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Xbox for $99? Xbox 2 in 2005?

CmdrTaco posted more than 10 years ago | from the shaking-things-up dept.

XBox (Games) 738

TimeForGuinness writes "CNN is reporting that Microsoft's Xbox may be on the verge of a substantial price cut, falling from $179 to $99 by Labor Day, and Microsoft will launch its next generation console in late 2005 - a year earlier than has been previously rumored. That would put the Xbox 2 on store shelves up to a full year before Sony's PlayStation 3."

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738 comments

Ask Slashdot: man or mouse? (-1)

Wigfield (730339) | more than 10 years ago | (#8125002)

"You're not a man, you're a mouse!", my wife screamed at me this morning when I failed to satisfy her orally.

Any advice?

Re:Ask Slashdot: man or mouse? (-1, Offtopic)

Anonymous Coward | more than 10 years ago | (#8125113)

Admit your gay and take lessons on sucking cock. You're probably a lot better at that than eating pussy.

Glad you liked my post (0)

Anonymous Coward | more than 10 years ago | (#8125158)

Keep up the good work!

I'd like to see... (-1, Redundant)

Pig Hogger (10379) | more than 10 years ago | (#8125004)

... a beowulf cluster of those. That would turn to be VERY CHEAP!!!!

Virginia Tech? (4, Funny)

Saven Marek (739395) | more than 10 years ago | (#8125115)

If they could be easily hacked into running Linux, it might be worth contacting Virginia Tech. Make the mac heads eat their words! 3rd biggest suppercomputer in the world for $108,900!

Re:Virginia Tech? (0)

Anonymous Coward | more than 10 years ago | (#8125192)

3rd biggest suppercomputer in the world for $108,900!
I forget... does Dinner come before or after?

Batman touched my junk liberally (-1, Offtopic)

Anonymous Coward | more than 10 years ago | (#8125015)

Batman touched my junk liberally. he strapped me in to his batmobile and he couldnt keep his offensive hands off of me. he was performing many red flag touches. i couldnt believe what the fuck was going on. i told batman the city would not approve of a millionaire touching an underage kid for free.

Can you believe it? Batman did all this. He picked me off the street, strapped my arms and legs down in the batmobile's passenger seat, and just wouldn't stop fondling my cock'n'balls.

They definately were red flag touches. the goddamn referee he had in the back seat kept on raising up this red flag every time he touched my junk but did batman care? NO WAY! He just kept on doing it. I couldn't believe what the fuck was going on, indeed. I pleaded with Mr. Wayne but to no avail. I told him the city would not approve of such a wealthy man touching an underage kid like me (at the time I was 13) without at least compensating me for the trauma and the use of my body as his own personal plaything.

This got to him, worrying about his image. He continued to fondle me, all the while ignoring the referee's red flags. Then he drove the batmobile to my house and *ejected the seat I was in*! It was amazing. But surprisingly, after I woke up the next morning, my bank account had $150k in it! Can you believe it?

You're free to touch my junk- liberally-any time (-1, Offtopic)

Anonymous Coward | more than 10 years ago | (#8125198)

The parent post is just absolutely hilarious!

The quality of trolls seems to be on the rise these days.

loss (1, Interesting)

Anonymous Coward | more than 10 years ago | (#8125017)

Weren't microsoft selling these at a loss already?

Re:loss (2, Informative)

savagedome (742194) | more than 10 years ago | (#8125120)

From the article:
When Microsoft launched the Xbox in 2001 for $299, it reportedly lost $100 for every unit it sold.

I know this is /.
Of course you did not RTFA.

This is bad (0, Insightful)

Anonymous Coward | more than 10 years ago | (#8125019)

This nice thing about consoles is that you didn't have to worry about constantly buying new ones. Count on Microsoft to fuck that up.

Re:This is bad (2, Insightful)

Ayaress (662020) | more than 10 years ago | (#8125231)

Err... 2001 to 2005. Four year turn around. I've been buying a new console every year/two years, with only one gap of 5 years between my NES and my Sega Genesis, which was broken by buying no less than five system in two years.

