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Microsoft: We Keep Selling The Hard-Drive-Free Arcade Xbox 360 Because 'Consumers Like Choice'

Stephen Totilo writes:

"Microsoft didn't exactly drop the price of the Xbox 360 the weekend before E3. They merely lowered the price on the discontinued 20GB Pro version to $299 in order to make room at $349 for a new 60GB Pro model.

Why do that?

And why not use this opportunity to kill off the hard-drive-free Arcade version of the machine?

Don Mattrick, head of Xbox at Microsoft, broke it down for me at E3..."

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SUP3R - contributor
Published: 520 days 14 hours ago | News | E3 2008 | Xbox 360 | Industry News

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BigBoy2000 - 520 days 15 hours ago

1 - Oh yeah...

And also because we love to prey off of ignorant consumers to make all the green we can!!!

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NO_PUDding - 520 days 15 hours ago

1.1 -

I find it ironic that through that, in the future they will actually be constraining choice, when it comes to games that require installs.

It's going to happen.

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Monchichi025 - 520 days 14 hours ago

1.2 - @1.1

No it's not, and you know it!

MS would never allow this as this would not be financially benifital to them or developers.

But like MS said, it's all about "choice" for them. But I wouldn't expect you to understand what that means since you have been forcefeed everything since the beginning. "Open up wide!"

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cliffbo - 520 days 14 hours ago

1.3 -

absolutely right fella... 'why can't i download the GTA add ons?' 'you can son, just work harder at the weekends and save $75 for 20GB' 'but the PS3 has 80GB standard soon!' 'look, you made the choice'

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Hagaf22 - 520 days 14 hours ago

1.4 -

sony -"we only make consoles with hard drives, because we know what it takes to have a console last ten years- the ability to predict tomorrows needs"

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1.5 incogneato | 520 days 14 hours ago - User only got 1 bubble - Show

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NO_PUDding - 520 days 13 hours ago

1.6 -

Christ monochichi, calm down.

360 will have required installations, otherwise it's pretty much out the race.

What I said wasn't fact, but for Microsoft to miss out on games, becuase they won't have mandatory installs is ridiculous. By the way, benefital isn't a word. It's beneficial.

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ReBurn - 520 days 13 hours ago

1.7 -

So did Sony also screw over 20gb PS3 owners by selling a version of the console that didn't have all of the same hardware as the 60gb? Or are 40gb owners screwed over because they can't play PS2 games? Of course not. If anyone buys a 40gb PS3 with the intention of playing PS2 games they're just poorly informed.

There's not a single person that I've ever heard of being forced to buy or tricked into buying the Arcade version of the 360. If someone gets screwed it's because they screwed themselves, not because they were tricked. Suppose you already have a 120gb drive and you break your 360? Would you rather pay $349 for a new one or $279 for a bare bones console that you could add your hard drive to? Some people would go for the lower cost option because that's all they need.

Having more choice is never a bad thing.

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NO_PUDding - 520 days 13 hours ago

1.8 -

I never said they were tricked.

But to be honest they are screwed.

Backwards compatibility is nice for a games console, but it's not required. Since games consoles should rely on thier own games.

20gb is a small harddrive, but it's still a harddrive. You can do the rearranging on it.

The difference is the arcade requires you to buy somethign seperately, and when installs become mandatory, I would say a good 30% of the 360 install base will be screwed over.

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gaffyh - 520 days 13 hours ago

1.9 -

@monchichi - Let's put it this way, if Square Enix say to MS that they NEED to have a mandatory install for FFXIII, MS is not going to say no. They would be stupid to do that, cos Square Enix would just say OK we're only making the game for PS3 now.

^Eventually that will happen, if not for FFXIII than some other future game.

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ReBurn - 520 days 13 hours ago

1.10 -

I still don't see how people are screwed. How many games are currently available for the 360 that require a hard drive install? How many upcoming games are confirmed to require one? There is no confirmation that there will be games that require them. And if there are games released that require them then people still have a choice. They can choose to buy a hard drive or they can choose a different game.

Think about it. There are several games that require HDD installs on the PS3 and the same games do not require them on the 360. What exactly is it that is going to force installs on the 360?

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Bubble Buddy - 520 days 12 hours ago

1.11 -

Us consumers also like not to get ripped-off.

