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).
Reportedly we’re going to see smaller 45 nanometer cell processors in 2009 which leads to similar cost savings as we saw in the Xbox 360 hardware. Cost savings appear on the manufacturing side, of course, along with less power consumed by the processor leading to less heat generated by the console.
@Rushed next-gen consoles
You’re absolutely right that the media streaming functionality is painfully missing from the new consoles. I can only speak about the PS4, which is the one I got, but the fact that I can’t stream stuff from my PC to the PS4 is horrible. #FirstWorldProblems However, the backlog of PS3 games is deep enough that I don’t feel the need to box the console up anytime soon.
No CD playback was also something I couldn’t get my head around. It can’t be that expensive to implement… Is it a hardware or a firmware issue? Anyway, I rarely used my PS3 to play CDs – my stereo has a CD player so I use it instead.
Poland has never had much extra multimedia support. There’s no Hulu, no Netflix, no Amazon Prime… Even the YT app has been added just recently to PS3 in Europe (still missing on PS4). That’s why it’s not as bad here. I’m happy that the NHL Gamecenter App was available almost day 1 and I can watch the games on the PS4, even though it seems to be more glitchy than the PS3 version.
@Vita multiplayer
I played some LBP on the Vita and had some connectivity problems but not to the extent Jordan talked about. I played a lot of Killzone Mercenary, though, (Platinum, yo!) and it worked very well. Not laggy at all, usually full or almost full games. I played 100+ matches needed for the trophy and I got disconnected only a few times.
@Sony Santa Monica
I believe I heard in another podcast, but was to lazy to verify it myself, the studio is still hiring new people. One opinion I heard is that they’re not only trying to cut back on costs but also mix things up a little bit after the recent failures, i.e. GoW: Ascension. That’s why they laid off some people but will bring some new faces, although in limited numbers.
@QOTW
The arcades were not very popular in Poland in the 80’s and 90’s. I remember a wagon, similar to a cricus wagon, with some arcade games inside that we used to go to with my friends back in the day. I don’t remember many games, though but one of them was Cadillacs and Dinosaurs. There were also some Metal Slug machines. All the PacMans, Tempests and Defenders were slightly before my time, I guess, or this era of arcade games simply skipped the communist Poland in the 80’s. However, I remember playing tons of Terminator 2 pinball but that’s a different QOTW.
@Rushed next gen consoles: The more I hear about the lack of features and functionality of both the Xbox one and PS4. The more I am glad I choose to stick to PC gaming.
I think the aspect also that you talked about with people in charge not knowing or not liking their product is very telling of the state that these consoles have come to. They are out of touch with their customer base.
@Thief: This game is looking great from the LP video’s I have seen of it so far. I find it amazing anyone was under the impression Garret was some sort of assassin or warrior. That was an aspect I didn’t mind in the original series, you shouldn’t be fighting so getting caught and subsequently killed is the punishment.
Maybe those that think like that are those who are stuck in only playing action FPS games.
@Half-life: This is a series I haven’t been able to get into yet. but I could never figure out which was first Half Life 1 or Half Life 1 episode 1?
Freeman’s mind is awesome to watch as well. A fun way to do a LP I think.
QOTW: I love this question I used to spend many hours in various arcade games. I tried to avoid coin gobblers like Gauntlet, I would play those that had a end goal. Like Willow, Simpsons, TMNT, Xmen vs Avengers, Indiana Jones and Temple of Doom, and Dungeons and Dragons. I loved playing pinball machine games as well, and the air hockey games. Arcades just aren’t doing as well as they used to do though. We had one in my local mall called the Nexus that even had lan PC games but it shut down unfortunately.