Steve Ballmer Hints at Natal Bundles, Form Factors

On Thursday, Microsoft chief executive Steve Ballmer spoke at the University of Washington supposedly on the topic of cloud computing. But the conversation also wandered into other topics, one that might include the future of the Xbox.

[iiprotocolii]

There no doubt in my mind that Microsoft is going to bundle Natal with the Xbox 360. It's a far easier way to introduce and market the device to the consumers. Selling the peripheral as a standalone at first might be pretty tricky - and what better way to promote something that to actually bundle it with your hardware? Of course, although it's a form of 'forcing it on people,' the one thing that will sell Natal - if it manages to do well - is the software/applications that accompany it at launch. Let's see what happens.

[Chadness]

Agreed, but they have to have it available stand-alone, as well, because there are millions of Xbox 360s already out there and everyone is not going to want to buy a new console just for Natal.

[JoelT]

It would be very hard to sell to consumers as two separate items. Especially in a down economy. While I'm still unsure how Natal will be received, one thing is for sure and that is that MS will market this thing like it's no ones business. Too bad for them they don't have their own Kevin Butler (those commercials are awesome).

[captain-obvious]

a bundle like the one im seeing in that pic would be like 400$ ~ 450$
that seems about right

[Bigpappy]

But the bundle is not forced on anyone if you can still buy 360 with the controller, which I am sure is the case. I don't get where this force thing came form. It sounds like one of those arguments PS3 fanboys always bring up out of no where. That and coming home from work and having to wave their hand instead of sitting on a couch. It sound so sheep like because everyone has a choice to buy or not to buy.

[iiprotocolii]

@Bigpappy

The "force" thing comes from the idea that in order to market the product effectively, and to appeal it to potential consumers before marketing as a standalone (which I no doubt know they will), which is the best strategy to get them into homes. It's not a PS3Fanboy "argument," it's a business strategy that will work.

The best way to perpetuate the attractiveness of a new product like this is to bundle it with consoles so that people can familiarize themselves with them, play with it, and give feedback. Think of it as a way to 'test' the product and responses.

If you were a new Xbox 360 buyer, wouldn't you buy the console that comes with more stuff for a few extra dollars than the one that comes with almost nothing? That's how people buy during the holidays, and that's a good marketing strategy that MS is taking advantage of.

So, yea, it's not "fanboyish," it's more common sense and logic when you apply it correctly.

[tronz]

"although it's a form of 'forcing it on people"

I hate it when limited and special edition games are forced on me? I hate it when game companies offer no other way of buying consoles and games because of bundles :p

"if it manages to do well"

Nothing will stop Natal.

[Bigpappy]

You might not have intended it to be a fanboy comment, and I am not saying that you are a fanboy (I can recall you being a fanboy). But this is the way they argue here on N4G. It is always M$ forcing something or them coming home from work. PS3 fanboys are the only ones who work, the rest of us steal money from mom's purse and send to M$.

[iiprotocolii]

@tronz
You're absolutely delirious if you think that Natal is going to do well by word of mouth. There's no way to even utter the words "nothing will stop Natal," when it hasn't been released to the public for personal analysis of a product still in development. That's a foolish fanboy statement. Natal isn't out - stop giving it praises as if it is.

@Bigpappi
lol. Find me a written post on N4G that displays me being any form of fanboy to any console. I'm loyal to each console - they all bring a unique gaming experience in their very own ways, and I enjoy each immensely. From your defensive tone, it's obvious that you're an Xbox 360 supporter (which I have no beefs with. To each his own). In this discussion, no one mentioned anything about how MS is always "forcing" anything intentionally. It's done as a business strategy, as stated above, in order to market the product more effectively. In no way am I saying that they will be placing a Natal unit in every single 360 SKU. However, having this option of creating a SKU for it will indeed appeal much more to new console buyers - especially if it does everything Microsoft said it will do in last year's E3.

The thing about people here on N4G is that they take everything out of context (as you just did), which then in turn spawns a rabid argument about which console is better and why. I'm only stating that this is a business strategy that might be a good move on MS's part, or might not. Again, the best way to appeal to consumers with a peripheral like this is to get it in as many homes as possible; and, of course, putting it in bundles SKUs serves best as it is the bundles that usually sell like hotcakes during the holiday season.

[DSI]

Your initial comment was very valid for the most part; however, I don't feel that bundling Natal with the 360 is in no way shape or form being forced on anyone. There are "SEVERAL" options for buying a 360, no one is being forced to buy a Natal bundle with no other options available, therefore I think that part of your comment was reckless. Overall I totally agree with your initial comment.

90% of the PS3s sold over the past 3 years have had something bundled with it. Do I consider this as being force on the buyer, no. It's a business decision, it's that simple.

[Bigpappy]

That should have been "can not remember you being a fanboy". I am not familiar with your ID.

[iiprotocolii]

@Bigpappy
Apologies, kind sir.

[IG_DARKSA1NT]

Definitely a good move from a financial standpoint.

[Hitman0769]

Agreed, this will probably end up being mostly for the children (like Halo 3) in my estimation of the long term result. And from a financial standpoint, more people are being born every minute than dying right now so the capital will be invested well if this indeed does play out.

[DelbertGrady]

Halo 3 a kids game?

[Tiberium]

I thought Mature was 17+.

[Hitman0769]

Very Interesting.

[iiprotocolii]

Knowing Steve Ballmer, though, one can't take his claims as concrete fact. He's been known for speculating from time to time.

[Gigalol]

New SKU confirmed?

[PeptoBismol]

^
still a tard. confirmed

[taz8080]

It will open up a new install base for them and ultimately compete more with nintendo

[jack_burt0n]

Bundling the device at a loss and recouping that loss from people who already own a 360 is my prediction for their aggressive natal push.

bundled, keep the sku's the same price as an add on $150-180.

Also means the temptation to "just buy a new sku" increases which they have gone after in the past, the pricing would fall n line with their accesory pricing at the moment. Who knows if it will have an effect on how much the dedicated software sells though.

[siyrobbo]

exactly, the main reason i think that the hard drives are so expensive is that it add's a perception of value to the main units

arcade + 120gb = $350
elite with 120gb =$300

notice how i say the perception of value

lol

[jack who]

http://www.microsoft.com/pr...