View Full Version : Xbox 360 Slim on the way for 2009? link


whiskey > work
05-13-08, 08:38 PM
http://gizmodo.com/390095/xbox-360-slim-might-come-in-2009

Daekwan
05-13-08, 08:43 PM
Its to be expected if they want to increase sales/lifetime.

Slim it down.. price it at $99 for xmas 2010 and watch 25 million sell in less than a year.

Ala' PS2

number1laing
05-13-08, 08:48 PM
I think this is totally plausible. They got that new chip coming which combines the CPU and GPU, and it will give them the chance to actually redesign the system to fix its fundamental flaws (disc drive on top of GPU, etc.). I seriously doubt they will (as the article states) not make it because of faceplates, and the hard drives and other accessories can be easily accomodated into a new design.

Cygnus311
05-13-08, 09:00 PM
LOL That's the EXACT same mockup they drew for the slim PS3 only with a green light. WOW.

Megalith
05-13-08, 09:22 PM
Red ring in three days.

I'm gonna give it to ya.

fjtorres
05-14-08, 08:58 AM
Rumor R.I.P:
http://www.engadget.com/2008/05/13/microsoft-says-no-new-xbox-360s-in-2009/
Not that it ever made sense.
If MS could reduce the internal volume needs in the 360, the first thing they'd do would be to use the extra volume for a PS and get rid of the power brick.

deedubbadoo
05-14-08, 11:05 AM
Rumor R.I.P:
http://www.engadget.com/2008/05/13/microsoft-says-no-new-xbox-360s-in-2009/
Not that it ever made sense.
If MS could reduce the internal volume needs in the 360, the first thing they'd do would be to use the extra volume for a PS and get rid of the power brick.

Bingo, integrated PSU and WiFi and they might be onto something. Oh and throw in an add-on Blu-Ray drive and call it "teh Uber l33t" and watch it sell like hotcakes...I kid, I kid...

JamesDax
05-14-08, 11:17 AM
I agree with Daekwan. A 360 Slim in time for Xmas 2010 at $99 - $129 makes the 360 the PS2 of this generation.

number1laing
05-14-08, 01:33 PM
The systems need to hit $199. AFAIK the PS2 hit $199 (mass market price) maybe 1.5 or 2 years after it came out. Both systems are lagging hardcore this generation which is keeping sales low. If they dropped the price to $199 they would both be moving 500K+ a month IMO (now they are selling maybe 250K a month). That is the price people bite. $400 for a videogame console is a lot of money.

Nox
05-14-08, 02:58 PM
I don't believe MS will ever redesign the 360. They have a 5 year plan when it comes to their consoles. Unlike Sony which has a 10 year plan.

The next design will be the next generation console.

JamesDax
05-14-08, 04:14 PM
I don't believe MS will ever redesign the 360. They have a 5 year plan when it comes to their consoles. Unlike Sony which has a 10 year plan.

The next design will be the next generation console.

And who said they have a 5yr plan when it comes to their consoles? In fact Shane Kim is quoted as saying that the 360 will be around for atleast 7yrs.

Kim "confident" 360 will last 7 years (http://www.computerandvideogames.com/article.php?id=188943)

JamesDax
05-14-08, 04:36 PM
The systems need to hit $199. AFAIK the PS2 hit $199 (mass market price) maybe 1.5 or 2 years after it came out. Both systems are lagging hardcore this generation which is keeping sales low. If they dropped the price to $199 they would both be moving 500K+ a month IMO (now they are selling maybe 250K a month). That is the price people bite. $400 for a videogame console is a lot of money.

IMHO this fall will see the end of the Arcade sku, a new Pro sku with a 60GB HDD priced at $249 and the Elite droped to $349. Both will have built in Wi-Fi and have the new Jasper gpu. We will also see the end of the 20GB HDD and Wi-Fi unit and they will be sold out at $49. The 120GB HDD will be droped to $149 and the new 60GB HDD will sell for $79.

How's that for a prediction. :)

briankmonkey
05-14-08, 04:52 PM
Why would MS drop the Arcade Sku when it has the biggest potential rake in the cash for them with peripherals? $99 20GB HDD, probably at least $40 profit, etc...

