Video Game Buttons Blog

May 1, 2007

Will Microsoft’s Xbox 360 Elite end up simply confusing and alienating gamers looking for a solid game system? Has Microsoft has learned Nintendo’s prior lesson about focusing on the “hard-core” crowd?  The latest report from analyst group DFC Intelligence lays it all out.

 

“The launch of the Xbox 360 Elite means Microsoft is now chasing Sony after the high-end market.  The strategy of both Sony and Microsoft seems very similar to the one Atari and Nintendo unsuccessfully tried,” the repost states, explaining that the Xbox 360 Elite is a $479 system, the goal of which “is to target consumers that want to download and play high-definition video.”

 

However, there should be concern that what the Elite may end up accomplishing is confusing and alienating those consumers just looking for a solid game system.

 

The report notes that one problem with the new Microsoft console it its name: “With the word ‘elite’ Microsoft is implying that their existing users and all potential future Xbox 360 buyers that if they only spend $400 they are not elite.  At the same time Microsoft announced the Elite, Sony was announcing that they were eliminating the low-end $500 PlayStation 3 SKU.  Sony claimed that demand for the $600 PS3 SKU was over 10-to-1 that for the $500 SKU.  This illustrates a basic rule about the video game consumer: when you are talking big bucks consumers do comparison shopping.”

 

“The Xbox 360 Elite seems like Microsoft’s attempt to chase Sony for the high-end video-centric consumer.”  The report goes on to explain thst chasing Sony in that way is an unwinnable mission because the Elite targets a marginal - possibly non-existent - consumer that wants an HD system, but also wants “to cut corners when it comes to video playback by using a comparatively low-tech video game hardware system.”

 

And what about the Elite’s built-in HDTV DVD player or Internet Wi-Fi?  Nope, included.  That said, the PS3 offers more and costs less.

 

“But the issue of what the Elite lacks is not the primary concern. It is fine to try and satisfy the high-end consumer, but if doing so alienates your mass market base it can spell doom. Sony has more flexibility to go with a high-end strategy because they are still satisfying their core PlayStation 2 consumer base. With hot new products like God of War II, Sony Computer Entertainment is showing existing consumers they don’t need to rush to upgrade to the PS3 (or competing system). Compare this with Microsoft that basically slammed the door on the original Xbox and is now basically telling initial Xbox 360 purchasers they need to buy a whole new system if they truly want to do high-definition.”

 

It’s the issue of HDMI output that seems to be the biggest problem for the Elite. Specifically, most consumers don’t even know what an HDMI port is.  Just last year Microsoft maintained that you don’t need HDMI for HD and that regular component cables will in fact work just fine. 
 

A recent look at the Elite by GamePro also prioved less than sterling: Ultimately, the Elite has nothing to do with enhancing the gameplay experience; it’s for multimedia whores. HDMI, a larger hard drive, new movies and TV content? Great. Remind me why the gamer in me cares? How will the Elite improve my games? From a game saving and demo download standpoint, a 20 GB hard drive is more than enough (hint: you were right the first time, Microsoft). After all, despite whom Elite is being pitched to, gamers are the ones really buying the product.”