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Saturday, September 20, 2008

Price cuts are for Suckers: Microsoft still making a Killing

"The hard drive in every Xbox killed us; we we're still selling it at $199 and the hard drive was like $70," Moore told UK newspaper The Guardian. "That's why we prematurely left the original Xbox, because the more we were selling – there was still great demand – it was killing us, and there was no way to bring the price down... To this day, people still believe we left the Xbox too early, but it was purely for financial purposes."

Its seems it's officially true fanboys and gals, Microsoft abandoned the original Xbox prematurely to cut their losses. This comes off pretty hash towards the consumer, because it shows what Microsoft truly thinks about my hard earn money and yours.

Peter Moore's assertion that Microsoft deserted the Xbox to cut their losses due to the standard HD. Microsoft's trigger finger portrays a darker and more sinister picture for the Microsoft Xbox 360.

With Microsoft's recent call to arms with a price drop on Xbox 360Arcade(no HD) $199.99, Xbox 360 w/HD $299.99 and Elite Xbox w/120HD and HDMI 360 $399.99. Don't get me wrong, if you would like to jump into next gen gaming Mircosoft has some great deals. The dark and sinister part comes into play from what Microsoft learned for the crash and burn course called the original Xbox. The lesson they learn was the ability to make a shit load of money on accessories especially the Hard Drive.

Now lets break down the price of these so called accessories that you will need to get the FULL Xbox 360 experience.

  • Xbox 360 Arcade sku sells for $199.99 it includes one controller and five arcade games. If you would like to get LIVE and play with the rest of the world including your friends you will need a 20Gb or 120GB Microsoft propriety Hard Drive. A 20GB hard drive will cost $99.99 without tax and a 120GB Hard Drive is $149.99. One extra controller $49.99 and one year for Xbox LIVE $49.99. Your total price for an Arcade Xbox 360 with one year of LIVE an extra controller and a 20GB HD comes to a pre-tax amount of $399.96?

  • Now throw in a Play and Charge Kit for your wireless controller for another $19.99, a wireless headset to talk to your world wide friends for $59.99, a wireless wifi antenna to connect to the Internet $99.99 and the optional Vision camera for video chat for a mere $39.99. Now this does not include the first game that you have to get with your shiny new pimped out next gen gaming console. For a grand total of $599.93 and that still does not include my first game or the next few years of playing LIVE at $49.99 per year.

Before its all said and done you have purchase yourself a Sony PS3 only without a Blu-ray player and a CELL processor. The total cost to be part of the Xbox 360 experience will be the same price of a brand new Sony PS3. Price cuts are pretty good and are always welcome but when you are being gouged on accessories that's just sucks ass.

Edit: is reporting that Target is selling 20GB HD for the Microsoft Xbox360 for $24.99 plus tax.


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