Jul 2, 2008 11:43 AM | 10 Comments

This week's price cuts are too little too late to save the Xbox 360, says Nathan Taylor. The 360 glory days may be over, with only Fable 2 up its sleeve and Blu-Ray scoring wins for the PS3.

Microsoft has a lot to worry about these days. It’s frustrated by it’s inability to crack Google, or buy anybody else who might; people are hating Vista, and the life of Windows XP keeps getting extended; it’s actually having to compete with Linux on the desktop, and now on the mobile as well; and its console, once the market leader, seems to be slowly fading away.

Its latest announcement is clearly designed to stave off the latter. It may be too little too late, but Microsoft just announced a new round of price cuts for the Xbox 360, making the cheapest version of the console, the hard disk-less Arcade, $50 cheaper than the Wii.

It’s now just $349, half the price of the PlayStation 3, and some retailers are selling it for considerably less than that. The 20GB version of the Xbox 360 has also been cut, from $579 to $499 and the 120GB Elite has dropped from $729 to $649. I don’t think it will be enough to save the Xbox 360.

It’s funny how this generation of game consoles panned out. Most analysts had figured that the PlayStation 3 would sell the most, followed by the Xbox 360, with the Nintendo Wii trailing up the rear. Turns out the opposite of that happened.

The Wii continues to dominate sales, the Xbox 360 has killed the PS3 in terms of market share (so far) and the PS3 proved too expensive for most buyers, especially before Blu-ray had officially won the format war. Of course, now that Blu-ray has won, and the PS3 remains the best and most affordable Blu-ray player on the market, sales of the PS3 are really starting to take off.

Now the Xbox 360 has a strong established user base and a very high attach rate compared to the other consoles (the attach rate is the number of games sold per console), but it’s struggling to maintain momentum, especially after it expended its big gun: Halo 3. It has Fable 2 coming out later this year, which should give it a boost, but apart from that the console has very little steam left.

I imagine that the Microsoft brain’s trust is already thinking about upping the announcement date of the next version of the Xbox 360.

They’re also probably thinking that their relentless focus on one-upping Sony with meaningless processor performance numbers was a mistake. Nintendo got in under that radar because it made gaming fun, and you can bet dollars to donuts that the next Xbox version will have a motion sensing controller and a host of family-friendly games, not just first person shooters.

Microsoft might also think about making more of Xbox Live, which has tremendous potential, but has been sadly left to lie fallow, especially in Australia and other non-US territories. In short, it's going to have to kick ass to make an impact on the next generation, and saying that the console has more power than a supercomputer just isn't going to cut it.

