Forbes on some Xbox 360 pricing

[Acert93]

Interesting article from Forbes.

Various retailers, including Amazon (nasdaq: AMZN - news - people ), are taking pre-orders for the Xbox 360, the latest generation gaming console from Microsoft (nasdaq: MSFT - news - people ) slated for release on Nov. 29--the Tuesday after Thanksgiving. Microsoft, in its infinite wisdom (or not) is presently allowing retailers to sell only bundles for the Xbox. The bundles, which include the gaming system, one controller, a memory card, a faceplate, and seven games, retail between $700 and $800 (Amazon is pre-selling it for $799.99 through its storefront partnership with Toys 'R' Us).

You're probably asking yourself, why does this all matter? Here's the answer: The gaming-console transition cycle is nearing and that could mean lumpy times for game sellers like Activision (nasdaq: ATVI - news - people ) and Electronics Arts

Kind of a bumb deal. I would be ticked if I had a preorder and had to choose a bundle. If I were getting a 360 the only game that really would appeal to me at this point (without seeing reviews) is PGR3. So meh.

Activision is where our main interest lies. The company will have five titles for the Xbox 360 on the shelves by the launch of the 360 on Nov. 29, including two "mandatory" titles that are in the bundle retailers are selling. Activision's Quake 4 is currently the best-selling Xbox 360 title, according to Amazon, but is not included in the bundle.

Looks like the bundles may be an effort by MS to help pad some game sales for companies and ensure with a TON of launch titles that Activision, EA, etc get some money out of supporting MS's launch.

Interesting that Q4 is the best selling. I would have never thought... obviously I think us hard core forum goers don't always have tastes that lineup with the average consumer.

Taking Activision's lead, videogame publishers have set prices for Xbox 360 titles at $59.99, a full $10 more than new releases for legacy platforms cost. Microsoft is the lone exception, pricing its own Xbox 360 software at $49.99 per title. When PlayStation 3 from Sony (nyse: SNE - news - people ) is released next spring, game prices are expected to remain firm, something Kotick says won't change.

"We've said we're to going sell those products at higher price points until ... the market forces us to sell them at lower price points, which we don't think is likely," Activision's CEO said. "We don't really think that there's a lot of price sensitivity on the part of the consumer, if you're delivering value."

I would agree on a GREAT game... but there are only 5-10 a year of those across all platforms. Outside of that I am REALLY picky.

 

[BlueTsunami]

So theres ONLY going to be bundles? Thats not right and a bad decision on MS part. Now I'm going to have to look for PGR3 bundles somewhere. No way do I want an EA game or an Activison game. The only games I'm interested in are PGR3, Oblivion and PDZ. I will NOT allow MS to force Quake 4 or Madden 2006 (-insert EA Sports game here-) down my throat.

That happened with the PSP at Circuit City when I bought my PSP. I was forced to buy it with Twisted Metal. Fun game (especially online) but it wouldn't have been my first choice of PSP games. Although...I haven't ACTUALLY bought a PSP game as of yet

>.>

My PSP is being used as a portable Emulator...heheheee

 

[Shifty Geezer]

A forced $700 bundle is REALLY bad IMO. That totally outprices the console, undoing the $300 pricepoint that they aimed for with the Core system. Trying to appease the software companies might severly reduce sales. Maybe this is also due to manfuacturing limitations, and realising they won't get as many bozxes out the door MS appreciate the early adopters will pay the higher premium?

 

[wco81]

Q4 is a hardcore game, not something to appeal to the casual gamers.

The thing about $60 games is that they will be discounted in a week or two or three. The reality is that average selling prices for games have been going down steadily. ONly the hot games stay at $50 for weeks and even some of those are subject to sales, especially at chains using them to drive traffic to the stores (Fry's Electronics on the West Coast/Midwest or their website, outpost.com).

But by shielding them in bundles, these publishers get higher ASPs for those transactions. Unless the bundle gives a good discount than buying separately, these are not good deals. But the bundle has a lot of useless stuff like faceplates or other accessories you don't have to have. Plus the accessories are overpriced to begin with so any "discount" within bundles still results in paying more than they're worth.

