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).
Excellent episode guys!
@UK threatens to report parents for kids playing 18 rated games: I think Paul got side tracked with other points because this story had nothing to do with Religious zealots, home schooling or bringing games to school.
I don’t know why kids wouldn’t be allowed to talk about the games in school, I certainly did when I was in elementary. I agree with Jonah on this if you know what your kids are playing and watching and not just using them as babysitters it’s fine. I know every game my daughter plays and tv show she watches, yes I let her play Skyrim which apparently has a 15 and an 18 rating from UK. I know that game and what is in it, I feel she can handle it
@Zelda and Nintendo: I would love if Nintendo would package a game with their system again. It’s been too long since they’ve done that.
@Swatting is a terrible thing that needs to stop, so yes try the kid as an adult, they need to learn that there are consequences for this type of behavior.
@QotW: I am so glad you guys enjoyed the question, and also glad that you mentioned Abandonware. I think that is going to be part of the solution there, if companies that no longer wish to hold on to the legal rights for games that aren’t earning them money than it can be given over to those that will upkeep a emulator for it, there are XP emulators for example which I think is another part to keeping some games around for the next generation to play.