The XBOX 360 : Pricing Revealed

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 regarding 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 GBP)
?Xbox 360 console
?Wired controller
?Detachable faceplate
?Xbox Live Silver membership
?Standard AV cables

Xbox 360 - $399 (399 Euros, 279 GBP)
?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, who spoke with GameSpot, 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.

Microsoft has confirmed that the "Core System" will not be backwards compatible out-of-the-box. In order to play current-generation Xbox games, owners of the bare-bones system will have to purchase the detachable hard drive. It is unclear whether or not backwards compatibility will work with the smaller-capacity 64MB memory cards.

Moore explained that the idea behind the two choices came from "lessons learned from the first generation [of Xbox], but perhaps more importantly to provide the gamer with choices in pricing as applicable to their gaming habits." In addition, gamers will be able to select from a range of peripherals available at launch:

? Faceplate ($19.99, 19.99 Euros, 14.99 GBP)
? Hard Drive (20 GB) ($99.99, 99.99 Euros, 69.99 GBP)
? Memory Unit (64 MB) ($39.99, 34.99 Euros, 22.99 GBP)
? Wireless Networking Adapter ($99.99, 79.99 Euros, 59.99 GBP)
? Wireless Controller ($49.99, 44.99 Euros, 32.99 GBP)
? Play and Charge Kit ($19.99, 19.99 Euros, 14.99 GBP)
? Rechargeable Battery Pack ($11.99, 14.99 Euros, 9.99 GBP)
? Controller ($39.99, 34.99 Euros, 24.99 GBP)
? Headset ($19.99, 19.99 Euros, 14.99 GBP)
? Universal Media Remote ($29.99, 29.99 Euros, 19.99 GBP)
? Component HD AV Cable ($39.99, 29.99 Euros, 19.99 GBP)
? S-Video AV Cable (US) ($29.99)
? SCART AV Cable (Europe) (24.99 Euros, 17.99 GBP)
? VGA HD AV Cable ($39.99, 29.99 Euros, 19.99 GBP)

It's too early to get a reaction from gamers on Microsoft's pricing plan, but a few analysts privy to the information were able to chime in with their thoughts.

One anonymous analyst who spoke with GameSpot said, "I think tiered pricing makes sense, particularly as Microsoft wants to offer hardcore gamers more-advanced services. $299 is clearly a price leader and headline grabber, but I imagine they initially expect to ship (and sell) a majority of units at the higher price point. Also, with a $299 SKU, they avoid disappointing consumers, who are likely to compare launch pricing with the PS2 in 2000 and original Xbox in 2001."

The analyst adds, "As far as the publishers are concerned, Microsoft needs to make sure that publishers are making games

 

For those in the 360, PS3 and Revolution thread that said I was wrong about there being two Xbox 360's and that I was wrong about the basic 360 being $299 and the other being priced around $399 I say , Hah!

 

$299? Not bad.

 

$299 is not bad, ?299 is!

I'll buy the Revolution when it comes out, which will be more fairly priced.

 

The Revolution console i have no problem with. My problem is with Nintendo. I'm a hardcore Ninty fan, never had anything but, but the chances of me buying the revolution are very slim right now, especially with the £200 360. Nintendo had better get some third party developers back, and they'd better have some pretty good cards up their sleeve if they want to be around for the generation after the next one.

 

About the backwards capability of the $299 model. That article says that the "Core Model" won't be compatable with older games unless we get the detachable hard drive.

What does this mean? We buy the console...and then buy another console for $100 to play older games?

That's absurd. Of course people would just get the $399 model then.

 

Are they both BC?

 

Where am I gonna get 400 dollars?

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Ouch! That's going to be upwards of $500 up here

Probably closer to $600CDN at release.

 

Too rich for my blood.
See you in about 3 years when they get down to around $150.

 

You obviously did not read the first post.

Only the $399 Xbox 360 is BC. The "Core System" is BC only when you purchase the detachable hard drive for another $100. So it just makes more sense to buy the top of the line Xbox since you'll get all the extra stuff plus BC.

Like the article said, the "Core System" is a hoax. Why would anyone get it? Well, I guess people who don't care about BC or LIVE will get it. I don't care about LIVE, but BC sounds really nice to have.

 

Haven't played any PSX or N64 games this gen. Already beat the ones I wanted last gen. And the same can be said about the next gen. I doubt I'll play any Xbox games when the PS3 and 360 are out. So I really couldn't care less about BC. However the PS3 being BC has prevented me from buying a PS2. So I guess BC has had a reverse effect on me. I just want Katamari Damacy and a couple Atlus games like Disgaea. But overall backwards compatibility is the furthest thing in mind when it comes to new hardware. This is also one the reasons why the Revolution holds no interest for me. The biggest thing revealed about the system Downloadable N64, SuperNES and NES games is of no importance to me. Especially with those things floating around the Internet already called ROM's.

 

Damn you Microsoft! come this Chirstmas instead of being 400 dollers in the hole I'm gonna be 500 dollers


Oh well Halo 3 and (someday) KOTOR 3 will make every penny count

 

Don't we need a KOTOR 2 beyond the beta demo that escaped a little while? You know the one with all the bugs and no ending?

 

We already have that with the original game

 

** spits coffee on computer **

Questions for microsoft

Who the hell came up with the 400 dollar price tag?
Who has 500 bucks lying around?
Why the core and advanced systems?


I guess I'm just going to wait a year or two for this one

 

Well, I guess I won't be going on any vacations for awhile.

 

Sounds pretty good with how the last few gen of consoles have gone. Unfounatly I can't afford the starting price so I'll have to waite for the pricing war.

 

Yeah. I think it's silly to buy them right off the grill.

I'm going to be waiting for a year or two myself. Until then, there's always PC gaming.

 

I'll probably get it for christmas. (I hope)

 

I don't think you guys should make a lot of fuss regarding the price. I mean it's silly buying a console system the moment it comes out. There are only like a few games available and who knows whether the console is free of defects. Wait for at least a year or so until things settle down, then buy one..

 

Well said . Maybe 2 years though. BIG maybe .

 

I don't even see what the big deal is, $500 is a drop in the bucket. If you can't put aside that kind of money for a few months ahead of time then you need a new job/ or alter your spending habits. To me that just means cutting down on shows, the pub and cabs for a few weeks. No big deal.

 

I started saving up in July (right after I pre ordered) & now by the time November hits I'll have just enough to get the $399 version & since it seems Madden 06 wont be a launch game I'll have just enough to get the 399 & Perfect Dark Zero He is right it is NOT that hard to cut down on spending.