Rumor: The next Xbox: Always online, no second-hand games, 50GB Blu-ray discs and new Kinect

[Ail]

green_sky said:

Ail said:
Bottom line is when you're selling an entertainment device you want to target the segment of the population with high disposable income...

And finally lets not forget that from all accounts the majority of Microsoft XBoX profits come from XBoxLive Gold subscription. So why should Microsoft work hard to provide a console for people that won't in the end get Xbox Live ?????????

I am sorry but i just disagree. One has to go target the lowest common denominator when making a dedicated gaming device. Otherwise the market is theoretically shrinking because of other distraction (smartphones, tablets). One of the reasons i am saying you can't just copy Apple's cell phone strategy is because game consoles just don't work that way. An iphone can be sold for $600-900. Sony on the other hand lauched a console for $599 which cost them almost $1000 to build but it was not seen a bargain from consumers. 

We are moving away from the topic here though. The idea is that market and consumer perception is not ready for always on internet devices. Even people with internet have those momentary blackouts in service. This would just affect the paying consumer just like drm on pc only hurts the people who paid for the product. The pirates crack even the hardest one within a week. 

And what exactly is the benefit in targeting customers that will not spend heavilly on your games and services when you are selling the console itself at a loss ?

Loosing more money ?