heliosphere
Newcomer
I've been thinking about all the debates over which console is better 'value' - ultimately a somewhat futile debate since perceived value is subjective and based on what an individual views as important - and it occurred to me that there's really a fundamental difference in strategy between MS and Sony with the 360 and the PS3.
Sony's strategy seems to be the all in one multi-function device route. It's the world's most powerful games console! It's a bluray player! It's a media PC! Online gaming is free! Browse the web! Run Linux! But it's pretty much an all or nothing deal - the only meaningful difference between the two PS3 SKUs now is the size of the hard drive and the wi-fi support, (the card reader on the premium adds a bit to the media PC value but supposedly it works with standard USB card readers which are dead cheap). If you're not interested in bluray you have to pay for it. If you already have a media PC and just want a games machine you're paying for functionality you don't need (if not directly in hardware costs then in the opportunity cost of Sony focusing effort on those areas at the expense of gaming). However, if you are interested in all the functionality that the PS3 has to offer and don't feel the need for additional functionality above and beyond what it offers then it represents pretty good value due to the economies of scale that Sony can bring to bear (not to mention that they're subsidising the hardware at the moment).
By contrast MS is taking a much more mix and match approach. The core 360 really is just a pretty bare bones gaming machine. If you want HD-DVD support you can have it but you'll have to pay extra. If you want to be able to download media and demos you'll need to pay extra (for the hard drive). If you want wireless networking it'll cost ya. If you want online gaming there's a subscription. If you want media PC functionality then you'll need a PC and media extender to go along with the 360. If you want to browse the web, send emails, run a real OS and PC applications then go ahead and buy a PC (and MS will happily sell you Windows and Office to go with it). The premium package bundles a popular subset of the extra functionality for a lower additional cost than buying everything independently but it still doesn't do everything. The advantage to the consumer is that they only pay for the functionality they want, and if that's a smallish subset then it's going to cost a lot less than the PS3. The disadvantage is that if they want all the functionality and don't already own a PC it's going to cost a lot more than a PS3.
The big question is which strategy is going to appeal to the mass market more? All the debate here is between the hardcore who probably want all the functionality but already have some of it. For me the 360 seems better value - I already have two PCs in my apartment and a Mac Mini hooked up to the TV so I'm covered for web browsing, internet downloads and PC functionality. I can already browse the web and send email from my TV if I want to (I almost never do). What the 360 gives me is great console gaming and a good media extender for streaming media from my PC to the TV. When I bought it at launch I wasn't much interested in HD movies but I picked up the HD-DVD drive recently as much out of curiosity as anything. I subscribe to Xbox Live! Gold but I'm not a huge online gamer. It costs me less per month than I pay for a couple of premium channels on cable though so I don't really think about the cost too much - the fact that I might end up paying $200+ over a few years is much less of an issue than paying that $200 up front would be. For other people here the PS3 is a better fit to what they want. I've no interest in running Linux on a console hooked up to my PC but I kind of understand the geek appeal of it - I bought a Mac Mini largely for the novelty of having a computer with a different architecture and different OS kicking around. For me the novelty appeal of the hardware is less because I was working with the PS3 and 360 devkits for months and years respectively so the novelty has worn off.
Once the console wars move beyond the hardcore though which strategy is going to appeal to the mass market? I'm inclined to think the 360, assuming (as I think is likely) that it maintains the price advantage for some time to come. In a couple of years the novelty of HD movies will be wearing off - they'll either be selling combined players made in China for $50 in Walmart or the whole thing will fizzle out as VoD takes off. The PS3 will be outclassed as a PC substitute by an actual PC of comparable cost due to the inevitable march of PC tech. MS will be able to sell a Core system for people who only care about games at a knockdown price and all the PS3 tech which seemed so next gen will have lost it's lustre but the hard disk will probably still be making it hard for Sony to compete on price with MS (as MS found out to their cost with the Xbox).
Sony's strategy seems to be the all in one multi-function device route. It's the world's most powerful games console! It's a bluray player! It's a media PC! Online gaming is free! Browse the web! Run Linux! But it's pretty much an all or nothing deal - the only meaningful difference between the two PS3 SKUs now is the size of the hard drive and the wi-fi support, (the card reader on the premium adds a bit to the media PC value but supposedly it works with standard USB card readers which are dead cheap). If you're not interested in bluray you have to pay for it. If you already have a media PC and just want a games machine you're paying for functionality you don't need (if not directly in hardware costs then in the opportunity cost of Sony focusing effort on those areas at the expense of gaming). However, if you are interested in all the functionality that the PS3 has to offer and don't feel the need for additional functionality above and beyond what it offers then it represents pretty good value due to the economies of scale that Sony can bring to bear (not to mention that they're subsidising the hardware at the moment).
By contrast MS is taking a much more mix and match approach. The core 360 really is just a pretty bare bones gaming machine. If you want HD-DVD support you can have it but you'll have to pay extra. If you want to be able to download media and demos you'll need to pay extra (for the hard drive). If you want wireless networking it'll cost ya. If you want online gaming there's a subscription. If you want media PC functionality then you'll need a PC and media extender to go along with the 360. If you want to browse the web, send emails, run a real OS and PC applications then go ahead and buy a PC (and MS will happily sell you Windows and Office to go with it). The premium package bundles a popular subset of the extra functionality for a lower additional cost than buying everything independently but it still doesn't do everything. The advantage to the consumer is that they only pay for the functionality they want, and if that's a smallish subset then it's going to cost a lot less than the PS3. The disadvantage is that if they want all the functionality and don't already own a PC it's going to cost a lot more than a PS3.
The big question is which strategy is going to appeal to the mass market more? All the debate here is between the hardcore who probably want all the functionality but already have some of it. For me the 360 seems better value - I already have two PCs in my apartment and a Mac Mini hooked up to the TV so I'm covered for web browsing, internet downloads and PC functionality. I can already browse the web and send email from my TV if I want to (I almost never do). What the 360 gives me is great console gaming and a good media extender for streaming media from my PC to the TV. When I bought it at launch I wasn't much interested in HD movies but I picked up the HD-DVD drive recently as much out of curiosity as anything. I subscribe to Xbox Live! Gold but I'm not a huge online gamer. It costs me less per month than I pay for a couple of premium channels on cable though so I don't really think about the cost too much - the fact that I might end up paying $200+ over a few years is much less of an issue than paying that $200 up front would be. For other people here the PS3 is a better fit to what they want. I've no interest in running Linux on a console hooked up to my PC but I kind of understand the geek appeal of it - I bought a Mac Mini largely for the novelty of having a computer with a different architecture and different OS kicking around. For me the novelty appeal of the hardware is less because I was working with the PS3 and 360 devkits for months and years respectively so the novelty has worn off.
Once the console wars move beyond the hardcore though which strategy is going to appeal to the mass market? I'm inclined to think the 360, assuming (as I think is likely) that it maintains the price advantage for some time to come. In a couple of years the novelty of HD movies will be wearing off - they'll either be selling combined players made in China for $50 in Walmart or the whole thing will fizzle out as VoD takes off. The PS3 will be outclassed as a PC substitute by an actual PC of comparable cost due to the inevitable march of PC tech. MS will be able to sell a Core system for people who only care about games at a knockdown price and all the PS3 tech which seemed so next gen will have lost it's lustre but the hard disk will probably still be making it hard for Sony to compete on price with MS (as MS found out to their cost with the Xbox).