Nom Chompsky
High Tory
Microsoft is announcing today at an event in Germany that it will sell two different versions of the Xbox 360. On top of that, Robbie Bach, Chief Xbox Officer, said that the system remains on schedule for launch in Europe, the U.S. and Japan this fall.
The company will sell a high-end Xbox 360 model that will come with a standard 20-gigabyte hard disk drive for $399. This box will be backward-compatible with the top-selling original Xbox titles and will come with a wireless game controller, a built-in Media Center Extender, a wireless remote control, and an Xbox Live headset. This version will be for the enthusiasts and the hard drive will come with DVD and music content preloaded.
For those who don't want to pay more, Microsoft will also sell an Xbox 360 core version without the hard disk drive. This version will have a wired controller and it will not have the head set, or the wireless TV remote. Players who buy this version will have to buy flash memory cards to store game data.
The moves will help Microsoft offset the higher costs of a hard disk drive in the box. It is a disappointment to game developers who wanted the hard drive on every machine so that they could have a more capable box to develop games for. The developers were told at the beginning that they had to create games that could exploit different kinds of storage options, such as a hard drive or a flash memory unit. For companies designing online console games such as Epic Games, that means they can't create the games on the assumption that a hard drive is on every box, as they could with the last machine.
But Microsoft figured out that the hard drive costs -- as much as $50 a machine -- prevented the company from being profitable in the first generation. Also, game developers didn't exploit the hard drive as much as the company expected.
"The point here is about choice,'' he said. "In the past, game console didn't offer much choice. You got what they said you got."
Regarding why Microsoft chose to do a version without a hard drive, Bach said, "You do a combination of things and triangulate on a solution. Cost certainly matters. The price the consumers will pay matters, and the value they get. You have to also look by territory."
In Europe, the Xbox 360 will cost 399 Euros, while the Xbox 360 Core will be 299 Euros. In the United Kingdom, the Xbox 360 will be 279 pounds and the Xbox 360 Core will be 209 pounds. Prices in Japan will be announced at the Tokyo Game Show in October.
Microsoft engineer Jeff Andrews said at the Hot Chips conference at Stanford University that they had designed the Xbox 360 to operate with a hard drive or without one from the start. They left it to management to decide which business strategy to pursue.
"We have been talking about two SKUs as a possibility for a while," Bach said. "We hadn't locked in until we had a specific meeting. We did tell the game developers to be ready for it from the start."
Bach said the company wasn't ready to reveal launch dates yet. Microsoft has scheduled an event for Oct. 4-5 in Amsterdam to reveal more about its Xbox 360 games.
Bach said that wireless Internet will be an optional add-on for both versions. It will cost $99 to add the 802.11 a/b/g wireless networking capability. He said that the costs remained too high to include the feature in every box.
"You have to remember," he said, "if we double or triple the number of people on Xbox Live, it's still not the majority of customers today."
Every Xbox console will come with some common features such as support for 720 progressive scan digital TV, the Silver Edition of Xbox Live for free, progressive scan DVD, an Ethernet cable, and a Media Center Extender.
Source: Mecury News Blog