A Possible Solution to the Hard Drive Problem?

[pharmer100]

Hi guys,

I have posted a version of this over in the teamxbox forum, so apologies if you have seen this before:- Anyway – here is my solution to the problem. Comments? Better ideas?


Problem – Cost of hard drive

This whole mess seems to have come about because of the 2 key aims for the 360 from Microsoft:-

• They want to hit the magic $299 mark.
• The want hard-drive separate so it can pay for itself and the cost of the console can be reduced in time.

I can totally understand both these points, they make a lot business sense. However, the way they have chosen to do it is upsetting everybody, and could turn out to be a really costly decision for them.

Solution: Make the hard drive Microsoft’s standard memory card.

Memory cards are going to retail for $40 dollars. This cant’ be too far the actual production cost of the hard drive to Microsoft. So instead, offer the hard drive for $50 dollars (for example) and have it as the standard memory device.

This way everybody wins:

Hardcore gamers and developers – The hard drive is standard. More game choices, pc ports etc.
Microsoft – The hard drive is a separate and (mostly?) paid for. This will allow the magic $299 price point and the ability to reduce the cost of the console at a later date and still keep charging $50 dollars for the hard drive.
The average customer: They get an absolute bargain. $40 dollars for a memory card or $50 dollars for a 20 gig hard drive? A much better deal.


For Example – At the retailers:-

Customer: Hi, I just saw a demo of the 360 it looks amazing. Is it really only $299.
Retailer: Yes it is.
Customer: Great – and that’s all I have to pay?
Retailer: Yep – that and obviously the hard drive memory pack for $50 dollars?
Customer: Hard drive memory pack? What’s that? Why is it $50 dollars? Seems expensive for a memory card?
Retailer: Actually no Sir, it’s a fantastic bargain. Normal memory saves for other consoles are about 40 dollars. This is only $10 dollars more and it’s so much better. It’s actually a 20 gig hard drive. That’s means your probably never have to buy another memory card for the entire life of the console. It will save you a fortune. Moreover, the hard drive is much more than that. For instance, Its like an ipod – you can download your tunes on it and listen to them while you play games. You can also download extra levels and updates from your free connection to the internet. Even better the hard drive package allows you to play all (???) the back catalogue of xbox 1 games and comes with a ton of extra content. It absolutely great value...etc, etc

Microsoft wins and actually come off as good guys because they are saving the customers money on all those expensive memory cards they would have to buy in the future and giving them so much more for their money. They could also use it as a great marketing tool by loading it with demos of classic xbox 1 games and 360 launch games. Most of us would only be able to afford 1 or 2 games at launch but this way we can play the rest of them and see which ones we want to buy.

Moreover, this way they also don’t have to go back on what they have said (this time!).
The can still be 2 packs:-
The basic pack – you buy the console and the hard drive separate. You buy the other accessories as and when you need them.
The High def Pack – you get the hard drive and high def cables included, + a load of extras – although they would have to through in a few more bits to make it worthwhile if they reduce the cost of the hard drive to $50 or reduce the price a bit to still seem really good value. I am sure nobody is going to complain about that though.

So guys what do you think? It is a good option? (I guess its not a very likely one at this stage but you never know……)

 

[pc999]

That is actually a good solution IMO, if there are no MC, but only HDD, not free but standart.
Great 1 post.
Very good .
Instead of 40 giving 50 for a few millions more memory .

Really çoked it, if there is no other cheaper soluction.

 

[Powderkeg]

Huge logic flaw in your theory:

If you are going to make the HDD the standard memory format, and not sell memory cards, why not save the money and use a non-removable drive and increase the cost of the console by $50? You still end up offering the same product for the same price, but you've increased your own profits at the same time.



The only real solution is to either suck it up, stop complaining, and pay whatever it costs, or don't buy it. There are other alternatives on the market, although I doubt you'll find a better deal in the most important aspect of all consoles, which is how well it plays games.

As far as the games go, which is why we are buying these things, the 360 and PS3 should be just about equal. I imagine the PS3 will end up with the larger game library, but both will have far more than enough great games to choose from. One thing we can be certain of is that the PS3 will not be cheaper than the 360.

So, you can buy a basic 360 with a controller for games for $299.99. At best, you'll be able to get a basic PS3 with a controller for games for the same price. Assuming you are buying these systems for the games, which one you get should simply be a question of which has more games that you are interested in, but neither one is a better deal, and neither offers any significant advantage over the other.

