XBox 360 Pricing Speculation

[bapenguin]

Gamedaily (http://biz.gamedaily.com/features.asp?article_id=10265&filter=feature) has an interview up with an analyst who believes the XBox 360 will launch with two SKUs. 1 will retail for $299, and will be hard drive free (or a smaller hard drive) and one will retail for $349/$399 and will come with "everything a gamer needs anyway."

The most interesting tid-bit that comes out of the interview is the news about subsidized development costs to third party developers from Microsoft."Microsoft has set up a fund (of sorts) to be utilized for subsidizing game development and promotion for the XBX360. We think the Company will provide financial incentives in the form of development dollars, sales and promotions, and reduced royalty structures. At the end of the day, expensive third-party product development (on key IP) could be subsidized in part by Microsoft's balance sheet," Gikas stated.

Lower development costs = More games. More games = good.
We shall see anyday now abou the official release date and pricing of the XBox 360.

[*Legion*]

analyst who believes

Which, of course, is 100% meaningless.

[Mrbunchypants]

looking better all the time. Now about those games. Lets hope this means good games and not just some slap it togeather with duct tape games.

[Heretic Machine]

I'm fairly sure the analyst has no idea what he's talking about. Hasn't it already been confirmed that the XBOX -will- ship with a 20gb hard-drive? I doubt they will be able to ship a model without it.

I'm calling bullshit.

[Kefkataran]

More analysts. Who even cares about that any more?

[KNOTE]

Dear Microsoft, if you want to win, take 60 million dollars and give it to Rockstar North to ensure that the next gen GTA will be 360 exclusive. If you don't, you will not be #1 in the US. Take another $60 million and give it to Level 5 for exclusive rights to Dragon Quest *whatver number* or you will not be #1 in japan. I have no idea what the #1 game in Europe is but my guess is that it's GTA as well. For 180 million dollars you can win the console war, worldwide. My advice is free for now.

Sony if you want to win, make sure that MS doesn't do what I've listed above and it's over.

Nintendo, sorry no #1 for you. You will always remain profitable and should be content to be. But Mario and Zelda will never propel you to dominance. You should be proud that you make consistently fun games for the youthful. Keep doing that because the industry needs it. Donkey konga rules!

[Wonka]

Dear Microsoft, if you want to win, take 60 million dollars and give it to Rockstar North to ensure that the next gen GTA will be 360 exclusive. If you don't, you will not be #1 in the US. Take another $60 million and give it to Level 5 for exclusive rights to Dragon Quest *whatver number* or you will not be #1 in japan. I have no idea what the #1 game in Europe is but my guess is that it's GTA as well. For 180 million dollars you can win the console war, worldwide. My advice is free for now.

Sony if you want to win, make sure that MS doesn't do what I've listed above and it's over.

Nintendo, sorry no #1 for you. You will always remain profitable and should be content to be. But Mario and Zelda will never propel you to dominance. You should be proud that you make consistently fun games for the youthful. Keep doing that because the industry needs it. Donkey konga rules!


Last time, people said the exact same thing about Metal Gear Solid and Final Fantasy. Not that these weren't important titles, but newer titles like the GTA games clearly stole the show. It might still be decent advice though, since games are getting harder and riskier to develop new IP for.

[Commissar Rob]

I'm fairly sure the analyst has no idea what he's talking about. Hasn't it already been confirmed that the XBOX -will- ship with a 20gb hard-drive? I doubt they will be able to ship a model without it.

I'm calling bullshit.

Oh no! He knows all! For example, what he hasn't filled you in on is the top-secret ultra cheap 360. For $200 you get one without controllers or a power cable.

Then there's the ULTIMATE 360. For $290,600,000,000.99 you get the WHOLE FREAKING COMPANY!

See, now I'm an analyst too. w00t for me! ;)

[zyzyx]

Analysts doesn't mean shit. I could, within the confines of my job description, describe myself as a Videogames analyst. Doesn't mean I am one. August 17th is the date. 6 days, 17 hours and 10 minutes from now.

[OUX]

I don't think the next GTA will do nearly as well unless they put some serious innovation into it. How many times can you honestly have fun stealing a car and running the driver over?

