The XBOX 360 Launch Plan - Has Microsoft Gone Crazy?


Is it only me, or am I one of many that's more annoyed with the XBOX 360 than I am excited about it? Microsoft's most recent announcements have struck my nerves in a way that has made me think twice about picking up a new 360 at launch on November 22nd.

It would seem that Microsoft is on a high horse, which is making them do some really stupid things. First of all, I'm not the only one that thinks offering two configurations for the 360 is a mistake... not only for the consumer, but for Microsoft, too.

The Core System

At a US launch price of $299, the core system is the bare-bones basic XBOX 360 system. Unlike its $400 big brother, the core system does not include a hard drive, media remote, component video cables, Live headset & Ethernet cable, and a wireless controller. While many of the bundled accessories in the premium system are not of interest to every consumer (I'm fine with a wired controller), the removal of the hard drive and Live headset may do more damage to the 360 in the long run.

No Hard Drive

One of the advantages of the hard drive in the original XBOX was that programmers could take advantage of the drive to make games better. Since the speed of the hard drive was obviously faster than the DVD-ROM drive, some frequently accessed files could be stored on the hard drive to speed up game play.

Microsoft says the lack of the hard drive will make no impact on the performance of games. They've compensated by adding a speedy 12X DVD-ROM drive, and additional system memory. Except, game developers have to make games assuming that there is no hard drive present (remember the lowest common denominator stuff from high school?). This means that those who own the hard drive add on will never receive any performance enhancement.

The lack of a hard drive also means that the 360 will not be able to run games made for the original XBOX console. To me it would seem that this will only hurt Microsoft in the long run, as they would probably want to keep their library of games, regardless of age, on store shelves for as long as possible. I still see some original Playstation titles available at retail.

No Live Headset

Microsoft is trying to set itself apart from the rest with their XBOX Live on-line gaming service. Few will argue, too, as Microsoft does have the best on-line gaming experience currently available. Not only is it good, but it's a moneymaker also. It has the potential to add millions to Microsoft's piggy bank.

One of the most compelling features of Live gaming is that players can talk to each other using headsets, making on-line gaming a more personal and enjoyable experience.

When I first heard that Microsoft would be packaging the headset with the 360, I immediately knew it would entice would-be gamers to try out the Live service. Who could resist not wanting to try such a neat accessory? By excluding it from the core system, Microsoft is assuming that people who want to play games on-line will go to a store and buy a headset and connection pack, which I think is a stretch. The people who buy the core system are the least likely to play on-line. It's no doubt they would have gotten more Live subscribers by packaging the headset and kit with the system.

I Know, Let's Overcharge the US and Europe!

Even Microsoft has admitted that demand for the core system isn't very high. They expect most people this holiday buying season will be purchasing the premium bundle. Yet, Microsoft is marching forward with offering the two options at retail... except in Japan...

That's right, the Japanese market will not even be offered the core system. On December 10th, Japanese gamers will only be able to buy the premium system, although it's going to cost $343, which is $58 less than what they're asking for in the US and Europe!

Is Microsoft crazy? Why are they overcharging the US and European markets by more nearly $60? Isn't it plausible that more people would by a system if there was only one choice and it was $60 less? Why does the Japanese market get preferential treatment?

"For Xbox, Japan really is a key, important market in the global strategy that we have," said Yoshihiro Maruyama, executive officer and general manager of the Xbox division of Microsoft's Japanese branch. "We have a very strong commitment to succeed."

Will overcharging the American and European markets affect sales of the 360? Apparently, Microsoft doesn't think so.

Taking a Stance

Despite the ridiculous idea of having a core and premium system for sale, I had an XBOX 360 premium system on reserve at a local retailer for the November 22nd US launch. However, with the news that Microsoft is charging nearly $60 less for the same thing in Japan, I have since cancelled my order. I have tons of games for the XBOX, Playstation 2, and GameCube I've barely played. Maybe by the time I'm done with those, I'll just buy a Playstation 3 or Revolution. In other words, I can wait.

I'm an avid gamer that really never makes a decision in a console war. I buy them all since every system can offer unique gaming experiences that the other can't. So, I'm sure I'll end up owning a 360 premium system eventually, but it won't be until Microsoft is making everyone pay the same price.

 

Connect With Techlore