Microsoft ended months of speculation from analysts and fanboys alike when it released the price for its upcoming Xbox 360. In an anticipated, but pioneering move, Microsoft announced on Wednesday that its sophomore console would launch at two price points. The Core System, which comes packaged with the console, a wired 360 controller, silver-level Xbox Live membership, and a standard AV cable will retail for $299.99 and will provide a basic introduction to the "HD Era"” of gaming.
For hardcore fans, the ultimate 360 package comes at a hefty $399.99. This premium edition comes loaded with the 360 console, a 20 gig detatchable hard drive, one 360 wireless controller, a 360 headset for LIVE gaming, component cables for HD hook-up, Xbox Live silver membership, and for a limited time- a media remote that helps with DVD playback and accessing Windows Media Center files.
Microsoft is touting the premium edition as the "“ultimate" and "best valued"” experience, as the extra ingredients would retail for over $200 if purchased separately.
Although there had been wide speculation that Microsoft would not make the Hard Drive standard in all 360s sold, which is not the case with the current Xbox, the news is unsettling for the future success of the 360. Because developers can't plan games around the hard drive, they will have to rely primarily on the 360 hardward and leave the hard drive as an afterthought. Will this mean that the 360 hard drive will go largely unnoticed like the PS2's current HDD? We can only wait and see.
Another mystery is WHAT will the hard drive will be used for, if it is not used as a developer staple? Obviously storage for music, photos, and downloaded content from Xbox Live will be its primary use, but there is much evidence to indicate that the hard drive will be the only way for gamers to retro-play those "top-selling” original Xbox games on the new hardware. Does this mean that gamers will have to pay MORE to play older games? Will Halo 2 lovers have to fork over 4 bills in order to play their favorite shooter on the next-gen console? No official word yet from Microsoft, but these questions will surely be addressed in the upcoming months- along with an actual release date for Microsoft's new system.
The annoucement this week bothers me. On one hand, I think Microsoft's move to release a version of the 360 at the traditionally accepted price point of $299.99 is a wise one- it doesn't rock the boat with consumers, and it gives consumers a choice to start on the "cheap" and eventually upgrade (although upgrades will ultimately cost more than the premium package). It also gives Microsoft the PR ability to say "we're still offering the next generation at original Xbox prices." Plus, because the PS3 will undoubtedly be priced no lower than $399.99 when it launches (without an included HDD, I would anticipate), setting this pricing structure up gives Microsoft the ability to drop the "premium" package $50-$100 when the PS3 launches- becoming the "cheaper" console. Add that to the statement from Bill Gates that Halo 3 will launch on the same day as the PS3, and you have a potential tide-turner in who's #1.
On the other hand, the lack of the HDD at the lower price takes away one of the major advantages that Xbox owners have come to appreciate- namely no need to purchase memory cards, the knowledge that they could download levels off of LIVE for days, and faster loading times. Without the HDD as a standard feature, it worries me that Microsoft could backslide from being the "powerhouse" console that they're seen as right now. Plus, it also takes away a discernable advantage over Sony who never planned on including a HDD as standard.
Also, if the HDD is going to be the only way I can play Halo 2 until I can afford some premium 360 games, why would I plunk down 400 bones on opening day when I can invest no money and STILL play Halo 2 on my original Xbox? Which only further emphasizes the fact that the HDD should be standard. A 5 gig hard drive with the "core system" and a 20 gig with the "premium" system would put these worries to rest, but the difference between 20 gigs and nothing has me a little concerned as to how quickly the 360 will be adopted. I'm sure (hope?) Microsoft knows the importance of marketing the HDD as more than just a place to store music and photos, so its advantages better be far and above what anyone can think of right now.
As hardcore of a gamer as I am, even I'm balking a little bit at the thought of paying $400 for the ability to play the 360 the way it was intended to be played. I understand the increasing costs of development, advertising, hardware, etc; but as we're attempting to create an industry that reaches closer to the mainstream audience with each effort, why are we pricing the future of gaming at a level that will discourage casual gamers from entering into the market? Shouldn't we be aiming to bring the costs to the consumer down? I mean, one of the reasons why 65% of all American households have a DVD player is because you can pick them up for $35 at Target.
In no way am I advocating such a drastic price slash, but for an industry that is screaming to be taken more seriously than just as niche, we aren't really giving Joe Sixpack a reason to think otherwise when next generation gaming costs twice as much as the TV he has to play it on.
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