For all you XBOX fans, I just hope PS3 is as cheap as this:
The Xbox 360 gets two spins: the $299 "Core System," and the $399 fully-loaded package with 20GB hard drive, wireless controller and headset, HD cables, and remote control.
As the Big Three (Sony, Microsoft, and Nintendo) planned their business tactics for the next-generation console wars, none have been willing to divulge their strategies, lest competitors get the scoop. All that was left was for industry media, fans, and analysts to speculate on what would be of the new consoles. In its quest to get the console out in time for the holiday season, Microsoft hasn't exactly kept the shutters drawn on its secrets of its next-gen contribution, the Xbox 360. Pictures of the console surfaced before its debut on MTV, its name was exposed before the company could spin it itself, and the prospect of standard wireless controllers came with no strings attached.
Today, Microsoft laid down new facts about its upcoming console at the Games Convention in Leipzig, and they sounded awfully familiar to analyst predictions and forum posters' speculations. Microsoft announced that the Xbox 360 will be released in two SKUs, the "Xbox 360 Core System" and the "Xbox 360." The two products will be sold at $299 and $399, respectively. The two systems break down as follows:
Xbox 360 Core System - $299 (299 Euros, 209 GPB)
-Xbox 360 console
-Wired controller
-Detachable faceplate
-Xbox Live Silver membership
-Standard AV cables
Xbox 360 - $399 (399 Euros, 279 GPB)
-Xbox 360 console
-20GB detachable hard drive
-Wireless controller
-Wireless Xbox Live headset
-High-definition AV cables
-Ethernet cable
-Xbox 360 Media Remote Control (limited time)
-Detachable faceplate
-Xbox Live Silver membership
Peter Moore, Xbox corporate vice president of Worldwide Marketing and Publishing, reiterated that the Xbox 360 is still on schedule to launch simultaneously in North America, Europe, and Japan this holiday season. Details on the specifics of the Japanese release will be disclosed at this year's Tokyo Game Show, which begins September 16.
Michael Pachter, of Wedbush Morgan Securities, sees the $299 model as a "publicity stunt." "They're doing it to say they are launching at $299. The hardcore guys will absolutely not buy the $299 model...Only a complete idiot would buy the $299 model." Pachter references Sony Computer Entertainment president Ken Kutaragi's statement saying the PlayStation 3 would "be expensive" as an attempt to "psych Microsoft into charging $399." But, he sees the $399 price point as providing Microsoft with breathing room to lower the price once the PS3 is released, which is projected to be in 2006, or even 2007.
Regarding the release date, Moore said there have been no announcements made primarily for competitive reasons, but also because Microsoft was still monitoring the production flow of the console's components and localization of launch titles. "One thing we won't do is underserve the market and leave retailers high and dry. That never works, that just leaves more people who are P.O.'d at us than happy with us."
There are also still no games that are definitely launch titles. But Moore does outline the strategy Microsoft is approaching. "So much is going to happen in the next couple of months...My view is simple, you need to make sure that you have the key genres covered at launch. Take care of sports, racing, action-adventure, fantasy, first-person shooters. I think there are check marks that need to go in boxes to make sure that gamers have games they are looking for in a particular genre. We're still tracking 24 to 40 Xbox 360 games for release before the end of the calendar year. I think you'll see that all the titles we got excited about at E3 are still firmly in that launch window [90 days from the release of the Xbox 360]."
But what about gamers who aren't ready to jump into the next generation? Moore seems pleased with the current success of the original Xbox, and doesn't see any price drop with the console. "We’re selling all we can get [made]. Our biggest challenge is to meet demand and what is typically a very quiet time of year. So no, I don't see any plans to change any pricing as we currently stand on the Xbox."