Obligatory (3, Funny)

Anonymous Coward | more than 10 years ago | (#8125020)

Xbox - what's that all about? Is it good, or is it wack?

Re:Obligatory (2, Informative)

oscast (653817) | more than 10 years ago | (#8125150)

Since Ali G got taken off the air in the United States, few Americans will understand the understated reference to Ali's precurser to any type of review. if I had mod point, I would have given you some.

Re:Obligatory (1)

the Man in Black (102634) | more than 10 years ago | (#8125199)

Thank you for FINALLY FINALLY explaining where that fucking meta-troll came from. It's been driving me mad.

And now I can rest.

$99!?!? (4, Interesting)

Your_Mom (94238) | more than 10 years ago | (#8125022)

$99? For a hackable XBox? Oh my. I'd seriously go against my better judgement and consider getting one if it dropped that low. MythTV would be so nice on one.

Re:$99!?!? (3, Insightful)

Anonymous Coward | more than 10 years ago | (#8125027)

Why not get a second hand one now? And give none of your money to Mikerowesoft.

Re:$99!?!? (-1, Offtopic)

Anonymous Coward | more than 10 years ago | (#8125135)

Would somebody mind posting a summary of what it takes to turn an Xbox into a standalone PVR, from modding to installation, etc.?

Re:$99!?!? (2, Troll)

pestilence4hr (652767) | more than 10 years ago | (#8125189)

Would somebody mind posting a summary of what it takes to turn an Xbox into a standalone PVR, from modding to installation, etc.?

Google and half a brain.

Re:$99!?!? (-1, Flamebait)

Anonymous Coward | more than 10 years ago | (#8125248)

Shut up, bitch.

isnt the ps3 out? (0)

Anonymous Coward | more than 10 years ago | (#8125028)

what were they taking apart at lik-sang?

Re:isnt the ps3 out? (2, Informative)

silentbobdp (157345) | more than 10 years ago | (#8125109)

That's the PSX - it's got a PS2 inside and basically a high capacity TiVO and a DVD recorder. A few other nice things.

For those of us who don't follow such things... (0)

JessLeah (625838) | more than 10 years ago | (#8125033)

...what exactly are the specs on current Xbox hardware, and are there any barriers to hacking one to run Linux at present? (grins) This could be a great way to make a cheap Linux (or NetBSD) workstation...

Re:For those of us who don't follow such things... (1)

freidog (706941) | more than 10 years ago | (#8125172)

P3 733

GF graphics card somewhere between GF3 and GF4 power.

64mb DDR ram.

A mod Chip [xbreporter.com] is required to bypass the normal startup routine and allows you to install a custom version of Linux [sourceforge.net]
on your Xbox, most of them will play XBox games, along with allowing you to place and play most types of media on your Xbox. Often even including the ability to ftp files up to your Xbox via ethernet connection.
The bad part is you can't play XBox live with a mod chip running. (unless you enjoy being banned from MS severs...)

Familiarities (1)

a5cii (620929) | more than 10 years ago | (#8125042)

This seems familiar, when saga lowered their dreamcast to 99 it spelled the end could this be the same for microsoft? They announce the Xbox2 but i dont believe it will come out. Microsoft does a good job they just need to make more secure operating systems and forget about hardware IMO

Re:Familiarities (1)

frankthechicken (607647) | more than 10 years ago | (#8125144)

If the rumours are true about the Xbox 2 coming out so shortly after the price drop, I would assume they feel they have extracted as much value as possible from the original machine.

Now Microsoft are probably turning towards brand loyalty, get as many people familiar with the product in the hope that this will lead to increased sales in the newer, bigger(hopefully not literally) and better version.

Re:Familiarities (2, Interesting)

AnyNoMouse (715074) | more than 10 years ago | (#8125154)

Microsoft != Sega

Sega was hurting financially (and still is) when they cut their system price to try to sell through their remaining inventory. Sony FUD + lack of confidence inspired by their Saturn bomb + lack of marketing practically killed the company despite the 1 year lead and easy to develop for system.

