It's the cost of establishing a market. The problem for them is, as I said before, these are game machines and gamers are not loyal. Once a new, better, shinier game box comes out these will be retired. Sure a few will become illicit Linux boxen and some will be used in the manner Microsoft intends, but they're hardly pwn1ng the american home. Seems like they still don't get it.
I believe that MS's strategy to "pwn the american home" is more that just getting you to buy the latest shiny box that they deliver. It is about paying for the box the games and the service (read Xbox Live). Essentially your Xbox Live identity would stay with you from the Xbox to the Xbox 360 and every machine that they make after that.
That should do two things for them:
1) Generate monthly/yearly fees (More Money!)
2) Keep their customers loyal from one system to the next.
Sure you could always just cancel your subscription, but think of all the non-die-hard gamers (and their parents!) who will stick with the Xbox family because their already subscribing to it. Don't underestimate Xbox Live's part in the total market domination plan!
Actually, you're wrong. By your logic there would be no ad placement in movies either. Anyone that's watched a movie lately knows about the subtle products that show up in movies. The Cadillac Escalade was not introduced to people in the Matrix Reloaded, but they sure looked cool during the car chase scene!
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I believe that MS's strategy to "pwn the american home" is more that just getting you to buy the latest shiny box that they deliver. It is about paying for the box the games and the service (read Xbox Live). Essentially your Xbox Live identity would stay with you from the Xbox to the Xbox 360 and every machine that they make after that.
That should do two things for them: 1) Generate monthly/yearly fees (More Money!) 2) Keep their customers loyal from one system to the next.
Sure you could always just cancel your subscription, but think of all the non-die-hard gamers (and their parents!) who will stick with the Xbox family because their already subscribing to it. Don't underestimate Xbox Live's part in the total market domination plan!
Actually, you're wrong. By your logic there would be no ad placement in movies either. Anyone that's watched a movie lately knows about the subtle products that show up in movies. The Cadillac Escalade was not introduced to people in the Matrix Reloaded, but they sure looked cool during the car chase scene!