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XBox (Games)

Analyst Says Two 360 Versions At Launch 81

Posted by Zonk from the two-ways-to-play dept.
An analyst with Piper Jaffray believes that there will be two Xbox 360 skus at launch, reports GameDailyBiz. From the article: "Microsoft knows $299 is important...They know that historically that's been the launch sweet spot, but they also don't want to take such large hardware losses this time. Of the 1 million units Microsoft is expected to have available at launch, I expect 80% of them will probably be the more expensive SKU, because that's what early adopters are going to want."
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Analyst Says Two 360 Versions At Launch More

Analyst Says Two 360 Versions At Launch

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  • 299? (Score:1, Interesting)

    by wlan0 ( 871397 )
    Why not 360$?

  • No Need (Score:2, Interesting)

    by superpulpsicle ( 533373 )
    This company just like to sell 5 different versions of everything to you. After all M$ marketing guys need to keep themselves employed.

  • What's the difference? (Score:5, Interesting)

    by alvinrod ( 889928 ) on Wednesday August 10, 2005 @12:28PM (#13286908)
    We've already got a good handle on what we'll get with the $299 model, but what extras should we expect in a $350 or $399 model?

    The best I can guess is that a $350 model would have a larger HD, extra controler, and possibly some type of memory card for transporting saved games. I see this as rather pointless since you could buy an extra controler for around $30 tops or get a cheap 3rd party controller for less. I don't know the initial size of the Xbox 360 HD but I've heard 20 GB as an expected starting point. But why not just spend $100 on a nice 200 GB HD and put it in yourself. I'm sure that people will figure out how to hack or mod the box to get it to accept one that large.

    The $399 model would almost need to have a game bundled in with it along with the other stuff. The only problem I see is that not everyone will want the game that comes with it. People will just buy the $299 version and pick whatever game they want for themselves.

    "Of the 1 million units Microsoft is expected to have available at launch, I expect 80% of them will probably be the more expensive SKU, because that's what early adopters are going to want."

    I don't know if I can agree with that. Unless Microsoft doesn't give users a choice, I'd bet most would go with the $299 model. At least that's what I'd be going with. I can't justify the extra cost for a slightly larger HD when I'll eventually want to throw in a really big one and mod it to run Linux. Then again I'm probably not the target customer for the Xbox 360 so maybe it's just me. Either way I don't see how consumers knowingly shelling out an extra $100 ($50 possibly) for a few extras that aren't necessary.

    • Wireless networking perhaps, a few games, possibly a promised free upgrade to HD DVD when it comes out. Any number of things could push the price.
    • We've already got a good handle on what we'll get with the $299 model, but what extras should we expect in a $350 or $399 model?

      Including an HD-DVD drive would seem to jibe with some of their other recent comments. Having two separate versions of the console out there would ensure that no game would ever be produced on the HD-DVD format, but it would mean you'd be getting an HD-DVD player for basically $100. That's a deal I think some people might take. If they also included a larger hard drive and an e

    • Re:What's the difference? (Score:5, Insightful)

      by Chosen Reject ( 842143 ) on Wednesday August 10, 2005 @01:01PM (#13287159)
      Not that it matters since the article is pure speculation anyway, but I find it amusing that you take their speculation, add some of your own conjecture, then you talk of how stupid those moves (that you made up) would be, and thus conclude that either the original speculation or MS is dumb.
    • How do you know you're going to be able to run linux or install a larger hard drive? It could be designed to only accept a certain drive size or brand.

      Go to Amazon.com [amazon.com], look for the Lord of the Rings movies. Or Star Wars. Think about how many people paid an extra $10/per DVD to get the Ultra Extended Edition Director Cut Gold Version. Also try to think about how many people own the widescreen, collectors widescreen, extended widescreen, platinum wide screen, and so on. People who are interested in thi
    • Good luck trying to find a 200GB 2.5" drive(maybe they are out now but I havent checked), and when they do appear, good luck trying to find them for $100.

      I think it would make more sense to have an HD-DVD drive on both SKU's and remove the hard drive from the cheaper model. Developers are required to make thier games work without a hard drive. This way developers will definitely be able to use the extra capacity of the HD-DVD drive.
    • A bundled subscription to Xbox Live Gold, perhaps.
      • seems like you are the only person thats thinking the same way i am. i figure they are going to throw in xbox live, and maybe a few extra accessories. perhaps the remote control for the dvd player, larger HD, a game [doubt this one]. the wireless networking... probably a blank faceplate... etc etc etc... they arent going to drop a $100 hd-dvd drive in there. i could see them taking an extra loss on that one if they did.

        but for $100 more, ms would most likely add xbox live. which would suck for those early a
  • I've seen no evidence for 2 SKUs, and certainly nothing to indicate that Microsoft would release a version without a hard drive, when you need one to run games at all.

