A musing on the prices of consoles

[Shifty Geezer]

Various things got me thinking about the cost of the consoles - the new 120 GB XB360 HDD, the Elite (lousy name! Surprised they didn't spell it 733T!), mate's new XB360 who wants Wifi and rechargeable controllers - and I ended up doing some quick comparisons, specifically creating comparable boxes with the same features. For all the features, we have the console, 120 GB HDD, HD movie playback, Wifi networking, rechargeable wireless controller, and online gaming.

For the 60 GB PS3, we have to add 120 GB HDD and HDMI cable

60 GB PS3 - $600
120GB SATA HDD - $90 (Newegg)
HDMI cable - $20 (Amazon)
TOTAL = $710

From a 20 GB PS3, you'd also need a USB Wifi adaptor. I dunno what particulars work but presume one can be had for <$30, so I'll make it $40 to be sure...

20 GB PS3 - $500
Wifi - $40
120GB SATA HDD - $90
HDMI cable - $20
TOTAL = $650

With XB360, you'd need the Elite + HD DVD drive + Wifi adaptor + recharge kit and powerpack + Live...

XB360 Elite - $480
HD DVD - $200
Wifi - $100
Rechargability - $30
Live! Gold - $50
TOTAL = $860

Upgrading from an existing 20GB XB360 would cost...

XB360 - $400
HD DVD - $200
Wifi - $100
Rechargability - $30
Live! Gold - $50
120GB HDD - $180
TOTAL = $960

And from a core...

XB360 - $300
HD DVD - $200
Wifi - $100
Rechargability - $30
Live! Gold - $50
120GB HDD - $180
Wireless Controller - $40
TOTAL = $900

These are at RRPs. Some prices might be lower. eg. I thought I read the HD DVD drive was available for $170. Anyway, the clear point here was the value for money as an all-round entertainment device. As a console for playing games, the gaming spec XB360 is far cheaper than PS3. But when you add the extra functionalities in, because of PS3's ability to use standard components, it's clear the XB360 is a vastly more expensive device. The piecemeal approach allows for a lower entry cost, but the cost of fully expanding the system is far higher than PS3 thanks to the costly HDD and Wifi. Even if you forgo Wifi (and everyone I know has Wifi networks at home, and doesn't want the limits of being wired to routers) or get a cheap alternative, the most expensive PS3 solution vs. the cheapest XB360 solution still favours PS3 by some $40 or so (RRP). Oh, you'd also have to add headset prices, which I didn't factor because it not a feature that springs to mind to me!

I think this highlights the key difference in approach between the companies. MS offers a gaming device at a low price, with the options of higher functionality but with good margins for themselves; they see the majority of the market as being swung by lower-cost gaming where owners grow into expensive peripheral buying to add features. Sony see the customers as wanting a those features from the beginning - full entertainment device - and are offering great value on that, at the cost of minimum entry price. I thin this also illustrates the values of the products. For those complaining PS3 is too expensive, for what it is, it's good economy. And for those just wanting games, XB360 is good economy. It's important to see them as distinct products for different markets to see where the pricing represents better value.

 

[scooby_dooby]

Yes it does contrast the different approaches.

As they say in kitchen stadium: Which one will reign supreme?

 

[Todd33]

I think the real value is ignored when considering the cost of each system. Of course if you own a SD TV or don't care about movies then the added cost of Blu-ray is a negative value for the PS3. I know I have spent the same on both my 360 and PS3 in hardware cost, so the 360 was not really cheaper for me, but a $299 core for a 12 year old is good for MS, especially if that kid adds a 120GB later negating his initial cost hurdle.

Both systems have pros and cons and both are worth the investment IMO.

MS did a good job hiding the real cost of ownership for the 360 up until now, but with added SKUs like a 512MB memory card, HD-DVD, Elite system and 120GB drive, people will start doing the math.

 

[scooby_dooby]

I
MS did a good job hiding the real cost of ownership for the 360 up until now, but with added SKUs like a 512MB memory card, HD-DVD, Elite system and 120GB drive, people will start doing the math.