Did the original Xbox ever reach $99? I'm all for a $99 360 but I highly doubt it would economically feasible at that time frame.

Daekwan
05-14-08, 05:41 PM
The systems need to hit $199. AFAIK the PS2 hit $199 (mass market price) maybe 1.5 or 2 years after it came out. Both systems are lagging hardcore this generation which is keeping sales low. If they dropped the price to $199 they would both be moving 500K+ a month IMO (now they are selling maybe 250K a month). That is the price people bite. $400 for a videogame console is a lot of money.

Thats why I dont even get caught up in the current sales numbers. 80% of PS2's ever sold.. were sold ONLY when the PS2 was priced $199 or less. Considering the HD consoles for sale on the market are priced as high as $400-$500 . The main audience has yet to even consider them in their household. With $4 gas at the pump, the slumped housing market and today's economy in general. The majority of future PS3/360 owners are still along ways away from purchasing.

I don't believe MS will ever redesign the 360. They have a 5 year plan when it comes to their consoles. Unlike Sony which has a 10 year plan..

What consoles do you speak of? MS has only made and retired ONE console. The original xbox. Its been well documented and debated the original xbox was killed because it was NEVER profitable. You cannot sustain a business NEVER turning a profit.

The 360 on the other hand has been profitable for quite a while. Any further reduction in cpu/gpu chip size.. combined with a redesign of the machines internals/case.. would allow MS to manufacter the 360 alot of cheaper. Which in turn would allow them to sell it cheaper, while remaining profitable.

IMHO this fall will see the end of the Arcade sku, a new Pro sku with a 60GB HDD priced at $249 and the Elite droped to $349. Both will have built in Wi-Fi and have the new Jasper gpu. We will also see the end of the 20GB HDD and Wi-Fi unit and they will be sold out at $49. The 120GB HDD will be droped to $149 and the new 60GB HDD will sell for $79.

How's that for a prediction. :)

The arcade will always be available. The arcade has on purpose, and thats to become the rock bottom price it takes to game on the 360. It has nothing to do with making money off peripherials as Briankmonkey suggested. For $279 the current Arcade model (which includes a mem card) has everything included in the box to play 98% of the 360's entire dvd gaming library. The target market interested in the Arcade are not concerned about the ala carte harddrive. Afterall the main reason they chose the $279 Arcade. Is because they believed the harddrive is an unneccessary a feature that they didnt want to pay for.

I do agree that a Pro and a Elite will be sold at a lower price for this holiday. I also. I also believe the Arcade will be reduced also. After all if the price isnt lowered more.. that would mean the 360 will go FOUR (4) consecutive xmas holiday shopping seasons.. enduring only a lifetime average price cut of $50. Its silly to believe that would happen.

The Playstation3's price was lowered by $200 in less than one year and it has trippled its sales.



So I expect to see the following this xmas:

$199 Arcade
$279 Premium
$349 Elite


Did the original Xbox ever reach $99? I'm all for a $99 360 but I highly doubt it would economically feasible at that time frame.

My prediction for a 360 priced at $99 isnt until Xmas 2010. Thats 2 and 1/2 years away. Considering Moores law.. the general price drops in consumer goods.. and that the "timeframe" you speak of is 30 months away. I strongly believe they can find away to naw $180 off the currently priced Arcade model in the next 30 months.

briankmonkey
05-14-08, 06:15 PM
Well clearly we disagree on a few things. For the latter prediction I hope I'm wrong and you are right on the $99 price point . Still I'd recommend the Pro at $150 and be able to play all the games and all the features to anybody interested.

I wouldn't mind a newer system from MS by then as well but not really sure they'd release a new system that soon. I do think they'll support both systems whenever they do release next time.

Shape
05-14-08, 07:48 PM
I doubt they will ever make a slimmer 360. It just isn't feasible with 3.0+GHz chips these days to run without a decent heatsink (as MS has no doubt realized). Doesn't really matter how much they shrink them.