[XxSATANxX]

X-Box 360 Retail $499

[DriveALW]

If they shipped a model without an HD, then the free "silver" version of Live would be largely useless to people who bought that model. I mean, they could still "chat" with "friends" as if they'd never heard of "AIM" but they couldn't download jack. So, this seems unlikely.

[Xerxes]

Doesn't have to worry about FF because sqaure itself can see more money being cross platform... I don't know what the frak a dragon quest is but i'm not japanese... I thought MGS4 would be something to get... But GTA is about right for the states and I don't even like the series... They will continue to bleed bungie of Halo i bet...

[RandomViolence]

X-Box 360 Retail $499

What are you smoking?

[bapenguin]

X-Box 360 Retail $499

Ya, you need to give up on this. Ain't going to happen.

[Kefkataran]

Dear Microsoft, if you want to win, take 60 million dollars and give it to Rockstar North to ensure that the next gen GTA will be 360 exclusive. If you don't, you will not be #1 in the US. Take another $60 million and give it to Level 5 for exclusive rights to Dragon Quest *whatver number* or you will not be #1 in japan. I have no idea what the #1 game in Europe is but my guess is that it's GTA as well. For 180 million dollars you can win the console war, worldwide. My advice is free for now.


Rockstar has never really done any console exclusivity for GTA, so it's doubtful they will next gen. MAYBE for that much money, but still doubtful.

And Dragon Quest isn't owned by Level 5 at all. It's Square-Enix. I'm surprised you don't know that and/or no one has pointed it out.

[zangster]

X-Box 360 Retail $499

I think you meant to end this with "...with an extra controller and two games at Gamestop/Ebgames/insert game store here!"

I don't doubt there'll be a larger capacity drive available at some point, maybe even at launch, that will drive the price a little higher but it's my opinion (as an armchair video game sales analyst from the firm Zangster & Zangster) that Microsoft is willing to continue to take a loss on the hardware to establish its foothold in the next gen.

[Mondopest]

I am an analyst too! I mean, I didnt go to professional video game analyst school or anything like that but...what? You mean there is no professional video game analyst school? But how is he a professional video game analyst then?

Ohhhhhh......

[StGeorge]

Rockstar has never really done any console exclusivity for GTA, so it's doubtful they will next gen.

Unless you're not referring to GTA 3, GTA Vice City and GTA San Andreas (responsible for, oh, 90% of Rockstar's profit), then you must be crazy, sir. Rockstar is all about exclusives. And yes, snubbing a console by holding back games for a year is exclusivity.

[netcraazzy]

If they shipped a model without an HD, then the free "silver" version of Live would be largely useless to people who bought that model. I mean, they could still "chat" with "friends" as if they'd never heard of "AIM" but they couldn't download jack. So, this seems unlikely.

Not to mention the fact that they wouldn't have anywhere to store the emulation profiles for backwards compatability. I'd say the chances of seeing a cheaper 360 without a harddrive are nil.

[Tia]

Wasn't that posted like a week ago? Or it is a new analyst now?

[Grimgrock]

Unless you're not referring to GTA 3, GTA Vice City and GTA San Andreas (responsible for, oh, 90% of Rockstar's profit), then you must be crazy, sir. Rockstar is all about exclusives. And yes, snubbing a console by holding back games for a year is exclusivity.

I think you might have misunderstood. They haven't been exclusively using one console. They might start on PS2 but soon you get Xbox and PC versions.

Then again, I might be the one with the confusion.

[KDups]

Last time, people said the exact same thing about Metal Gear Solid and Final Fantasy. Not that these weren't important titles, but newer titles like the GTA games clearly stole the show.

Very true, sometimes you can't predict the impact a new franchise will have. For all we know 5 years from now we'll be talking about Gears of War 3 and Forgiveness 2 (it's fictional, relax).

[VoodooKarma]

This is actually the most realistic prediction on pricing for the XBox 360 I have heard. Right about what I expected it would be.

[XxSATANxX]

Ya, you need to give up on this. Ain't going to happen.


Fair enough as long as when it DOES happen we know WHO said it first.

