MS X360 Pricing/Hardware Strategy

[Rockster]

Old thread I had created on this, I'll just cut and paste.

Microsoft Mid/Late 2007 Price Guide
----------------------------------
$399 XBox 360 Premium 80GB New SKU (Slight redesign, Internal PSU, HDMI support, Quieter .65u XCPU)
$349 XBox 360 Premium 20GB Old SKU
$299 XBox 360 Core New SKU (Slight redesign, Internal PSU, HDMI support, Quieter .65u XCPU)
$249 XBox 360 Core Old SKU
$149 HD-DVD Addon Drive
$99 80GB Hard Drive
$69 20GB Hard Drive
$39 256MB Memory Card

 

[DuckThor Evil]

There is a huge chasm between GT and Forza, and in Europe there is a huge chasm between Halo(FPS) and GT.

Nothing is guaranteed. But just from a game vs. game basis (talking sales here NOT quality), for the European market, PS3 has the win over 360 since Halo is pretty much nullified as a killer app outside of the UK. Sony should be worrying more about Wii than 360 in Europe since low HDTV adoption (and even widescreen adoption!) in mainland Europe plays into Nintendo's hands.

in Europe - FPS’ are niche, but I'm curious to see how Blue Dragon does.

Yes Gran Turismo sells much better in Europe compared to Halo, but Halo 2 sold over 1.5 million in Europe, I wouln't call that niche... factor in the installed base and I'd say it did pretty good, in essence Halo is very big in Europe too, although it's not the biggest franchise. I'd say the HDTV adoption rate is pretty high in Europe already and it's accelerating fast, just go to a electronics store and look what they are selling.

 

[Tagrineth]

and a proper overhead shooter to rival or exceed the Gradius series.

That'd take a miracle. (edit: and be one, too)

Maybe they can buy Treasure?

 

[scooby_dooby]

No, they really won't be unbeatable in the EU just for those reasons. Heck, out of those games, i can only think of Halo 3 and GTA that would make a big commercial impact. And two games don't make a console "unbeatable".

I heard Forza sold very well in EU, and considering the sequal will probably sell at least 2-3million over it's life, a big chunk of those will be in europe. Mass Effect should do very well worldwide if it's as good as we all think, i.e. GOTY candidate.

I don't agree that the console is unbeatable though, far from it. It's about the next must have games, and the fact is, every generation the must have games emerge as new franchises. It's fairly unlikely that Halo 3 and GTA 4 (actually #6) are going to be the must have games of this generation, more likely new franchises will emerge, like Halo and GTA did last generation.

 

[scooby_dooby]

FORZA 2 is MS's only hope in that regard.

I think since they already have a great sim/physics/damage model in place, they may do well with the new version

There's GTR as well.

Gran Turismo is still way bigger than Forza, but Forza is now on the 2nd iteration of a great franchise, sales and awareness will continue to grow very quickly, as it's truly a great game that can stand shoulder to shoulder with GT.

 

[ErnstH]

That'd take a miracle. (edit: and be one, too)

Maybe they can buy Treasure?

Microsoft is already getting good support from Treasure (at least one shooter).

Interview with Treasure president

 

[pipo]

I disagree about Europe. I think the PS3 price will be a pretty big deterrent in Europe.

Spot on.

 

[Johnny Awesome]

Not Gonna Happen period. I think there won't be price drop til late 2007. And when that happens, it will be more like $349/$249 range...and if there is new SKU with HDDVD/60G HD/HDMI, then it will be priced at $499, not $399...MS will not want to bring another loss leader.

I don't think so. I'm expecting them to drop $100 this year. Quibbing over Summer vs. Fall is silly IMO. It's the same thing basically. I also stated clearly that if MS could bundle the other SKU and only incur and extra $100 cost, they'd do it for $100. Thus: No loss leader.

 

[Johnny Awesome]

Old thread I had created on this, I'll just cut and paste.

Microsoft Mid/Late 2007 Price Guide
----------------------------------
$399 XBox 360 Premium 80GB New SKU (Slight redesign, Internal PSU, HDMI support, Quieter .65u XCPU)
$349 XBox 360 Premium 20GB Old SKU
$299 XBox 360 Core New SKU (Slight redesign, Internal PSU, HDMI support, Quieter .65u XCPU)
$249 XBox 360 Core Old SKU
$149 HD-DVD Addon Drive
$99 80GB Hard Drive
$69 20GB Hard Drive
$39 256MB Memory Card

Not bad, but too many SKUs IMO. Although it wouldn't surprise to see just a HD upgrade and HD-DVD drop to $149, with no third SKU at all and a general $100 price drop in Summer/Fall '07.

 

[JasonLD]

I don't think so. I'm expecting them to drop $100 this year. Quibbing over Summer vs. Fall is silly IMO. It's the same thing basically. I also stated clearly that if MS could bundle the other SKU and only incur and extra $100 cost, they'd do it for $100. Thus: No loss leader.

Nope, I don't expect that kind of steep drop this year. Especially when MS is more than determined to milk profit out of Xbox platform this generation. $50 drop is sweet spot for them IMO.

 

[Tagrineth]

I think the ultimate thing would be if the Core System goes down to $250 (or gets removed entirely - you don't really save any money by buying a core!) and the premium kit should drop to $360! =)

 

[Fu3lFr3nzy]

I think the ultimate thing would be if the Core System goes down to $250 (or gets removed entirely - you don't really save any money by buying a core!) and the premium kit should drop to $360! =)

I'd rather have it drop down to <$350 and save the cliché's for something else

 

[Johnny Awesome]

It'll be interesting to see what happens.

 

[Rockster]

Not bad, but too many SKUs IMO. Although it wouldn't surprise to see just a HD upgrade and HD-DVD drop to $149, with no third SKU at all and a general $100 price drop in Summer/Fall '07.

It will still be two SKU's, just the prices must be reduced on the old one's until they clear distribution channels. The two new SKU's will replace the two old ones. No sense in continuing to build the non-hdmi models.