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X Box 360 News
The latest news and info on the XBox 360
Before you start feeling sorry about Microsoft losing money on each Xbox 360 it produces, look at the total picture.
Yes, it is true that the cost of all the components of an Xbox 360 totals almost $550 and the retail value of the premium version is $399. However, Microsoft, with Bill Gates at the controls, is far from being destitute over its latest video game console release that has the world buzzing.
The games, most of which are in the $60 range, make up for the production-cost deficit and then some. Microsoft will make billions from the games that it produces and by collecting fees from publishers.
The bottom line: Video game consoles can live and die by the quality of its games.
By this time next year, the Xbox 360 will be old news following the much-anticipated release of Sony’s PlayStation 3 in the spring and Nintendo Revolution later in the year. How the Xbox 360 holds up against the competition will be based on the quality and quantity of its video games.
The Xbox 360 currently has more than 150 games either released or in production with projected releases by March. The most popular among them is Electronic Arts’ Burnout Revenge, Mistwalker Studios’ Blue Dragon, Microsoft’s Perfect Dark Zero, Tecmo’s Dead or Alive 4 and Activision’s Call of Duty 2.
Burnout Revenge will not be released until March 1 and it is already causing a stir in the video game console market. Because of the advanced technology of the Xbox 360, the Burnout Revenge not only has cutting-edge graphics, it will also provide a “Live Revenge” and “Save & Share” feature.
With the “Live Revenge” feature, players will notice rivals logged on and be able to challenge them to another race. The “Save & Share” feature allows the player to show their friends highlights of their favorite race, maneuver, or of course, crash.
These new features in Burnout Revenge and other games previously on the market will keep the gamers coming back for more and make the Xbox 360 a financial boon, so who really cares about the production costs?
Bill Gates is not a multi-billionaire for nothing. He knows all the tricks of the trade.
In terms of marketing, Microsoft arguably used the ploy of providing limited amounts of the Xbox 360 to retailers upon its release, creating an even stronger demand for the console. Many customers were outraged in America when stores immediately ran out of the product when it was released Nov. 22. Those who purchased the Xbox 360 either in stores or with pre-release orders felt like the chosen ones.
This historically used marketing ploy increases the perceived value of the Xbox 360 and causes a media stir creating publicity of the much-wanted item. Furthermore, no substitute exists with the PlayStation 3 still months away, which makes retailers very happy.
How so? They know customers will continue to return to their stores to inquire about the Xbox 360, and while the customers are around, they may buy a thing or two.
News reports suggest Sony will use the same ploy with the PlayStation 3 but take it one step further by not announcing which stores will have the product on its release date.
In the long run, after mass-production finally hits, and a plethora of games are available for each console (with each publisher trying to outdo each other), Bill Gates and Sony will not be the only winners.
You, the consumer, will also come on top. You can smirk while you say to Gates, “Hah, I finally have an Xbox 360 that you kept from me at first. I bought the console for less than you what you spent to make the thing, and I get the most bang for the buck when it comes to the entertainment value. Thanks Bill.”
Thank you to Javier Moralas for this X Box 360 news article.
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