    His entire argument appears to be based on "the hardware is expensive, so Microsoft is going to have to sell it at $399". Did he not notice how it is no more expensive than the XBox they launched last time at $299?
    • I've seen no evidence for 2 SKUs, and certainly nothing to indicate that Microsoft would release a version without a hard drive, when you need one to run games at all.

      Where's your source? The HDD was always going to be a seperate purchase, hence the little cage on the side of the 360 so that it can be installed/removed more easily.

      "Slashdot poster knows nothing. Makes shit up."
      • Everything I've heard implies that the 360 won't come in a HD-less version, because you will have games using it - and I don't mean using it like the PS2 uses it.

        It's just removable so that you can haul your save games, music, purchased content, etc - over to another 360.
      • MS clearly stated at E3 that a 20GB drive was standard. They are making it easy to remove so they can sell you a bigger one.

        The parent is right. Despite MS's actual statements that the 360 will come with a HD, this analyst is basically making stuff up, based on publicly available information from 5 months ago.

    • Really? A harddrive is needed? Ask Sony what they think about that.

      Most companies make games for both and port code between the two - so why is a harddrive needed?

      • A hard drive is needed for the same reason the XBox needed one. Games are allowed to use a fair bit of the space for temporary caching, swap space and the like. Your XBox Live profile goes on there (and Microsoft have made a big thing about how much detail will be stored over and above last time). Anything you download from XBox Live Arcade (which you will be able to access even on the free Silver level subscription) needs to be stored as well.

        Apart from anything, Backward compatibility demands a 750Mb swap

  • backfire... (Score:3, Insightful)

    by zxnos ( 813588 ) <zxnoss@gmail.com> on Wednesday August 10, 2005 @12:34PM (#13286950)
    parents are who dont know are going to pick up the cheaper one, thinking that store just has a better price. then feel ripped off once they find out they could have bought the extras at once - for 100$ cheaper at the outset.

    • parents are who dont know are going to pick up the cheaper one, thinking that store just has a better price. then feel ripped off once they find out they could have bought the extras at once - for 100$ cheaper at the outset.

      I actually see it working differently, especially given the 80-20 split favoring the more expensive console. Parents will see the 360 advertised as $299, and go to pick it up, but of course that one will be sold out. Determined to get their kid the latest and greatest, they'll rat

    • "parents are who dont know are going to pick up the cheaper one, thinking that store just has a better price. then feel ripped off once they find out they could have bought the extras at once - for 100$ cheaper at the outset."

      Um, if it were my dad, he wouldn't have given a flying fuck unless he was getting it for himself. If he got the wrong one, he'd either tell me I wasn't specific enough (assuming he actually would have sprung for the extras) or he would have told me to get a job and buy it myself.

      I fin
      • I find it absolutely amazing that there's all this doom and gloom prediction about the XBOX 360. But when Sony says their machine will be expensive, nobody cares.
        What I find amazing is that everyone thinks that Sony and Microsoft are the only two players in this game, and seem to think Nintendo's Revolution is going to be some sort of niche/toy. Perhaps this is all part of Nintendo's master plan? They *are* the smartest and wisest of the three companies, afterall...
        • "Perhaps this is all part of Nintendo's master plan? They *are* the smartest and wisest of the three companies, afterall..."

          you're joking right? they are the most experienced. i will give you that. however i wouldnt excuse them from doing what ALL video game companies are guilty of, and thats making stupid moves. [no dvd drive, avoiding cd based games, lack of online titles, virtual boy]

          im not beating down nintendo, im just saying that they have had their fair share of mistakes too. they arent at the head o
  • Releasing more than one version of the same console would simply take away the one thing that I love about consoles. They are simple and easy. You dont have to check for system requirements to play a game. You just have to have the system. But, if the consoles are acctually differant in any signifigant way, then you will have to check to see if you have the right version of the xbox. However, if they both play all the same games just the same, then what is the point of the more expensive version?

  • For those not in the know (like me) (Score:5, Informative)

    by WankersRevenge ( 452399 ) on Wednesday August 10, 2005 @12:55PM (#13287112)
    From Wikipedia: SKU [wikipedia.org]

    A Stock Keeping Unit (SKU) is an identifier used for management of an inventory.

