YES!! Xbox for only $1,200!!!!

Looks like MS is making a big mistake for its launch plan.  link

Consumers expecting to pay the $299 suggested retail price for Microsoft Corp.\'s Xbox video game console may be in for some sticker shock.

Beginning next month, many retailers will be requiring customers to pay from $499 to as much as $1,200 to reserve an Xbox console that, like it or not, will come bundled with games, peripherals and warranties.

The reason: Microsoft will provide additional marketing money to merchants that agree to include the software giant\'s games in their bundles. That\'s because Microsoft\'s games carry higher profit margins for the Redmond, Wash., company than those published by third-party companies such as Activision Inc. and Electronic Arts Inc. The plan is angering consumers.

"Loyal Xbox fans will have to dole out hundreds of dollars more than they expected to secure an Xbox," said Geoff Keighley, editor of Gameslice, an online game site. "That\'s just not right. It feels like bait-and-switch."

Microsoft officials said they are simply responding to retailers\' wishes.

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Not only is Microsoft encouraging retailers to sell the higher-priced Xbox packages, Microsoft also is specifying how much shelf space stores must dedicate to the new product. To ensure retailers\' cooperation, Microsoft is tying allocations of Xbox units and extra marketing dollars to its requests, retailers confirmed.

The console is not due in stores until Nov. 8, but many merchants--including Amazon.com, K-B Toys, Electronics Boutique, Babbage\'s, GameStop, Software Etc. and FuncoLand--let consumers pre-order Xbox.

That practice backfired for Sony Corp. when it cut back the number of PlayStation 2 consoles available on launch day last year because of manufacturing problems. That left consumers who had pre-ordered a console empty-handed and angry. Sony, anticipating such problems, had discouraged pre-orders.

Microsoft\'s strategy, intended to maximize revenue from so-called early adopters eager to lay their hands on the new console, is risky, analysts said. If pre-orders don\'t catch on, consumers could view Xbox as a dud, dampening enthusiasm before the console debuts.

"They\'re overestimating demand," said P.J. NcNealy, senior analyst at Gartner Group Inc. in San Jose. "That could result in a near-fatal first step."

Sean McGowan, director of research for Gerard Klauer Mattison in New York, said it is surprising that a newcomer to the console business, even if it\'s Microsoft, would take such an aggressive stance. "This is above and beyond the other deals in the industry," he said.

The program also runs the risk of alienating hard-core gamers, whom Microsoft relies on to generate buzz about Xbox.

Glenn Young, an avid gamer in Cheviot Hills, said he dislikes the terms of the pre-order program.

"It\'s not cool if they try to dictate which games you get," Young said.

In contrast to Microsoft, Nintendo Corp. is not attaching incentives for retailers to bundle its upcoming GameCube console with software or accessories.

"I\'m not sure what these programs get you, except a lot of marketing frenzy," said Perrin Kaplan, a Nintendo spokeswoman.

Hmmmm, what about what the consumers want?  It\'s true that when we bought our PS2\'s we ended up paying around $500 in the end, but at least WE CHOSE what peripherals and games we wanted.  This cosole definitely has M$ written all over it.

yes, it is a bad idea indeed. but there was another thread made by no-one about this also,

just an observation

If this is true, the Xbox fanboys better believe it. Xbox will bomb.

WHO IN THE BLUE F\'N HELL WOULD PAY $1200 FOR A VIDEOGAME SYSTEM?

It\'s not like it\'s 1200 for the system alone, which you guys seem to be treating it as it is.

And it only seems to apply to pre orders, as opposed to the console launch. I think the main thing they\'re trying to do is discourage preordering to some extent, so they don\'t have to worry about the shortage issue Sony had. Which means less angry consumers, happier retailers, better press, and so on.

[Titan]

That price is way too much. I know noone who will actually buy an X-box for $1200. That is out of hand.

Originally posted by Titan
That price is way too much. I know noone who will actually buy an X-box for $1200. That is out of hand.

:::sigh:::

yes, it makes the console bundled with games, but many consumers do not like having their games chosen for them. having bundles that large( in$) will lead many people not to buy them.

i think this is a stupid buisness move, oh well.

[Evi]

$1200 is a maximum number. That\'s the worst and highest amount you could pay. Microsoft is kind of stupid for doing this, but hey...it\'s Microsoft...*lowers head in pity*

If they\'re trying to dominate the console market...this is not the way to do it. Maybe like M4 said, they may be trying to prevent pre-orders so they won\'t have a shortage of Xbox\'s. Who knows...???

That\'s a really bad mistake for MS.... I mean.... I just want the system alone!..... I can barely even afford that!:D

BTW - I counted my savings so far.... I have $265! In 2 more weeks I\'ll have $305 YAY!:p

From an indivual standpoint: This isn\'t that big of a deal, unless the indivual in point planned on preordering. After all, the bundle system only applies to the console preorders.

From a business standpoint: Not that great of a move. Judging from this quote:

"When we came up with the program, we wanted it to be what\'s best for retailers," Microsoft spokesman James Bernard said. "This is based on what retailers told us they wanted."

Microsoft is aiming at making sure the retailers are happy with their policies. This is, of course, an important thing to do, but probably not to this extent.

It seems that the whole idea is to scare away most people from preordering, so they purchase one at launch or soon thereafter instead. This makes the retailers happier because there is less unrest over unfilled preorders. It is basically a much stronger stance on the whole preorder limiting issue than Sony took, and as a result the same problems with shortages shouldn\'t be present. This will prevent them from getting an excessive amount of bad press, unlike in the case of Sony after their launch.

There are some major downsides to this, though. Basically, what Microsoft is doing is killing demand for their console purposefully just so they will be able to supply it. This is not a good plan at all; last time I checked, it\'s good to have a high level of demand. Perhaps they are hoping that they will have the demand die down for the time being, and then have it escalate after the console launch; but still, it\'s good to have a successful system launch.

This is a very risky move business wise; it could prove to have a lot of benefits, but it could easily backfire.

It\'s the fact that MS is making you purchase their games and/or their peripherals with the system.  I\'m sure there will be some better value 3rd party hardware that will cost 1/2 of what the 1st party stuff will be at.  Plus, aside from Halo, the 3rd party games are what everybody is looking for (MS is publishing Halo).

MS is making it easy for me to decide to buy a Game Cube.  Im not going to buy either system the day it comes out, but I am thinking of getting a GameCube...


Do you think MS cares what consumers want..They build something with a little horsepower and assume everyone will buy it...  Time will tell, and there can not be 3 top game systems..  There just is not a market to support it...  

Its going to be interesting around Christmas time...

WHoo hooo

Originally posted by EmperorRob
WHO IN THE BLUE F\'N HELL WOULD PAY $1200 FOR A VIDEOGAME SYSTEM?

Ask those idiots who bid those insane amounts for a PS2 on eBay.

I THINK YOU ARE COMPLETELY WRONG...WHEN I BOUGHT MY PS2 I ONLY PAYED 20$ TO RESERVE IT...BUT WHEN IT CAME IN I ONLY HAD TO PAY 280$ ...SO BASICALY I RESERVED FOR FRE.....AND I DONT KNOW WHERE U GOT " MOST PEOPLE PAYED 500$ FOR A PS2" YOU ARE WRONG...AND PLEASE STOP SPREADING RUMORS...THE XBOX WILL DEFINITELY  NOT!! COST 1200$