I figured that would get your attention, lol.
Yes, Aceattorney, Wiseguy and I actually got to lay hands on one of these at the Summit. Someone asked us what it was like.
Well, pick up your Xbox 360.
Close your eyes.
It's exactly like that.
There's a lot of misunderstanding about what it all means. People are even getting defensive about it because it doesn't jive with their own vision of how things should be.
First, I want you to consider the PS2. It launched at $299, and was $299 until Xbox decided to drop, and PS2 followed. The price has continued to drop until it got to the price it is now: $129. During that time, it has sold over 110 million consoles worldwide.
Now look at that from Microsoft's point of view. There's a potential market out there of at least 110,000,000 consoles. Most of those won't happen until the 360's price drops. The 360 has a lot in common with the PS2: Launched a year early in all territories, had a large amount of games available before the competition hit the street with their console and a small handful of games, and will hold its lead AND IT'S PRICE for a couple of years before the first drop, allowing them to actually make some money on the console for a change.
There's one big difference. The PS2 was the PS2 was the PS2 and if you wanted one, you got... the PS2. Parts and pieces came and went, and depending on when you decided to jump in depended on which system you had: thick or thin, HDD compatible or not, Network adapter included or optional, progressive scan DVD or not, quieter fan or not, i-link or not...
Xbox launched the same way. It was a "get the foot in the door" approach by Microsoft that cost them a lot of money, but paid off in the long run. MS was now treated as a serious player in the game industry. One console. Period.
With the 360, it took a different approach: Two versions, an entry level and a hardcore level. It was a way for them to launch big AND at the same time, capture that first "price drop" customer.
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10 million people now own 360's, but there's still 100 million potential customers that Microsoft wants playing their 360 and buying 360 games. What do you do to get 100 million people to jump in?
Oh yeah, it's easy to say "drop the price." MS is known for ALL the money they've made and continue to make, and somehow that justifies biting the bullet and just giving stuff away because they can. It doesn't work that way. One competitor is priced so much higher than what is expected for a game console that even some hardcore gamers are passing, at least until THE killer games arrive. The other competitor entered at the price-drop price point with a novelty controller and has not been able to meet demand.
With a situation like that, there is no reason at all to drop the price. The console is not selling to many people's expectations, but it is not selling poorly at all, and the games are blowing the doors off.
So here's what Microsoft has done in an attempt to capture the 100 million gamers who haven't committed yet to this generation.
They've offered a choice.
Three, actually.
There's good: An Xbox 360 that plays all the same games as the rest of the 360 family, no hard drive which keeps the price down, and a choice of either a 64MB memory card (now $29.99) or a larger 512 MB memory card ($49.99), less than half the price of a hard drive. The $299 Core, for entry-level 360 gamers.
There's better: The Xbox most of us own is exactly the same as the Core, with the addition of a hard drive for storage and a wireless controller instead of a wired one. It also supports the memory cards for moving your gamertag from one console to another as well. Everything the Premuim does, the Core does, and vice versa. The $399 Premium, for active gamers.
And now, there's best: The new Xbox that is identical to the Core and Premium in EVERY way, but for two: It has an HDMI port for televisions that support it, and it has a larger harddrive for 360 owners who do more downloads or want to store more music. Oh, and it's black, which doesn't affect the performance. Much. The $479 Elite, for gamers who are also videophiles.
All the drives, all the chips, all the guts are identical.
The systems come with three variations of television hookup: Composite for the Core, Composite/Componant for the Premium, and HDMI/Composite/Componant for the Elite. The Elite also allows you to use you choice of HDMI for audio, or Optical/RCA for audio if you want to run it to a surround sound.
The systems come with three variations of storage: None, 20 GB and 120 GB. Wanna change what your system uses for storage? Then pick your storage of choice: $29 mem card, $49 mem card, $99 HDD or $179 HDD.
What does this mean for you, the gamer who already owns a 360?
NOT ONE DAMN THING.
This is about the customers 360 doesn't have yet. Sure, you're not exempt from "movin' on up" if you want. There's a couple of ways to do it. One, if you want the HDMI, you can just buy yourself a second 360: an Elite. Trade in or sell your original and apply it to the purchase price. Two, you can just buy the HDD. In the "big picture" you will have spent more than the actual cost of an Elite, but you're only having to come up with $179 now, and not $479. And you can probably still get a few bucks for your 20GB drive from a Core owner.