The Revolution is a dark horse. It's expected to be cheaper, and there will be the availability of old games from Nintendo in some form, but beyond that there is only guesswork. One thing we can be reasonably sure of is that it's going to have the least 3rd party support, which likely means it will have the smallest selection of new games, and that's never a good thing for a gaming console. How good of a deal it is will largely depend on how big of a Nintendo fan you are.

 

[pharmer100]

Hi,

Glad you approve. Thanks for the warm welcome. I have been lucking here for ages, but never posted as pretty much everything I know about the tech. side of stuff I have picked up from here!!!

 

[pc999]

Huge logic flaw in your theory:

If you are going to make the HDD the standard memory format, and not sell memory cards, why not save the money and use a non-removable drive and increase the cost of the console by $50? You still end up offering the same product for the same price, but you've increased your own profits at the same time.

Perception is a powerfull weapon, it is calling consumers stupid, the same way than Sony and Nitendo do with MC, but at least we get a much better deal.

 

[Guden Oden]

I think people just need to chill here, get a grip, and gain some perspective on the situation. Anyone who was going to buy x360 because it was supposed to have a harddrive as standard wasn't buying the console for the right reason anyway. Especially if it was because it was supposed to have a harddrive, and PS3 wasn't.

And also, do we really need ANOTHER thread on the exact same subject? This is NOT a "problem". World hunger is a problem. Two versions of a console on sale, one with and one without a harddrive is a triviality.

Once more, for the millionth time by now: either pony up the extra hundred bucks for the harddrive, or don't. It's really simple.

 

[BlueTsunami]

I think people just need to chill here, get a grip, and gain some perspective on the situation. Anyone who was going to buy x360 because it was supposed to have a harddrive as standard wasn't buying the console for the right reason anyway. Especially if it was because it was supposed to have a harddrive, and PS3 wasn't.

And also, do we really need ANOTHER thread on the exact same subject? This is NOT a "problem". World hunger is a problem. Two versions of a console on sale, one with and one without a harddrive is a triviality.

Once more, for the millionth time by now: either pony up the extra hundred bucks for the harddrive, or don't. It's really simple.

Yep, thats how it is right therrr. I still don't understand why people thought that there was going to be a $299 version with the HDD and wireless controllers, what loss would MS be incuring if they went with that setup? Anyways...the $399 price tag isn't all that bad....I just wish it came with Wi-Fi built in

 

[Java_man]

Very good solution to the problem.
However MS seems to really want to turn a profit as soon as possible thus i doubt that they would like to sell the harddrive at a lesser price than the $99/99 euros official price tag.
Anyway,too bad MS market droids can't have this kind of ideas.

 

[pharmer100]

Powderkeg,

I think your missing the point. For the consumer the $350 solution you suggest is the obvious answer. However, it appears Microsoft can't offer that because of the long term costs that I mentioned above - inability to cut the price of the 360 without making a (huge) loss.

So yes, its a bit of a convoluted way of doing it but it allows Microsoft to hit their key pricing targets and gives us want we want. More importantly, it’s still achievable now - because all it will require is new information given out to the consumer - . I suspect switching to a internal hard drive wouldn't be a realistic option without a delay in their launch date.

Oden - Sorry you think this is another thread about the same thing. I deliberately avoided bitching or suggest solutions that aren't feasible. As to the money comment - its not about that - I am from the UK and think the 360 is a bargain. I was expecting to pay a lot more.

I also haven’t seen this option offered anywhere else. Sorry to waste your time. I yes – I agree it the great scheme of things its not a big deal - but I haven’t got any bright ideas for solutions to real problems.

 

[Farid]

First thing: Welcome to the board

So guys what do you think? It is a good option? (I guess its not a very likely one at this stage but you never know……)

No, it's not a good option, if you ask me. What a lot of people are bothered with is the fact that the HDD now will almost never be used as anything else but a huge Memory Card.

Seeing how optimizing disc drive access times is enough of a job for most developers out there, adding a cache feature, for only a segement of the users, will just be more work for the developers (Even with the HDD being include in Xbox 1, most developers didn't use this feature already).

Now, if you suggest to use the HDD as a MC, it also mean that the game WILL have to be playable witout the HDD. Just like today's PS2 and GC games can be played without a MC.
Therefore, if the game can be played without a HDD, we're back to the point where we are now.