Besides, what would people do with their faceplates? :)

I doubt that the PS3 will get any smaller, either. We have really sort of entered a different era with these latest consoles.

formulanerd
05-14-08, 11:07 PM
I doubt they will ever make a slimmer 360. It just isn't feasible with 3.0+GHz chips these days to run without a decent heatsink (as MS has no doubt realized). Doesn't really matter how much they shrink them.

odd, there are plenty of notebook computers running 3.0ghz with a small heatsink, they arent 45nm, and they no doubt run quieter than the 360. hell, even the guy who made the 360 laptop was able to slim it down by re-arranging the components, and resoldering the caps to lay down and such.

number1laing
05-14-08, 11:15 PM
Thats why I dont even get caught up in the current sales numbers. 80% of PS2's ever sold.. were sold ONLY when the PS2 was priced $199 or less. Considering the HD consoles for sale on the market are priced as high as $400-$500 . The main audience has yet to even consider them in their household. With $4 gas at the pump, the slumped housing market and today's economy in general. The majority of future PS3/360 owners are still along ways away from purchasing.


Exactly. It is also what is allowing Nintendo to sell, at best, 2002-level technology for $250. Really if any system is overpriced this generation its the Wii! But Nintendo is facing NO price pressure so they obviously aren't going to lower the price. I highly doubt they'd keep it at $249 with a $199 360 out there.

And yes you are exactly right about the economy. The PS3 and 360 do not have a rosy future ahead of them with these prices. While they may look good now and through the summer because of GTA4 and MGS4, they will slump sooner or later. IMO they have been slumping for a long time actually, like I said they could double their sales by lowering the price a bit.

Shape
05-14-08, 11:42 PM
odd, there are plenty of notebook computers running 3.0ghz with a small heatsink, they arent 45nm, and they no doubt run quieter than the 360. hell, even the guy who made the 360 laptop was able to slim it down by re-arranging the components, and resoldering the caps to lay down and such.

My main concern was for the DVD drive packaging along with the heatsinks. But I suppose that if they used a slim laptop or flip top style drive, it would make it thinner.

However, the console height is also going to be dictated by the snap-in 2.5" hard drive, unless that is also re-packaged.

Anthony1
05-15-08, 02:42 AM
The key for Microsoft, has, and always will be, to get a sku out there for the magical $199 price. The Arcade is central to this strategy. They can afford a $80 price drop across all skus at some point before holiday. A $80 price drop would put the Arcade at the magical $199 price point. It puts the Pro at $269.99 and the Elite at $369.99.

It's possible that Microsoft won't go with an even price drop across all Sku's, but I'm not sure they would like to do that. It's easier for them to explain it as a $80 price drop on all sku's. The only other option I can see, is that they drop the Arcade $80, and drop the other two $50. The key factor is getting the Arcade to $199.99, even if it means they take a slight loss on the Arcade. I can also envision them going for the knockout blow (in comparison to PS3), and simply drop all 3 sku's a full $100. Could you imagine that? The Arcade at $179.99, the pro at $249.99 and the Elite at $349.99? That would be an extremely agressive, but maybe ultimately logical move for them to make. It could move them back into taking a small loss on each of the lower end sku's, but in the long run, the installed base would be worth it. A $100 price slash would cement them as being one of the absolute dominant players in the USA for this console generation. It would basically guarantee them 2nd place at the very least.

Honestly, regardless of the amount of the price drop, I'm actually shocked that they haven't already done it. I thought that right before GTA 4 would have been perfect timing. I think the next perfect time for a drop is strategically before MGS4. It would be a great way for MS to steal Sony's thunder. Alot of fence sitters have pegged the release of MGS4 as the day they plop down 400 or 500 smackers on a console. What better way to combat that, then to have a price drop right before then, and maybe a bundle with Ninja Gaiden 2 or something along those lines.

If the price drop doesn't happen prior to MGS4, then they will likely wait for the fall, possibly around Madden time like they did last year.

The bottom line, is they absolutely, positively, need a sku at $199.99. Gimped sku or not. $199 talks and bullcrap walks.

FrankJ.Cone
05-15-08, 06:31 AM
The bottom line, is they absolutely, positively, need a sku at $199.99.