Microsoft has plenty of cash and seems content to bleed it on X-Box to give X-Box 2 a market advantage. I wouldn't count Microsoft out of the game until *after* an X-Box 2 launch. And then, only if XB2 bombs.

Re:Familiarities (1)

nelsonal (549144) | more than 10 years ago | (#8125197)

It's likely that Sony and MS will cut the price of bother their leading generation consoles to something in the $99-$129 range between E3 and Labor Day. If the price is $129 speculation will be rampent about a cut to $99 around Thanksgiving. The new buzz is in response to several game makers who are expecting some variant of these price cuts this year. It's pretty common for prices to fall as you move further up the adoption curve, each generation has cuts, it only becomes a problem if you need to generate a signficant profit from hardware, now, or if you continue to have falling sales after the hardware price cut. I think Sega was running into both problems and got a pretty sweet offer to move their internally developed titles to the X-Box.

Ouch (5, Interesting)

Erwos (553607) | more than 10 years ago | (#8125044)

My first thought upon reading this was, "That's gonna hurt Nintendo, big time."

Nintendo, at least from what I can see, got their big sales kick this season from slashing down the price so that consumers would see it as the most affordable of the third generation consoles. However, that value proposition is going to be dead if the X-Box goes to the $100, or $120 range. I don't think most people have an issue with kicking in an extra $20 for DVD-playing, a hard drive, and a broadband adapter.

Hell, for that price, _I_ might get one.

-Erwos

Re:Ouch (1)

Acidic_Diarrhea (641390) | more than 10 years ago | (#8125108)

The third generation? How are you counting these generations? Are you starting with the Colecovision or an Atari or what? Do you start counting post-crash with the NES? That would make the XBox, at least a 4th generation unit [NES/Master System, SNES/Genesis, PS1,Saturn,N64, PS2,XBox,Gamecube].

I'm curious, how did you get third generation?

Re:Ouch (1)

Erwos (553607) | more than 10 years ago | (#8125238)

I suppose I should have written fourth generation, assuming it goes something along the lines of:
1. NES, SMS
2. SNES, Genesis, TG16
3. Playstation, N64, Dreamcast
4. PS2, X-Box, Gamecube

Good catch. You are totally right, and I am totally wrong. Relish that, because you don't hear it often on /. :).

-Erwos

Re:Ouch (1)

nelsonal (549144) | more than 10 years ago | (#8125244)

Most of the industry measures generations in bits, I've heard this is more like 5th generation. (Atari, etc, then using Nintendo NES, SNES, N64, NGC) with very broad groupings of systems around those timeframes.

Re:Ouch (0)

Anonymous Coward | more than 10 years ago | (#8125203)

I don't think it's going to hurt Nintendo very much... the reports are saying the price drop will be in time for labor day.

That's almost 9 months from now, and by that time I don't think Nintendo will have a problem lowering the price of the Gamecube again... to maybe $70 or $80.

Re:Ouch (3, Insightful)

DrEldarion (114072) | more than 10 years ago | (#8125227)

Yes, but the GameCube has already been at $99 for quite a while. Pretty much everyone who would buy one at that price has already bought it. It's not very likely that Microsoft will absorb many sales that Nintendo would have gotten.

Don't underestimate Nintendo (0)

Anonymous Coward | more than 10 years ago | (#8125243)

Even at $99 Nintendo still makes a small profit on each Gamecube sold. (Sony and MS have been losing money since day one.) They could go to $50 and still lose less per unit than MS did per Xbox at $149.

Is that what the controllers look like? (1)

Jin Wicked (317953) | more than 10 years ago | (#8125045)

I've never seen an Xbox. That thing looks hideously uncomfortable.

Maybe I am just a luddite, I am still playing games on the SNES and I just got a Playstation 1 for Giftmas last year.

Re:Is that what the controllers look like? (2, Informative)

MKalus (72765) | more than 10 years ago | (#8125080)

I loved the original controller. Perfect size, could play with it for hours without cramping.

