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Analyst Says Two 360 Versions At Launch
An analyst with Piper Jaffray believes that there will be two Xbox 360 skus at launch, reports GameDailyBiz. From the article: "Microsoft knows $299 is important...They know that historically that's been the launch sweet spot, but they also don't want to take such large hardware losses this time. Of the 1 million units Microsoft is expected to have available at launch, I expect 80% of them will probably be the more expensive SKU, because that's what early adopters are going to want."
does it run linux?
Why not 360$?
This company just like to sell 5 different versions of everything to you. After all M$ marketing guys need to keep themselves employed.
The best I can guess is that a $350 model would have a larger HD, extra controler, and possibly some type of memory card for transporting saved games. I see this as rather pointless since you could buy an extra controler for around $30 tops or get a cheap 3rd party controller for less. I don't know the initial size of the Xbox 360 HD but I've heard 20 GB as an expected starting point. But why not just spend $100 on a nice 200 GB HD and put it in yourself. I'm sure that people will figure out how to hack or mod the box to get it to accept one that large.
The $399 model would almost need to have a game bundled in with it along with the other stuff. The only problem I see is that not everyone will want the game that comes with it. People will just buy the $299 version and pick whatever game they want for themselves.
"Of the 1 million units Microsoft is expected to have available at launch, I expect 80% of them will probably be the more expensive SKU, because that's what early adopters are going to want."
I don't know if I can agree with that. Unless Microsoft doesn't give users a choice, I'd bet most would go with the $299 model. At least that's what I'd be going with. I can't justify the extra cost for a slightly larger HD when I'll eventually want to throw in a really big one and mod it to run Linux. Then again I'm probably not the target customer for the Xbox 360 so maybe it's just me. Either way I don't see how consumers knowingly shelling out an extra $100 ($50 possibly) for a few extras that aren't necessary.
I've seen no evidence for 2 SKUs, and certainly nothing to indicate that Microsoft would release a version without a hard drive, when you need one to run games at all.
His entire argument appears to be based on "the hardware is expensive, so Microsoft is going to have to sell it at $399". Did he not notice how it is no more expensive than the XBox they launched last time at $299?
"I Know You Are But What Am I?"
parents are who dont know are going to pick up the cheaper one, thinking that store just has a better price. then feel ripped off once they find out they could have bought the extras at once - for 100$ cheaper at the outset.
always mosh clockwise
Releasing more than one version of the same console would simply take away the one thing that I love about consoles. They are simple and easy. You dont have to check for system requirements to play a game. You just have to have the system. But, if the consoles are acctually differant in any signifigant way, then you will have to check to see if you have the right version of the xbox. However, if they both play all the same games just the same, then what is the point of the more expensive version?
Most customers will also purchase one game - bringing the total up to 360.
I never spellcheck and I freely admit it. Save your karma for more worthwhile "lol erorrs" replies
An analyst with Piper Jaffray believes that... ...by making wild claims to the gaming press he'll get his name and his company's name smeared all around the news for free! Look at me! Look at me! Look at me!
Shut up, already.
From Wikipedia: SKU
A Stock Keeping Unit (SKU) is an identifier used for management of an inventory.
The acronym SKU is used almost exclusively when talking about this concept. Furthermore, it's pronounced as a word, rather than three letters, as if you were saying the English work skew.
Merchants assign SKUs to every product they sell (as opposed to an EAN which is assigned by the manufacturer). This SKU is then used to order, locate and manage the inventory of a product. Each product and variant of a product has a different SKU, for example different flavours or models of product have independent SKUs.
Also, keep in mind that this article about someone guessing about what Microsoft is going to do.
-- Dan
Maybe the 2nd SKU is the rumored HD-DVD version. I would pay extra for that, although I don't see 80% of 360 buyers thinking the same way. The way the analyst describes it sounds suspiciously like the bundles that retailers try to shove down your throat at launch, which is pretty much standard at launch anyway. Not that I'd ever get the bundle, as it almost always includes useless filler to drive up the price.
Wort Wort Wort!
Maybe this will come with that Robot that the NES had at launch! That launch had two different packages... basic system with SuperMario and then the upgraded package with R.O.B. the robot, Light Gun and Duck Hunt and another game. My guess is an upgraded Hard Drive and 1 year of Xbox Live service and possibly a game or controller.
I'm not clever enough for a sig...
It would be a big mistake for MS to launch the 360 with multiple versions. I don't think that there has ever been a successful console that launched with more than one version/price point. Now if they want to launch with different colored models, that's fine, but if they start monkeying around with the inclusion of the HD, then they'll be giving the game back to Sony. Honestly, the HD and Xbox Live are the Xbox's only advantages over the Playstation 2. Look at how poorly the PS2 HD add-on fared, and the promises of support that Sony itself broke. If the HD is not standard in all 360s, then it will fail as well, putting 360 on the same level as the PS3.
In the console world, the launch is a one shot deal. Whatever comes out at launch is what is going to be supported. Enhancements and redesigns may come later in the console's life, but that base model that rolled out on day one is the one that gets full support by developers. Splitting the market on day one would be very foolish.