Understand: this move isn't about placating current owners. It's about offering options to new owners. Sure, I wish I had an Elite. Would I have traded the past year and a half of gaming to have one? Hell no.
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I want to talk a little bit about the cost of the HDD. I'm going to fudge a little bit on my NDA, without shattering the thing to holy hell. The 20 GB drive sells alone for $99. I know what it actually costs. No, I'm not telling. But I will tell you this: MS is NOT screwing you over by asking $99 for the drive. I know you can get drives cheaper, even much bigger drives. But those drives work with multiple devices and that drives the cost down. Xbox drives work only on Xboxes and that makes them more expensive. They can't sell them to 3,000 other machines to drive the price down. I know, I know... Sony comes with a 60GB and allows you to use any additional drive. Now the Elite comes with a 120GB - twice the size of Sony's, so you don't HAVE to add an additional drive. With the Elite, you STILL get more for less. It's also extra insurance against hackers working their way into the system.
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Now, about WiFi. Remember when it was Wireless A? How about B? G? Tomorrow it's R or L or F... I dunno. But once you build a permanant device into a machine that utilizes a technology that is constantly changing... you've got a few choices: One, take an established standard that is well rooted. Two, try and predict the future and act accordingly. Three, offer it as an optional and changeable. (Most really active LIVE gamers perferred wired anyway. If you've played with someone with a slow router... you'd understand).
For One, that is what Microsoft did with the DVD. Blu-Ray might win the next gen war. HD DVD might win the next gen war (if they get off their asses and release some movies.) Or HD content might come through streaming or downloads. But DVD is set in stone so that's what Microsoft chose for the 360 disc format. DVD WILL be a viable format five years from now. But they added the HD DVD drive as an option for movie lovers.
For Two, that is what Microsoft did with broadband in the Xbox. Boy did people poop pottery when MS made that decision. They weren't even to the end of the generation before the PS2 Slim started shipping with a little sticker on the back that said "broadband only."
For Three, that is what Microsoft chose to do about WiFi. It's changing too fast. You lock it down, you're stuck with it. It's a bad position they may find themselves in by including HDMI AT THEIR CUSTOMER'S REQUEST, because as the standard moves from 1.1 to 1.2 to 1.3 and on up, what you got is what you got. It's not something that could be added to the existing tech like a WiFi adapter. It required changing the board which is why they didn't just come out with a cable and adapter. They did it for you, or rather, the people who want such things. It's there if you want it and you can pass if you don't. But when it goes to some other standard (all optical video/audio?) they'll have to modify it again, and current 360 owners will be chaffed AGAIN, but it's the nature of the beast. If you want to be cutting-edge, it's going to hurt. That's kinda why they CALL it "cutting edge."
You think the PS3 is future proofed better than the 360? Is it doing upscaling? The new version will. Is it supporting rumble, that last gen feature? Apparently, it will... again. But where Microsoft is offering you choices, Sony will just change the console like it did with the PS2, and what you get depends on when you jumped in. Tech changes, and you either adapt... or stay old and change your controller.
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65 nm chips. For the uninformed and in layman's terms: it's the 360 CPU, on a smaller chip that puts out less heat and costs less. IF and WHEN they finally go to this chip, most likely you'll never know. IT IS NOT IN THE ELITE. There's no obvious performance difference adn unlike a DVD tray that pops out for inspection, there's no way to check under the hood to see what chip you've got... and it wouldn't matter anyway. It is my opinion that basing your console buying decision on whether the chip is 90 nm or 65 nm is like saying you want the pink one. It's a matter of preference, not performance, but do what you like.
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Lastly, the Elite is NOT a limited edition. It is, as one of our MVP people like to say, the newest edition to the Xbox 360 family. To cover a bunch of issues right here at the end: The prices are and will remain for the time being, $299, $399 and $479, the Elite is not limited edition, the Elite will always be black and the Core and Premium will always be white (barring any future funky special editions, but it won't be an "across the baord" change).