The new one (S Controller) is smaller, not as comfortable for me.

SNES, PSX etc. controllers? Too small for my hands, I just freaking cramp if I play longer on them.

Too bad that they stopped producing the original controller :(

Re:Is that what the controllers look like? (1)

Ulrich_Skarsol (746706) | more than 10 years ago | (#8125230)

I actually like the orginal X-box controller better than any of its contemporaries. The only quibble I have about it is the way the black and white buttons line up, but its no worse than the horrible layouts on the other controllers.

Side note: amusing to see someone I know commenting on here. :)~

A boon for Linux! (1, Funny)

MooKore 2004 (737557) | more than 10 years ago | (#8125046)

With these cheap 99 Xboxes going around, it makes more sense to try and get Linux on them. Currently the cheapest commercially availbe pcs are $169, this is a whole $70 cheaper!

Verge? (4, Funny)

Schlemphfer (556732) | more than 10 years ago | (#8125047)

From the summary:

CNN is reporting that Microsoft's Xbox may be on the verge of a substantial price cut, falling from $179 to $99 by Labor Day.

I'm sorry, but given that I just got back from trudging through the snow, and practically getting frostbite on my face, I don't see how we're on the "verge" of labor day. On a day like this, it doesn't seem like we're even on the verge of spring, let alone the end of summer.

Re:Verge? (2, Informative)

Erwos (553607) | more than 10 years ago | (#8125099)

I think you're misinterpreting it. Labor Day is given as the deadline for the total cut (ie, they want it at that $99 price for that weekend). However, the article reports that there may be an intermediate cut to around $130 in between. So, indeed, there is a substantial (20%-25%?) price cut coming soon, and then another one coming after.

If it's all true, anyways.

-Erwos

Re:Verge? (1)

AnswerIs42 (622520) | more than 10 years ago | (#8125187)

Read the article closer, it could drop to $129 by Labor Day.. the $99 price would be later in the summer.

But still, this is why I have held off on getting an X Box.. price.. and games I would actually play.

Forget cheap consoles..... (5, Insightful)

big-giant-head (148077) | more than 10 years ago | (#8125050)

Yeah so I can get an XBox for 99, the good games are still 50$......

Re:Forget cheap consoles..... (1, Informative)

Anonymous Coward | more than 10 years ago | (#8125191)

A few words for you:

Mod Chip
HDD Upgrade
Gamefly account

Sure.... (5, Funny)

Anonymous Coward | more than 10 years ago | (#8125051)

The Xbox will be out ahead of schedule just like Longhorn is going to be right on time. Oh, wait....

$99??? (1)

WC as Kato (675505) | more than 10 years ago | (#8125055)

Ninety-nine bucks?! What kind of cheap crap are they using to make this thing?

Re:$99??? (1)

sqlrob (173498) | more than 10 years ago | (#8125140)

The money in their bank account.

You're assuming they actually make money selling the console.

Re:$99??? (1)

-Grover (105474) | more than 10 years ago | (#8125173)

I don't think it really matters. Nobody makes money on the console itself, all the money is in game sales and ancillaries, like XBox Live subscriptions. Why get a one time $179 bucks when you can get $99 one time, $40 from the adapter and $15 a month for a year?

M$ could more than likley give them away at this point and still stay profitable in that division.

Re:$99??? (0)

Anonymous Coward | more than 10 years ago | (#8125221)

plastic, an 800mhz processor, a motherboard, and an nvidia (IIRC) gpu that is now "old". They may still sell the things at a loss on each.

This shouldnt be so hard to fathom, look at the $199 lindows pcs. Ive spec'ed out newish cheap machines for ~200. Consolidate the shipping, use your MS might to get dirt cheap wholesale prices and there you go. By integrating everything and not worrying about upgradability or backwards compatibility, I can easily see how this is accomplished.

Backwards Compatibility (4, Interesting)

JoeFaust (25587) | more than 10 years ago | (#8125059)

I personally hope the XBox 2 is fully backwards compatible, including XBox Live functionality.

