Microsoft Readies Cheaper 360
Officially Microsoft is putting on a brave face, saying they won't drop the 360's price even in the console's weakest market: Japan. Just the same (probably in anticipation of Sony's PS3 price drop), the San Jose Mercury news says the company is secretly working on preparing a lower cost Xbox 360 SKU. Called 'Falcon', it's a cost-reduced system using 65nm chips instead of the at-launch 90nm electronics. This ties right into Michael Pachter's expectation of such a cut; it should be noted he doesn't see the DS or Wii prices moving any time soon. Related to all of this, Newsweek's LevelUp blog has two great interviews today: a Peter Moore discussion harkening back to last week's warranty announcement, and a chat with Jack Tretton about the price cut and the 360's hardware issues.
"it should be noted he doesn't see the DS or Wii prices moving any time soon"
Ermmm... the wii is half the price! A Price cut is not necessary becauser the wii is sooooooooooooooo much cheaper anyway.
Considering how badly the consumer has been screwed this console war I'm glad to see some things which benefit us finally.
If they redesign to use 65nm, and the end result is a 360 that runs cooler and doesn't need to blast the fan as much, I might consider replacing mine with one. But it would need to have the same hard drive space (preferably more) than the current non-Core system.
they should focus on getting the HD-DVD right in a cheap package for the sake of killing blu(e?)ray. The Xbox 360 elite seemed to be a bit of a screwup making a slightly nicer new console and ruining the price advantage with the ps3 without much extra. Still you'd imagine this *has* to happen with more cost-effective building because even though the 360 is a very nice console they're still losing a lot of $ on the bottomline.
I generally stay well behind the wave of new systems coming out. The least important reason is that the new systems go down in price within a year or two. Mainly, I like to stay back and see what games come out and wait for their prices to fall to a reasonable level. Plus, the price of previous generation games goes down, too. I know there were good games after SNES/N64 (lol) but I still have NES and SMS games I would like to beat.
I can get 300 (cheap) to 50 (rare) SNES/NES/SMS/PS1/DC games for the price of one PS3 or XBOX. For me, it's all about the dollar-to-fun ratio.
To be honest the fans on mine aren't so bad, it is fairly noisy, but kind of to be expected considering it is such powerful hardware in a small box. But the real issue is the DVD drive. Mine sounds like a jet taking off, non-stop, whenever playing a game. It's actually quite nice to play demos downloaded to the hard disk, as the console seems whisper quiet in comparison.
Imagine the losses Sony endures after they cut their price with additional $100. And now the competition leaves them in the dust again. Let's say MS puts the price with $50 down (let's be conservative right). Note, the prices have been de-retardified for better comparison:
Wii: 250 usd
360: 350 usd
PS3: 500 usd
And the killer feature for each console:
Wii: totally new way to control games
360: the best online gaming experience of all consoles
PS3: Blu-Ray
Notice: PS3's killer feature isn't gaming related one. One reason gamers aren't very excited about it...
$rant = "Stop using SKU in everyday conversation."
For those of you who need it spelled out, run this at the command prompt: perl -wc split ('', $rant)
The correct term is 'model'.
Will it run Linux?
Why is it considered a given that Nintendo will not enter into this price war? As the one company that we know for sure makes a profit on each console, it seems they could most afford to. While some might argue they are already the cheapest, the margin by which they hold that title may soon be eroded. I predict a good size price drop by Nintendo in time for the holidays.
Back in May there were articles floating around that Microsoft expected the Xbox division to be profitable in 2008. However, they've recently decided to offer an extended warrenty to customers in order to deal with the high failure rate of the Xbox 360. An earlier Slashdot article has this estimated to cost Microsoft around one billion dollars.
The earliest reports pegged the Xbox as costing about five hundred through seven hundred dollars to manufacture, a loss of a few hundred dollars on each console sold. This article published around the time of the PS3 launch puts the cost of Xbox 360 components at around seventy dollars under the final unit cost (manufacturing and other costs were not calculated into this figure so it may be safe to assume that they were breaking even or close to it at that time).
With the costs of the new warrenty (in addition to any costs that can be associated with the honoring existing warrenties to cover the high failure rates of the console) and cutting the price which changes the profitability on each unit sold, when does Microsoft now expect their Xbox division to become profitable?
Would this downgrade cause any overtly noticeable drop in performance?
i dont know any great studies about xbox 360 initial quality, but it seems that there were some complaints around. If the board/hardware was responsible for issues before, one can only assume that a reduction in price based on a cheaper board/electronics will result in more issues... this seems like a major problem considering microsoft is spending a billion already to boost the warranty service, etc. It's interesting to watch how their system issues play out a lot like what working on some microsoft-based software projects end up doing, i.e. various issues, cutting corners to save $ as issues persist and cause sales slump, and so on.
stuff |
I also am sick to death of "SKU" being used. It's a damned number! It doesn't mean what you think it means, or are trying to make it mean.