Agreed. $199 or bust this XMas. Sales are stagnating, they need to regain momentum.

I could care less about a slimmer model, its already smaller than anything on my rack other than the Wii. But by all means get the power brick out of the way with an internet power supply.

Aristo7905
05-15-08, 07:45 AM
It's possible that Microsoft won't go with an even price drop across all Sku's, but I'm not sure they would like to do that. It's easier for them to explain it as a $80 price drop on all sku's. The only other option I can see, is that they drop the Arcade $80, and drop the other two $50. The key factor is getting the Arcade to $199.99, even if it means they take a slight loss on the Arcade. I can also envision them going for the knockout blow (in comparison to PS3), and simply drop all 3 sku's a full $100. Could you imagine that? The Arcade at $179.99, the pro at $249.99 and the Elite at $349.99? That would be an extremely agressive, but maybe ultimately logical move for them to make. It could move them back into taking a small loss on each of the lower end sku's, but in the long run, the installed base would be worth it. A $100 price slash would cement them as being one of the absolute dominant players in the USA for this console generation. It would basically guarantee them 2nd place at the very least.



i agree, right now i own a ps3, i would like to get an xbox, but i cant justify droping $350/$425 (amazons price on the elite) for a second system. A price drop would give me a reason (in my mind) to pick one up. I would really like to pick one up around the release of GOW2 if not sooner.

-J

JamesDax
05-15-08, 09:09 AM
Don't worry folks. There will be a price drop this Xmas. I personally feel they should drop the Arcade and go with the Pro with a larger 60GB HDD at 249 and Elite at 349. But since most of you seem to feel the Arcade is a must then the prices will be $199 for the Arcade, $299 for the new 60GB Pro and $399 for the Elite. The price drops will come in November just before or along with the release of GoW2.

btw, I don't have anything against the Arcade. I have one myself. Picked up this past Xmas and probably wouldn't have a 360 now if the Arcade didn't exisit. I have since picked up a refurb 20GB HDD and I'm quite happy with it. I'm just saying a $249 Pro would be a much more attractive buy then a $199 Arcade. Also, if the rumor that one of the features of the spring update is allowing games to use the HDD is true then they really do need to lose the HDD less sku. At any rate, I don't see the 360 losing ground to the PS3 at all. The 360 will always be cheaper and have better games. The PS3 is a blu-ray player with benifits. Though I plan on getting one as soon as it's cheap enough. :)

LexInVA
05-15-08, 10:01 AM
I'm definitely getting two 360 Arcades when the new Jasper revision hits the streets. Then both of my 360 hard drives will have homes. :D

RobertR1
05-15-08, 12:05 PM
Once the integrate the GPU/CPU into one chip, I'd expect a redesign. The new Xbox won't come till 2010/2011. The redesign should be in 2009.

Anthony1
05-15-08, 06:26 PM
I'm just saying a $249 Pro would be a much more attractive buy then a $199 Arcade.


It's more attractive to you, because you're knowledgable, and you understand the importance of the hard drive, and the component cables, etc, etc. But to Johnnies mommy, who is in GameStop, looking up at the prices of the 3 consoles on the wall, all she can see is the $199.99 price of the core. $199 is a magical price point. It's all subconcious. Also, you're talking about a $249.99 price for the pro, and that would be a full $100 price drop, and although Microsoft should really do that, I don't think they will. I think they will drop the Arcade $80, just to get that magic price point, and then I think they drop the other two sku's $50.

Remember, somebody can buy an Arcade, and they can play Gears of War 2 on it, and GTA 4 on it, and Madden 09 on it just fine. They can save their games and everything. (now that it comes with a 256mb memory card in it). Sure, they might not be able to download demo's and such, but the $199 Arcade is going to be marketed to PS2 owners that still haven't made a next-gen purchase yet. People that bought a PS2, needed to buy a memory card just to save a game, and with the Arcade, they are already getting a memory card. If a guy just wants to play Gears of War 2, and wants to be able to save his game, then he will have everything he needs in a $199 Arcade package. Sure, later on down the line he will realize that he should have bought the Pro, but it's all gravy, cause he can just add a HDD later.


i agree, right now i own a ps3, i would like to get an xbox, but i cant justify droping $350/$425 (amazons price on the elite) for a second system. A price drop would give me a reason (in my mind) to pick one up. I would really like to pick one up around the release of GOW2 if not sooner.

