
An astute reader of this site (Okay fine, Hello aceattorney from Xboxcheaterwatch) read my original predictions post from yesterday and brought up a few interesting points.
He started off with my lack of mention of any price cuts. As you can tell by the title of this post, I don’t think they matter all that much. Consider why a console would cut its price. The main factors are stagnant sales and/or the need to cut price in the face of a competitors price cut.
Sony isn’t going to be cutting the price of the PS3 at all as confirmed today by their CFO. Sony could be lying, but why would they need to cut the price of the PS3 now with easily the best game of the year in Metal Gear Solid 4? The value of the PS3 at $399 considering the Blu Ray player, media capabilities, and library as a total package sits today as the best bang for your buck in a console. Plus, the numbers don’t lie. The PS3 is doing just fine in terms of sales against the Xbox 360.
The Nintendo Wii is still selling like hot cakes on the backing of such titles as Wii Fit and Mario Kart. Almost two years later, I still don’t think I have seen one in a store just perusing through. A price cut for them makes almost no sense at this point.
We’ve all on the other hand by now seen the all but confirmed rumors of Microsoft’s price cut (thank you retail circulars). When you make the claim you have the best library of next gen games and the best online console gaming service; you would think the sales numbers would be heavily in your favor. Yet, they’re not. A price cut will help sales only marginally as the cut to $299 in of itself isn’t really all that significant. The Xbox 360 has four main issues none of which are addressed by a price cut.
1. The library is stagnant. As a gamer, what exclusives have you done for me lately? Sure, Halo 3 was great but that was almost a year ago now which might as well be ten years ago in this industry. Where are the next good exclusive games? Forget sequels and games that can’t live up to the hype and promise (Sorry Denis). Show me substance. Where you at on that Microsoft?
2. Xbox 360 is undeniably stuck in yesterday. The next gen format war loss for HD-DVD still looms large even though Microsoft didn’t officially back one format over another. The use of a plain ol’ DVD will as time goes on this generation become a bigger and bigger problem for 360 games. I’m not even sure there’s a viable solution for this problem for at least another year because the last thing you would want to do is launch a blu ray player internally or externally that ends up costing more than a PS3 (and let’s face it MS, you are severely guilty of your overpriced accessories).
3. Xbox live made a lot of nice strides this generation, but Sony is catching up online. No spring update to speak of and no news on a fall update to this point. There’s a lot Xbox live is missing, where is it? How do you skip an entire update time window and make no statement? Where is the conference chat, inter-game party ability, and the web browser? Where’s netflix and IPTV? I don’t want to hear the tired excuse of “If we work on that, we won’t be able to work on other cool stuff”. Sony is catching up in terms of services and quality of service, and most of it is free. Put up or shut up time for the live team.
4. The overall direction of the brand and the new leadership regime is extremely suspect. I made point of this yesterday. Motion controls? Home clones? This sounds like the strategy Electronic Arts used to use when they were the laughingstock of the industry. Yet at the same time, many of these same executives have made the move to MS. A ton of people and companies who made the Xbox what it was have left the division or company altogether. A long list including former front man Peter Moore, Bungie, Shane Kim, and Jeff Bell (oh noes!). Who is Don Mattrick and where is he?
A price cut solves none of these issues. A price cut helps propel sales a little but without the substance to back it up what is the point? You’ll see a slight bleep in the increase of sales post announcement and it will be spun as a major success by PR but is it really? Maybe Microsoft has something up their sleeves worth showing at E3 and maybe they don’t. But a price cut doesn’t address any of fundamental issues that are plaguing the console at this point in time. This price cut was extremely overdue to begin with and it’s just not that significant to change the game. It’s just temporarily plugging one hole on what now appears to be a sinking ship.