Sorry but there is no hidden costs. It all depends on you're personal perspective.

I have purchased:
The console - $399
and a wired controller - $40

Done.

 

["Nerve-Damage"]

Nice Comp

Great post Shifty!!

 

[Sis]

It's important to see them as distinct products for different markets to see where the pricing represents better value.

Incredibly insightful, Shifty. How often have we tried to artificially compare two SKUs from Sony and Microsoft and try to determine which one is a better value? It's likely as useful as comparing a Wii with either console; the philosophical approach that Nintendo is taking is different than Microsoft and different than Sony. And in the end, the value proposition is entirely dependent on the consumer. Given the large feature set the consoles offer at different prices, it's no wonder we never come to a conclusion about which offers the best value (well, except for the Wii--that's a given ).

Anyway, I don't really have anything to add except thanks for the great write-up.

 

[Rangers]

How do you get away with chalking up $30 for PS3 20GB wireless, but it's a $100 for X360?

I realize you're talking about the official peripheral in MS case, but you can just as easily buy a cheap wireless bridge, plug it into your 360's ethernet port, works fine. Just as you do with 20GB PS3. It's not ideal from a asthetics viewpoint, but again, if you're doing it for the PS3..

Anyways, I wish MS had included Wireless in the Elite SKU, if nothing else than to knock $100 off these never ending value comparisons.

 

[Headstone]

Well I am up to having all 3 consoles now. Have yet to buy any more PS3 games other than the one that I got in my bundle so again comparitive cost doesnt really mean much other than I may need a second job just to game...

 

[Todd33]

Sorry but there is no hidden costs. It all depends on you're personal perspective.

I have purchased:
The console - $399
and a wired controller - $40

Done.

You use standard batterries, how much is that a month? You bought Live Gold?

I bought a set of AA NiMh (~$20), Wi-fi (~$100), VGA adaptor (~$40) and Live ($50). My PS3 needed a $7 HDMI cable and later I took my wife's bluetooth headset (~$30) . My Live Vision camera works in both my 360 and PS3 (LOL).

 

[Mendel]

How bout this pricelist:

Xbox 360 with 20GB hard drive: $520
Extra wireless controller $67
2 play and charge kits: $50
Wireless network adapter: $115
120 GB hard drive: not available for the foreseeable future
Xbox 360 HD DVD player would be available for $266 but what would I do with it when there are no HD DVD movies available?
Playstation 3 so that I can play Resistance: $932
More component inputs for my tv: Priceless

Yes, things seem to be more expensive around here.

 

[Sis]

You use standard batterries, how much is that a month? You bought Live Gold?

I bought a set of AA NiMh (~$20), Wi-fi (~$100), VGA adaptor (~$40) and Live ($50). My PS3 needed a $7 HDMI cable and later I took my wife's bluetooth headset (~$30) . My Live Vision camera works in both my 360 and PS3 (LOL).

If you include batteries, you should probably include electricity. As well as a replacement controller for the PS3 when your wireless controller stops recharging. Everything else you list is not hidden.

 

[scooby_dooby]

You use standard batterries, how much is that a month? You bought Live Gold?

I bought a set of AA NiMh (~$20), Wi-fi (~$100), VGA adaptor (~$40) and Live ($50). My PS3 needed a $7 HDMI cable and later I took my wife's bluetooth headset (~$30) . My Live Vision camera works in both my 360 and PS3 (LOL).

Actually superstore hooks me up with a free 24pack everytime I buy over $250 worth of groceries, which is every month.

Anyways, the point stands, you can't assume there are hidden costs for everyone, not everyone is you.

 

[Todd33]

If you include batteries, you should probably include electricity. As well as a replacement controller for the PS3 when your wireless controller stops recharging. Everything else you list is not hidden.

