Shopper’s Guide: Is the Xbox 360 price cut enough go after the Wii?
With the new Xbox 360 price cut official what does this actually mean for gamers? Just like the discussion we did with Sony’s PS3 price cuts and hardware refresh, we would like to play devils advocate again and discuss the flip side of the coin as well as what a price cut actually translates to gamers.
Microsoft has indicated their desire to go after and take a piece of Nintendo Wii’s market share. That is why Microsoft has focused so much resources on the social aspects to Xbox Live such as the new Mii-like avatars and the Nintendo like channels in the new dashboard.
It makes sense, if you want to go after a target audience you have to emulate what the successful competitor is doing. With the new Xbox 360 Arcade priced below the Wii, Microsoft is gambling huge that a lower price will get Nintendo Wii owners out there to buy an Xbox 360.
Currently the Xbox 360 Arcade costs $199, cheaper than the Nintendo Wii which costs $249. Price is definitely a barrier to entry especially when it comes to expensive video game systems when you consider it is more of a luxury then anything else. A lower priced Xbox 360 would definitely move systems, especially for any hardcore gamer that have yet to take the plunge and buy an Xbox 360.
However more than likely with the Xbox 360, currently on its third year in the market place most hardcore gamers already own a 360. That really leaves the primary target Microsoft is gunning for – the casual market.
The problem is despite however much Microsoft’s “casual market whipping boy” Viva Piñata gets pushed, the appeal and the library is just not there yet to draw the casual market in. When the casual market did not react when the Xbox 360 Arcade was $279 with the Wii only $30 cheaper at $249, will the market react to the Xbox 360 Arcade with the price $50 cheaper than the Wii?
It seems consumers that want the Wii really don’t care too much about price as most consumers have and will spend a premium to purchase a Wii, spending on average $300.
The Xbox 360 Arcade does offer features and advantages that the Wii doesn’t even come close to, such as a robust online store where you can watch videos and movies from, as well as a robust library where you can download new songs for Guitar Hero.
However there is a problem with taking advantage of all of the mentioned features, you have to pay a lot more on top of the price of the Xbox 360 Arcade in order to really enjoy all the benefits.
For one, most houses are not built with Ethernet cables pre-wired, so a Wi-Fi wireless adapter is a must. I had to purchase one for my Xbox 360 for about a $100 because none of the Xbox 360s came with it by default.
Also if you purchase the $199 Xbox 360 Arcade there is no hard drive which really puts a hamper on downloading those Guitar Hero tracks or watching movies through Xbox Live. Video game demo downloads are also out of the question as well, with most demos clocking in at 1GB in size on average.
The only option on Microsoft’s official Xbox page is a 120GB optional hard drive which will set you back about $180. However there is word, a price cut is coming for the hard drive cutting the price to $150.
Here is a handy little chart I whipped up so you can see the difference between each models:
*All prices were taken from www.Xbox.com
If you are really thinking about getting an Xbox 360 Arcade think very carefully because with all the needed hardware and hidden costs, it could easily sky rocket to over double the cost of the system. If you are looking at an Xbox 360 either the Premium or Elite would be a better buy which also come with original Xbox backwards compatibility.
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16 Responses to “Shopper’s Guide: Is the Xbox 360 price cut enough go after the Wii?”
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September 5th, 2008
Thanks for showing what anyone who can add 1=1 knows.
The PS3 is stil a better value, including a blu ray player, a wifi adapter, controler with rechargeable battery, free online and a 80Gb HDD for $399.
By the end of year, with the software lineup, it will be even clearer.
We’ll se if this price cut has a big effect, I suspect it will have -some- effect, but not quite to the amount expected by MS and analysts.
September 5th, 2008
run a cable, save a $100, buy a 20 gig drive off ebay for $25, it does come with a headset. so for $225 you can have an xbox pro, with hdmi. be a little creative, don’t you shop around for everything else. why make a comparison for the xbox and pretend you have to pay full retail.
September 5th, 2008
run a cable to the living room?
And we gotta compare what is comparable, so the MSRP prices are fair.
If we talk about “customizing”, thanks for reminding us that the PS3 accepts any laptop hard drive while the 360 doesn’t
September 5th, 2008
You can also use your laptop as a wireless adapter.
September 5th, 2008
Most new homes these days are ‘network homes’, i.e a network plug in every room. Personally even if 360 had wifi built in, I wouldn’t use it. Wifi is unreliable and drops out quite a bit.