-J

Not to take this thread off topic, but If you want a Xbox 360 for yourself, you can get one for $175. (depends on your geographical location). Of course, I'm talking about a used system. But I'm also talking about getting everything that comes in the retail pro box (that costs $349.99 plus tax), all for $175. And, you can even get one with a 1 year warranty that covers EVERYTHING, not just the three red lights. I currently own 3 Xbox 360 systems, and the last two that I bought, I got them both for $175 each, with 20 gig hard drive, wireless controller, everything. Basically, you buy somebody elses 3 red rings 360 for $175, and then you transfer the warranty into your name, and send it in to Microsoft to get it fixed. When it comes back, you get a 1 month Xbox live gold card, and a 1 year warranty from that date, that covers everything. Sure, it might take about 4 weeks for the whole process, but who cares? It goes by really fast. Just make sure that the 3 red ringed 360 that you buy hasn't been tampered with (opened or modded), otherwise, the warranty is invalid and you're SOL. Craigslist is the place:)

whiskey > work
05-15-08, 06:34 PM
Anthony, I like how you think. But I read today that MS debunked this rumor, I can't remember where it was, I think it might have been IGN. Of course they would; even if it was on the way nobody would buy the tank that is the 360 in anticipation.

ChrisFB
05-15-08, 08:41 PM
Bottom line - you want to know why the PS2 is still selling like mad, it's because it is the only reasonably priced console for standard gaming (not Wii). Granted software is cheap and plentiful but people aren't buying last-gen technology by choice and buying a new console isn't about having some cheap older games to play, most simply can't afford entry price for next-gen consoles or refuse to allocate such a substantial sum to getting their foot in the door.

Daekwan
05-15-08, 09:13 PM
Smart idea Anthony1. I've been lookin for a 2nd one for the bedroom. $175 isnt a bad deal to be able to play in the other room and SHE not complaining about me hogging the living room tv lol.

ogbuehi
05-16-08, 08:15 AM
Well if MS is already losing a ton of money selling 360's at $300+, how can they afford to sell them at $200-$300? I know the company has lots of money but MS is just losing tons of money every time they sell the system at current prices.

Shape
05-16-08, 08:38 AM
Well if MS is already losing a ton of money selling 360's at $300+, how can they afford to sell them at $200-$300? I know the company has lots of money but MS is just losing tons of money every time they sell the system at current prices.

I doubt they are losing a ton of money with each one. In fact, they might be at the break even point with the Premium, they might lose a little with the Arcade, and they might make a bit with the Elite.

number1laing
05-16-08, 09:14 AM
Well if MS is already losing a ton of money selling 360's at $300+, how can they afford to sell them at $200-$300? I know the company has lots of money but MS is just losing tons of money every time they sell the system at current prices.

They aren't losing money on the system anymore. They have been making a profit on it for possibly a year by now.

Of course, they might lose money on it again if they push it down to $250 or $200, but the increased sales, and all the Live subscriptions, games, and accessories that go with it should bridge the gap nicely. The fact is sales are stagnating and it is going to be a very disappointing year unless they do this.

fjtorres
05-16-08, 09:40 AM
MS is making around $80 per XBOX on average as of last fall.
Look at their quarterly statements for the actual numbers.
They can cut prices by $50 and increase the volume enough to come out ahead.
More, since the other guys just stated that they need to focus more on profitability than market share, a price cut would likely go unanswered.
In other words: its coming...
For what its worth: $229, $329, $399.

Lee L
05-16-08, 10:17 AM
I can see a price drop, but according to videos they released in the months before launch, they spent so much time on the shape of the 360 and the image it projected being different than the original Xbox and whatnot, that I just don;t see them chucking that out the window.

Aristo7905
05-16-08, 11:19 AM
They aren't losing money on the system anymore. They have been making a profit on it for possibly a year by now.

