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Forums - Microsoft Discussion - Can the Arcade possibly fall below $200?

mrstickball on 23 November 2008

The Arcade will ALWAYS be supported. Even if it can't use Netflix. After all, a owner merely has to buy an HDD to get Netflix/NXE to work.

For the record, Microsoft has a massive price advantage over Sony and Nintendo with the Arcade:

As Peter Moore stated, post-MS, the Xbox was a boondoggle for 2 reasons:

1) The GPU was an off-the-shelf product that never saw major cost decreases
2) The HDD always cost them a pretty penny, regardless of size.

One of the issues of running a system with an HDD is that it automatically adds $30-40 in costs to produce your system...Regardless of how big or small it is. It's a very fixed cost.

The Arcade will ALWAYS allow Microsoft to maintain that lower price point due to no HDD. Why would you add something that is going to cost what could be 30-40% of the entire cost of your system, as a mandatory item - when in reality it's entirely optional?

Nintendo is also very cautious with adding an HDD - much to users' dismay. Why would it be that the most profitable company this generation...Would hold back on something that many gamers see as a must-have? Maybe they know something that Sony doesn't: The HDD adds unnecessary cost to a system - Microsoft would rather have a 2 tiered system: Maintain a price advantage with the Arcade versus the Wii, and maintain a performance advantage versus the Wii with the Premium.

If Microsoft axed the Arcade, it would be, by far, the worst financial decision. It would be very unlikely that the X360 will drop below a $179.99 price in it's lifespan with an HDD SKU. However, without the HDD, I think we could see the Arcade hit $129.99 or even $99.99 before this generation is done, and will allow MS to have a very longtail, PS2-esque lifespan, since the system will be affordable, and have a great games library.

Next year, we'll see the X360 Slim debut. I honestly wouldn't be surprised if Microsoft hacked another $20 off the price, and put the Slim Arcade at $179.99 to counter a possible Sony PS3 drop to $300-$350 in mid-09.

And again, no HDD will allow the X360 to have a massive gap in price between the HDD-equipped Playstation 3, and the HDD-less Arcade. There will always be a ~$100 difference between the systems....And that could be a huge advantage as Microsoft seeks to deflate whatever air Sony has left in their tires.



Back from the dead, I'm afraid.

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kunaixhaku on 23 November 2008

its already below $200, its $199.99 lol butt to be serious ya probably, its selling for $169.99 at futureshop.ca right now as an after hour special event or something till noon tomm.



wfz on 24 November 2008
mike_intellivision said:
I honestly wonder how much longer the Arcade is going to be supported.

1. HDD installations now an option.
2. Netflix requires HDD.
3. MS offering HDD-upgrade kits.

Mike from Morgantown

Now if you want to talk value -- the 60GB model is where it is at.

 

What about getting the 199 arcade and getting the 120gb xbox HDD for 90 bucks? I believe that's a better deal. :P

 

The arcade is by far the best option IMO, it gives the user more choice. I also just bought it last night.



amirnetz on 24 November 2008
mrstickball said:
The Arcade will ALWAYS be supported. Even if it can't use Netflix. After all, a owner merely has to buy an HDD to get Netflix/NXE to work.

For the record, Microsoft has a massive price advantage over Sony and Nintendo with the Arcade:

As Peter Moore stated, post-MS, the Xbox was a boondoggle for 2 reasons:

1) The GPU was an off-the-shelf product that never saw major cost decreases
2) The HDD always cost them a pretty penny, regardless of size.

One of the issues of running a system with an HDD is that it automatically adds $30-40 in costs to produce your system...Regardless of how big or small it is. It's a very fixed cost.

The Arcade will ALWAYS allow Microsoft to maintain that lower price point due to no HDD. Why would you add something that is going to cost what could be 30-40% of the entire cost of your system, as a mandatory item - when in reality it's entirely optional?

Nintendo is also very cautious with adding an HDD - much to users' dismay. Why would it be that the most profitable company this generation...Would hold back on something that many gamers see as a must-have? Maybe they know something that Sony doesn't: The HDD adds unnecessary cost to a system - Microsoft would rather have a 2 tiered system: Maintain a price advantage with the Arcade versus the Wii, and maintain a performance advantage versus the Wii with the Premium.

If Microsoft axed the Arcade, it would be, by far, the worst financial decision. It would be very unlikely that the X360 will drop below a $179.99 price in it's lifespan with an HDD SKU. However, without the HDD, I think we could see the Arcade hit $129.99 or even $99.99 before this generation is done, and will allow MS to have a very longtail, PS2-esque lifespan, since the system will be affordable, and have a great games library.

Next year, we'll see the X360 Slim debut. I honestly wouldn't be surprised if Microsoft hacked another $20 off the price, and put the Slim Arcade at $179.99 to counter a possible Sony PS3 drop to $300-$350 in mid-09.

And again, no HDD will allow the X360 to have a massive gap in price between the HDD-equipped Playstation 3, and the HDD-less Arcade. There will always be a ~$100 difference between the systems....And that could be a huge advantage as Microsoft seeks to deflate whatever air Sony has left in their tires.

I agree with everything you said except for [again]: "Even if it can't use Netflix. After all, a owner merely has to buy an HDD to get Netflix/NXE to work."

For the record for the 5th time: You don't need an HDD to run netflix/NXE. The 256MB memory card is sufficient for that. For netflix specifically you need only 8MB (Mega bytes, not Giga bytes) to run Netflix.

 



Prediction made on 11/1/2008:

Q4 2008: 27M xbox LTD, 20M PS3 LTD . 2009 sales: 11M xbox,  9M PS3

Devise01 on 24 November 2008

I'm sure we will see a sub $200 360 at some point. If and when MS releases a motion controller, they will probably want to bundle that in and keep the price point around $200. So that may keep the price stable until they start clearing stock for the slim version that will probably arrive in 2010.



