dreamcast was a great console. The only thing that really ruined it was the fact that it did not have solid piracy protection. Who's going to make games on a system that everybody can steal? Before that, we saw lots of great games on the Dreamcast.
The xbox's buzzfactor, I think is as high as it can go. While observing Microsoft's moves, I've noted that they've done PC like stuff for the console. So basically they did things such as gamespatches that had never been done before by companies such as Nintendo. Think about that 20 years 1988-2004, no patching games, and then Microsoft comes along and starts patching games that have major bugs (granted, online games don't count, but think morrowind...etc.)
was the article worth reading? sorta, its all speculation, and it states the obvious. Basically, if the rumors are true, and Microsoft releases early, then this could hurt them. Like i said before, the article is pessimistic on the idea of M$ releasing early.
IMHO, Microsoft will probably release around the same day and time as Sony to be safe. By putting their cards on the table early, it will give Sony plenty of time to respond. If they release around the same time, it will be more like a game of rock,paper, scissors (just hope they both choose scissors).
I say this for a simple reason...
Larger scale adoption of Linux.
Ok... So how does buying an XBox help Linux become more widely adopted.
Let's look at what motivate 99% of Computer hardware changes and upgrades.... games. No one needs a hardcore graphics card with an overclocked, liquid cooled CPU to run Word. The primary purpose for upgrading one's computer (OS and Hardware) tends to be for games. Linux simply does not have the same game base as Windows does (yes I know that this is changing... but there still is not enough).
Microsoft really wants to win with the XBox and the more money that we all sink into the XBox, vendors will have less motivation for targeting PCs for game development. Comparitivly, porting is the easy part (budget wise)... it's testing that kills your budget. With the PC platform, you have to take into account the wide range of systems out there, tech support for those different systems, etc. With the XBox, they have to worry about 1 platform and only 1.
The widespread adaptation of console games could be really good for Linux. IMHO, there would be less motivation to deal with Windows as it appears as though games are a big selling point of Windows. If Microsoft has tunnel vision with the XBox (most large companies tend to suffer from this), it will probably be too late before they realize that the XBox is cutting into their OS market share. Though games could be a bigger marketshare for MS.
So buy up those XBoxen and encourage MS in it's game console venture.
Since the X-Box is going to be based on the PowerPC, backwards-compatibility might be out of the question.
Unless you know of an x86-to-PPC compatibility layer that can be plunked into a $300 console...
I wish I had a kryptonite cross, because then you could keep Dracula and Superman away.
Yes, but the GameCube has already been at $99 for quite a while. Pretty much everyone who would buy one at that price has already bought it. It's not very likely that Microsoft will absorb many sales that Nintendo would have gotten.
it's all about making us wait to see if it will be 99$, in case we'd be thinking about buying a different console which would cost less.
Last I saw this division (home entertainment) was hemorraging significant cash. Odds are they've lowered their losses, but the launch of Xbox 2 will undoubtably pick up the burnrate again. Maybe they won't throw away as much money on the roll-out and let word-of mouth do the work it should.
ASAIK the XBox is supposed to pave the way for homes to get all manner of services from Microsoft and partners, but I don't see much evidence of that. Game machines have been and continue to be boxes you play with until you get bored or the next best thing comes out and you relegate it to the garage, attic or eBay. If you're a typical obsessive gamer you sure aren't thinking about how wonderful this innovation can make your life by handling TV, email, web surfing, etc. for you. You'd rather be kicking ass.
A feeling of having made the same mistake before: Deja Foobar
I don't think so. Nintendo still has its own exclusive games that people want. In addition, it has the GBA which is still selling quite well. There will also be quite a few new RPGs for release on the Gamecube this year, all of which are exclusives. I don't really see this causing much of a problem for Nintendo, who definately has the market edge of Microsoft in Japan, and is still doing strong in the USA. Europe is Nintendo's only real weak area right now.
f ro mint=1
If Microsoft were to drop the price to $99, it would be purely to dethrone Nintendo from the "#2" position. Nintendo would probably retaliate with a great game pack-in or promo before dropping the price any more. The $99 price range is where the added hardware features of the XBox begin to matter a lot less. They are so cheap, most people would just buy both machines. In the end, it will be the games that matter for the number 2 position. Though the XBox does have "Live" and the wasted hard drive feature, it doesn't have the franchises that Nintendo has. All of the talk about XBox's games is "Halo this" and "Halo that." Halo alone cannot sustain a console. While people are awaiting Halo 2, I'll be playing Baten Kaitos, PSO 3, Chrystal Chronicles, and the Tales of Destiny games, Metal Gear Solid remake, Metriod Prime 2, All of which will never come out on the XBox.