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bbjai Jul 2, 2008 1:50 PM	Is it me or online play has not taken alot of precedence in the console wars. I would gladly ditch any console for multiplayer play which isn't too flash in Australia. Work and little time has left me with not so much time to spend with my console. Its only worthwhile for me to play consoles when its with friends or playing against people. I was excited about XBox live when it first got announced but it never really got developed and to that end Microsoft never got my dollars because it couldn't give me a experience that was fun and not time consuming.
Schprocket Jul 2, 2008 4:46 PM	Maybe if Microsoft spent the money they put into "PS3 FUD" (AKA "aggressive marketing") on producing quality components and a cheaper or free XBL service, they would be maintaining their position. If it wasn't for Ken Kutaragi blowing PS3 launch-expectations out of the water, Microsoft would have nothing to feed it's Xbots. Nothing says more about the depths to which MS's insidiousness will go than experiencing an assault of 360 ads when searching for multiplatform games for non-360 consoles. I'm also fed up with every non-360 forum or gaming news event being trolled by "Xbots" armed with MS-standard FUD and very little actual substance. Now don't get me wrong, not every 360 owner fits into this category but all of this "360!!! IN YER FACE!!!" from marketing and the lesser-educated public becomes tiresome and may also be counterproductive to the 360's image. As for the PS3, it's been very slow off the mark and any disappointment is mainly due to a former Sony President's eagerness to over-state the performance expectations of the released product. However, over time the pre-release "brag points" are coming to fruition without any hardware modifications. For evidence of this, go and look up the Ars Technica site for a second review of the PS3 - the release review was 6/10 and the latest 9/10. Unfortunately, what we've witnessed (and what some have become a willing party to) with the 360 vs The World debate/debacle is yet another time-wasting chest-thumping contest. Ford vs Holden vs Imports whilst we're "at it", anyone??
Intranquill Jul 2, 2008 6:11 PM
Intranquill Jul 2, 2008 6:19 PM	I'm sorry but I have to completely disagree with Nathan Taylor. He's making his whole judgement on a line up of the rest of the year, plus he forgot about Gears 2. Not to mention there's E3 to announce new games/projects for the 360. It's unfair to say they are running out of steam...when the PS3 hasn't even had steam to begin with. And how is the price cut too little too late? Besides Sony's early price cut from highly expensive to still highly expensive, no one else has lowered prices. Why would a price cut be bad? Sorry Nathan, but you should do more research before you write an article. If you paid attention to the 360's already amazing library, the fact that it's online service is number 1, and it's plans for the future, you would further see that the 360 has everything but a loss of steam.
bbjai Jul 2, 2008 11:20 PM	I completely disagree with you Intranquill. Xbox 360 does not have a amazing library of games, if it did it wouldn't be getting blown out of the water by the Nintendo Wii with its later launch and smaller library of games. I honestly think the PS3 is capturing huge market share through its Blue Ray player. The XBOX 360 has nothing going for it. There is no new released slated that will sell in Super Smash Brother Brawl Proportions. Think about that for a second, there is no game on the XBOX 360 that will sell or be met with the same anticipation as a game that has Mario bashing a Picachu and Link slicing Kirby to bits. IF i had a choice now a day I would choose a PS3 or Wii. The PS3 has a blue ray player, the Wii has many better games for the a wide variety of people. The Xbox 360 has nothing going for it but price. IT has no future proof, it doesn't have a developed online experience in the XBOX LIVE system, it does not have any wow games in the near future. For a console that was released way earlier then either console its a bit sad that its getting smashed to this point.
Shadoom Jul 3, 2008 2:04 AM	First off, this article needs to be redone a little because the prices of the current 360 consoles are not that high. Here's a quick question to PS3 fanboys, if Sony stands so strong with their PS3's Blu-Ray player, why do I see many stand-alone players from Sony for only $10 less? Xbox 360 is definitely having a hard time provinding gamers a solid online experience when servers occassionally break down. I am neither a PS3, 360, or Wii fan, but accusations that Nathan has portrayed here is nothing short of amazement of how someone who knows quite a bit about machines would be outdated on today's equipment. Microsoft's Vista right off the bat had many problems that few saw, but when the Service Pack 1 came out, everyone still neglects the machine for its initial release. This whole Next-Gen war thing is absolutely ridiculous. Its nice to see how everyone jumps the gun when one console copies another: ex: Sony copies Xbox on its Trophy and in-game music...Xbox copies Sony by making a console at all... All you 'gamers' don't even know what it means to be a 'gamer' anymore. "Best Graphics! True HD Sound!..." One thing I've learned from gaming is that there are specific parts you need to know. "It may look great, and sound great, but if its not enjoyable to play, not worth the $60." As for the Wii, its not technically a Next-Gen system. I'm just getting tired of reading up on games, or system updates, and the first few lines I read are fanboys or flamers(fall in the same category) bashing one system or proclaiming superiority. Blu-Ray doesn't mean a whole lot either. It was funny to see Blu-Ray competing with HD-DVD by matching prices with it, but ever since it won, prices are outrageous now and not worth buying. Just wishing you all the best of luck to when you finally make the choice to be a true 'gamer'. Peace!!
