Microsoft recently announced their price cuts on the Xbox 360, effective today, but what is motivating them? Microsoft’s not going to make much additional money by passing off the savings to the customer but they will, more than likely, sell a bunch of great new Xbox 360‘s to a new crowd of gamer.
Motivation? Sony.
“I’m not at a point where I can say we’re going to beat Nintendo,” says Don Mattrick, senior vice-president of Microsoft’s Interactive Entertainment Business. Indeed, Nintendo is likely to run away with the lead in the current generation of console gaming, leaving Microsoft and Sony to battle for second place. (businessweek)
Who would have thought Sony and Microsoft would be battling out this generation for second place while Nintendo breezes through with their Wii console and a handful of games with mediocre game reviews? Don’t answer that, it’s a rhetorical question. If you saw this coming and you’re not on the marketing or project planning for one of these console makers you better prep your resume!
The battle isn’t cooling, Microsoft drops their price to compete with their big competitor Sony which also brings it closer to the price tag on the Wii getting two bird with one stone. The reason Wii is winning is clearly due to its broad demographic of grandpa and grandma non-gamers along with hardcore gamers who have to collect all the consoles and younger gamers that want to fit the trend.
Microsoft’s clearly shooting for second place by installing more units into the consumers home as possible. They’ve got a great library of first person shooter titles, a few RPG’s and RTS titles and the typical contraversial titles like GTA and Saints Row with more hot blockbusters (read: Gears of War 2) arriving soon.
I see this as a great opportunity for casual game developers to get into the Xbox Live Arcade market and start making themselves (and Microsoft) some money off the new gamers that will buy their first Xbox 360 for $199 and up. Microsoft’s getting closer to the low-budget gamer crowd with their price cuts so it would be great if they can take advantage of that market with lower cost titles as well.
If you’re a game developer looking for console stick time and you want to grab the attention of a large pool of gamers, the Xbox 360 isn’t a bad start!
While Microsoft isn’t aiming at Nintendo just yet, there is no doubt Nintendo will be in their sights if they can smoke the pants off Sony in the near future (by this holiday).
What a dilemma it is, Sony’s PlayStation 3 isn’t as hot as the Nintendo Wii in Japan. Even the Xbox 360 has had some minor success stories in Japan while Sony sits back saying “wtf?”
@No PSN unless you waive lawsuit
On the behalf of the PC community, we welcome all PS3 players to join us :P. Or play SP games only, assuming that the SP games don’t require a PSN connection.
My guess is: the network is not safe, and they [Sony] don’t plan to fix it any time soon, so they don’t plan to play nice. Something evil this way comes, at least for PSN customers.
Jonah, pipe down 🙂 …
@DC Universe Online goes free-to-play
Peer-to-peer MMOs + free-to-play may be the only way for small devs to start off an MMO.
As for free-to-play as the single business model in the futire, dunno. If the game is stunning, people will pay.
@Microsoft: Xbox TV this Fall
So basically competition to Netflix and Hulu. The more the merrier, if you ask me.
@Rogers Cable ordered to stop throttling gamers
Throttling is cheaper than replacing lines with ones of a higher capacity. I find it weird though that a third party entity orders a cable company how to do their business. It should be the customers, voting with their wallets that do that.
@Nintendo and Valve say no to smartphone games
Dunno about your explanation Jonah. Valve didn’t mind doing games for PS3, Mac and it is now pushing Steam for XBox 360.
One thing that I keep ‘feeling’ about Valve is that they’re understaffed: between making games and improving Steam, they might actually lack the resources to move to that market.
Oh Paul … everybody dies at one point or another, and we have little control over it.
@QOTW:
Well, the very first one I played is WWF: Royal Rumble, on the Sega Genesis.
Hi, fairly new listener here. I came across you while searching for a decent podcast about games, but couldn’t find one that I actually liked. I finally found your podcast, which is very enjoyable, especially because of the chemistry going on, you work well together.
@DC Universe going free-to-play: I think that all these MMOs going f2p is a good sign because it shows companies that they could make more profit if they stop trying to get loads of money upfront and instead gain the loyalty of their customers.
@Nintendo and Valve saying no to smartphone games: For both their businesses, I think it’s best that they want to focus on products for their platforms only. I remember Nintendo once saying that they don’t consider smartphone games to be “true” games, and I don’t think they will contradict themselves too soon.
Oh and to Paul: I know where you’re coming from with all this want of hate-mail. I have this “problem” myself too. It’s just a need you have after being so nice to people and receiving only praise. I haven’t yet received any hate, even after having asked for it, and so I won’t give you that satisfaction either.
No PSN for you! – Congrats on breaking the story guys, too bad you didn’t get the recognition you deserve, but us listeners know the truth, if that means anything at all. I am glad that this was actually pointed out, and its so hard to believe that a big company like Sony cares more for their wallets than their customers. GASP
Qwikster – It seems like a reasonable decision, people wanted games, and that’s what they are giving. The only thing that I could see being a problem is the price. I know GameFly charges 23 dollars a month which is too much for me, but if Qwikster can do the same thing GameFly does but cheaper, I will definitely be utilizing this feature.
Xbox TV – It seems that the Xbox is going to be an all around entertainment system rather than a gaming platform. They just keep on adding features to it, and if they had one the HDDVD vs. Blu-Ray wars, they PS3 would be dead. For only 200 dollars you can get one, and then you can pick and choose what features you want to pay for. Microsoft has handled this console well, even when your console fails, they fix it and send it back with a 1 Month Gold Subscription, they are doing everything right in my eyes.
No Smartphone Games from Nintendo – I think that the main reason that they aren’t doing this is that they don’t want to be giving anything to their competitors. It has been said many times that the DS’s main competitor is the iPhone, and if Nintendo were to give content to them, they would be taking money out of their own pockets. In my opinion, it was a good decision to stay away from smartphones, in Nintendo’s case.
QOTW – The first game I can remember playing would be Doom. Their is also the N64 games, but Doom seems to be pretty prevalent in my mind when it comes to the first. I can still map out the first chapter’s levels in my mind.
Super question, but I don`t think that I remember…
QOTW – My vanilla answer to this question is Super Mario Brothers for the NES on my 4th Birthday. I kept running full speed ahead on level 1-2 hoping to beat the koopa troopa to the low hanging formation of blocks only to run right into him every time. It took the older neighbor to teach me how to actually play video games before I learned my lesson. Alas, I’ve retained this bullhead, brute-force strategy to gaming to this day. I suck at video games unfortunately.