[novicius]

They might start on PS2 but soon you get Xbox and PC versions.
Therein lies the exclusivity. Launch a GTA game on the Xbox for once and you'd probably see quite the sales surge. :rolleyes:

[Xerxes]

If gears of war does good, gow3 is not the next logical step... Knowing that you can make hits and knowing what to provide is the next step... Franchises... THIS IS FRAKING BURGER KING.... >_<

[sTubbs]

Fair enough as long as when it DOES happen we know WHO said it first.

Fari enough as long as when they start selling the bundles for $499 [couple games, extra controller and so on] you admit that that the actual system does not cost $499. Even then I do not see the bundle costing that much.

[Goronmon]

I'm actually getting tired of this crap from "analysts". It has no real meaning, its nothing more than guestimation.

I don't mind discussing it, but having a new newspost everyday about what some random guy thinks about the 360 is starting to get old.

[01010]

People who use the word guesstimation should be executed.

[KNOTE]

Kefka, yeah I understand that Enix owns dragon quest. Sorry for putting level 5 in instead. My thought process was, you give the money directly to the developer and the publisher gets a free game.

For exclusives, 6 months to 1 year is all you need for the title to be "branded" as that particular platform. See MGS, GTA, and Splinter Cell. Generally, the platform company pays for the theoretical amount of lost sales by holding back 1 platform for X amount of time. What I'm saying is, if they want to win, MS should pay the entire development cost of these 2-3 key AAA 3rd party titles in return for complete platform exclusivity. All you need is a 10 million console worldwide head start and you win the race, because console sales go up exponentially over time, then level off. So when you're at 10 million and they're at 5 million, next year you're at 20 million and they're at 10 million. And so on, so forth. It's critical mass.

[Xerxes]

People who use the word guesstimation should be executed.

I'm guesstimating you have issues with this word... :o
http://m-w.com/cgi-bin/dictionary?va=guesstimate

[Kefkataran]

Unless you're not referring to GTA 3, GTA Vice City and GTA San Andreas (responsible for, oh, 90% of Rockstar's profit), then you must be crazy, sir. Rockstar is all about exclusives. And yes, snubbing a console by holding back games for a year is exclusivity.

For exclusives, 6 months to 1 year is all you need for the title to be "branded" as that particular platform.

I'd call it limited exclusivity, but yeah, I see your point, and you're right, that would be a huge plus for Microsoft. If they had the Metal Gear series a year ahead of PS3, I'd jump on immediately, no doubt.

[XxSATANxX]

Fari enough as long as when they start selling the bundles for $499 [couple games, extra controller and so on] you admit that that the actual system does not cost $499. Even then I do not see the bundle costing that much.

Fair enough however when the base price of the system is in fact

$499 I see a bold Banner on EA proclaiming

XxSATANxX Predicts the Future XBOX 360 $499!!! :D

[RandomViolence]

Lol, fine, but I'll be savin' a cigar for when you're wrong.

[thecrazyd]

Why is this retarded shit news? Five fucking thousand dollars says that if you replaced the words "XBox 360" with "Revolution" and "Microsoft" with "Nintendo," this would be in the fucking forums where it belongs. Speculation is not fact, and it is sure as hell not news.

[carneconcarne]

Fair enough however when the base price of the system is in fact

$499 I see a bold Banner on EA proclaiming

XxSATANxX Predicts the Future XBOX 360 $499!!! :D

goddamn you need a cockslapping

[Cyrano]

Good god, if he's going to call himself an analyst, can't he be bothered to go to xbox.com or at least watch the MTV 360 special, both of which confirm the hard drive? I'm a professional car analyst, and I predict next year's Ford models will come in 3-wheel and upgraded 4-wheel models for an extra price.

[XxSATANxX]

goddamn you need a cockslapping

I think your looking for a different forums..

Ask yourself this "if it was $299 why not say that right off!"

I think we have established officially what I think it's gonna be and you all think I'm full of shit! Glad we got that straight. Tell then I'll keep my hole shut about the retail!

[Sanchez]

Ask yourself this "if it was $299 why not say that right off!"


They basically did, J allard actually said it was going to be "In the region of $300"

And why not? to give the competition less time to react.

[Dracula-X]

My money's on $349 US. Who's the resident Evil Avatar bookie?