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JsonHenry - 520 days 11 hours ago

1.12 -

I want to shoot the person at Microsoft that said it was okay to ship one without a HDD in the first place.

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matchgrade - 519 days 18 hours ago

1.13 -

How in the hell would you download that $50mil GTA4 DLC without a hard drive?

Seriously, I dunno. I don't have a 360.
Do Core owners use memory cards for game saves?

Seems like a step back, seeing as how my original Xbox had a huge hard drive that isn't even close to filling up.

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green - 520 days 15 hours ago

2 -

Which consumers are they referring to?Why don't they just add the 20gig to the arcade sku, sell it for £159, Pro with the 60 gig for £199 and the elite for £250 at the existing prices.

Is that not given the consumers a choice?They way some of these big co-operations think is really baffling?

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Omega4 - 520 days 15 hours ago

3 -

They may as well keep the arcade as it is because adding a HDD will only add an extra cost to them and its not like adding the harddrive will allow for mantotory installs because there will always be Core users out there

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Cartesian3D - 520 days 14 hours ago

3.1 - funny

Are you a MS employee? you always support MS even when they are wrong..

do you have a choice for changing your HDD to a bigger one(any size you want)with reasonable price? answer: NO

but you must pay extra to MS .. there is only 120GB HDD at same price as 500GB one.. is it the choice you want ? Answer : "Yes,I am a Blind fanboy"

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Halochampian - 520 days 14 hours ago

3.2 - @3.1

same can be said for you about Sony. =/

I actually bought a arcade because I already had a hard drive and just needed the core system.

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SCThor - 520 days 14 hours ago

3.3 - @3.2 and you had a spare hard drive because....

LET ME GUESS!!...mmmm....MMMMMM...mmm mm because your previous console RR0D'ed?

So, MS gave you the choice of buying another console or keep the first one broke for good...nice.

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Halochampian - 520 days 13 hours ago

3.4 -

yea.. it RROD but it was my own fault so I cant really blame them. That is why I bought another one.

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Cartesian3D - 520 days 13 hours ago

3.5 - yes Im a sony fan...

but I saw his comments in every PS3 topic bashing sony's games..

did you see me bashing MS games ? did u see my comments about Fable2 and NG2 (my fav 360 games) ?

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NO_PUDding - 520 days 13 hours ago

3.6 -

When you try to scapegoat the RROD to yourself, rather than the company that made the mistakes, it's a sad day.

It wasn't your own fault your 360 got the RROD, you know very well.

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Halochampian - 520 days 13 hours ago

3.7 -

well.. bashing is a different story. lol

all you said was him supporting xbox.. which there is nothing wrong with that.

but bashing... that is a different story.

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Halochampian - 520 days 13 hours ago

3.8 - @ pudding

I voided the warranty.

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Sheddi - 520 days 12 hours ago

3.9 - @3.8

Was that before or after u got RROD?
(an honest question, nothing fanboyish with it)

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Halochampian - 520 days 12 hours ago

3.10 - before

i accidentally messed up the inside so that it wasn't making contact to get power. So I opened it up and fix it.

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cl63AMG - 520 days 8 hours ago

3.11 -

no, its because they're still fighting the ps2

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Fan Tastic - 520 days 15 hours ago

4 - M$ being honest "Because we love ripping off customers with our outrageous $100 20GB HDD"

Most casual gamers don't understand that the Arcade unit doesn't even play every game until they buy that game that will not work or feature that doesn't function. Then $$$$ for M$.

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Monchichi025 - 520 days 14 hours ago

4.1 - Really??

Please name me ONE MS game that won't play on the arcade??.....Can't think of one?? Maybe cuz THEY ALL CAN BE PLAYED ON THE ARCADE!!

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baseballkid721 - 520 days 14 hours ago

4.2 -

burnout paradise online...

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Fan Tastic - 520 days 13 hours ago

4.3 - Monchichi05, do some research if you don't want to come off as a complete ignoramace

Two more for the list, there are others as well:

Final Fantasy XI
Football Manager 2006

I believe you love M$ for charging $100 for a 20GB HDD as well. So many loyal sheep (viral marketers) on these boards for whatever reason.

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Halochampian - 520 days 13 hours ago

4.4 - @ fan

why wouldn't you blame the people the buy the product without looking into it?

I bought the arcade because it would have suited me best. so it did benefit me.