I use my GBA and PS2 to play old games all the time. If the Gamecube let me, I'd be playing old N64 and Super Nintendo games, too.

Re:Backwards Compatibility (1)

morelife (213920) | more than 10 years ago | (#8125147)

I was just going to ask that. Betcha you won't be able to use existing Xbox games on xbox2, a la MS planned obsolescence. I'd be surprised..

Re:Backwards Compatibility (1)

TheRealMindChild (743925) | more than 10 years ago | (#8125149)

Actually, it does, but Nintendo chose to sell these games back to you, rather then having a "generic emulator". This is why you see things like the Zelda game pak on the gamecube.

Re:Backwards Compatibility (1)

DenOfEarth (162699) | more than 10 years ago | (#8125166)

Yeh, I read an article somewhere about the current rumours regarding the consoles of the future, and they mentioned the backwards compatibility issue. Sony did it with the PS2, and I believe it was nothing but a good thing for them. Xbox should be in a better situation because it's all built on PC hardware, which should change so drastically that you can't run the onld games on a new system. I personally think that this 99$ drop will only be useful if all those people who buy cheap xboxes with games can then use those games on a new system. Otherwise it's just a bit more incentive to change to another system in the next round.

Re:Backwards Compatibility (2, Insightful)

ZaMoose (24734) | more than 10 years ago | (#8125184)

Since the X-Box is going to be based on the PowerPC [wired.com], backwards-compatibility might be out of the question.

Unless you know of an x86-to-PPC compatibility layer that can be plunked into a $300 console...

Re:Backwards Compatibility (0)

Anonymous Coward | more than 10 years ago | (#8125226)

Microsoft VirtualPC.

A wise move (4, Interesting)

magicsquid (85985) | more than 10 years ago | (#8125063)

$99 is widely known to be the magic number when it comes to the casual consumer and an impulse buy. Nintendo already beat them to that punch last year and during the Christmas season the GameCube sales numbers skyrocketed because of it. If Microsoft can accomplish the same thing, they'll make all the money they need to off of the additional software that they sell.

Re:A wise move (0)

Anonymous Coward | more than 10 years ago | (#8125161)

How many copies of Halo 1 & 2 can they sell? There are those who don't like FPS type games.

Re:A wise move (1)

escher (3402) | more than 10 years ago | (#8125178)

The $99 price tag on the GameCube was what caused me to impulsively buy one a few months ago. Now I'm spending about 3 hours a day on Windwaker...

Re:A wise move (5, Interesting)

Bluesman (104513) | more than 10 years ago | (#8125245)

Definitely. I'm a casual gamer, and the reason I own a gamecube is because of the zelda bundle for $99. I'm sure I'm typical of the Christmas crowd.

I'm having a lot more fun with it than I thought I would, however. I might jump in early on the next generation...but I can't see myself spending substantially more on a game system than $100-150.

The biggest selling point for the Xbox I think is the hard drive, so you don't have to waste time and money on memory cards. This is one of the hidden costs the casual gamers don't think about, so now I'd lean toward a hard drive based system in the future.

Shilling (4, Funny)

Anonymous Coward | more than 10 years ago | (#8125067)

Would CNN also be so kind to announce that I *may be* on the verge of receiving a very large raise?

I could really use the dough. :)

Wait a minute... (4, Funny)

Conspiracy_Of_Doves (236787) | more than 10 years ago | (#8125069)

A Microsoft product, coming out EARLY?

Inconcievable!

Re:Wait a minute... (0)

Anonymous Coward | more than 10 years ago | (#8125103)

Nope, just full of bugs ;)

Re:Wait a minute... (1)

landoltjp (676315) | more than 10 years ago | (#8125252)

Inconcievable!

You keep using that word. I do not think it means what you think it means.

Wait a generation (1)

Brahmastra (685988) | more than 10 years ago | (#8125071)

I'll get an Xbox when the Xbox2 comes out and the Xbox2 when the Xbox3 comes out. I'll get it dirt cheap and heck.. a game is a game.. A few hours of fun. I don't feel a pressing need to have the latest and greatest games. Games that are a few years old are cheap (and if they are PC games, they perform well on average hardware).

