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).
Nintendo Making Users Pay for
@Do it like it’s 2013
It’s good to see Nintendo finally getting it’s stuff together. But I still say they missed their chance. They had a large release advantage over Xbox One and PS4 and they wasted it. They are now forever cursed to play catch up.
@All your videos are belong to us
I kick this right into the lawyer’s ball park. I remember the days of the Xbox and PS2, when I gave developers money for their game and that was the end of our interaction. But the modern game industry spawned this horrible mutation of gaming, where developers still have a considerable impact on my gaming experience post release. After Xbox 360 I got used to continuous updates. But it keeps getting worse. The gaming industry is nurturing it’s own Big Brother, which is largely controlled by non-gaming people. No good will come of this.
@Cell Games
I agree with Jonah. I was impressed with the inFamous games. But I didn’t see any differences between multiplatform titles. Cell was a poor choice for Sony; much like HD DVD was for Xbox 360. I am eager to pick up a PS4 and see what Sony’s new hardware is capable off.
@Plus one Paul!
Earlist thing I remember. How long has it been since then? I will miss Paul. He brought a very unique and interestig point of view to the gaming industry. I learned a lot about game development from him. I also realised that I never want to be a game developer. Good luck to you Paul. And get a proper job. It’s time you started puling your weight for the economy (mandatory hate mail).