UPDATED: Blu-ray Xbox 360 to be Sold at a Loss?
Because Sony with strangle supply of its own products?
A Blu-ray disc not prepared to comment on rumour or speculation.
See bottom of story for the update
It would appear that yesterday's story regarding imminent an Blu-ray-armed Xbox 360 might not have been one of those bloody annoyingly 'funny' April Tools' stories.
The initial tale stated that "Lite-On will begin shipping the drives to Microsoft in the latter half of 2008". It came via Digitimes.
Well, today's update is that if Microsoft does go with Lite-On, it will have to take a hit to the price of the unit in comparison to today's DVD-based Xbox 360s. The reasoning is in two parts:
Firstly, Lite-On is apparently quoting $95-100 (£45-50) per Blu-ray unit compared to $18-20 (£9-10) for the current DVD.
Secondly, and this is where the salt shaker should be waved over the story, Sony 'as a main global producer of BD-ROM pick-up heads, may decide to combat the market competition by selectively reducing the supply of key BD-ROM components to OEM makers partnering with Microsoft'.
SPOnG would be impressed to see a meeting of Sony executives in which one of them piped up and said, "Let's get fewer Blu-ray drives and discs into the market? We pwn Microsoft cuz they is lamo!" without getting sacked from a long way up.
UPDATE:
Nope it wasn't an April Fool. We were correct to be dubious. Standing by its earlier line that HD movies are perfectly capable of being delivered over the wires, Microsoft* has now come out and stated:
"No. Light-On is not manufacturing Blu-ray drives for Xbox 360. As we have stated, games are what are driving consumers to purchase game consoles and we remain focused on providing the largest library of blockbuster game available.
“For our customers who want a premium movie experience we offer the largest library of on-demand HD content available and the ability to play back DVDs in high definition."
On the upside, at least for one Sony executive's family, at least he or she who won't be getting heaved out of a window for suggesting ways to lose money.
TechRadar
It would appear that yesterday's story regarding imminent an Blu-ray-armed Xbox 360 might not have been one of those bloody annoyingly 'funny' April Tools' stories.
The initial tale stated that "Lite-On will begin shipping the drives to Microsoft in the latter half of 2008". It came via Digitimes.
Well, today's update is that if Microsoft does go with Lite-On, it will have to take a hit to the price of the unit in comparison to today's DVD-based Xbox 360s. The reasoning is in two parts:
Firstly, Lite-On is apparently quoting $95-100 (£45-50) per Blu-ray unit compared to $18-20 (£9-10) for the current DVD.
Secondly, and this is where the salt shaker should be waved over the story, Sony 'as a main global producer of BD-ROM pick-up heads, may decide to combat the market competition by selectively reducing the supply of key BD-ROM components to OEM makers partnering with Microsoft'.
SPOnG would be impressed to see a meeting of Sony executives in which one of them piped up and said, "Let's get fewer Blu-ray drives and discs into the market? We pwn Microsoft cuz they is lamo!" without getting sacked from a long way up.
UPDATE:
Nope it wasn't an April Fool. We were correct to be dubious. Standing by its earlier line that HD movies are perfectly capable of being delivered over the wires, Microsoft* has now come out and stated:
"No. Light-On is not manufacturing Blu-ray drives for Xbox 360. As we have stated, games are what are driving consumers to purchase game consoles and we remain focused on providing the largest library of blockbuster game available.
“For our customers who want a premium movie experience we offer the largest library of on-demand HD content available and the ability to play back DVDs in high definition."
On the upside, at least for one Sony executive's family, at least he or she who won't be getting heaved out of a window for suggesting ways to lose money.
TechRadar
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Microsoft
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Comments
SuperSaiyan4 2 Apr 2008 15:33
1/8
Microsoft had the choice before launching the Xbox 360:
Launch the Xbox 360 with a HD-DVD drive built in meaning 2x read speed also meaning doing what you have to do with Sony games and do lengthy installs etc.
Which then means the price would have to be much higher, which then could mean fewer Xbox 360's in people's homes.
Sony launched later did some messing about with hardware configurations but the point being the blu-ray drive is their key element they took the chance with it and prevailed.
Although being originally a much more expensive option due to the amount of technology in the PS3.
Thing is Microsoft has billions and billions of dollars but obviously it will look bad on them if they are selling Xbox 360's at a loss and share holders won't be soo keen either.
Its all about making profits and making the company looking good, and am very surprised that Lite-on blu-ray drives cost that much thats just way too much! Sony must be taking a huge hit on each PS3 sold then!
Either way if Microsoft want to include a blu-ray player in the 360 then it will have to stay as a player only since they will obviously seclude millions of 360 owners if the new machine can play blu-ray games but at the same time meaning a lot more caching and some installing given the 2x read speed.
An add-on would be best in some ways for many but there are many out there like myself that would happily trade in their console for the newer better one.
Launch the Xbox 360 with a HD-DVD drive built in meaning 2x read speed also meaning doing what you have to do with Sony games and do lengthy installs etc.
Which then means the price would have to be much higher, which then could mean fewer Xbox 360's in people's homes.
Sony launched later did some messing about with hardware configurations but the point being the blu-ray drive is their key element they took the chance with it and prevailed.
Although being originally a much more expensive option due to the amount of technology in the PS3.
Thing is Microsoft has billions and billions of dollars but obviously it will look bad on them if they are selling Xbox 360's at a loss and share holders won't be soo keen either.
Its all about making profits and making the company looking good, and am very surprised that Lite-on blu-ray drives cost that much thats just way too much! Sony must be taking a huge hit on each PS3 sold then!
