Microsoft's current retail strategy involves two different configurations of the Xbox 360 in most countries: the Xbox 360SKU, frequently referred to as the Xbox 360 Premium Package; and an Xbox 360 Core System SKU. At launch, the Xbox 360 was priced at USD $399. The Core System is not available in Japan, instead Microsoft offers a package identical to the Xbox 360 SKU for JPN ¥37,900. Japanese pricing of the console has drawn some criticism, as customers there are able to purchase the Xbox 360 small package, albeit one region-coded for Japan, for a lower price than in other countries. Additionally in Australia and New Zealand the Xbox Live headset in the Xbox 360 Premium Package was not included . The cost in the UK has been set at GBP £219 for Core, GBP £279 Premium.
BusinessWeek magazine compiled a report that estimates the total cost of components in the "premium" bundle at $525 USD, sans manufacturing costs, meaning that Microsoft is losing money on every Xbox 360 system sold (in the United States, at least). It should be noted that the strategy of selling a console at a loss or near-loss is common in the console games industry, as console makers can usually expect to make up the loss through game licensing. Furthermore, since Microsoft owns the intellectual property rights to the hardware used in the Xbox 360, they can easily switch to new fabrication processes or change suppliers in the future in order to reduce manufacturing costs. This flexibility stands in contrast to the situation faced with the original Xbox, which contained a processor from Intel (a slightly modified Pentium III) and a GPU from NVidia (a modified GeForce 3). Because of the added expense of these chips and the inclusion of a hard drive component, Microsoft was never able to reduce Xbox manufacturing costs below the break-even point. As a result Microsoft's home entertainment division posted a loss through nearly every quarter of the console's lifecycle, including a loss of US$ 38 million during Microsoft's 2005 Q3, at the Xbox 360 launching. Microsoft is predicting that with the Xbox 360, a greater market share and falling hardware costs will eventually make system sales profitable.
Dead Space (360) Sat, 11 Oct 2008 00:00:00 -0800 Dead Space is a riveting survival horror game, unflinchingly violent from start to finish. Blindly unpredictable and incredibly intense, Dead Space keeps your heart pumping the entire game. It's got aliens, zero-g shootouts, blood, guts, and broken bones. It's unnervingly tense one moment and piss-your-pants terrifying the next. It's an exhilarating tale of aliens, claustrophobia, and isolation in a dark corner of outer space where no one can hear you scream.
THE BOTTOM LINE: Dead Space is a showcase piece of dark-side entertainment that rivals the marvelous designs of such games as BioShock, Gears of War, and Resident Evil 4. But be advised that it is definitely not for the queasy or the faint of heart. Still, if you can stomach its horrors, you will be rewarded with one of the best survival horror experiences ever created.
Microsoft sues DHL after train dumps 21,600 Xboxes Fri, 10 Oct 2008 00:00:00 -0800 Microsoft is suing shipping company DHL for allegedly losing 21,600 Xbox 360 consoles in a Texas train derailment, according to court documents.
Best of TGS 2008: Booth Babes Fri, 10 Oct 2008 00:00:00 -0800 FEATURE: Only in Japan...we scour the floor of the Tokyo Game Show for this year's booth babe lineup!
Comment of the week hates console wars Fri, 10 Oct 2008 00:00:00 -0800 GamePro.com highlights the wittiest and most well-said reader comment from the previous week.
Chainsaws ahoy! Gears of War 2 nears Nov. 7 release Fri, 10 Oct 2008 00:00:00 -0800 Microsoft today announced that Gears of War 2, the sequel to the five million unit selling original, has been sent to manufacturing.
No More Heroes 2: Desperate Struggle is Wii exclusive, Suda says Fri, 10 Oct 2008 00:00:00 -0800 Goichi Suda has the Wii itch. His new sequel, No More Heroes 2: Desperate Struggle, is a Wii exclusive in 2010.
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Dead Space (360) Sat, 11 Oct 2008 00:00:00 -0800 Dead Space is a riveting survival horror game, unflinchingly violent from start to finish. Blindly unpredictable and incredibly intense, Dead Space keeps your heart pumping the entire game. It's got aliens, zero-g shootouts, blood, guts, and broken bones. It's unnervingly tense one moment and piss-your-pants terrifying the next. It's an exhilarating tale of aliens, claustrophobia, and isolation in a dark corner of outer space where no one can hear you scream.
THE BOTTOM LINE: Dead Space is a showcase piece of dark-side entertainment that rivals the marvelous designs of such games as BioShock, Gears of War, and Resident Evil 4. But be advised that it is definitely not for the queasy or the faint of heart. Still, if you can stomach its horrors, you will be rewarded with one of the best survival horror experiences ever created.
Microsoft sues DHL after train dumps 21,600 Xboxes Fri, 10 Oct 2008 00:00:00 -0800 Microsoft is suing shipping company DHL for allegedly losing 21,600 Xbox 360 consoles in a Texas train derailment, according to court documents.
Best of TGS 2008: Booth Babes Fri, 10 Oct 2008 00:00:00 -0800 FEATURE: Only in Japan...we scour the floor of the Tokyo Game Show for this year's booth babe lineup!
Comment of the week hates console wars Fri, 10 Oct 2008 00:00:00 -0800 GamePro.com highlights the wittiest and most well-said reader comment from the previous week.
Chainsaws ahoy! Gears of War 2 nears Nov. 7 release Fri, 10 Oct 2008 00:00:00 -0800 Microsoft today announced that Gears of War 2, the sequel to the five million unit selling original, has been sent to manufacturing.
No More Heroes 2: Desperate Struggle is Wii exclusive, Suda says Fri, 10 Oct 2008 00:00:00 -0800 Goichi Suda has the Wii itch. His new sequel, No More Heroes 2: Desperate Struggle, is a Wii exclusive in 2010.
Ars Technica - First in a series of articles exploring the hardware platform.
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