Microsoft Defends 'Peddling Add-ons' Strategy
"Our strategy from the beginning was to have multiple SKUs with a very flexible offering so the customer can choose the experience that they want," Xbox 360 group PR manager David Dennis explained to Edge. "If you don't need a hard drive, you're not forced to have one. If you don't need Wi-Fi, you're not forced to pay for one."
Yesterday, sales-tracking group NPD revealed that the PlayStation 3 had sold 3.69 million units in the United States during 2008, while the Xbox 360 sold 4.74 million. Lifetime sales figures show that the Xbox 360 has more than doubled the PS3's total U.S. sales, with the Xbox 360 at 13.89 million and the PS3 at 6.94 million.
"The strategy of having a console that is $200 more expensive that has features that people don't potentially need or want but have to pay for--looking at [Sony's] sales numbers--I'd say it's probably not the winning strategy at this point, especially given the current economic situation," Dennis added.
Currently, the Xbox 360 is available in three different models: the $199 Arcade, which lacks a hard drive, the $299 Pro with a 60GB hard drive, and the $399 120GB Elite. All three versions require a separate add-on for wireless internet functionality.
Meanwhile, Sony sells two models of the PlayStation 3, both with built-in wireless internet capabilities: the $399 80GB unit, and a $499 160GB model that also contains a copy of Naughty Dog's action-adventure game Uncharted: Drake's Fortune.
Along with the price differences, one other key advantage Microsoft had over Sony was time: the Xbox 360 launched in 2005, while the PlayStation 3 arrived in 2006.
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jayacheess
replyThe fuck. Xbox 360 NEEDS a harddrive. The arcade was an excuse to make people fork over 100 dollars for something that's actually worth 20-30.
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ok yeah, I agree about the HDD, that should have been standard from the start.
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No, since they put in a faster HDD and tons of RAM (PS3 only has half the amount of system memory and BR transfer rates suck compared to a 12X DVD), the 360 could get away with not needing a HDD. Where as the PS3 needs one to install games so it doesn't have to rely on streaming from the disc alone.
Some 360 games require a HDD but those number what, less than the number of fingers on my hand?
Also, the point of the Core/Arcade is to make the entry price affordable as well as to add value to the Pro/Premium/Elite feel like a better value.
When you see that a 360 can sell for $200, you already feel that is a cheap price. But since you don't want to waste money on one HDD and other accessories included in the Premium, you buy that instead.
A similar technique has worked well for retailers especially Walmart. Where you walk in and see in the middle of the aisle a microwave for $20. You will then be lead to think that microwaves at Walmart are cheap so you go buy the $50 you really wanted with the features you need. The low price point of the same product is there get to you buy it. -
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doesn't work if you have Jasper and the newer integrated memory units
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You can play games via Xbox Live without buying a harddrive. Did it myself when I got a new Xbox 360 and GTA 4, used the memory stick of course.
So for someone that doesn't play demo's or download arcade games and extra content- you can get away with just a memory stick. -
Having one sku not have a harddrive effects developer decisions. If all the 360's shipped with a harddrive the games would be better because developers could rely on it.
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