Yeah alright then. The average consumer knows "higher is better" and will always buy the most expensive item when pressed for making a choice.
That's completely false, this was proved in the 16-bit generation, of which I am old enough to well remember, it used to be, the "default", in fact only, console configuration, always included 1 game (expensive cartridge game at that) and two controllers along with the system. That was the NES, which also included a light gun, and early incarnations of the SNES and Genesis. Then, I think the Genesis jumped first with SNES quick to follow by necessity, they discovered the amazing concept that it's best to get the base hardware into consumers hands at the lowest possible price, and "core" pack of no game, and only one controller, but priced significantly lower, were introduced. These no frills cheap packs basically immediatly took over the market, and before long the "deluxe" packs were almost non-existant. Given a choice consumers chose the cheaper no-frills pack.
The HDD btw will be a cost burden later on. Whatever the break even price of the HDD is, it's got to be something near $50, lets say. That $50 gets bigger and bigger as a percent the lower the console price goes. It's huge when you're trying to price at 129 or 99, absolutely huge. I have read that late in life the most expensive components in the Xbox1 according to MS were the HDD and RAM. The chips and all that drop, and they drop fast. It's been well discussed but HDD have a certain manufactoring cost floor beyond which they will not drop. It's worth noting the Xbox1 both lost a ton of money and never dropped below $149 (though not all that was due to HDD, some of it was).
As for 20GB HDD, it's definitly too small. That's stone age stuff. The reason it was chosen though, is because it's the absolute cheapest drive to manufactor, as it has only one mechanical platter. I have felt a bit constricted by that 20 GB size from day one. Most demos run around 1GB each. I think I have about 12 on there right now (the average might be 700MB or something, hence I have some space) and oh yeah, the 360 HDD really has like 14 GB free from the factory which is really pathetic.
Sure, I can delete the demos, many of which I dont really play, in fact I have deleted many demos, but I'd rather have a huge drive and just be able to toss whatever I want on there, and keep it, without worrying about it. Heck I'm even thinking about a 250GB would be nice. I think this is the one area where MS can outspec Sony. The alledged all in one X360 with built in HDD was said to have a 250GB. That's the one area where MS could point to a bigger number than Sony. If you compare the hypothetical HDDVD 360 pak based on current prices to the $600 PS3, HDDVD is smaller, it cant be used for 360 games, the price would be similar, but hey, microsoft would actually have a bigger number on the HDD.
People are tossing around a lot of accesory pricing schemes that make a lot of sense, that's why I dont think MS will do them, hah. They are really out there on those prices. But hopefully they will do something aggressive for a change. The 256 MB card pricing currently for example makes almost no sense.
Oh, and if you run he numbers the Core makes microsoft almost as much as the premium. For starters, most core pack buyers will have to spring for the mem card which is $40 of pure profit.
Premium: base+(HDD+Live mic+component cables+3 months gold live+wireless controller)
Core: base+wired controller+S-Video cable
The extra stuff in the premium probably costs microsoft 40, $50? the cables and controllers wont be much different in manufactore cost, etc. So $100-40=$60 additional profit prem over core. Every mem card probably gets 35 of that back, plus if even ten, 20% of core buyers eventually get the add on HDD anytime in the 5 years they use the 360..you're quickly at parity. Not too mention wireless controllers, etc.
microsoft can afford to be completely agnostic core vs premium for the most part, imo, from a profit standpoint. And they seem to be just that, always stating it's based on retailer demand which one they manufactore more of.
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Hotstipper69