Next-Gen Pricing Still A Hot Issue

GamesIndustry.biz has two articles taking a look at next-gen pricing, both from Microsoft's point of view. Xbox VP Peter Moore says that next-generation pricing is actually going to be an excellent value for the money. From the article: "...he predicted that many games may be offered in limited edition bundles, similar to the already announced Perfect Dark Zero bundle, which costs an additional $10 but adds a significant amount of bonus content to the title, and that premium downloads costing 'maybe another $5' will also be a key strategy for publishers." Additionally, the Xbox marketing folks are already planning price reductions for the 360. From that article: "'We will wind up cost-reducing the product every year,' Todd Holmdahl, corporate vice president of the Xbox product group, told Reuters. It's estimated that the 360 costs approximately $100 less per unit to manufacture than Sony's PS3, giving Microsoft more scope for price cuts."

Comments

Because They Are Too Expensive

[MBCook]

I expect Nintendo to release at $250 and clean up.

That said, let's look at the fact. According to IGN the NES launched for (an adjusted) $351.91. For that price you got two games (Mario and Duck Hunt), the console, two controllers, and a light gun (you even got R.O.B. if you bought one of the earliest ones in the US).

The XBox 360 is launching at $399 (for the REAL version, not the "XBox three-shitty" as Penny Arcade has termed the cheaper one. For that price you get the console, one controller, a headset, and a one year subscription to live. If you assume that live costs $50 a year, that means that the same price as the NES (adjusted), you get.. two fewer games, one less controller, and no lightgun.

The Sega Genesis which cost $389.67 at launch (again, adjusted) came with two controllers and Sonic. Again, you got two controllers and a game.

The N64 cost $242.75 at launch. So for what the XBox 360 will cost you could have bought the N64, Mario ($60 lets say), Pilotwings ($60 lets say), and a controller ($30 lets say). Two games, two controllers for that price.

Now let's look at the GameCube. $210 at launch leaves us with an extra $190 (three games) before we hit the price of the XBox 360 without a game. Add the price of a game to the 360 ($60-70) and you could buy two controllers for the 'cube, or a controller and a memory card.

Now MS is doing better than the NeoGeo ($1040), the 3DO ($920), and the Atari VCS ($810). But with the exception of the Atari (the first real home system), the other two FAILED in the marketplace (largely due to high price).

The NeoGeo had games costing upwards of $200 at the time. Sure they were arcade PERFECT, but most people didn't buy $200 games. I hope MS is smarter than that. They will probably only charge $80 for their games.

Re:Because They Are Too Expensive

[Keith Russell]

You need to make up your mind. Here, you're complaining that Microsoft doesn't provide any bundled games, and that you have to buy one to "uncripple" your $400 purchase. But in this post, you complain about how retailer bundles include games you don't want. Goes to show that you can't please all of the people all of the time.

A few more points:

• Those big $1000 4-games-and-extra-accessories bundles are from the retailer, not Microsoft. In fact, I'm not sure Microsoft can do anything about it without running afoul of price-fixing laws. (Besides, those bundles are a scam that makes it look like there's a shortage, when you'll be able to walk into any random Target and pick up exactly what you want, and nothing more.)
• Sony and Nintendo do the same thing. The box, one controller, and lowest common denominator AV pack. That's how I bought my XBox, that's how I bought my PlayStation 2. Of course, given the difference in cost between the XBox360 bundle and the XBox360 core + hard drive + wireless controller + etc., well, Gabe and Tycho have it right.
• I have yet to buy a DVD player, at any price, that included the latest top selling Michael Bay explosion-fest, or a CD player that included a new saccharine pop artist.

Re:Who cares, it's still $500 at launch

[Digital Vomit]

Buying a new video card every 3-4 years for that much is one thing, a new console every year is quite another.

Huh?

PS3/XBox360/Revolution = 2005/2006

PS2/XBox/GameCube = 2000/2001

PS1/N64 = 1995/1996

SNES/Genesis = 1989/1991

That's about a five year time span between generations. If anything, console upgrades are less frequent that pc video card upgrades.

Adjusting for inflation?

[hal2814]

I see a lot of posters trying to make themselves feel better about the next-gen pricing structures by adjusting yesteryear's system launch prices for inflation. This will not give you an accurate picture of what's going on for two reasons:

1. Electronics are getting cheaper. How much was that TV you bought in 1983 adjusted for inflation? How about the VCR you bought in 1985 for $250? Or even your refrigerator or oven? The price of a next-gen system SHOULD be cheaper by this logic.

- BUT -

2. Consoles are becoming more powerful compared to their peers. Back in the day when the NES came out, it was significantly less powerful a machine than the PCs of the time and the arcade machines of the time. Now the XBox and PS2 are about 3/4 as capable as a PC that came out around launch. As these consoles become more and more powerful compared to their peers, they SHOULD become more expensive.

The important thing isn't what the XBox 360 or PS3 will cost compared to the NES. It's far more important that you think the XBox 360 is a good value from the money. Judging by these "adjusting for inflation" defenses, I get the idea that a lot of people aren't happy with the price but are willing to pay it.