Re:Wait a generation (1)

tommck (69750) | more than 10 years ago | (#8125223)

Wow... a Slashdot reader that doesn't buy new gadgets just because they're new... What's this world coming to?

Analyst Guesses (5, Insightful)

Schnapple (262314) | more than 10 years ago | (#8125079)

Guys, these are guesses done by Analysts, they're not based off of anything Microsoft has said for a fact. The analysts base it off of what Microsoft might do, not off of what might be intelligent in the marketplace.

So whatever you do, don't bet on Xbox dropping to $99 or seeing Xbox Next/2 in 2005. And don't complain that Microsoft lied to you when neither of these things happen.

This just speculation.

MOD PARENT('s head) UP (MikeRoweSoft's ass) (-1, Offtopic)

Anonymous Coward | more than 10 years ago | (#8125179)

true, true.

Standard components (2, Informative)

LinuxInDallas (73952) | more than 10 years ago | (#8125090)

Given that the Xbox is based on hardware that is just a supped-up PC with mostly off the shelf components and Sony's is more custom, it's not big surprise that MS would be able to make it to market much faster. Wasn't the Xbox based on a 733 MHz P3 with a semi-custom Nvidia graphics chip? And I think the PS2 was a semi custom 128-bit DSP that handled pretty much everything (graphics + logic).

Re:Standard components (1)

cens0r (655208) | more than 10 years ago | (#8125216)

But a previous story already stated that the Xbox2 is not using off the shelf components.

so? (1)

nordicfrost (118437) | more than 10 years ago | (#8125091)

So far the Playstation 2 has made a tour of duty above and beyond any expectations any of us have for it. While the graphics on the xbox seem to be on launch date level, the Playstation 2 always seem to reach into the guts of the machine and pick up some more power.

So far, the best application I have seen for the xbox was a distributed multilevel map zoom system. The inventors bought several xboxes at Elkjop and eventually sold one system til the Pentagon.

Xbit labs reports the XBOX2 processor... (0)

Anonymous Coward | more than 10 years ago | (#8125095)

...has taped out using a 65nm process. No word on what ATI is up to with the graphics, although the NV40 vs R420 speculation promises some excitement in the next couple of months.

Danger of being first (1)

Trimbo2 (661670) | more than 10 years ago | (#8125106)

"That would put the Xbox 2 on store shelves up to a full year before Sony's PlayStation 3"

Perhaps being first to market isn't the best idea. These consoles have a shelf life of 3 - 5 years and if the PS2 comes out later, it will probably be a more powerful machine, and hence for the remaining 4 years they are both alive in the market the PS2 will have the technical edge over the Xbox2.

Mind you, if current generation conoles are any guide, technical superiority is no match for a strong (and well funded) marketing department!

That's all well and good (1)

ChinaJoe (259673) | more than 10 years ago | (#8125110)

So what if X2 comes out a year early? MS will still be losing money and will accelerate that loss with the cut of price for the Xbox.

Yea, yea, yea, it's not as if they can't afford it. I just don't understand the business plan here. I doubt that they'll make any money on X2 when it comes out, and with the majority of Xbox games being crappy, they can't be making money there, either. So what the hell is the purpose of making a product line that will do nothing but cost you money? To get more name recognition? Like who hasn't fricking heard of Microsoft?

Re:That's all well and good (1)

spells (203251) | more than 10 years ago | (#8125250)

MS doesn't want to be left out of the living room. MS believes that the "Home PC" is a dying market and most people want a "Media Station" that does everything. I haven't seen specs for XBox2, but imagine if these include the same functionality as Tivo, with the ability to surf the web / read email, all for the price of a game console and a wireless keyboard/mouse
I know most of my families Home PCs would start gathering dust pretty quick.

$99 ps2 (-1, Flamebait)

Anonymous Coward | more than 10 years ago | (#8125138)

Don't I remember earlier rumors about Sony putting the PS2 on a much smaller and cheaper chipset? If true, they could underprice MS and make a profit at the same time. Maybe MS is just reacting to Sony again...