Am I the only one out her that is sick of the 360 and PS3 coming out with different systems? I feel that if I buy a 360 or PS3 now it will be a mistake and they will have a new version out in a year that has a 200Gig hard drive and folds my laundry. I want a next gen system that is set in stone where I am not going to feel like I got riped off in a year when they tweak it again.
Not all the games require the nunchuck. In fact things like Mario Party 8 (4 player) the nunchuck is only need for special 1 player games (like story mode). I have 4 WiiMotes and 1 nunchuck, not once have I had to use the nunchuck for multiplayer games. Perhaps RedSteel is the exception, but that game sucked (I own it and regret it).
Causing Chaos Everywhere,
Nik J.
The strange world of a loner, in a populous city, drowning in society
Microsoft doesn't remember how to make money without owning the entire market. It seems clear that their plan for the 360 is to get themselves into a monopolistic position with their codecs, DRM, and interactive content combination. Once they've done that they can fall back on their traditional innovation stifling, market milking business model. They don't necessarily care about having a profitable gaming division. What they really want is the ability to collect a royalty every time somebody buys digital media, and to use their new monopoly to shore up the old ones. Getting Xboxes into a majority of living rooms is step one in that process.
Compare this to Sony, who in response to all the hacking on the PSP made attempts to make the PS3 as open and compatible as they could while still keeping third party developers satisfied that piracy wouldn't be rampant. Allowing Linux on the PS3 (as opposed to being a completely closed platform), using DLNA/UPnP media services (instead of limiting the user to Windows Vista/MCE), including a variety of memory readers (instead of the traditional memory card/Sony MemoryStick only), allowing transit of content between the PSP and the PS3 so you don't have to pay for content twice if you want it on both platforms, etc... Plus they're completely open about the fact that they're using the PS3 to push BluRay adoption.
Sony does wrong and the community is willing to shun them forever, but for some reason they're willing to trust Microsoft to not be up to no good, even though their gaming division's bottom line suggests that they have an ulterior motive...
The 360 "Elite" didn't fix the reliability issues, what makes anybody think that this new version will be any more reliable? Microsoft has had 20 months since launch and they still can't ship reliable consoles.
The built in power supply would be a nice benefit, and use a quieter DVD drive and I'll get one. Built in HD-DVD would be nice, but not many people would want it, and the addon HD-DVD drive is already under a $100 at some places, very smart not including HD-DVD from the beginning.
What other features could they build into it with the added room of smaller components? No one really thinks its too big, so changing the case probably isn't a good idea at this point, although it would be nice.
They were thinking Console games shouldn't require multi-gig installs. That's actually a "hidden benefit" of the core system, developers can't use it as a crutch. If you know anyone with a 20 gig PS3 (and didn't upgrade the hard drive) ask them how long it took before they filled it up just playing the games they bought (IE, no added content downloaded from PSN).
This really doesn't make economic sense.
Sure, after a while the prices of parts comes down. But in the meantime you've lost sales and market share to the competition. And since your revenue is dependent on game sales, this is only shooting yourself in the foot.
Furthermore, you get bigger discounts on parts when you order them in larger lots. So anything you might save is lost by buying in smaller quantities.
Finally, there is some truth to the idea that a modest shortage can help spur customer demand, but within limits. Too much shortage and people turn to the competition.
Nintendo claims that their problem is that they've contracted out manufacture and can't ramp up production as easily as if they had their own production lines. I don't think this is the entire story. There's tons of contract manufacturing capability in the world, and the Wii uses standard, mature (and therefore cheap) technologies. This has been going on long enough that they could have brought other manufacturers online if that were the only factor.
I suspect that the inability to ramp up production is related to the Wii's low price. It is certainly not the case that they could not have brought more production capabilities on line by now, but it may be that they can't build more at the price they need to build them. They may have structured their deal with Foxconn (the OEM) in such a way that it is cheap but not scalable. For example, they may have agreed to limit the number of units to a degree that can be produced by certain slack resources at Foxconn, that are otherwise engaged in higher margin work.
I'm talking through my hat here, since I know zilch about manufacturing. But I'm reasonably certain the problem is that they can't scale their production at the price they want to sell these things for. If they could, then they would, maybe not enough to keep everybody's shelves stocked to overflowing, but enough so that you'd consider driving around to find one. My son wants one for his birthday coming up, and I told him that while I'd be happy to shell out the dough, there was no way I'd spend the time it would take to track one down. They're losing market share to the competition because of situations like this.
Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
As someone who has a 52"HD TV and has both the GameCube and the Wii, I can assure everyone that the Wii's graphics are better than the GC. The Wii provides a very clean 480p signal from it's component output. I have GC games that turn on more effects when played on the Wii, so Gamecube games actually may look and run even better on the Wii. Nintendo's current hardware is very compact, quiet, and uses little energy, unlike other consoles I own. I find the graphics a Wii or a GC produce are far from "terrible", and often are more pleasant than the graphics produced by higher resolution systems, especially PC's.
It makes sense that the Wii won't drop in price as quickly as the others, as 1) it's selling well, and 2) the hardware is more mature, so there won't be as drastic manufacturing process improvements in the short term.
I have actually been waiting for this "cheaper" 360. I don't like noisy fans, so I want a 360 that dissipates less heat. The new 65nm process chip will dissipate less heat and, I hope, will not require the fans to be as loud.
What I really want is the new 65nm chip combined with the improved heat-pipe cooling system, and quiet fans. If the new "cheaper" 360 still has noisy cheap fans, I hope Microsoft will introduce a "Mega Super Elite" version that has a bigger hard disk or something, and has more expensive fans. It should have a quiet optical drive too.
steveha
lf(1): it's like ls(1) but sorts filenames by extension, tersely
I'm not saying he's any dumber than most conspiracy theorists... I think that he just isn't in a "hurry" to engage in rational thought.
He posts anonymously on /. with his elitist attitude about entertainment, and that makes him mature.
Some people enjoy pointing out how "immature" or "childish" someone else is, or their choice of entertainment. Generally, in conversation, these people also point out how mature they are all the time -- it's insecurity, like those homophobic wankers who point out how "gay" this or that is all the time. Basic projection and insecurities.
To me, it's a true sign of creativity to make something enjoyable by different ages. It's very hard to make something that children can understand and enjoy that also captures the attention of adults. Anon probably hates on Harry Potter*, but it's "immature" entertainment that many people of varying ages enjoy. The Wii does this: People of all ages enjoy it. It's not aiming to be the same as other consoles. I think this pisses off fanboys of other consoles, like the Anon in this case.
Simple fact is, the Wii is selling, despite not being the elite graphical engine in the bunch. Because it appeals to a larger audience than the PS3 or X-Box (at the 1 year mark, see where the Wii stands compared to the 360 and PS3 sales -- November isn't that far off...). This doesn't mean the other consoles are bad (though I dislike Sony and think they really screwed up this generation), just different. Some people are just weird and have to hate anything that competes with their precious. Anon is, with all probability, a rabid Playstation fan who is extremely pissed that the little old Wii is kicking the snot out of the PS3. It's no longer "in" to hate on Nintendo -- grow up.
*I've never read a word of Harry Potter, myself, but I don't hate it.
Falcon? WTF?
If we're going to use Atari-based platform names, why not just name it the "Jaguar" and be done with it. That way it'll tie in well with the one-game systems (Halo3 for "MS Jaguar," vs "Tempest 2000" for "Atari Jaguar")
On the bright side, this would mean that MS only has about another 12 months in them before some hard drive company buys them for a USD$3M Stock-Swap. Freedom fighters rejoice!
"Microsoft doesn't remember how to make money without owning the entire market."
I disagree. I think they just see more upside to going for the whole market. Pick your battleground, etc.
'Thats they exact same thing a banana wrench monkey.'
and we know what "model" is being used to mean, what difference does it make to use one versus the other? Its similar to using $variable notation in a Slashdot post: is that "good English" as your high school English teacher taught it? Who cares. It was comprehensible to your audience, leave it at that.
However, I will disavow all knowledge of the above paragraph if I am ever shown a memo with the word "lol" PRINTED on it. Unless the memo reads "All hands: use of the word 'lol' in any business capacity is now a firing offense".
Help poke pirates in the eyepatch, arr.
While the GC and the Wii are very similar, the Wii is an updated version of the GC. It's about 2-3 times as fast, so you're not going to see a big update in graphics, but it can definitely do more than the GC.
Perhaps, but if you were Microsoft, and you knew you were going to release a service like XBLA and Xbox Live Marketplace, wouldn't you have the foresight to include permanent storage on the console by default?
Crutch or not, I think someone dropped the ball over there.
Yeah... I hear you. Even if they were all add ons the HDD's should be sold as a discount, or come with free content from market place to offset their costs. Seriously, what else can you do with that big HDD besides fill it with premium content?
Then again MS has been big on "the network" including Media playback capability with any PC running Media Center, Vista, or now XP with Windows Media Player 11. Perhaps they were looking to explore that integration rather than the local hard disk.
In a perfect world, I'd love to download all my live content to my XP box (which has a few hundred gigs on it) and stream or "Dynamically cache" my content to the local HDD on the 360.