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Grampy on 25 August 2008
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Jackson50 said:
Xen said:

Seems like a desperate gambit to me... they want to win over the market while losing money, in preparation for their 3rd gen console... this is no longer about winning this gen, but a preparation for the next one.

-This may steal some of Sony's sales, but not much and not for long.

-If by making making the Arcade so cheap they are trying to compete with the Wii they are dumb - the Wii is too hyped, popular, and liked to even take a dent.

 This is not a desperate gambit. This is the natural progression of the 360's price. I would describe the PS3's price drops as desperate, but that is neither here nor there. If they bundled the arcade with Banjo-Kazoie, it could challenge the Wii but I do not think the Wii is whom MSFT is targeting. I think the arcade is meant to target MSFT's target demographic who want to game on the 360, but are hitherto unable to afford it.

I see where you're going but I have two problems with the argument.

1. It seems to be the consensus among most experts that they are going to be selling at a loss - which is not a "natural progression."

2. I can't picture a huge army of customers who desperately wanted to have a 360 and just couldn't beg borrow or steal the extra amount so that suddenly they can afford it. It's not that big a cut. Certainly I'm sure there are individuals and I'm happy for them but I don't see millions of people to whom this is make or break.