Will Xbox Live Survive 2008 Holiday Stress?

This year many gamers will open new consoles for the holidays and many of those same gamers are going bring their console “live” on Xbox Live the same day. Traditionally we’ve found Xbox Live falls under the weight of the holiday rush much like Apple’s iTunes. Will we repeat history again?

Although a fully loaded Xbox Live service is money in the bank, how much money will Microsoft lose when gamers login for the first time to a service in a state of destruction? People say first impressions are extremely important, but Microsoft makes a poor first impression every holiday. Xbox Live’s Jerry Johnson told Eurogamer:

“I can tell you that when Robbie Bach is on the phone on Christmas Day calling people asking what the hell is going on, and that’s coming down from Steve Ballmer… that’s the kind of attention it got last holiday.

Many things have changed since then, and we realised [sic] the kind of growth trajectory we were on and had to prepare for it.” (Kotaku)

It’s obvious the top executives at Microsoft want to give customers a great first impression and, after a few repeated holiday down times, this year is the chance to change it all. By now, Microsoft should be fully aware of the holiday flash crowd and have a system ready to cover the load.

Plenty of gamers login because their console automatically signs in on startup, but a handful of those gameres will be shopping for Xbox Live Arcade games to see what Microsoft is now offering them and their new console. Many XBLA games the current 360 crowd is bored of will be fresh and new to holiday adopters so it’s very important to keep the system online.

Much like Amazon, sales will decrease when the service is busy or under heavy load. Hopefully Microsoft is ready to make a great first impression to new buyers and give them the option to buy high valued (high markup) electronic downloads.

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While Sony and Microsoft one-up each other with fire sales on old hardware and blockbuster titles like Gears of War 2 and Resistance 2, Nintendo goes for something completely different… older people.

You’re only as old as you feel, but it’s hard to discount Nintendo’s attack on a demographic when they visit the American Association of Retired People’s Life@50+ Expo in Washington, D.C. this week. Odd move, indeed… or is it?

Retired people may have a bit more time than a busy adult with two kids and a few jobs to hold down. While young adults may want to game, they may not always have the time in their schedule, especially in the United States where people forget what “vacation” means. Retirement is a time to reflect upon your life, your deeds and enjoy the fruits of your labor with your grandchildren; it’s time to get a Wii.

The Wii is the perfect gift for retired folk who want to entertain themselves with something new and different without having to keep up with game releases. The Wii doesn’t have very many games when compared to the 360 and, although many get low review scores, retired folks aren’t scanning the Internet for weekly game reviews and news. They may not be the most in-touch with the industry but that’s okay, they’re non-gamers.

All that Nintendo has to do is sell the unit to them, it may sit on the shelf for months or only get pulled out when the grandchildren visit, but it’s a low-cost unit with games like Wii Sports and Wii Fit, what more do they need?

(Thanks, Kotaku)

Episode 253: Future GenerationEpisode 253: Future Generation

This week, Paul is still not available, which is unfortunate, since the Gaming Flashback is the classic DuckTales for the NES. There’s also a bunch of scintillating news items including:

  • Pachter: Nintendo “Blew It” With Wii U, “In Disarray”
  • Bethesda hiring talent for Xbox 720, PlayStation 4 game
  • EA reveals Mass Effect 3 preorders well ahead of Mass Effect 2‘s
  • Pachter: Next generation Sony and Microsoft consoles will have 4GB SKU
  • Sony filed patent For Kinect-like motion device
  • PSN Minis not working on Vita

We also reveal the winner of the Pixie Diamonds contest.

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With so many people wishing Sony would cut the PS3 price to something more reasonable, it’s no big surprise we see constant rumors about potential “price cuts.” This time, a March 2009 rumor “supposedly” came out of the Sony Annual Briefing in London where a butt ton of information was “rumored” to be leaked.

The anonymous source is running around with a bunch of neat rumors, such as a LittleBigPlanet release on the PSP but the one that may hit home most with gamers is price cutting. The PS3 has been around for a few years now and hasn’t budged on the price tag; they’ve had fire sales on obsolete products (smaller disk drives mainly) but no official drops.

Sony won’t comment on speculation, of course, but we’re sure they want to catch Mr. Anonymous from hiding in their meetings and giving away their information… if it is real. D+Pad published the rumor-mongers message saying the “SCEE will be getting more competitive in price from March 2009 onwards.”

Easter would be a fine time for a price cut, if the speculation is real. This upcoming holiday would have made the most sense, to consumers, but Sony apparently has no plans to reduce the price around the time their sales will be increasing anyway. As the PlayStation 3 is doing okay in PAL territories Sony is relying on them, it would seem, to kick up the numbers and show Microsoft they’re not the only second-place game in town.

The Wii continues to dominate and we’re sure a PS3 price drop won’t impact Nintendo’s sales strategy or gamers decisions on one console versus the other as a price drop wouldn’t bring it to a competitive Wii price.

What is your magic number? What price would you buy a PS3 at if you don’t own one already. For us? Drop it a bit and throw in a free LittleBigPlanet.