Microsoft E3 2009 Keynote Thread

And this is what is important.

I don't mind, or disagree, with repackaging the 360 at a $149 price point w/ Natal and calling it 'Mr. Pink Fuzzy Family Fun Machine!' and marketing it towards the market that everybody believes is buying the Wii.

(I'm not still convinced we've got that divergent of markets, or that market is interested in remaining interested in products like this generation after generation.)

But I foresee huge problems if MS believes that Natal can add significant legs to the 360 in terms of delivering for their main demographic - the hardcore gamer.

We want better games, larger games, pretty games, more graphicly intense games, better AI, etc. There's lots of improvements to the gaming experience that require additional CPU, GPU, RAM, storage capacity, even if you don't believe the cost/benefit ratio of graphic enhancement is worthwhile.

I believe the console cycle will be longer, but not significantly so.

IMO it will be extended from the typical 5 year, to a 7 year.

2012
 
Well, right now Sony can't afford to put serious developement into a next gen console. And MS appears to be quite happy with a future X360 + Natal keeping the system relevant for at least 5 more years (starting in 2010).

Granted, things can always change between now and 2015. Just stating what their current plans are. And I'm not doubting it. As previous to this I figured MS wouldn't release a new console before 2013, and Sony doesn't want to launch sooner than 10 years, but would be forced to if MS made a move.

Regards,
SB
 
Well, right now Sony can't afford to put serious developement into a next gen console. And MS appears to be quite happy with a future X360 + Natal keeping the system relevant for at least 5 more years (starting in 2010).

Granted, things can always change between now and 2015. Just stating what their current plans are. And I'm not doubting it. As previous to this I figured MS wouldn't release a new console before 2013, and Sony doesn't want to launch sooner than 10 years, but would be forced to if MS made a move.

Regards,
SB

I agree Natal and xb360 can be relevant until 2015, but just as Sony did with ps2-ps3, a new system will hit store shelves before then.

As Rancid said, the core gamer that has pushed xb360 to be the success it is today will not sit patiently. It will come to a point when whichever co decides to drop their next gen console first will get the hardcore gamer on their system regardless of prior affiliations.

MS benefited from this with xb360 and that was only 4 years after xb1. To expect hardcore gamers to wait ten years is foolish ... heck they might even drive the core gamer back to the pc! :p
 
And this is what is important.

I don't mind, or disagree, with repackaging the 360 at a $149 price point w/ Natal and calling it 'Mr. Pink Fuzzy Family Fun Machine!' and marketing it towards the market that everybody believes is buying the Wii.

(I'm not still convinced we've got that divergent of markets, or that market is interested in remaining interested in products like this generation after generation.)
Actually I think that Natal will be expensive I would put my bet around 300$ (including the sytem).
MS imho should only kept one sku including 16/32GB of flash memory and sell it around the same price as the actual arcade sku. All systems sold could be able to enjoy properly MS online offering Ms could end recovering some of Natal costs from more online sales and HDD sales.
But I foresee huge problems if MS believes that Natal can add significant legs to the 360 in terms of delivering for their main demographic - the hardcore gamer.
Nothing will bring significant legs to the ps360 if we speak about hardcore gamers. 2012/13 is far away and push back further new systems launchs will only bring MS some money as PC will become more attractive to the hardcore gamers.
We want better games, larger games, pretty games, more graphicly intense games, better AI, etc. There's lots of improvements to the gaming experience that require additional CPU, GPU, RAM, storage capacity, even if you don't believe the cost/benefit ratio of graphic enhancement is worthwhile.
I agree.
 
I cannot believe that Natal will cost anything above 100$ when it launches. 249$ for a Natal package including some good software should be doable, and something Microsoft will probably be aiming for.
 
I cannot believe that Natal will cost anything above 100$ when it launches. 249$ for a Natal package including some good software should be doable, and something Microsoft will probably be aiming for.

I can't imagine it will cost even that.

Two web-cam class cameras, - and software. Cost should be less than $15.

And since the key to succes is to make it ubiquitous they should sell it dirt cheap to existing 360 owners and bundle it with every new 360 purchase.

Cheers
 
There's a programmable chip in the device that does a lot of processing that you're forgetting to take into the equation. I'm also not sure if it's just two web-cam class cameras - I thought there was something else included. Probably also includes a microphone, but that's negligible of course.

But for $249 I think they can make a package with say 80GB (either a harddrive or maybe even just flash memory) with a bunch of Wii-Sports like applications to really sell the system on its own, and leave room for actual profit on that initial package, which I think they're going to want.
 