People dont have to get the arcade and then pay for a hard drive. But if they do... they are the only ones that can be blamed.

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NO_PUDding - 520 days 13 hours ago

4.5 -

Ignoramus?

I am not one to back Monochichi up, because he is clearly whining, but it's ironic you call him an ignoramus, when you can't even spell it.

Damn the irony certainly isn't passing lightly today. Two examples in one article.

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Fan Tastic - 520 days 13 hours ago

4.6 - You got my, I made a spelling mistake on a gaming forum.

That has never happened before :0

Seriously, he was shouting at me and it hurt me so I typed quickly and goofed :(

Halochampian, good points. M$ is displeased with you at the thought of telling consumers to research first, you are hurting their bottom line.

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ReBurn - 520 days 12 hours ago

4.7 - @baseballkid721

You can still play Burnout Paradise, though. Not being able to play online is not the same as not being able to play at all.

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matchgrade - 519 days 18 hours ago

4.8 - @4.7

Not in this generation.

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bushfan - 520 days 14 hours ago

5 - they want more $$$

only people away from videogames can buy an ardace model..like parents who want to give a present...But then the kids would say, hey dad I need a HD..how much cost son?...

arcade + HD= more $$..for microsoft

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Dlacy13g - 520 days 14 hours ago

6 - seems straight forward to me.

It's pretty obvious... Once MS introduce the Core and given that about 30% of their base is core units there is no way they can just kill it off at least from a developement standpoint. So they keep the core so when they do actually do a price drop...probably in Oct./Nov. similar to what Sony did last year, they will drop the Core down even more and it will be the cheapest console on the market. I suspect another $50 cut at that time.

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Percy - 520 days 14 hours ago

7 -

Or because you like to stick it to them later when they need a hard drive and find out they dont have one.

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Dzpool - 520 days 2 hours ago

7.1 - and Sony sticks it to the parent

who go to buy a pS3 and get home to there child who find out later that the Ps2 that have either sold or traded in to lower the price on the 40 gig Ps3 find out that guess what you have to buy another Ps2 so your child who has 20 - 30 Ps2 games don't work even though one of Sonys big selling points is suppolsed to be Backwards compatibility the arcade gives people who can't afford the Pro or Elite the ability to enjoy gaming and you can play online with a memory card i still say that if they lowered the price of the arcade to $199.99 dollars it would sell as well as or better than the wii 1 of the reasons the wii sells so well is because of the price

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matchgrade - 519 days 18 hours ago

7.2 - @ Dzpool

Ever heard of a comma or a period?

Unlike a hard drive, Backwards compatibility is a luxury, not a necessity. I was also pissed at first for having to settle with the 40gb PS3, but once I started playing games like CoD4 and Oblivion, I got over it. And if I were that parent I'd tell my kid to do the same because he can't hold onto everything for his entire life.

I'd also remind him that buying a ps3 to play ps2 games defeats the purpose of spending the $400 in the first place. Besides, most ps2/xbox games are kinda like, sh1t, compared to what we have now.

Moving on- why do i feel that a hard drive is a necessity for the 360? BECAUSE MY ORIGINAL XBOX HAD ONE!

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Whoooop - 520 days 14 hours ago

8 - lol

Microsoft's "choice" excuse is getting old.

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Bombomb - 520 days 11 hours ago

8.1 - yeah that "play b3yond" by sony

is also played out if you ask me...

choice is always good...

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SmokeyMcBear - 520 days 14 hours ago

9 - ...

what he is basically saying is.. as long as the dummies keep buying them.. they're gonna keep selling them.. it makes business sense. Even if the public consumer is semi-retarded and always goes for the cheaper option... even though they pay more for it in the end.

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10 Zerodin | 520 days 14 hours ago - User only got 1 bubble - Show

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Cartesian3D - 520 days 14 hours ago

10.1 - you think Im a fanboy

because my avatar is an AAA title for ps3?

do you use this logic in real life to communicate with people ?

read my comments, Im not a hater, I didnt bash any 360 game ..what the hell.. why Im replyin to you :P

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JEDI WOLVERINE - 520 days 14 hours ago

11 - Hmmmmmmmm

Microsoft were brilliant last gen in putting a HDD in each console - it was the way forward.

This gen they have mucked up with their 'choice' thing.

People need a harddrive for gaming in this day and age.

