quote:

---

> http://xbox360.ign.com/articles/642/642645p1.html
>
> Why two choices? Why a separate hard drive? VP Moore explains Microsoft's
> stand.
> by Douglass C. Perry
> August 17, 2005 - Microsoft today officially announced two price SKUs for
> the North American and European markets, with a premium SKU selling for
> $399.99 in the North American market, a ?399.99 Euro pricing, and a £279.99
> for Great Britain; while the Xbox 360 Core System will MSRP for $299.99 in
> the U.S, with a corresponding ?299.99 euro pricing, with a £209.99 British
> MSRP.
>
>
>
> We spoke with Microsoft Vice President Peter Moore about Microsoft's
> decisions in which he explains the decisions behind the two prices, the
> importance of HD, the values of both SKUs, upgrading, news from the Tokyo
> Game Show, Halo 2, Perfect Dark Zero, the launch date, and more.
>
> IGN: Why did you decide to offer two SKUs, isn't that confusing for the
> consumer?
>
> Peter Moore: If there is a lesson I think we have learned in the previous
> generation is that gamers want choice. Some gamers want simply to play a
> game and have none of the, in their estimation, some of the frills of the
> gaming experience, and price becomes paramount for them. At the same time,
> we believe it's important to offer them the ability to set up and upgrade.
> But if price becomes the key factor, we wanted to have that as well for as a
> choice for the consumer. $299 is a spectacular price point. And certainly in
> Europe in particular, I think we learned our lesson, that 479 euros and a
> March launch was not the optimal mix of what was going on.
>
> IGN: How do you see the split between the two prices working out? Will it be
> different in North America than in Europe?
>
> Peter: I think that a large majority of people all over the world will be
> buying the Xbox 360 systems ($399). Europe is a much more price-sensitive
> market, in particular continental Europe, where the primary mode of
> distribution becomes what is known as the hyper-markets. It's incredibly
> important for us to offer that 299 euro price point. We've got great
> aspirations, as you know, to build critical mass in this next generation,
> and doing that without offering a competitive price point in all markets is
> something that we thought would be a negative.
>
> At the same time, we wanted to offer a value package system with the Xbox
> 360 that gave what we believe every next generational gamer is looking for,
> the ability have storage, to have videos, music, to have photos, great games
> in minimum 720p, and the ability to use wireless technology, everything
> we've shown in all the demos we shown you, and everything costs money. But
> the ability to have a hard-drive alone costs $100. So we really think the
> consumer will recognize the value and step up. But there are some people who
> just don't want to do that. They may upgrade later on, and that is what the
> core system is all about.
>
> IGN: Do you think that gamers will by more of one SKU that the other? Do you
> have research that proves the higher price point is going to take off?
>
> Peter: My firm belief, and in all of the discussions I've had in the last
> couple days with the analysts who are starting to look at this and tear this
> thing apart, is that the great majority of sales will be at $399. That is
> huge value for the money. We absolutely project that the Xbox 360 will
> outsell the Core System in the early going. Over the life cycle that balance
> will probably change, but for $399, it's phenomenal value.
>
> IGN: Will the hard drive come pre-loaded with Halo and Halo 2 on it?
>
> Peter: We want, out of the box, a high definition experience for consumers,
> and the hard-drive will have content loaded on it at launch. It will contain
> video, not necessarily related to videogames. I can't get into the details,
> we're just weeks away from making those announcements, but they will be
> pre-loaded, no charge for it. We'll be working with partners to ensure its
> entertaining to the demographic, and that's very important.
>
> We have no plans to have Halo or Halo 2 loaded on the hard drive right now.
> For us, I believe, we need to focus on high definition experiences. Halo 2
> is arguably close to high definition. Halo was built in standard definition,
> as you know, but the idea of putting stuff on the hard drive is to have an
> instant, out-of-the-box experience in high definition.
>
> IGN: How do you like the wireless controller?
>
> Peter: Having spent the last three nights with a wireless controller,
> sitting back 30 feet from the TV almost in a different room, I love it. The
> ability to turn on your console from the wireless controller is one of my
> favorite features because now I don't have to move one iota off the couch
> anymore.
>
> IGN: In what way will you work with third-party peripheral companies to
> create controllers, memory cards, and other third-party products?
>
> Peter: The quality of the current generation of peripherals for us has been
> like, if you will, the Wild West. It has not been, I believe, that of a
> quality or consistent experience. So we are trying to get a better grip on
> that, quite frankly.
>
> IGN: What's the launch date?
>
> Peter: As you know, we have yet to announce a launch day or date in any
> territory. We're saving that information for a later date. It's important
> for us from a strategic standpoint to not reveal that date to our
> competitors, but7 we're gearing up and we're on schedule for a holiday
> launch this year.
>
> IGN: Surely, you know how important launching prior to Thanksgiving is in
> North America. The Xbox 360 isn't going to launch any time after that date,
> which is the unofficially kick-off to winter holiday shopping, or will it?
>
> Peter: Thanksgiving is very important to us, in the US. That's the only
> country to celebrate that particular holiday, but that time period is very
> important. Some people say that the holiday season starts the day after,
> while others say it's early December. The point is we're not ready to reveal
> that date yet, but when we do you'll be the first to know. We can't talk
> about it yet.
>
> IGN: What is the status of Perfect Dark Zero? How is that looking? Is it
> ready for launch?
>
> Peter: Well, I brought home a beta kit last night and I played it for three
> hours with my son, who's a huge GoldenEye and Perfect Dark fan. It's
> intuitive, it's looking beautiful, and it's come a long way since we showed
> it at E3. Rare is doing an excellent job with that one. The framerate is
> solid, and it's good fun. Of course, it's a different experience than Halo
> or Halo 2 are, but in comparison, you'll be able to do things online with
> that game, involving many more people, than you could with Halo 2. I can't
> say anything more than that.
>
>
>

quote:

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> Highlander wrote:
>
> Cool posting binary files as well.

quote:

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> "ScoopeX" <scoopex@scoopex.co.uk> wrote in message
> news:uTKMe.1$Oi7.0@fe05.buzzardnews.com...
>
>
>
> If you're going to complain about huge posts, how about trimming the chaff.
>
>

quote:

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> Peter Moore: price point...price point...price point.

quote:

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> Any of you industry insiders care to explain the difference
> between "price point" and plain old "price"?

quote:

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>
>
>
>
> Any of you industry insiders care to explain the difference
> between "price point" and plain old "price"? Is this like
> "Corinthian Leather", the same as ordinary leather, but sounds
> ever so much more impressive to dumb people?
>
> --crymad

quote:

---

> Any of you industry insiders care to explain the difference
> between "price point" and plain old "price"? Is this like
> "Corinthian Leather", the same as ordinary leather, but sounds
> ever so much more impressive to dumb people?

quote:

---

> crymad wrote:
>
>
> Companies use the term to identify different prices for the
> same group of items. A display of grills will have a price
> point of $99, $119, $169, $299, etc. I suspect the reason they
> use the term is because an executive who XXX-kissed his way to
> the top wanted to look smart by inventing a new term.