Guys,
A processor
An array Microphone
A camera
A 3d camera

That is the list.

I won't even go into the software and R&D costs.

$150-200 is my guess.
 
For the record, PSEye was $70 or so in the US including a high quality cam and array mic and game (EOJ bundle).
 
At first we had guessed/heard $200. Then, based on 3DV we went to under $100. Now we're under $50? We don't even know what exact tech this is using, besides apparently using a time-of-flight camera -- which so far aren't that cheap. And we don't even know if MS plans on making a profit off the peripheral or not.
 
And we don't even know if MS plans on making a profit off the peripheral or not.

They can't possibly. I think the opposite question is more likely to be true, will they sell it at a loss?

The entire purpose is to expand the user base, the only way to do that is to price the 360 + Natal at a price point below that of the Wii.

We've all seen how well Sony did this generation with its strategy of 'Adding value' rather than reducing price.

Absolute price point matters. Natal360 has to be at or below the Wii. And my guess would be below in order to start shifting the market at this late stage.
 
Actually, there is indeed a range they can deviate from the reference price. It is said that Wii raised its introductory price from 199 to 249 based on retailer feedback. Nintendo could do it because Wii offers a compelling and unique solution to a large audience, plus it was short in stock. PS3 did not move as many units at a high price because people still perceive it as a super-sized PS2.

If Natal can offer something unique and compelling, it may be able to price slightly higher. It depends on the final product.
 
http://www.gamasutra.com/php-bin/news_index.php?story=16637

3DV's marketing VP Tomer Barel, January 2008

"I guess, any pricing decision will be made together. But what I can say in terms of the cost is, as you said, it will be comfortably in the zone that is relevant for peripherals in the gaming arena, and it will be definitely possible to sell it as a bundle for the kind-of $69.99 price point that one can feel comfortable about. Or, sell it together with any webcam that is on the shelves in Best Buy or Fry's. Similar price-point."

3DV was acquired by Microsoft, so based on economies of scale, if the 3DV as Natal was packaged as a standard with the 360, its costs to MS would probably be well under the $69.99 price point, which is a figure inclusive of profit margins and cost of a game as well.
 
If Microsoft is charging $149.99 for a 120 GB hard drive
I don't see why this array would be less than $100s.

If MS sold both a standard part of 360 skus and as a standalone product, based on the past, then MS may offer the standalone at a much higher price to encourage the purchase of Natal bundle.

But MS may realize that 30-40 million users had no options to purchase Natal as part of their console purchase and a high price on the standalone might cause anger amongst its userbase and discourage adoption.
 
http://www.gamasutra.com/php-bin/news_index.php?story=16637

3DV's marketing VP Tomer Barel, January 2008

"I guess, any pricing decision will be made together. But what I can say in terms of the cost is, as you said, it will be comfortably in the zone that is relevant for peripherals in the gaming arena, and it will be definitely possible to sell it as a bundle for the kind-of $69.99 price point that one can feel comfortable about. Or, sell it together with any webcam that is on the shelves in Best Buy or Fry's. Similar price-point."

3DV was acquired by Microsoft, so based on economies of scale, if the 3DV as Natal was packaged as a standard with the 360, its costs to MS would probably be well under the $69.99 price point, which is a figure inclusive of profit margins and cost of a game as well.

There's more to Natal than just the tech in the 3DV camera like the mic array. Though 3DV probably planned on a launch this year & Microsoft is planning next year. I would hope it would be priced less than $100, but if it isn't I could understand why.

Tommy McClain
 
Not to mention that Ms denied that NAtal is based on 3DV tech, they make it sounds like it'more to avoid patent issues.
 
There's more to Natal than just the tech in the 3DV camera like the mic array. Though 3DV probably planned on a launch this year & Microsoft is planning next year. I would hope it would be priced less than $100, but if it isn't I could understand why.

Tommy McClain
None of which is that costly in terms of manufacturing. If you can buy Intel Atoms for less than $30 dollars a units in 1000 unit batches, (I doubt that the custom chip used by Natal is that powerful), MS's custom chips must be much cheaper in terms of man. cost.

I don't see anything hardware wise that will force MS to release Natal at a high price point. I think MS's market research will ultimately determine how high a price Natal will fetch, which means if the market will bear a $200 Natal peri at appreciable volumes then that whats MS will give us.

MS has emphasized that Natal is more about software not hardware, which probably means thats were most of R&D was devoted and where the most costs were incurred.

I personally think Natal is the culimination of software research related to MS's past, current and future OSes and someone got the bright ideal that this stuff that MS was already working on could be tweaked and used together to compete against the Wii.
 
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