[Squigly]

If gears of war does good, gow3 is not the next logical step... Knowing that you can make hits and knowing what to provide is the next step... Franchises... THIS IS FRAKING BURGER KING.... >_<

uhm, what? But if you're Burger King, what do you think of the new chicken-fries? I guess I'll order those...and a frozen coke...uhm, hmm...and I think I want a Hershy's Sunday Pie...uhm...HEY KIDS! WHAT DO YOU WANT? SHUT UP! I SAID WHAT DO YOU WANT? ...ok, and can I get 3 kid's meals? And can you repeat my order back to me?

[MongolHunter]

I'll tell you why you don't announce the price early. If you do it means the competition is still guessing. The Saturn was released early, with one sentence Sony managed to destroy the Saturn's early release by announcing a lower price in a short amount of time afterwards.

[oneway23]

If the blasted thing is over $350, I'm cashing out...

[TrackZero]

My money's on $349 US. Who's the resident Evil Avatar bookie?

Put me down for $299 U.S. I will be completely shocked if it's any higher than that. This is all about market share, Microsoft is going to want to push the low price point on this.

[TRiLoGY]

Put me down for £349.99 ;)

[Dracula-X]

Put me down for $299 U.S. I will be completely shocked if it's any higher than that. This is all about market share, Microsoft is going to want to push the low price point on this.
I really wanted to bet on $299 too, but what changed my mind was Sony's talk of the PS3 being 'expensive', this has really got to figure into ***'s plans and I wouldn't doubt them trying a new pricing strategy. $349 isn't tipping the scales considering inflation. Maybe.


Put me down for £349.99
Hehe, you're probably not far off the mark - you lot have it bad over there, my sympathies :)

[MrMeatshake]

If the blasted thing is over $350, I'm cashing out...

yep, as that'll make it >£300. meaning the GF def. won't be buying me one for chrimbo.

[TRiLoGY]

I've saved up enough already for an X360 and a PS3 :D

[Kefkataran]

I've saved up enough already for an X360 and a PS3

Impressive.

I doubt I'll be buying a 360 at launch anyways unless the price is $300 or less AND the system suddenly has a good bunch of games I'm interested in playing on console.

[Zanzibar]

Put me down for $299 U.S. I will be completely shocked if it's any higher than that. This is all about market share, Microsoft is going to want to push the low price point on this.

TrackZero is right. MS can't wait yet another generation to knock Sony off the perch. They've got gobs of cash on-hand, Sony doesn't, so now is the time to take whatever financial hit is necessary to sabotage Sony. I've said it before, MS would GIVE the fuckin' thing away if they wouldn't get sued.

It will be $299.

[Ultima Thulian]

The XBOX 360 console will be in the $300-$350 range. Keep in mind the 360 come's out way before the other two systems. It may even be $400 (which would be dumb, but it wouldn't surprise me). As for the games, don't expect anything more than $55 a game. With the original Xbox, ole Billy Gates didn't a make a cent on actual Xbox units, it was the software that brings the green. However, Billy didn't make a profit (or a meaningful one anyway) from his Xbox dealings. So why the 360? Well, the original Xbox was meant to be a platform, a helping start if you will, to get MS's feet wet and prepare for the 360. In Billy's eyes, the 360 will usher in a new era of multimedia entertainment. The 360 will be the cornerstone of every home entertainment system and serve as a device that can do just about everything with pinpoint proficientcy. This will all be worth it and due to his "cornerstone" strategy, he will more than make up his losses and become more than just a gaming deal. Frankly, I think Mr. Gates is full of horsepiss. But he has enough hype behind "his" brainchild to garner solid hardware sales. But don't expect super expensive games, you can't profit from hardware sales alone. The software has to sell too. Also, expect big price drops in hardware alone when the other systems come into play. I have strong feeling that all three systems will do fine. Though the Revolution may just have enough moxie and mystery to overtake MS in the second place spot. Oh, as for MS's big gobs of money, doesn't matter. If you can't profit from something, or promote something, the money will stop. MS wouldn't put money in the gaming biz if they didn't think they could profit from it. With the 360, that is what it's trying to do. Guess we'll all have to wait and see.