Of course, they might lose money on it again if they push it down to $250 or $200, but the increased sales, and all the Live subscriptions, games, and accessories that go with it should bridge the gap nicely. The fact is sales are stagnating and it is going to be a very disappointing year unless they do this.

MS is making around $80 per XBOX on average as of last fall.
Look at their quarterly statements for the actual numbers.
They can cut prices by $50 and increase the volume enough to come out ahead.
More, since the other guys just stated that they need to focus more on profitability than market share, a price cut would likely go unanswered.
In other words: its coming...
For what its worth: $229, $329, $399.

Serious question, I dont own an Xbox, I plan on buying one when the price drops.
I have heard alot of problems w/ the RROD, i know xbox increased the warrenty, How much money do you think is spent in repair/shipping/paying people to do the repairs (not being saracastic)? I'm not sure what % is that they do repairs on, just didnt know if that was factored into their profits for the box (based on your figure of $80 each). I still plan on buying one either way.

-J

Shape
05-16-08, 11:22 AM
They set aside $1 billion last June to take care of the warranty issues.

fjtorres
05-16-08, 11:33 AM
I'm not sure what % is that they do repairs on, just didnt know if that was factored into their profits for the box (based on your figure of $80 each). I still plan on buying one either way.

-J

MS took a billion dollar hit last fiscal year to cover for the (maximum) cost of the repairs/extended warranty, so those costs are pre-paid. The $80 number I quoted is the total net profit of the XBOX 360 *business* divided by the number of consoles sold in the quarter. With the attach growing continually and the decreasing production costs their profitability is increasing every day.

Thing is, the 360 business is under a "do-well" mandate from the board of directors to prove that the 360 can be profitable over an extended period (say a full fiscal year). So its unlikely they'll cut prices much before the end of the fiscal year in june. By the time the dust settles, they should be anouncing something between 800Million and 1Billion XBOX profit for the FY, at which point they should be free to trade off present-day profit for market share/future profit.

Sales for April were slow because of the rumors of a May price cut floating around (traditionally MS has cut XBOX pricing in the slow summer months and done promo bundles for the hot XMAS season) so they are now under pressure to do something.

As for when to buy; well, a lot depends on where you buy and what kind of price protection they offer and, most important of all, do you actually want to play games on the 360? Cause there is a deep library of must-haves out there and its only going to get bigger.

So the question is, would you rather be playing or keep on waiting for a minimal cut? Some folks out there are used to waiting for good gaming so its not a clear-cut thing, I know.

Me, I prefer gaming to waiting which is why I have a 360 ;)

Aristo7905
05-16-08, 12:18 PM
They set aside $1 billion last June to take care of the warranty issues.

MS took a billion dollar hit last fiscal year to cover for the (maximum) cost of the repairs/extended warranty, so those costs are pre-paid. The $80 number I quoted is the total net profit of the XBOX 360 *business* divided by the number of consoles sold in the quarter. With the attach growing continually and the decreasing production costs their profitability is increasing every day.

Thing is, the 360 business is under a "do-well" mandate from the board of directors to prove that the 360 can be profitable over an extended period (say a full fiscal year). So its unlikely they'll cut prices much before the end of the fiscal year in june. By the time the dust settles, they should be anouncing something between 800Million and 1Billion XBOX profit for the FY, at which point they should be free to trade off present-day profit for market share/future profit.

Sales for April were slow because of the rumors of a May price cut floating around (traditionally MS has cut XBOX pricing in the slow summer months and done promo bundles for the hot XMAS season) so they are now under pressure to do something.

As for when to buy; well, a lot depends on where you buy and what kind of price protection they offer and, most important of all, do you actually want to play games on the 360? Cause there is a deep library of must-haves out there and its only going to get bigger.

So the question is, would you rather be playing or keep on waiting for a minimal cut? Some folks out there are used to waiting for good gaming so its not a clear-cut thing, I know.

Me, I prefer gaming to waiting which is why I have a 360 ;)

Thank you for the information. Well my mindset is that i have a PS3 right now, so its not a desperate reason to get an xbox, although i would love to use LIVE service. I plan on buying one around the release of GOW2, that looks like a game i would greatly enjoy.