There is no data on Sixaxis failure, unlike the 360 console itself which is rather high. When I say hidden, I mean it's not upfront on the price tag of the console - the cost of ownership is higher than the typical $399. For example, you want to enjoy the movie and TV service MS provides? Get ready to buy an Elite or a $180 120GB, else have fun squeezing everything on the available 14GB of the premium.

 

[scooby_dooby]

There is no data on Sixaxis failure, unlike the 360 console itself which is rather high. When I say hidden, I mean it's not upfront on the price tag of the console - the cost of ownership is higher than the typical $399. For example, you want to enjoy the movie and TV service MS provides? Get ready to buy an Elite or a $180 120GB, else have fun squeezing everything on the available 14GB of the premium.

Imagine that, if you want extra functionality you have to pay extra.

The point is that these things are entirely optional and you are totally free to decide what is worth your money, the base system plays games which is the 'upfront' functionality.

 

[Sis]

There is no data on Sixaxis failure, unlike the 360 console itself which is rather high. When I say hidden, I mean it's not upfront on the price tag of the console - the cost of ownership is higher than the typical $399. For example, you want to enjoy the movie and TV service MS provides? Get ready to buy an Elite or a $180 120GB, else have fun squeezing everything on the available 14GB of the premium.

I wasn't talking about failure, I was talking about when it eventually stops recharging. Which will happen, someday. Not sure why this relates to 360 failures or 360 hard drive size, but whatever.

 

[Todd33]

I wasn't talking about failure, I was talking about when it eventually stops recharging. Which will happen, someday. Not sure why this relates to 360 failures or 360 hard drive size, but whatever.

It relates because many people have had to replace their 360 more than once, how many are reporting non-charging Sixaxis? I was at least talking about real problems, not hypotheticals.

 

[scooby_dooby]

It relates because many people have had to replace their 360 more than once, how many are reporting non-charging Sixaxis? I was at least talking about real problems, not hypotheticals.

What's many? 100,000? 200,000? That's 1-2%, it's really impossible to say based on internet posts.

I do agree that realistic comparisons should include the $50 extended warrantee for 360, I've certainly strongly recommended it to all of my friends that have purchased the console.

 

[Rangers]

There is no data on Sixaxis failure, unlike the 360 console itself which is rather high. When I say hidden, I mean it's not upfront on the price tag of the console - the cost of ownership is higher than the typical $399. For example, you want to enjoy the movie and TV service MS provides? Get ready to buy an Elite or a $180 120GB, else have fun squeezing everything on the available 14GB of the premium.

There's not any known scientific data on the failure rate of 360's, either.

BTW, you REALLY dont need more than 20GB to use the movie and TV service. At least I dont.

You basically just delete movies after you watch them..they're only good for 24 hours anyway.

Hi-def movies come in at 4-7GB, and it's never been a problem for me to free up enough storage. Mostly in my case what takes up storage is around 1GB game demos, which I really dont play but like keeping on there for some reason. Like right now I have about 5, I had about 10 yesterday but deleted about 5. But really I could delete them all, I dont play them. I just like keeping a few good ones "in case" like the Lost Planet demo.

I guess if you BOUGHT the TV shows, you would want more storage. However they are probably like 1GB each, so you can keep a few, and as always, your main solution will be redownloading them when you want to view them.

I guess if you buy TV shows, the 120GB is more for you. For me the 20 GB is no problem. Games saves, movie/game trailers, XBLA games, all take little storage and/or are no consequence to delete (trailers..). You're going to run out of space with any HDD, it's never a permanent solution.

Not saying the 120GB isn't better, but when you realize it's $180, you see how many people on forums suddenly realized 20GB is enough for them.

 

[Cheezdoodles]

It relates because many people have had to replace their 360 more than once, how many are reporting non-charging Sixaxis? I was at least talking about real problems, not hypotheticals.

You do realize that MS fixes these consoles for free right?

 

[infinity4]

good post. obvious conclusions:

360 = focused games console
ps3 = focused media centre

and remember there are some intangible values, ie internet browser, Home, Xbox Live Anywhere, rumble, dev experience on 360 etc