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).
Hi guys, great show again. 🙂
I like the idea of turning in a CD or just even having the old DRM code to get a digital version of the game. This is what Blizzard does with their library. I was able to get digital versions of Warcraft III and StarCraft because of my old DRM codes I had been holding on to. I think more companies should do that since we did buy the game, why should we have to pay again for a digital version?
@Steambox: I thought there was only going to be one but apparently there are going to be 13 of them priced from cheap to VERY expensive. This may be a good and easy way for people to find the steambox that will be suited to their needs.
@Sony streaming old games: I agree that I want this and that they should make their entire library available. The fact that Jordan still has a functioning backwards compatible Ps3 didn’t go unnoticed. I’d love to get one myself but the issue is they stop making these consoles so it isn’t easy to get an old console to play an old game. Much easier to just get an emulator (at least for PS1 and PS2).
@QOTW: I am most looking forward to Pillars of Eternity, it promises to be a great RPG game. Among other Kickstarter games like Wasteland 2 and Shadowgate.