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Aj_habfan on 24 November 2008

I've seen it for $170 at some places in Canada. It's pretty wierd, that's just above the PS2 price.



mike_intellivision on 24 November 2008
twesterm said:
mike_intellivision said:

Actually, I think Microsoft says it does -- at least indirectly:

http://www.xbox.com/en-US/support/hardware/memoryupdate/default.htm

Find more entertainment at your fingertips than any other device connected to your TV, instantly streaming movies from Netflix*...

*Requires additional 8MB of available storage and Netflix membership.

 

Also, to add to my position (also from Microsoft):

Hard drive recommended for LIVE, and is required for some features. LIVE Gold membership and other fees may apply. Netflix sold separately. See xbox.com/live for system requirements.

In order to connect to Xbox LIVE and enjoy everything the new Xbox Experience has to offer, you will need an Xbox 360 Hard Drive. While you can connect to Xbox LIVE using an Xbox 360 Memory Unit with 128MB of available space, you will not be able to enjoy all the great features like Xbox LIVE Primetime and video downloads.

 

...

Since I do not have a 360, all I have to go on is what I have been told and what research I can do. If someone is spreading misinformation, it would be Microsoft (and not the first time, I had to open up IE because I could not cut-and-past with Firefox).

 

Mike from Morgantown

 

 

 

**that 8mb of storage can come from a memory card, no HDD required (which comes with the Arcade unit).

And the Arcadae is already below $200, it's $199.

I had a senior moment. I remember when 8M was only from HDD. Basically, I got my Gigs, Megs, and Ks confused.

I will concede that point, but still note that a HDD is all but necessary to fully enjoy the 360.

 

Mike from Morgantown

 



      


I am Mario.


I like to jump around, and would lead a fairly serene and aimless existence if it weren't for my friends always getting into trouble. I love to help out, even when it puts me at risk. I seem to make friends with people who just can't stay out of trouble.

Wii Friend Code: 1624 6601 1126 1492

NNID: Mike_INTV
mike_intellivision on 24 November 2008
amirnetz said:
mrstickball said:
The Arcade will ALWAYS be supported. Even if it can't use Netflix. After all, a owner merely has to buy an HDD to get Netflix/NXE to work.

For the record, Microsoft has a massive price advantage over Sony and Nintendo with the Arcade:

As Peter Moore stated, post-MS, the Xbox was a boondoggle for 2 reasons:

1) The GPU was an off-the-shelf product that never saw major cost decreases
2) The HDD always cost them a pretty penny, regardless of size.

One of the issues of running a system with an HDD is that it automatically adds $30-40 in costs to produce your system...Regardless of how big or small it is. It's a very fixed cost.

The Arcade will ALWAYS allow Microsoft to maintain that lower price point due to no HDD. Why would you add something that is going to cost what could be 30-40% of the entire cost of your system, as a mandatory item - when in reality it's entirely optional?

Nintendo is also very cautious with adding an HDD - much to users' dismay. Why would it be that the most profitable company this generation...Would hold back on something that many gamers see as a must-have? Maybe they know something that Sony doesn't: The HDD adds unnecessary cost to a system - Microsoft would rather have a 2 tiered system: Maintain a price advantage with the Arcade versus the Wii, and maintain a performance advantage versus the Wii with the Premium.

If Microsoft axed the Arcade, it would be, by far, the worst financial decision. It would be very unlikely that the X360 will drop below a $179.99 price in it's lifespan with an HDD SKU. However, without the HDD, I think we could see the Arcade hit $129.99 or even $99.99 before this generation is done, and will allow MS to have a very longtail, PS2-esque lifespan, since the system will be affordable, and have a great games library.

Next year, we'll see the X360 Slim debut. I honestly wouldn't be surprised if Microsoft hacked another $20 off the price, and put the Slim Arcade at $179.99 to counter a possible Sony PS3 drop to $300-$350 in mid-09.

And again, no HDD will allow the X360 to have a massive gap in price between the HDD-equipped Playstation 3, and the HDD-less Arcade. There will always be a ~$100 difference between the systems....And that could be a huge advantage as Microsoft seeks to deflate whatever air Sony has left in their tires.

I agree with everything you said except for [again]: "Even if it can't use Netflix. After all, a owner merely has to buy an HDD to get Netflix/NXE to work."

For the record for the 5th time: You don't need an HDD to run netflix/NXE. The 256MB memory card is sufficient for that. For netflix specifically you need only 8MB (Mega bytes, not Giga bytes) to run Netflix.

 

Amirnetz

Do you have a source about the Netflix not needing an HDD?

You seem to be the only one who says that ... while everyone else I have ever seen seems to state it requires the HDD.

I want to know what is right.

 

Thanks

Mike from Morgantown

 



      


I am Mario.


I like to jump around, and would lead a fairly serene and aimless existence if it weren't for my friends always getting into trouble. I love to help out, even when it puts me at risk. I seem to make friends with people who just can't stay out of trouble.

Wii Friend Code: 1624 6601 1126 1492

NNID: Mike_INTV
Tyrannical on 24 November 2008

Ciruitc City has a BF deal for a $199 Aracde with free 20gb HDD, and I think an extra wirless controller.



Yet, today, America's leaders are reenacting every folly that brought these great powers [Russia, Germany, and Japan] to ruin -- from arrogance and hubris, to assertions of global hegemony, to imperial overstretch, to trumpeting new 'crusades,' to handing out war guarantees to regions and countries where Americans have never fought before. We are piling up the kind of commitments that produced the greatest disasters of the twentieth century.
 — Pat Buchanan – A Republic, Not an Empire