My advice would be for MS to not release any more consoles with less than a 60gig harddrive with it.

They should phase out the HDD less machines.

For people without a HDD they should have a 'firesale' on their 20gigers - say £20 each - just so everyone can get one.Might loose some money here but thats what they need to do.

Also next gen allow third party companies to release their own harddrives that can be used with the machine - Sony done this, why couldnt MS.

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DJ - 520 days 14 hours ago

12 - It's a tough thing to balance

Between expanding your userbase and satisfying your developers. =/

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AclayPS3 - 520 days 14 hours ago

13 -

Microsoft keeps selling the Xbox 360 Arcade with No Hard drive because they are cheap. How the heck did Microsoft go from selling every single Original Xbox with a hard drive last gen., to selling a 360 model with no hard drive at all? That's like going backwards.

I think that Microsoft is probably afraid that if they take away that Arcade model that's priced so low, the PS3 will gain even more ground in the U.S. and the only reason I think Microsoft keeps selling the 360 Arcade is just so that they can have a larger price margain between the PS3.

If Microsoft is going to continue selling the 360 Arcade, they need to lower the prices on those overpriced hard drives at least because $89.99-$99.99 for a 20GB 360 hard drive is ridiculous because I can get a brand new 160GB+ hard drive for the same price to be used with a PS3.

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Ceekay - 520 days 14 hours ago

14 -

Same with Vista and its 5 different versions lol

It's a joke. Typical Microsoft statement.

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1 Poor Xbots | 520 days 15 hours ago - User only got 1 bubble - Show

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juuken - 520 days 14 hours ago

2 -

...Customers like choice?

Then why don't they have the choice to not pay for an online service? How is it that in order to get the most out of their 360, they're forced to pay $50.00 a year?

Cut the bullsh*t Microsoft.

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GiantEnemyCrab - 520 days 14 hours ago

2.1 -

They have a choice. They can use a Silver account nobody is forcing them to have a gold account.

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juuken - 520 days 14 hours ago

2.2 -

But if you want the maximum experience for online, you're forced to pay for gold.

They should make the whole damn thing free...not this whole free/pay bullcrap.

Also, how is it that 360 owners don't get the choice of choosing their own harddrives to hold data in their 360? Why is it that they're forced to use what Microsoft provides? If I want to increase the space on my PS3, I can get any harddrive for around $80.00.

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Light Yagami - 520 days 14 hours ago

2.3 -

But what will happen when netflix hits xbl? Wouldn't all of those people who want movies have to buy a HDD? Same thing with downloadable songs for lips and rock bands because casual gamers don't know sh*t about HDD.

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militant07 - 520 days 13 hours ago

2.4 -

im not sure thhat netflix require HDD

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morganfell - 520 days 13 hours ago

2.5 -

The choice between experience and no experience isn't a choice at all with MS. It's like saying you can wear the red shirt or you can go naked.

I am surprised they sell it. I guess I am grossly underestimating the number of stupid people out there that would buy the damn thing.

Who would buy a console that already is behind the times? No storage? That isn't an experience. It is bad enough that adding a few years of Live to a 360 makes it more expensive than the PS3. Add the reliability issues, no next gen player, no choice in wireless headsets, no choice in HDDs, no choice play and charge cables, etc etc etc ad nauseum. NO CHOICE.

As it is the 360 was not engineered for longevity in the application department. And by application I mean being able to apply it to future technology and vice versa. What I am saying is the features in the 360 were not built with continual innovation for the life of the console in mind. Trying to engineer new ways to squeeze performance out of a console is not the same as finding ways to expand on latent capabilities designed into the console from the beginning. In a very large way the 360 is throttling back development in the industry rather than promoting it.

No one is looking at the 360 and saying there is all this untapped power in it. Did E3 reveal new 360 power? I don't know, what does it take to render a ripoff version of Miis?

And Netflix does require the HDD.

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2.6 Bladestar | 520 days 12 hours ago - User only got 1 bubble - Show

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morganfell - 520 days 11 hours ago

2.7 -

True , but if you don't have an HDD you are limited to the watch now queue like Roku Netflix.

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gano - 520 days 8 hours ago

2.8 - Truth.2.5

But the sad part is no matter how simple the statement was for it to be tru, u can't tell a fiend how his drug is bad.

Vote America.