And, no you can't "force" consumers to buy a HDD, if they want to play the game they bought. It won't be authorized by some legislations, and it won't fly with the consumer rights associations in the US.

 

[scooby_dooby]

That's an extremely good idea IMO.

It kills many birds with one stone.

1. It recoups losses for MS so that they can hit the $299 price mark, and have the consumer pay for the HDD if they want it.

2. It makes sure that the HDD is pretty much sold across the board, which means we'll see much more downoadable content and game add ons in the future.

3. It solves the issue of people playing on live without being able to install patches or updates.

I would still offer a standard memory card for $30, then the HDD at $60, anyone at all interested in Live! would be strngly encouraged to purchase the HDD. ALso, they could further this by offering a HDD/Live! bundle for the peole who bought the core version.

That way people could buy the Core($299) and when they were ready to go online it's extremely approachable and they can simply purchase the Live!/HDD bundle for a reasonable price ~$80-$100

 

[BlueTsunami]

But for me (and its tailored towards me of course), even if I did buy the $299 SKU and got the HDD (at $50) I would still want the Wireless Controller and the Component Cable. That would bring the price above and beyond $399. So in my case...I would just get the $399 SKU and get all those items plus the Headset and the Remote, in one neat package....I'm just a little flustered about the separete Wi-Fi.

 

[pharmer100]

Hi guys,

Thanks for the replies - Vysez. I have to disagree. Even if you are only ever going to use it as a memory device its still would be an absolute bargin. A 64K(?) memory card for $40 (which in all lliklihood you are going to need to buy at least one more some time in the future. Cost = at least $80) or $50(ish) dollars for a 20 gig hard drive with loads of content, xbox 1 backwards compatability, loaded content etc,etc Surely nobody in their right mind would chose option 1.

regards

 

[g35er]

MS is not going to sell an external hdd for $50 any time soon. That must be a loss for them after manufacturing, packaging, and distribution. Remember, this is an external 2.5" hdd. Console makers are wiling to take some loss per console, but they've historically never taken a loss for a peripheral. In fact, their peripheral sales are one of the things they use to offset their losses for the console.

 

[pharmer100]

Hi, g35er - good point and normally I would agree with you, apart from 2 points:-
I think Microsoft are a lot more worried about losing money in the long term on future cost reduction in the 360's price than making an actual profit on the hard drive (they just don't want to lose money on it)

2 - If you look at the full pack - you are getting a lot of free stuff that has got to around (at least) the 20-30 dollar mark in production costs. So, in effect they aren't charging $100 dollars for the harddrive in the main package anyway.

 

[BlueTsunami]

I think I asked this question before...but never got a definitive answer. So here it goes.

Are you able to use any run of the mill 2.5" HDD? or does MS's HDD is the only one that will work with the 360?

Not that it would really matter though....because most 2.5" HDD's are still pretty expensive. The lowest one I could find (on TigerDirect and NewEgg) is around $67.

 

[pharmer100]

Sorry BlueTsunami - I have no idea, although I am guessing you have to use the microsoft one. I hope somebody with a bit more knowledge can answer your q.

 

[Hardknock]

You're forgetting something. MS has to pay a royalty to Nvidia for each HDD sold for Xbox 1 BC. Thus why the HDD is so expensive. Plus I'm sure they want to make a tiny profit off it aswell.

 

[g35er]

Hi, g35er - good point and normally I would agree with you, apart from 2 points:-
I think Microsoft are a lot more worried about losing money in the long term on future cost reduction in the 360's price than making an actual profit on the hard drive (they just don't want to lose money on it)

Well, I don't know MS's strategy so I can't really comment.

2 - If you look at the full pack - you are getting a lot of free stuff that has got to around (at least) the 20-30 dollar mark in production costs. So, in effect they aren't charging $100 dollars for the harddrive in the main package anyway.

You also have to consider that a hdd sold seperately incurs extra packaging and distribution costs. Plus, the $400 is still a console (which they're willing to take a loss on) so they're probably at best breaking even on the $100 of extra stuff.

 

[pharmer100]

g35er - I don't fully understand you point about the cost of them main bundle - sorry for being dim.

Hardknock - Hi, - I didn't really forget, I just factored it in to my total guess about the production costs of the hard drive.

So any way guys - thats my idea - anybody got any other/better ones that are viable for microsoft to consider?