    The acronym SKU is used almost exclusively when talking about this concept. Furthermore, it's pronounced as a word, rather than three letters, as if you were saying the English work skew.

    Merchants assign SKUs to every product they sell (as opposed to an EAN which is assigned by the manufacturer). This SKU is then used to order, locate and manage the inventory of a product. Each product and variant of a product has a different SKU, for example different flavours or models of product have independent SKUs.

  • Did no one RTFA? (Score:2, Redundant)

    by mESSDan ( 302670 )
    From TFA:

    As for the higher end model, Gikas conceded that it could come in as low as $350, but $399 seems like the most probably price point. He stressed that the model will likely include "all the additional peripherals gamers would want to buy anyway," as well.

    The "higher end model" is just one that costs more because it has more peripherals with it, like 2 controllers instead of 1, Wireless ready, etc.

    Also, keep in mind that this article about someone guessing about what Microsoft is going to do.

  • Maybe the 2nd SKU is the rumored HD-DVD version. I would pay extra for that, although I don't see 80% of 360 buyers thinking the same way. The way the analyst describes it sounds suspiciously like the bundles that retailers try to shove down your throat at launch, which is pretty much standard at launch anyway. Not that I'd ever get the bundle, as it almost always includes useless filler to drive up the price.
    • Hey, someone figured it out. Let's see, what's deadlier to Sony, an extra controller or taking away the high-def standard Sony's banking on and establishing WMV as the standard movie format?

      I won't buy either of these consoles (PS3 or XB360) without high-def DVD playback.
      • well, i think good ol billy and company are just holding back on details about whether or not to release the hd-dvd drive with the console because they are afraid of banking on hd-dvd and seeing it lose the format war. besides if they bundle it now, it would be pretty expensive since they arent a hardware manufacturer anyways. sony actually makes the drives themselves so it hurts, but its not as large of a hit for them.

        if the ps3's blu-ray drive is never used for anything other than games... cool. its fine;
  • Maybe this will come with that Robot that the NES had at launch! That launch had two different packages... basic system with SuperMario and then the upgraded package with R.O.B. the robot, Light Gun and Duck Hunt and another game. My guess is an upgraded Hard Drive and 1 year of Xbox Live service and possibly a game or controller.
    • I got that NES set way back when for Christmas one year (it was my first console). The Deluxe Set, as it was called, came with the console, two controllers, the Zapper light gun, and R.O.B. (Robotic Operating Buddy) as well as two games: Duck Hunt and Gyromite (played with R.O.B.). R.O.B. never took off, though, and mine broke eventually. I still have the game and everything else that came with the system in good working order though.

  • 2SKUs == 1 Big Mistake (Score:3, Interesting)

    by blueZhift ( 652272 ) on Wednesday August 10, 2005 @12:58PM (#13287142) Homepage Journal
    It would be a big mistake for MS to launch the 360 with multiple versions. I don't think that there has ever been a successful console that launched with more than one version/price point. Now if they want to launch with different colored models, that's fine, but if they start monkeying around with the inclusion of the HD, then they'll be giving the game back to Sony. Honestly, the HD and Xbox Live are the Xbox's only advantages over the Playstation 2. Look at how poorly the PS2 HD add-on fared, and the promises of support that Sony itself broke. If the HD is not standard in all 360s, then it will fail as well, putting 360 on the same level as the PS3.

    In the console world, the launch is a one shot deal. Whatever comes out at launch is what is going to be supported. Enhancements and redesigns may come later in the console's life, but that base model that rolled out on day one is the one that gets full support by developers. Splitting the market on day one would be very foolish.
    • I don't think that there has ever been a successful console that launched with more than one version/price point.

      Yes. The NES was a dismal failure, as everyone knows. It failed so quickly that nobody has even heard of it. Here's a link to wikipedia [wikipedia.org] detailing it's dismal fall into obscurity.
    • "It would be a big mistake for MS to launch the 360 with multiple versions. I don't think that there has ever been a successful console that launched with more than one version/price point."

      PSP? It launched as a "barebones" system and also as a "Value Pack" system.
  • It's widely accepted that Microsoft has lost a lot of money with the Xbox and breaking into the console gaming business. How much more of a loss on this venture are they willing to take?

    Considering that right off the bat they will be losing money for every Xbox 360 sold (probably not as much with the $399 or $349 priced model) as well as the enormous amount of advertising they're going to be doing over the Christmas holiday, when are they going to start seeing money coming back in?

    Because that the PS3 w

    • when are they going to start seeing money coming back in?