If I can walk into Target and just get the Premium bundle, I might do it. Otherwise, PS3 sounds better (not that Sony hasn't or won't enforce a bundle like the PSP, but at least they didn't force you to buy games you didn't want). Now, the Amazons and Gamestops and EB Games may still force you to buy a bundle to get a preorder. But no way I'm paying $60 for any game. If that's the only way to get a console around launch, I will just wait. I can afford the extra $10 but I won't reinforce these kinds of practices any more than I would reinforce subscriptions for online gaming matchmaking (which is basically what XBL is).

Problem is, there are plenty of people who will buy these bundles so the practice will probably continue.

 

[silhouette]

This should not be true. I gave my pre-order at one of the 'game stop' shop (not internet) back in early June, and had a trip there 2 weeks ago. The guy over there told me that I am getting the xbox360 as it is and they are not forcing me to buy a bundled version. So, either this info is wrong or things have changed in the last two weeks.

 

[valioso]

I believe the bundles are only forcd if you order online.. or so I heard before.

 

[Acert93]

This should not be true. I gave my pre-order at one of the 'game stop' shop (not internet) back in early June, and had a trip there 2 weeks ago. The guy over there told me that I am getting the xbox360 as it is and they are not forcing me to buy a bundled version. So, either this info is wrong or things have changed in the last two weeks.

Maybe it does not apply to pre-orders placed before the bundles were announced?

MS will obviously have a limited amount of units, maybe they feel they have enough systems pre-ordered that they can put a premium on the ones not preordered? I know in the past new consoles have been pretty hot items... if there are only 1M in the US, I could see it getting competitive and people spending a lot to get one. Maybe that is their goal? Either way, I am sure the publishers like the idea!

 

[pipo]

The 29th?

'nuff said.

 

[Powderkeg]

Required bundles are for online orders only. You can walk into a store right now and pre-order a 360 without having to get a bundle. (Assuming they are still taking preorders that is.)

Places like Best Buy, Walmart, etc.. have never sold bundles.

 

[jvd]

This is online only and its not ms forcing this . Its the websites . This is so the website makes money.

IF you go into a real store like gamestop and reserve the system. ON launch day your likely to pick up a controller and a game or whatever else is there or even preorder them .

If you buy from an online store if you could only order a system many times thats it. You get the system shiped to you and thats it .

This is the way its allways been since the dreamcast . The dreamcast online had bundles and its only increased with time . THe ps2 , xbox , psp , gamecube and ds all had online bundles for launch . This trend will continue and as people get desptrate for the system at launch for kids x mass gifts they will buy increasingly more expensive bundles to get the system

 

[BlueTsunami]

This is online only and its not ms forcing this . Its the websites . This is so the website makes money.

IF you go into a real store like gamestop and reserve the system. ON launch day your likely to pick up a controller and a game or whatever else is there or even preorder them .

If you buy from an online store if you could only order a system many times thats it. You get the system shiped to you and thats it .

This is the way its allways been since the dreamcast . The dreamcast online had bundles and its only increased with time . THe ps2 , xbox , psp , gamecube and ds all had online bundles for launch . This trend will continue and as people get desptrate for the system at launch for kids x mass gifts they will buy increasingly more expensive bundles to get the system

Thats good to hear jvd, thanks for the info! I really hate forced bundles. I was angry with the PSP bundle when I first got it. Its good to know that i'll be able to pick up any game I want at launch. Which of course will be PGR3....I still have my jaw gapping open from the cabin viewpoint. Thats the one thing I always wanted from a racing game, an exceptional inner cabin viewpoint.

 

[Shifty Geezer]

Thank goodness for that! Only I don't know that bundles have been that status quo for online. PSP wasn't sold with bundles, least not in the UK AFAIK. Maybe it's a US thing?

 

[BlueTsunami]

Thank goodness for that! Only I don't know that bundles have been that status quo for online. PSP wasn't sold with bundles, least not in the UK AFAIK. Maybe it's a US thing?

Yeah, I got it when it first came out in the US. I'm actually not sure if it was just Circuit City and Best Buy etc etc that where doing that (they where out at Gamestop which I believe where selling packages to). Right now there selling the standalone PSPs I believe in the US.

 

[PG2G]

EB forced Xbox bundles, I don't see why itd be hard to imagine them doing the same with X360.

If they force me to get 7 games, you can bet at least 3-4 of them are going back to the store unopened.