Check out these games - most of which are exclusives.
http://cube.ign.com/articles/474/474953p1.html?
Correct me if I'm wrong, but wouldn't a cheap hardrive and cheap ram get you pretty close to 99$.
This is an example of the power of a monopoly trying to break into another market. There is NO way that a company could start out and keep losing tons of money like they're doing on the xbox. That's what's wrong with monopolies. They get so much income from selling windows xp pro (full version 449$CAN at futureshop.ca) and office Pro full (sells for 650$CAN at futureshop.ca) that they can keep losing until they make competition in an area go bankrupt. Then you start paying.
The xbox doesn't seem cheap when you realize you're paying for it when you buy software from Microsoft's monopoly areas. Same goes for IE, media player and all the little utilities included in the OS that used to be made by various companies. It's never free, you just pay elsewhere.
If(XBOX == $99) XBOX2 = backward compatible;
... They want to gain users. Sell the systems at a huge loss, to pump up the number of games sold. That's always been their strategy.
... all of their old games still work. Past ownership of games ... plus a percentage of users that are tied to their "XBOX Live" accounts will encourage this transition. By dropping the XBOX price to $99, they'll be signing up a legion of future potential customers that are more likely to buy the XBOX2 than the PS3. Anyway, that's my speculation.
Here's my logic
Now, Sell the XBOX2 with backward compatibility so the barrier to entry for new users isn't that large
That might have to do with the fact that programming well for the PS2 is such a complex and difficult task. The architecture is completely custom and proprietary, and you need all kinds of tricks and workarounds to "reach into the guts of the machine", as you put it.
Programming for the XBox, on the other hand, is an easy task for anyone who's used to programming PC games with DirectX (and that's a lot of people). So it's not that XBox games haven't gotten any better since launch date.. it's that they can't, because from the start they've been able to use the machine to its full potential. No horrendous learning curve.
It should also be noted that, IMHO, the XBox's launch-date graphics are far and above the PS2's graphics, even when PS2 devs "reach into the guts of the machine".
No PCI slots, but it does have USB ports.. If any usb tuners worked under linux it would be feasible to get them running with xbox. Though I'd doubt the 700mhz cpu and 64 megs of RAM would be up for much by way of real PVR features (pause live TV, etc)..
They make half decent media playback boxes, but as for a PVR, buy a PVR, or build/buy a media center TV.
Xbox at 99 + HDD upgrade + TV tuner + mod chip + hassles = ugly (hacked usb dongle TV tuner hanging out the front), practically useless and probably cost more than a ReplayTV all told..
I don't need no instructions to know how to rock!!!!
Except that I think a majority of people in the console-buying demographic already have a hard drive (with a PC connected to it) and a DVD player (seeing as they can be had for $29 on their own now). Finally, the broadband adapter, good only for the console and requiring a separate connection, really isn't for the impulse-buy crowd. The features the XBox has don't really seem to be all that impressive anymore, and because the normal impulse buyer won't mod their XBox into a Linux media player and already have a DVD player, I don't see much of an advantage in getting an XBox for those features.
Like always with game consoles, it just comes down to the games- I want to play a lot of Gamecube games, but I don't really want to play many XBox games. Gamecube at $99 is a steal because you have things like Viewtiful Joe, Zelda, Metroid, Mario (Kart), etc...Honestly, somebody correct me if I am missing something, but I haven't seen even one must-buy game for the XBox since Panzer Dragoon Orta.
The problem is not memory cards. The problem is *proprietary* memory cards. If the machines would take CF cards, or USB drives, it would make life easier for those who want to play in multiple locations.
Also if XBox couldn't beat the PS2 with a 2-year technical advantage and huge losses, how do they expect to beat the PS3 being 1 year behind? When the PS3 comes out, it will be faster, have more games and be cheaper than XBox2.
Also MS made the mistake of choosing PC-components which is the reason why XBox will always have a worse price/performance ratio than the Playstation. Of course as long as Microsoft is willing to lose 1 billion/year on XBox, you don't see the price in the stores...
