quote:

---

> Microsoft Press Briefing
>
> "The most important announcement at this event was the demonstration of the
> Xbox 360, planned for release this holiday season. Company management stated
> that the Xbox 360 would be backward compatible for "most top selling Xbox
> games", and pledged "support " for the current generation Xbox "well into
> 2006". Two weeks ago, we noted our
> concern that the Xbox 360 may not be backward compatible with Xbox software
> due to a change in graphics processor chipset manufacturers from Nvidia to
> ATI. In a separate meeting with Microsoft management, we confirmed that the
> company has agreed to pay a small royalty to Nvidia to allow the Xbox 360's
> ATI chipset to emulate the performance of the Nvidia chipset in reading
> certain Xbox games. For games written in a single layer
> (management assumes that this is a large percentage of Xbox games), the
> hardware emulation should perform well.
>
> For games written in multiple layers, a further emulation must be provided.
> The company intends to create software "patches" (i.e., separate emulation
> programs) for top-selling Xbox games written in multiple layers, and intends
> to sell the Xbox 360 with a hard drive that is pre-loaded with these
> patches. We presume that the majority of Xbox games will be backward
> compatible, and the company assured us that it intends to add patches should
> consumer demand warrant such action.
>
> We are less confident about Microsoft's intentions regarding the current
> generation Xbox. The company's pledge of "support" is broad, but we believe
> that it does not equate to "manufacture" of Xboxes. Rather, we believe that
> the company has stockpiled a number of Nvidia chipsets, and is prepared to
> manufacture current generation Xboxes through the end of 2005, and perhaps
> for a few months beyond. The implications of this are difficult to assess:
> on the one hand, it is likely that the company will focus all of its
> marketing efforts on the rollout of the Xbox 360, and phase out the Xbox
> rapidly, resulting in a rapid ramp in sales of the new hardware; on the
> other hand, it is possible that Microsoft will be unable to satisfy demand
> for the 360, and may experience a decline in demand for current generation
> Xbox software, resulting in lower overall industry sales growth this year.
> We believe that the latter scenario is likely to occur, and note that it
> could impact overall industry sales growth by approximately 100 bps in 2005.
>
> One final takeaway: Microsoft did not discuss pricing for the Xbox 360, but
> assured us in our meeting with management that "neither you nor consumers
> will be shocked" at the price. This implies to us that the device will be
> priced below $400, and may possibly be priced at $350. As discussed below,
> we expect Sony's entry to be priced higher, potentially providing Microsoft
> with an additional competitive advantage."
>
> http://www.ga-forum.com/showthread.php?t=50574
>
>
>

quote:

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>
> One final takeaway: Microsoft did not discuss pricing for the Xbox 360,
> but assured us in our meeting with management that "neither you nor
> consumers will be shocked" at the price. This implies to us that the
> device will be priced below $400, and may possibly be priced at $350. As
> discussed below, we expect Sony's entry to be priced higher, potentially
> providing Microsoft with an additional competitive advantage."
>
> http://www.ga-forum.com/showthread.php?t=50574
>

quote:

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> if Sony launches for $400, that is not a big enough gap to give MS an
> advantage.

quote:

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>
> <xenon360> wrote in message news:da-dnaWNecrPXT7fRVn-hw@comcast.com...
>
>
> They better add a hell of a lot more to justify the $350 price tag. Even
> if Sony launches for $400, that is not a big enough gap to give MS an
> advantage.
>

quote:

---

>Microsoft Press Briefing
>
>In a separate meeting with Microsoft management, we confirmed that the
>company has agreed to pay a small royalty to Nvidia to allow the Xbox 360's
>ATI chipset to emulate the performance of the Nvidia chipset in reading
>certain Xbox games. For games written in a single layer
>(management assumes that this is a large percentage of Xbox games), the
>hardware emulation should perform well.
>
>For games written in multiple layers, a further emulation must be provided.

quote:

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> The XBOX 360 alone is enough advantage over the PS3, not the price. I
> would gladly pay $100 more for the X360 than the PS3, just becuase of
> the services (XBOX Live), games (better exclusive games), and system
> quality and well thought out performance specs.