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).
If you’ve got Microsoft Windows or an Xbox 360 you’ll be eligible for the public beta of Call of Duty: World at War by Activision. Although the game is set to deploy on the 11th of November, many of us will be able to get a taste of the multi-player action early by entering into the beta.
@EA selling virtual car for $100:
I was initially shocked, but then I remembered previous examples: Battlefield Heroes rents virtual weapons for real money, WoW has players selling in-game gold for real world currency. Heck, TF2 has a whole economy based on virtual goods.
All these examples point out that there is a lot of spare cash, and enough people having it are willing to spend it on whatever they feel it is valuable.
Hey, Jordan, I proposed a similar measure (tax sales from virtual goods) in episode 240 😛
@Modern Warfare 3 beats Avatar:
Well, I wouldn’t say that the gaming industry beats the movie industry, just based on one game. I think we (or at least I) will need to check more numbers.
One thing to be noted though: Activision made that money, not the original dev team (they left Activision after MW2). So, I’m sorry to say that, but the devs just found out how easy they can be replaced, without major losses from the company …
@Move to next-gen is “terrifying“:
… really? PCs already are next-gen, they always were. And the XBox is always very close to the PC, because of the hardware and software similarities. Terrifying? Yeah, but only for Sony and Nintendo, because they failed to understand the importance of a good platform/framework/API.
@Man sues Sony for ToS update forbidding suing:
Ha ha ha! 😀
Well, you can always choose to not use the console … As for Microsoft doing the same thing (forbidding class action suits), shame on them.
As for the size of DynamicJul’s country, yeah, there are a lot of small countries: Monaco, Lichtenstein, Faroe Islands, San Marino …
@QOTW: a game in the STALKER universe.
:)) so apparently there will be no show until mid January … anyway, Merry Christmas and Happy New Year!
My country is the actually the small island of Malta.
@Naughty Dog: Move to next-gen is “terrifying“: I think that if the PS4 is released in the near future, it will have a launch just as hard as the PS3. Just like Naughty Dog, I think that developers have only just started using the PS3 to its extent and anything new will definitely be a challenge.
@Nintendo only showing E3 Wii U demos at CES 2012: I don’t think this really means anything. I think that they’re just holding everything for E3. First of all, I think that E3 is the most known and the hype that would come from releasing all the information in a few hours would be much greater rather than if they released it over a couple of months.
@QOTW: As far as games that have already been announced, it’s Mass Effect 3. I have already pre-ordered it and hope that it will get me through my GCSEs without me playing any other games.
@Next-gen Hardware:
Maybe they’re skipping a few numbers and working on the PS9 from the PS2 days (http://www.youtube.com/watch?v=jRJXLu3YVpM).
@Paul: Congrats on the move and reuniting with your partner. It’s great to hear queer perspectives on gaming, and I think a lot more people should be coming out as gaymers. 😛
@ ea selling virtual car for $100
I’m not surprised coz most companies do this ,i mean they won’t lost anything physically and its just virtual
@ modern warfare 3 beats avatar
This doesn’t prove that gaming industry is better than the movie industry ,its just one game
@ qotw
I’m most interested in the upcoming transformers game
I wish my classmates know what’s the difference between a flashgame and a title coz they keep teasing that I don’t know games but they’re wrong ,wth they think godswar is a cool game and they compare it to world of warcraft wtf ,btw godswar is a Facebook game mmorpg
@ ea selling virtual car for $100
Yeah virtual items purchases can get real crazy, specially in Online worlds with micro transactions.
About the Entropia Universe space resort the article refers to, it matters to say that those real estates are sources of income. Other players pay a % of their revenue generated on the asteroid. The estate owner could also sell shops and apartments to other players. “Neverdie” announced a few years back that just 6 months after the purchase of the asteroid, he and his investors were already on profit. Personally I felt worse when I saw people spending 30k $ in a handgun.
@ Next-gen and Naughty Dog its not the first time a developer comes out and expresses concerns about how fast we’re moving to a possible next generation of consoles. I think it was last year that Ubisoft said that every time a new generation of consoles comes out, games get more expensive to develop.
Game developers and publishers would like a few more years in this generation before bumping up the investment.
@Star Wars Old Republic
Nice to see its going well for them, but this game was a huge disappointment for me. I was kinda hoping for a massive sandbox mmo like SWG but ah well, just another game that doesn’t really bring anything new other than the conversations with multiplayer.
@Question of the week
Since Skyrim is already here, I’ll go and say Darkfall 2.0 if it ever gets released. Darkfall is a mmorpg sandbox-ish game, with full open pvp and full loot. It is a brutal game where you never feel safe, where you loose whatever you were carrying if someone kills and loots you. One of those games that tried to follow the steps of Ultima Online.