      As soon as they drive Sony and Nintendo out of business. MS's goal right now is not profit, it is increasing market share. Once they get a significant enough market share they can strongarm developers into exclusives and start jacking up the price of the console, games, and royalties while lowering the cost to manufacture (and quality of) their console and games because of a lack of significant opposition, thereby recouping their early losses.

      • Once they get a significant enough market share they can strongarm developers into exclusives...

        Which is why I don't understand Slashdotters buying XBoxes. Why help MS do the same thing to video game consoles that they did to browsers? What are you thinking?

        I not only boycotted the XBox entirely, I go out of my way to diss it whenever possible. Sure, it may be a powerful console, and it may even have a couple of fun games - but the cost of allowing MS into the market is too steep. If you want to play

        • I never dared voice my exact same opinion as yours for fear of negative modding or being seen as flamebait.

          But I too second your comment and I've made my decision as to which console I'll be purchasing this time around and like before it wont be microsoft's offering.
        • What cost of letting them into the market? Sega's hardware is gone, Sony is amazingly bad (but still has a few good game developers), and Nintendo has become almost irrelevant outside of the portable market. There needs to be a major competitor to Sony, and since Sega is dead, MS is it. Granted, I also support them since they are the only American console manufacturer right now, and since they are starting to open up Live Arcade to smaller independent developers.

          When you say that you want to boycott the
          • In a normal case, I would be happy to see more competition in the market. I would even say that Microsoft's presence has so far been positive - they've spurred the market into a competitive frenzy. This is good.

            In the longer term, though, I don't think things will go so well. Judging by Microsoft's track record, I predict that by the 4th generation XBox 90% of games will be developed for the MS platform. They may have to flood the streets with $100 bills, but if they want the market then they'll take it

            • i understand where youre going, and youre right; that is the MS goal. they want to use the console market, because thats one more way to work the MS brand into another aspect of your life. some marketing genius realized that the more people are playing console video games, the less they will be playing games at the computer. the less they play at the computer the less they will need windows. [some people (read: hardcore gamers) stick with windows because most games are written to run on windows machines].

              co
        • Future versions seem to be completely Trusted Computing aware and will thus be hardware disabled for anything save microshit.

          This leaves us at a little crossroads. Stay the hell away from M$ or get screwed much as we do with windows where the assholes break compatibility every year or three to squeeze MORE money for slower/shittier products each time.

          Oh well, the majority of people are dumb and they are going to end up helping US have to pay for their stupidity too.
      • Even if there's only one dominant console out there, as long as people can play
        games on a computer, a console can only compete if it stays within a particular
        price range. If console price points get much higher than a low end computer,
        the mass market will abandon them in favor of playing games on their computer.
    • Sony treats developers like crap. You have to jump through thirty thousand hoops to get any interest from them at all, and it takes forever.

      Microsoft, on the other hand, knows that the really HUGE successes are just as likely to come from a high school student as from an industry luminary... so they aren't as quick to dismiss someone for lack of experience.

      In the end, Sony will lose, because Microsoft is cementing relationships with gamers that will produce the NEXT big thing... while Sony is turning up the
  • Why do we keep seeing these news stories that just turn out to be an opinion from someone who has nothing to do with what's actually going on? Stuff like this should only really count as "news" if it's coming out of the mouth of someone at Microsoft.

    "many conversations with Microsoft" aside, his guesses are probably no better than mine.
    • If this is a PR plant, then it might indeed be coming out of the mouth of someone at Microsoft, and given how much they've invested in PR for the 360 launch, I honestly wouldn't be that shocked if it was.

      • But wasn't the whole "multiple xbox packages" thing supposed to have been settled back at E3/Mtv press event. I remember back then thinking there might be a version for $100 extra with a hdd and some media features, then the unit gets shown on MTV and the entire rumor disappears... until now.

        I think this is just some analyst recycling an old rumor right before the actual announcement of a date/price point when interest in the subject is highest.
  • There was that talk of the three versions of Xbox360 (one with out a hard drive, one with, and one with the Media Center (internet and everything else)

    It's a degergation of the videogame console idea, when you have different versions of your Xbox, honestly Microsoft better home Japan accepts this one because otherwise they'll just loose a ton of their money.

    Just one more step on the Console PC. (and while Linux Xboxs are cool, notice it's not the official console)

  • Forget The Next Generation... (Score:3, Insightful)

    by __aaclcg7560 ( 824291 ) on Wednesday August 10, 2005 @03:06PM (#13288231)
    Hey, Microsoft! Where's the $100 XBox? Some of us "late adaptors" would like a piece of the action.
  • The cheap model Xbox will DEFINITLY have a HD???

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