XBox2 seems to me an even bigger moneypit than XBox1. Also XBox faces the constant danger of being discontinued when the Office and Windows profits no longer grow, it is a product that cannot survive on it's own merit, it needs constant and huge flow of cash, which isn't really a good long-term strategy.
Yes, I also think that. Also Microsoft has to be very careful not to piss off their PC-hardware partners, I think they changed the USB-connector for exactly that reason: PC-makers shouldn't be afraid it could be used as a PC-replacement.
"Weren't microsoft selling these at a loss already?"
Do you really think component cost has been a constant all these years?
They may be selling at a loss, but dropping to $99 doesn't mean they're losing another $80 per unit.
"Derp de derp."
I really dont see the need for another generation of consoles yet so soon. Could they have really made that many mistakes on the xbox1 that warrants a complete new system??
Come on, get serious. Lets see them concentrate on making good games rather than cramming the games full of high end 3D graphics.
A good game doesnt need to rely on quality of graphics to be good. I still play the various mario series (for snes/nes) and I think they are alot better than most of the junk thats come out recently.
I thought that Microsoft was selling their consoles below cost anyways. Why would it be profitable for them to get another system (which will probably be sold at cost as well) when have just finished getting the xbox1 out there?
Is there anything that does Xbox for nearly the same? Yes, sorta, except it's not an Xbox, and doesn't have the exact same games.
I have no trouble giving MS cash for a good product. I love my sidewinder joystick. I love my MS USB IntellimousePro, much more than the logitech one that I threw to the side because I didn't like the way it felt.
Just because it's MS doesn't automatically mean it's not worth purchasing. Does that mean I automatically want all of their software? No.
Make your choices where it really counts. Some areas, MS is ALWAYS going to have competition. And guess what? They are starting to have competition in the SW dept too. If things had gone just a little different 20 years ago, we could have all been griping about Apple the same way we do about MS.
It isn't illegal because the gaming market isn't a monopoly. MS is trying to break into the market, not keep people out.
Now then, if Sony dropped their prices way below MS and the Nintendo, that may be a different story.
Also, no company ever has a business model based on losing money. Never. Ever. When a company expands into a new market, it is expected that the market will not be profitable for X number of years. Even when Sony and Nintendo started out, they lost money in the beginning. There is a lot of over-head related to starting a new division / company / market.
The strategy is always that you reduce your losses every year to meet your goal of being profitable in the future. That being said, if you loose too much money, it is better to get out, though when you're MS that is a mute point.
In my experience it is general practice to take big losses to begin with so you can establish a customer base. Ya know, get some loyalty. Then once you have a market you are able to run with it.
-Mark
Dovie'andi se tovya sagain.
Dreamcast died because Sega, seeing the upcoming PS2, assumed their standard crisis mode, which is to roll over onto their backs and put a big red X on their stomach with a sign saying "STAB HERE".
Dreamcast's must-own titles came too late, and by that time, people decided to wait for the PS2. Its much-hyped online ability was never fully realized because Sega got lazy.
Dreamcast was killed by mismanagement, not by being first to market.
It's counterintutitive, but it does make anecdotal sense.
No, it really doesn't. GameBoy got clobbered by the GameGear, right? NES got ownz0red by Sega Master System, right? PlayStation didn't stand a chance against the newer and better N64, right?
Even more recently, the PS2 is really getting thumped by Xbox, huh?
It doesn't at all make any anecdotal sense, because there are fewer than a handful of situations where it's been true, and those have all been due to horrible mismanagement (generally by - surprise - Sega!).
Every once in a while I like to masturbate a new word into my vocabulary, even if I don't know what it means.
XBox has the highest number of software sold with the system .. because it has the highest number of games that come bundled along with every system purchased.
But anyway, if your theories above were true, then how do you explain the yearly billion dollar losses of the MSFT Home division? If all these adults are buying xbox and PS2 games, then why is Nintendo the only company who's actually pulling in serious cash?
These pretzels are making me thirsty.
I find myself wondering why this is being taken so seriously. Looking at the URL and the article itself makes it more than obvious this is an Opinion Article. Nothing more than a commentary from a writer who has shown his own lack of understanding on how the vide game market works. His only evidence for this immense price-drop comes from an analyst. Last time I checked analysts are not Gods and seem to be more often wrong then right. But of course, anyone who is in the business of predicting an unpredictable future could you expect anything less? This goes back to the old adage, just 'cause it's posted online don't make it anymore true. Of course, I don't know any better it could happen. But this is hardly much to go on.
Something intelligent here.