This is dumb. There's no market big enough to go after that would buy the darn thing. What, are they going after that PS3-owning crowd? That tiny sliver? Yeah, THAT'S brilliant.
MS has had a long history of backfires this gen actually and is leaky like no one's business. I actually wrote up a list of failures, faults, and misfires this gen recently (based on a challenge by Chef) and it isn't pretty. I think it gets overlooked though because in general it is doing well and because Sony management pretty much imploded into drama-time, miscommunication, and bonehead, "it is cheap!" soundbites. At least Nintendo had the common sense to shut up at the end of 2004 (with such stellar comments about graphics, gameplay, game longevity, etc) and let their product and smiling face PR do the talking.
If they want to go after markets that will net them considerably bigger profits, drop the price on the fricking Core system already. I mean, cripe, how obvious does it have to be before MS makes the move? The Wii is on track to trounce its pseudo-competitors largely based on price.
Yep. Spring is here and the product has been out 16 months. History tells us it is due a price drop -- especially since they are already pushing it at $299/$399 and sales indicate it is too expensive for many (myself included).
I had ignored the logic of some, but it may come true: MS is totally fixated on making a profit this FY coming up and feel with Halo 3 and such coming out they can achieve their shortterm goal (profitability) and immediate software sales goals without cutting price. Of course, as detailed in the past, the real windfall could be pushed out of reach.
Yup, we've talked alot about how MS is in a position to dictate their future going forward, and with decisions like this it seems they are deciding that they do not want to be market leader this generation. First time in history a console has increased price after launching. Bravo *golf clap*
For an encore they will raise perephrial pricing which is, to be frank, outrageous. I wanted a 360 controller for my PC... $40 for a wired controller? Sorry, my $15 PS2 Pelican Chameleon and $10 adapter work fine thankyou very much.
I think the most impactful part of this announcement, is that it basically makes a pricedrop totally out of the question for the forseeable future. They can't release a new SKU at $480 and drop the price 2 or 3 months later. Now what happens if Sony drops their price by $100 at E3 in July and makes the 20gb readily available?? Whoops!!
While Dave has a point, I think it is hard to make an arguement how the Elite can stay at $480 when
1. It lacks HD DVD
2. Will surely be undercut by a PS3 price cut
Does a potential consumer get a PS3 (BluRay, WiFi, 20GB HDD, HDMI, Wireless Controller) or a 360 Elite (DVD, 120GB HDD, HDMI, Wireless Controller). So is 100MB a fair tradeoff for no BluRay? Or what happens at a price drop when the 60GB is $499, is $60 worth no HD media?
MS must be going after a separate market (i.e. downloadable HD material) but considering the fact the PS3 can allow users to upgrade their own HDDs I just don't see a compelling reason to even consider the unit outside it is black.
But at this point, I'm pretty much leaning towards Sony to make a comeback, and hope that they get the success they deserve with their open HW policy.
The pendulum is very active right now. These companies really do control their futures right now, and that isn't the typical PR type comment but the absolute truth. How they handle their platform (including pricing) and how they are able to deliver software over the next 12 months is going to be essential.
MS had a good strategy, but they're squandering it, and they are setting precedents ($180 HDD) I don't think any of us want to see in the industry.
To their credit, part of the issue is the use of 2.5" laptop drives. While there may be some issues with a 3.5" drive, the fact is they are MUCH cheaper.
hell you might as well just pay the difference and have an actual use for that HDMI!
HDMI may be part of their digital distribution of HD media.
But that pricing on that 120GB drive, I mean what the hell is going on over at Redmond?
It is 1337 with a 1337 price!
Such a stupid, stupid move.
Well said.