Can you say (0)

nocomment (239368) | more than 10 years ago | (#8125142)

"Market saturation" I think that you can.


Sorry to troll but gamecube is way better anyway.
Don't beleive me? Compare yourself:
Nintendo [nintendo.com]
xbox [xbox.com] The only real plus is the internal drive makes things convenient.

But at $5 for a memory card for GC it's not that big of an issue. Besides that, Zelda's wind waker is worth it anyway. ;-)

Uphill battle, support the USA (1)

llZENll (545605) | more than 10 years ago | (#8125153)

They should just give them away with a game purchase. MS doesn't care what they lose on the consol, its all about preparing for the next gen release. Its definelty an uphill battle against the PS2 for the XBOX, but if they keep beating them on hardware, its only a matter of time before XBOX has just as good if not better game base than the PS2. And thats when they will start dominating.

Another thing I get really pissed off about is people in the USA hate MS and the XBOX just because they are MS. Well I don't agree with a lot that MS does and doesn't do, but people WAKE UP, it's far better to line the pockets of Bill G than some Japanese fat cat, so buy and support XBOX, not PS2 :D

Re:Uphill battle, support the USA (0)

Anonymous Coward | more than 10 years ago | (#8125214)

Interesting comment coming from an asshole with ZEN as their username.

$99 - Sounds Familiar (4, Insightful)

WombatControl (74685) | more than 10 years ago | (#8125155)

I seem to have heard a similar rumor about the price of the iPod mini being $99, and look how that turned out.

Microsoft is already selling consoles at a rather hefty loss, and there's only so much to be gained by selling them at an even bigger loss. Even Microsoft doesn't have bottomless pockets, and the problem with selling a product as a loss-leader is that the more you sell the worse your short-term financial hit is. Selling a product as a loss-leader assumes that the people who buy that product will buy additional services at a higher markup later.

The problem with moving the cost of an X-Box to $99 is that you're hitting a market demographic that's far less likely to spend the $$$ to get something like XBox Live or a large number of additional profit-gaining accessories.

Now, if Microsoft came out with some deal that you could buy an XBox for $99 if you commit to 6 months or a year of XBox Live, that might work. Elsewise don't be lining up at the store to get your $99 XBox...

What! About! Halo?! (3, Interesting)

Goldfinger7400 (630228) | more than 10 years ago | (#8125174)

Wait, so if the X-box 2 is scheduled to come out sooner, like in 2005, and Halo 2 was supposed to come out late 2004, does this mean that Halo 2 might be pushed back to be released on the X-Box 2? I mean, I'm all for the new technology, but I want my Halo! Sooner the better I think.

I doubt this is true (5, Insightful)

DrDoombender (681389) | more than 10 years ago | (#8125176)

Microsoft, certainly, is in a much stronger position than Sega. The Xbox's buzz factor is on the rise - and will soar higher if the company opts for a $99 price tag. But it hasn't yet established a reputation that's strong enough for it to sway Sony loyalists

Although Microsoft has money, I seriously doubt they'll try to do what Sega did. Primarily because it is a huge risk, and that seems to be the tone of the article. Pretty much, if they pulled an early release stunt it would either make them or break them. First off, with their next console they have to try and ensure that they are not in the red like they are with the xbox.

lower the xbox's price down to $99 will not necessarily make people go out and buy one. That's still $100, and the holiday season is over with.

Sega may not have been in as strong a financial situation as Microsoft, but the dreamcast was a great console. The only thing that really ruined it was the fact that it did not have solid piracy protection. Who's going to make games on a system that everybody can steal? Before that, we saw lots of great games on the Dreamcast.

The xbox's buzzfactor, I think is as high as it can go. While observing Microsoft's moves, I've noted that they've done PC like stuff for the console. So basically they did things such as gamespatches that had never been done before by companies such as Nintendo. Think about that 20 years 1988-2004, no patching games, and then Microsoft comes along and starts patching games that have major bugs (granted, online games don't count, but think morrowind...etc.)

was the article worth reading? sorta, its all speculation, and it states the obvious. Basically, if the rumors are true, and Microsoft releases early, then this could hurt them. Like i said before, the article is pessimistic on the idea of M$ releasing early.

