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 like to play devils advocate again and discuss the flip side of the coin and 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 resource 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, as it is a luxury more then anything else. A lower priced Xbox 360 will 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.
However 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 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 spent a premium to purchase a Wii, spending on average $300.
The Xbox 360 Arcade does offer features and advantages the Wii doesn’t even come close to, such as the more 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 the problems with taking advantage of all of those features are 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 being 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.
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.