To the making of books there is no end, so let's get started
Considering that right off the bat they will be losing money for every Xbox 360 sold (probably not as much with the $399 or $349 priced model) as well as the enormous amount of advertising they're going to be doing over the Christmas holiday, when are they going to start seeing money coming back in?
Because that the PS3 will be just as technologically powerful as the Xbox 360 if not moreso in some regards, the Xbox 360 will have a harder time convincing people that it's the most powerful console out there. Additionally, with the Nintendo Revolution expected to debut at $200 (or less!) Microsoft may find itself in a tricky situation. They migth have more money than all slashdotters put together, but can they really afford to keep soaking up losses like this?
And now something like this comes out: "Microsoft has set up a fund (of sorts) to be utilized for subsidizing game development and promotion for the XBX360. We think the Company will provide financial incentives in the form of development dollars, sales and promotions, and reduced royalty structures. At the end of the day, expensive third-party product development (on key IP) could be subsidized in part by Microsoft's balance sheet."
The whole thing looks like a house of cards to me. It's understandable that Microsoft needs to sell consoles to get companies to develope games for it. In order to sell consoles they need to get companies to develope games worth buying for that console, exclusive if at all possible. However, if you're selling a console for a loss and hoping to make up for that by charging royalty fees to any company that releases a game on your console, it doesn't make sense to reduce that royalty rate as well as throw money for developement, advertising, and promotions. The only reason they're able to do this is because of the massive amounts of cash flow they have from other divisions. The only way this works is if they sell enough consoles where people buy games in a large enough volume so that royalties cover the costs. This only works in the long run, however, if enough people have bought the console where game sales reach that point.
I realize that this probably sounds like a lot of FUD, a troll, or an attempt to start a flame war, but you should understand that I have an Xbox and enjoy a lot of the games that it has made possible. Some of them might have come out for other platforms but I don't know if I'd've ever had the joy of playing Halo, KOTOR, or some other unique Xbox games if it weren't for what Microsoft did. However, I can't agree with their current strategy that will eventually cost them enough money so that they consider discontinuing future generations of the Xbox. They probably have enough money to support it indefinately, but will they?
I don't see what's to stop them from using a strategy similar to Nintendo's. If they sold every console for a profit, they'd be able to reduce the royalty rates which could result in games still being priced at $50. With a strategy like this and their installed base, I think they could do a much better job of carving out a larger market share in the future years. The only other concern I have is that the one million units expected at launch won't be enough to satisfy the demands of all consumers. If they launch in November, will they have enough units to satisfy the demand at Christmas? If this happens many consumers might just say to hell with the Xbox 360 and wait until a PS3 launch which is expected in March.
It seems to me that they've jumped the gun a little and it will probably cause them problems down the road. I hope they're able to keep things running smoothly as they do make a wonderful console and have some great games and an excellent online model to go along with it. They've done some innovative things in the industry and it would be a shame to see them have to drop out due to poor planning. Here's hoping for the best.
Why do we keep seeing these news stories that just turn out to be an opinion from someone who has nothing to do with what's actually going on? Stuff like this should only really count as "news" if it's coming out of the mouth of someone at Microsoft.
"many conversations with Microsoft" aside, his guesses are probably no better than mine.
-"One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man." -EH
For Nintendo.
Confuse and anger the consumers with multiple versions? Keep following in Sega's footsteps MS, please!
Anonymous sources cite something they read one time on the internet somewhere that M$ will release the 360 for $1000, it will come in 16 everchanging colors, with 8 controllers and halo 3 and 4. Also, a solid gray version with one controller and duck hunt will be available for $300. There, I just became a source for the continued creation of misinformation about next-gen platforms. It's pointless to speculate until we get closer to the indiviual release of each platform.
when are they going to start seeing money coming back in?
As soon as they drive Sony and Nintendo out of business. MS's goal right now is not profit, it is increasing market share. Once they get a significant enough market share they can strongarm developers into exclusives and start jacking up the price of the console, games, and royalties while lowering the cost to manufacture (and quality of) their console and games because of a lack of significant opposition, thereby recouping their early losses. MS isn't out to make money on the XBox tomrrow or next year. They're planning for the future.
The laws of probability forbid it!
There was that talk of the three versions of Xbox360 (one with out a hard drive, one with, and one with the Media Center (internet and everything else)
It's a degergation of the videogame console idea, when you have different versions of your Xbox, honestly Microsoft better home Japan accepts this one because otherwise they'll just loose a ton of their money.
Just one more step on the Console PC. (and while Linux Xboxs are cool, notice it's not the official console)
How is that flamebait?
Hey, Microsoft! Where's the $100 XBox? Some of us "late adaptors" would like a piece of the action.
The cheap model Xbox will DEFINITLY have a HD???
Future versions seem to be completely Trusted Computing aware and will thus be hardware disabled for anything save microshit.
This leaves us at a little crossroads. Stay the hell away from M$ or get screwed much as we do with windows where the assholes break compatibility every year or three to squeeze MORE money for slower/shittier products each time.
Oh well, the majority of people are dumb and they are going to end up helping US have to pay for their stupidity too.
" What luck for rulers that men do not think" - Adolf Hitler