Apart from Resistance 2, the remainder of the 2008 PS3 lineup does not interest me at all. 360 on the other hand with Gears 2 and Fable 2 (and is Left 4 Dead coming out this year too?) is a lot more appealing to me. That is my opinion. Flame away about how I am an idiot if it makes you feel any better.
September 5th, 2008
I don’t think most casual gamers would bother connecting to the internet. A few people that I know who have a Wii don’t connect to the internet, and I would consider them casual gamers that Microsoft and Nintendo are targeting. Sure there are exceptions, but I don’t think online gaming is something that appeals to the casual gamer. That then makes purchasing the headset and hard disc mute points, since you don’t need them to play games at home.
Where I do agree though is that there isn’t the library for the casual gamer. But given the rubbish that is pumped out on Wii (and I can’t believe people buy some of the stuff that is released) it shouldn’t take too long the build up a library of B-grade titles for this intended market.
Just one final point I do not think the PS3 will be successful in attracting the casual gamer because of the price and software library (even though it may be the better value for money console). But I guess Sonys fall back is the PS2 which still sells really well.
September 5th, 2008
Casual gamers will want to download boat loads of Guitar hero tracks and watch Netflix movies, which does require online connection and a hard drive.
Those are those main points that would attract casual gamers or families who want it for casual use.
Also most houses are not wired for ethernet, your talking about a small percentage of new homes that might have that.
Of course casual gamers/families will use the wireless Internet connection, my wife nags me about just AC cords running across the carpet as it is.
September 5th, 2008
“Most new homes these days are ‘network homes’”
I dunno, my house is less than 2 years old and I live in a development area (e.g. my street used to have my house on it, now its surrounded by houses). The only way to get network jacks in ‘em is to ask for it whilst the electrical etc. is being done.
Wireless is convenience networking which joe public enjoys. That said, its not very hard to run a network cable, OR get a set of Ethernet over power devices (such as the sling ones) and just do it that way.
Either way, +$100 for wifi is fucking retarded.
September 5th, 2008
Mark, I said ‘Most new houses’, not ‘most houses’.
SW,
I don’t know where you live, but where I am from all new houses have it standard.
Ethernet over power is another alternative also. As stated earlier, I would not want to do wifi for online gaming as it’s not as stable and a cable plugged into the back of the machine.
September 6th, 2008
I agree about ethernet tho.
Even for my Wii I purchased the USB Ethernet adapter.
You’re lucky harry
Wish my house was wired (well it is partially because I did it 
)
September 7th, 2008
I think the Arcade version of the XBox 360 is fine as is for most casual gamers. Most casual gamers don’t go online and purchase down loadable content, so the missing hard drive really isn’t an issue for those gamers. Furthermore the missing wi-fi support isn’t an issue for casual gamers either, because they don’t actually go online. Obviously if you’re a hard core gamer then the Arcade version isn’t an option, and you should pick up the Premium, but the Arcade version is fine for the audience it is trying to appeal to. I do agree that if MS wants to appeal to casual gamers they need to improve their casual gaming library. Now if you’re a hard core gamer then the premium XBox 360 is perfect, because it has the best line up of hard core games.
September 7th, 2008
Why would you add the price of the 160gb hard drive to the arcade model? You can buy the 60gb one for $100 or better yet a used 20gb hard drive for less than $50. Also why wont the arcade play Xbox games if all you need to do is update the hard drive?
If we really want to get into price wars we can see how the Wii is expensive too. For another controller plus Nunchuk will cost you $70. Add $30-40 for a component cable and you are already over $100. Plus the Wii needs some form of a hard drive because it severely lacks the ability to save virtual console games when you have a few of them.
This is just another poor attempt at making the Xbox 360 seem more expensive than it really is.
September 7th, 2008
Yes, and people still buy the Wii. And the WiiFit too, and you know how much that costs, right?
Price cut or no price cut people will still buy the Wii.
September 7th, 2008
Wow, I think one big point is being missed people who by the Wii buy the Wii because it’s a Wii. What I mean is the cute little motion control, ease of use, and last but not least family friendly appeal are why the Wii is doing so well. Xbox 360 doesn’t appeal to these buyers. This price cut in my humble opinion will only give people who want a next gen system a better entry point if the want a Xbox 360.
September 7th, 2008
fanboy trasher,
actually on http://www.xbox.com Microsoft clearly points out the arcade is not backwards compatible with original Xbox titles.
Also if you goto xbox.com and accessories section you can see they do not sell nor support the 20GB Harddrive any more.
September 8th, 2008
I agree with B Cash. I got the wii for the family freindly games (not the controls).
When I’m ready for my next gen it will be the PS3.