#1 HURRAH for Europe!!
Specifically a couple of B3D posters, in Europe, who were complaining about being "forced" to get a HDD. Titiano should be giddy!
#2 Are they nuts, 1st edition? Fragmenting the install base... idiotic. Well, more on this later...
#3 Are they nuts, 2nd edition? The periphrials are $$$
How am I supposed to get a HDD, Live Gold, headset, VGA adapter, and a game + a 360! Oh, get the $400 SKU
#4 Based on the interview at IGN, expect a PSP situation, specifically: a "Value Pack" being the CORE SKU offered at launch. I think the $400 SKU will be the main focus with very few $300 SKUs out there.
#5 As much as I hate this, MS telegraphed this one. The other day MS announced a FREE addon for XP that will allow streaming between a NORMAL WinXP system and the 360 due this year. Can stream form a XP PC =>
http://www.tomshardware.com/hardnews/20050816_174728.html
Basically MS is saying, "Well, most will get a HDD or large flash drive, and for those who don't they can always stream off their PC. So why do we need to include it in the base unit? Sony wont be, so Devs will under use it AGAIN... no point hurting our bottom line for a semi-useless* feature". (* MS is missing out on a HUGE market expansion feature if done right).
#6 Doomsayers:
Is this the end of MS's 360?
Puleease!
PS3 is not going to have a HDD standard, and I have not heard anyone claim it is the end of the PS3. Nintendo's and Sony's similar decisions in the past/this gen? That was not the end of them. As much as I HATE this, it seems this will be the standard until mass storage is standard in the industry. Think about it from MS's perspective. More games are going to be cross platform. Even if they snag 50% of the US, the other 50% (PS3 owners) wont have a HDD. That is NO INCENTIVE to bring up the cost for a device under used.
And it has been underused. MS solution?
A. Make a "premium" SKU with a HDD.
B. Offer large memory cards (which are profitable!)
C. Offer all the same HDD features (audio soundtracks, game saves, microtransactions, demos, trailers, etc) via streaming from your PC
Since they are trying to avoid piracy (which is horrible on the Xbox) and have no plans for TiVO features on the 360 yet this makes sense in some ways. What do they lose the most?
1. the HDD being a standard app for all devs to use (which was under used this gen, sadly, and with the PS3 not supporting it as standard will continue to be such)
2. Caching of game content.
In MS's opinion the reduced cost is more important than the few games it will affect. And it is not like devs will be running to Sony for a standard HDD because it does not have one either.
#7 I hate this... very much!
Biggest thing: MS is losing out on new revenue models! DEMOS to get people excited (and then direct buy through online), Trailers, microtransactions and expansions being offered constantly to EVERY player, and other Live features.
I think MS has missed the boat. It will save on production costs, but in the long run I think it makes the 360 less unique and able to expand into trendy markets to make market impact.
#8 I think MS is hoping for larger/cheaper flash media to come in mainstream in 2008/2009 to make expensive HDD mute
#9 Where is the 360 Media Center? Oh, wait... politics. MS obviously does not want to compete with their $$$$ media center PC. Too bad, as a media center 360 would really be a trend setter, the "iPod" like device.
Overall, calculated and conservative moves by MS. I don't like them, but I don't see them losing much on this.
As for market position I can see the 360 dropping to $350 when the PS3 launches and the base model at $250. So the market could look like:
$400 PS3
$350 360 HDD
$250 360 Bare Unit
$200 Nintendo
For $50 less than a PS3 you get a fully loaded 360 with Live gold. For $50 more than a Rev you get a console with more games and better hardware. I think this is MS's attempt to work over both Nintendo and Sony at the same time.
#10 My best friend who lives on the West Coast (I am East Coast now) is gonna get a 360 and wants me to get one for Live so we can chat and play. I was thinking about it, but...
$50 VGA cable
$400 console (HDD, Live Gold, Headset, etc... no point getting the $300 SKU, paying $50 for Live Gold and the other accessories separately)
$60 game
$510
I cannot afford that!