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Fat Like Juuken - 520 days 7 hours ago

2.9 - HEY

Juuken, CLEAN THE GOD DAMN HOUSE AND COOK MY DINNER.

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Microsoft_Spokesman - 520 days 14 hours ago

3 -

Microsoft: We Keep Selling The Hard-Drive-Free Arcade Xbox 360 Because 'Consumers Like 512MB memory cards that you can't do sh*t on'

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gano - 520 days 8 hours ago

3.1 - HA

HA.

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Ceekay - 520 days 14 hours ago

4 - ...

Like Microsoft gives a sh*t about their customers...

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Mr PS3 - 520 days 14 hours ago

5 - I like choice

Like when i had the choice to change my Hard drive from the 60g to a Mighty 250g
For around the price of a years subsciption on Xbox Dead
Definatly better value

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NO_PUDding - 520 days 13 hours ago

5.1 -

Although I think you are a jackass for calling it Xbox Dead, it was funny.

Stop flamebaiting, even if this is the open-zone.

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gano - 520 days 8 hours ago

5.2 - Bubbles 5.

5.1. Homie u must forgot where we are at.

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DarkSniper - 520 days 13 hours ago

6 -

1. Microsoft offered consumers "the choice" to upgrade their Xbox 360 to a high definition disc format. Which is now defunct.

2. Microsoft offers a choice to those who want premiere online services and those who dont. Meaning, in order to utilize Xbox Live to the potential of PSN or Wii online, you must pay. But of course, it's not mandatory

3. Microsoft offers a choice to those who would like to pay a cheaper amount for an Xbox 360 and sacrafice that extra hard drive. Dark Sniper hopes those who made that choice does not intend on playing Burnout Paradise anytime soon.

4. Sega offered consumers a choice to upgrade their Sega Genesis by offering a subscribtion to Sega Channel. An online service in which you pay a monthly fee.

5. Sega also gave gamers the choice to upgrade their console to a CD based format which was expected to give gamers full motion video and sound. Also, they gave you another choice to upgrade your Genesis by adding a mushroom on top of the console entitled 32X.

6. Sega is now defunct and it looks like Microsoft is following the same path of destruction.

7. The best choice that any consumer can make is purchasing a PLAYSTATION®3.

$niper

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Bob Dole - 520 days 3 hours ago

6.1 -

Bob Dole's the only one that can talk about himself in third person muthaphucka!

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JEDI WOLVERINE - 520 days 13 hours ago

7 - @DarkSniper

Sony good -
Walkman
Televisions
Music systems

Sony bad -
Betamax
UMD
Microdisc

Not one company is flawless - i hope i have taught you something today.........

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juuken - 520 days 12 hours ago

7.1 -

Based on your logic...then we can say that Microsoft isn't exactly perfect either.

They have several flaws as well.

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gano - 520 days 8 hours ago

7.2 - Sorry Kid.

Betamax is still used in some recoding studios today. And umd's are still sellin, u see what monster hunter did. Those failures don't top
a 33% failure.

Vote America.

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JEDI WOLVERINE - 520 days 12 hours ago

8 - @juuken

You are correct my angel

NO company is perfect.

Microsoft not allowing third party developers to release their own HDD's for the 360 = fail

The disgusting failure rate (30%) and the RROD fiasco of the 360 = Epic Fail by microsoft

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power of Green - 520 days 12 hours ago

9 -

Need a bigger HDD.

LOL at the level of trolling been going on for a day or two.

As if these mentally ill Sony fanatics need to worry about MSFT's dealings(well I guess lower prices could effect Sony and nuts in some manner).

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Microsoft_Spokesman - 520 days 11 hours ago

9.1 -

PoG is a F@g.

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Tmac - 520 days 5 hours ago

9.2 -

PoG is a fаg

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Bob Dole - 520 days 3 hours ago

9.3 -

What they said times three with a swift kick in the nuts.

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waseem335 - 520 days 10 hours ago

10 -

wtf choice??

i think its pretty obvious that a harddrive is needed so y not hav that with every console like u did with the 1st xbox?

microsoft just wanted a way 2 make more money and they hide this by calling it "consumers choice" lmao hahaha

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Neo604 - 520 days 3 hours ago

11 - MS give consumer a choice to pay more.

eventaully you'll need a harddrive for gameing and online unless you use the 360 for matching dvd.

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