-J

Anthony1
05-17-08, 12:44 AM
Well if MS is already losing a ton of money selling 360's at $300+, how can they afford to sell them at $200-$300? I know the company has lots of money but MS is just losing tons of money every time they sell the system at current prices.

Actually, the current theory is that Microsoft isn't actually losing money on their sku's at the moment. The theory is that they are making a very minimal profit, or practically breaking even with the Arcade. The Pro they are making a small profit on, and the Elite they are making a slightly more significant profit on, but nothing to shout about. Of course, this is all speculation. There are people who specialize in trying to determine these sorts of things, and that is their best guesses, looking at the various components and what they would cost to mass produce, and bring to market.

Now, having said that, if you drop the Arcade to $199, and continue to put a wireless controller, and continue to put the 256mb memory card and such, then I'm guessing they would actually start taking a small loss on that sku. But I still think it would be well worth it. I think Microsoft has this "Laissez-faire" type attitude with the 360 right now. They think that if they keep moving forward on their current strategy, then everything will work out fine. I think they need to be much more aggressive, and try to go that extra mile to ensure a victory in this generation. They are basically coasting along, thinking everything is working out fine. Based on the lastest NPD results, I would say that a price drop is absolutely critical. We aren't allowed to talk sales numbers on these boards, but let's just say that the numbers of high def systems sold in April was absolutely pathetic. Obviously, the public at large has spoken. These systems are just too damned expensive.

Daekwan
05-17-08, 03:00 AM
let's just say that the numbers of high def systems sold in April was absolutely pathetic. Obviously, the public at large has spoken. These systems are just too damned expensive.

$4 gas man..

The general population could give a damn about a $300-500 videogame system right now. Most households are spending that much money on gas per month.

Once the Arcade gets to $199.. then we can talk.

Anthony1
05-17-08, 03:47 AM
$4 gas man..

The general population could give a damn about a $300-500 videogame system right now. Most households are spending that much money on gas per month.

Once the Arcade gets to $199.. then we can talk.



That's basically my whole point. They NEED to get their prices down. Selling that many units per month just isn't going to cut it, period. That's flat out embarassing. Seriously. When they first saw those numbers, they must have been shocked. The biggest game of 2008 is released, the first true next-gen effort from Rockstar North, and that's the bump in sales you get?

Absolutely pathetic.

$4 gas is definitely a factor, but what about that non-high def system? It seems to be selling absolutely fine. It's only 30 cheaper than an Arcade unit. So, I can't completely write this thing off as a $4 gas issue, or a horrible economy issue. Sales of games are up this year, on a month to month basis over last year. Some will say that's because a game is 60 bucks, and these consoles are $400, and it's a big difference when you're putting 40 bucks in your gas tank, and it's only half full. I can feel that sentiment, but still.... it's somewhat of a convienent excuse. Regardless of whats actually causing it, something needs to be done about it.

Price drop before MGS4 is a must.

ChrisFB
05-17-08, 05:26 PM
MS took a billion dollar hit last fiscal year to cover for the (maximum) cost of the repairs/extended warranty, so those costs are pre-paid. The $80 number I quoted is the total net profit of the XBOX 360 *business* divided by the number of consoles sold in the quarter. With the attach growing continually and the decreasing production costs their profitability is increasing every day.



I'm not sure whether something changed but last I checked MSFT didn't report anything specific on the Xbox business. There is an entire unit of which Xbox is a part but there's tons of other noise in there. Their financials don't report anything specific on Xbox to where one can break out much of anything. In the past they've sometimes given out hints in the press or via conf call but largely people are doing some back of the envelope estimates.

fjtorres
05-17-08, 06:10 PM
I'm not sure whether something changed but last I checked MSFT didn't report anything specific on the Xbox business. .

Last january they explicitly broke down the 360 profits and Zune losses. Even without that: $357 million net profit divided by 4.5 million consoles works out to about $80 which is what other sources were reporting last fall.
http://microsoft.shareholder.com/redesign/EdgarDetail.asp?CIK=789019&FID=1193125-08-11476&SID=08-00