IMHO, Microsoft will probably release around the same day and time as Sony to be safe. By putting their cards on the table early, it will give Sony plenty of time to respond. If they release around the same time, it will be more like a game of rock,paper, scissors (just hope they both choose scissors).

Maybe we we should all buy one... (2, Insightful)

techiemac (118313) | more than 10 years ago | (#8125181)

I say this for a simple reason...
Larger scale adoption of Linux.
Ok... So how does buying an XBox help Linux become more widely adopted.
Let's look at what motivate 99% of Computer hardware changes and upgrades.... games. No one needs a hardcore graphics card with an overclocked, liquid cooled CPU to run Word. The primary purpose for upgrading one's computer (OS and Hardware) tends to be for games. Linux simply does not have the same game base as Windows does (yes I know that this is changing... but there still is not enough).
Microsoft really wants to win with the XBox and the more money that we all sink into the XBox, vendors will have less motivation for targeting PCs for game development. Comparitivly, porting is the easy part (budget wise)... it's testing that kills your budget. With the PC platform, you have to take into account the wide range of systems out there, tech support for those different systems, etc. With the XBox, they have to worry about 1 platform and only 1.
The widespread adaptation of console games could be really good for Linux. IMHO, there would be less motivation to deal with Windows as it appears as though games are a big selling point of Windows. If Microsoft has tunnel vision with the XBox (most large companies tend to suffer from this), it will probably be too late before they realize that the XBox is cutting into their OS market share. Though games could be a bigger marketshare for MS.
So buy up those XBoxen and encourage MS in it's game console venture.

Re:Maybe we we should all buy one... (1)

greymond (539980) | more than 10 years ago | (#8125210)

um...Wouldn't it just be better to buy a PS2 with the Linux Development kit....In my opinion its better to support those that help you then those who will use your money to further apposing goals...just my 2....

Best Media Computer (1)

Omni Magnus (645067) | more than 10 years ago | (#8125194)

For $230, to $250, you can get a really good media computer. It can play all kinds of great games that look as good as they would on a $1500 PC, as well as play downloaded video in just about every format. Plus it will have a decent hard drive for storing downloaded video, games or for use as a file server as well.

XBOX $100
120 gig hard drive $100
Modchip $30 to $50 (depends if it is solderless or not, also you do NOT need that DVD playback kit)

Total $250

99 Dollar Media Player (1)

nurb432 (527695) | more than 10 years ago | (#8125204)

That would be worth getting in that case, since im not a gamer i cant comment on its 'intended' market.

I assume the 99 dollar special will still be 'modable'

Why does it matter that it's $99? (1, Troll)

Genjurosan (601032) | more than 10 years ago | (#8125215)

$99 worth of hardware doesn't mean crap when there aren't any good games. I mean the HALO coolfactor wore off long ago, HALO 2 is still a moving target, the majority of Xbox games suck, and the rest of the games either play on PC or one of the other two consoles. I enjoy my GC and PS2 far much more than my Xbox.

That'll be cool if they work... (0)

Anonymous Coward | more than 10 years ago | (#8125253)

This scares me a little, as 2 of the 4 people I know with xboxes have had the hardware fail so miserable (and in one case, repeatedly) that they gave up completely on the system and gave away their games. If they are lowering the price, the quality of the unit is obviously not being addressed. Then, they'll rush the xbox2 out onto the market, too fast, just like last time to comete with PS2. The cycle is reapeated and people will once again buy crappy hardware.

Sony (1)

voideng (656574) | more than 10 years ago | (#8125254)

I just hope Sony doesn't make the same mistakes IBM made with OS/2 when Windows 95 was promised at the begining of '95. To beat Microsoft to Market, they released a product that wasn't ready for primetime and Wnidows 95 was late and the PC 32-bit OS fell to Microsoft.
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