Intranquill Jul 3, 2008 3:09 AM	Actually bbjai, you're dead wrong buddy. Halo Wars, Alan Wake, Gears of War 2, Fable 2, a few announced MMO's. That's just a few. And Xbox Live isn't good? It's the most played online service to date. And show me facts that SSBB sold more than Halo 3, Gears of War, or Mass Effect. And yeah, their library is alot better than the PS3's. Mass Effect, Halo 3, Bioshock, Crackdown, Ninja Gaiden 2, Eternal Sonata, just to name a few. And lets not forget the fact that we've stolen not 1, not 2, but 3 previous Sony exclusives, Ninja Gaiden, GTA, and Star Ocean. Once all great games for Sony. Now on the Microsoft console. I have all 3 systems. So don't go calling me a fanboy or what not. I'm just saying the cold hard facts. And do you even know why the Wii sells so well? It's because your grandma would rather play tennis than chainsaw someone in the face (gears of war. The Wii has TONS of games, more than any system that's out. But it's mostly shovelware, meaning it's crap. Sure the Wii has a few good titles, Metroid, Galaxy, SSBB, and Mario Kart Wii, but nothing has sold to a record, or outsold a 360 exclusive title. You're just plain dumb bbjai, you don't know the facts. I'd like you to name the future of PS3 and Wii games and I bet you that you either have very little to list, or nothing at all. And like I stated before, there's E3 in a couple weeks. So don't count on the 360 failing when you don't know anything. Thanks.
Intranquill Jul 3, 2008 3:20 AM	And for Shadoom.....you're a complete idiot! How is Microsoft copying Sony by making a console? On this basis, Sony copied Nintendo, and Nintendo copied Atari, and so on. You're views are wrong, sorry. If anything, Sony copied Mircosoft. Look at online. Xbox Live was a big hit on the Xbox 1, and then when Sony made it's next gen console, guess what was copied, Microsoft's online service. And shut up with this "true gamer" BS. Show me an official definition of a "gamer" and I'll apologize. There can be all kinds of gamers. Some like to stick to their child roots, and play the classics, others enjoy the big HD TV's with their surround sound and great graphics/gameplay. Just because not everyone likes to play Mario on the NES over Halo, doesn't mean they're all fakes. And you are kind of making yourself out to be a hypocrite. You're attacking fellow gamers when we get enough shit from the mainstream media as it is. If you want to vent, vent on how the people who don't game see every gamer as a guy who lives in his basement. And the most blunt copy to date are Sony's Trophy system. I don't care what you say, it's a fact that Sony is copying Microsoft. With changes in technology, there comes change in what it is to be considered a gamer. Back in 1990, I was a gamer because I had an Atari. Now in 2008, I'm a gamer because I have a nice HD TV with surround sound. Does that make me not a "true gamer" because I'm not playing my Atari still? No, so shut up and save your breath, because whatever you say I will shut you up with cold hard facts. Thanks.
bbjai Jul 3, 2008 2:13 PM	You can name all the games you want, but this article is strictly talking about moving UNITS of xbox 360s and nothing else. In my opinion no game in the world has significantly moved console units other then Halo. The cold hard fact is every dog and monkey is buying either a PS3 or a Wii right now for the two obvious reasons, the Wii is more fun, and the PS3 has a Blue Ray player. Im not saying the PS3 is better then the XBOX, in fact I couldn't care less. I don't even have a console. If I had to buy one I would be buying the Wii simply because it has the best games that will be fun. My second choice would be the PS3 because it has a blue ray player. Im not saying that Xbox 360 doesn't have great games, Halo 3 is one of the best games in the history of consoles. But there is nothing like that slated on the XBOX 360. I point you to this site: http://en.wikipedia.org/wiki/List_of_best-selling_video_games IF you look at the XBOX 360 games the only large selling game is Halo 3 (8 million units) and rightly so. It generated masses of sales in Xbox 360 consoles on its release simply because people wanted to play the game. If you look at the other two games you mentioned, you have Gears of wars at 4.7 million, and mass effect at 1.7 million. In comparison on the Wii (we will ignore Wii Sports and Wii play), SSBB has sold 4.85 million copies, with Super Mario Galaxy, Mario Party and Zelda all topping 4 million. What Im trying to demonstrate here is that the Xbox does not really have such a great library of GOOD games. The wii destroys it. The Wii fit is sitting on 2 million sales and that figure is going to rise as well. What the Xbox needs right now is another Halo or Gears of War. It will never outsell the Wii because their games are just more attractive to a bigger target audience. But its got to get some kind of core competancy to override the PS3's current advantage of a Blue Ray player. To be fair the PS3 has no games that even top 4 million. They do have Gran Turismo but thats not going to go bananas. In the public's eye at the moment the PS3 is neck and neck with the Blue Ray player being the differential in many cases. Microsoft isn't interested in talking about games that will shift units last year. They want to shift units now. There is nothing on the Xbox 360 that will help it shift units at this point in time. Xbox LIVE could have been the best seller. Yes you are right its the most used online service, but thats because its the only online service. The PS3 one is a joke, the Wii has a variety of games that are played online now and its slowly getting more usage. But XBOX live in Australia could have dominated, it never was developed to the US type version which would have really let it own the multiplayer console market. These are the key things in the article. Where is the momentum in Xbox 360 in terms of games and features? Its hard to say there is any. You named a third best game yourself which only manage to shift 1.6 million copies which was trounced by Mario and Sonic Olympics. Can Fable 2 really sell 4.58 million copies like SSBB? Will that in turn shift more units for Microsoft? We will all wait and see i suppose.
gyro666 Jul 9, 2008 12:58 AM	Spot on bbjai, However, Ps3 has Blue Ray, but Xbox can become a media extender, and the Wii, well the Wii is different, innovative, desirable, engaging, and cheap(er). Forget Xbox live, Too many R soles that are not newbie friendly. I'd suspect Ps3 will sell more for the Blue Ray ability alone, Xbox to linger and fade for the want of that killer app, and Wii to to be not much more that a shooting star when users tire of it's unique ( at the moment) abilities. I don't think it's just about the games anymore.