Either way if Microsoft want to include a blu-ray player in the 360 then it will have to stay as a player only since they will obviously seclude millions of 360 owners if the new machine can play blu-ray games but at the same time meaning a lot more caching and some installing given the 2x read speed.
An add-on would be best in some ways for many but there are many out there like myself that would happily trade in their console for the newer better one.
Deadmeat 2 Apr 2008 15:40
2/8
Today's April 2nd. April Fool's Day is over.
more comments below our sponsor's message
PreciousRoi 2 Apr 2008 16:12
3/8
Err, if I'm not mistaken, today's "update" is just speculation piled on top of the rumor of an Xbox BluRay drive...it is neither further evidence, nor does it lend any credibility whatsoever to the initial rumor. I noticed this blurb elsewhere and discounted it as mere theory, much as the Immersion settlement led to speculation that Sony would end up paying MS for rumble technology...it was a sound theory, given the language of the settlement, and if MS' legal department have anything to say about it, may yet come to pass...
Could this actually be a legitimate story? Sure, it could, but I'm not sure it meets that hurdle at the moment, sounds too much like something someone came up with on their own, given the rumor and a few facts. Stepping further away from calling this entire Xbox BluRay deal a rumor was a mistake, until and unless it demonstrably isn't...and it obviously still is, or someone would be screaming from the treetops that this isn't just a rumor.
Same author for both the original rumor (which also included some apparently incorrect factual items, degrading confidence in this information further) and this elaboration, so the base of sources hasn't widened either.
Could this actually be a legitimate story? Sure, it could, but I'm not sure it meets that hurdle at the moment, sounds too much like something someone came up with on their own, given the rumor and a few facts. Stepping further away from calling this entire Xbox BluRay deal a rumor was a mistake, until and unless it demonstrably isn't...and it obviously still is, or someone would be screaming from the treetops that this isn't just a rumor.
Same author for both the original rumor (which also included some apparently incorrect factual items, degrading confidence in this information further) and this elaboration, so the base of sources hasn't widened either.
TimSpong 2 Apr 2008 16:15
4/8
Deadmeat wrote:
Today's April 2nd. April Fool's Day is over.
Indeed - hence the question mark in the header and the pouring of scorn on the end... and now the update.
Cheers
tim
TimSpong 2 Apr 2008 16:16
5/8
PreciousRoi wrote:
Err, if I'm not mistaken, today's "update" is just speculation...
Indeed... see the updated story.
Cheers
tim
PreciousRoi 2 Apr 2008 16:26
6/8
Didja see the link I posted in the other thread?
Would seem to be reinforced by the emphasis MS placed on online content.
Would seem to be reinforced by the emphasis MS placed on online content.
SuperSaiyan4 3 Apr 2008 09:51
7/8
With Microsoft anything is possible if there is money to be made they will bring it out.
The problem is many are comparing the PS3 and Xbox 360 with everything i.e. Xbox live, wireless adaptor and the add-on then saying the PS3 is cheaper. Well I say its not fair to compare like that given their big differences in content and games available.
If Microsoft bring out a blu-ray add-on I will buy one.
The problem is many are comparing the PS3 and Xbox 360 with everything i.e. Xbox live, wireless adaptor and the add-on then saying the PS3 is cheaper. Well I say its not fair to compare like that given their big differences in content and games available.
If Microsoft bring out a blu-ray add-on I will buy one.
PreciousRoi 3 Apr 2008 13:42
8/8
Well, thats a spurious comparison.
For starters, XBL and PSN are not of equivalent value...XBL is, IMNSHO, of greater value than its cost, and PSN of considerably less value than XBL.
Second, I'm glad the 360 doesn't include wireless. I wonder just how many 360 users bought the adapter? I use the USB port for Rock Band myself...why should I have to pay for something I'm not going to use, or something whose cost is greater than its utility to me? I mean sure I could use the wireless, theres one room in my house I need to run a long cable to reach, and I have another friend at whose house it could work. But the only thing I'd want to play in either of those places is Rock Band, and offline...anyplace I have an HD display I have run Cat5, I have sweat equity invested in making wireless an unnecessary expense across the board. Not that I'm not ready, I've had a wireless router for a while, but the wireless is disabled and the antennas removed (just in case), if T-Mobile ever gets better coverage around here, they've got some hotspot dealie...I'd consider investing in an amplifier and a mast mount omni...then of course I'd have to get a Yagi with a laser mounted onnit to play with...and of course then I'd HAVE to invest in a new tablet, so I could read e-books in the bath...see, implementing wireless would cost me thousands...but I digress...
So if you have no plans to use wireless, its not cheaper at all is it?
For starters, XBL and PSN are not of equivalent value...XBL is, IMNSHO, of greater value than its cost, and PSN of considerably less value than XBL.
Second, I'm glad the 360 doesn't include wireless. I wonder just how many 360 users bought the adapter? I use the USB port for Rock Band myself...why should I have to pay for something I'm not going to use, or something whose cost is greater than its utility to me? I mean sure I could use the wireless, theres one room in my house I need to run a long cable to reach, and I have another friend at whose house it could work. But the only thing I'd want to play in either of those places is Rock Band, and offline...anyplace I have an HD display I have run Cat5, I have sweat equity invested in making wireless an unnecessary expense across the board. Not that I'm not ready, I've had a wireless router for a while, but the wireless is disabled and the antennas removed (just in case), if T-Mobile ever gets better coverage around here, they've got some hotspot dealie...I'd consider investing in an amplifier and a mast mount omni...then of course I'd have to get a Yagi with a laser mounted onnit to play with...and of course then I'd HAVE to invest in a new tablet, so I could read e-books in the bath...see, implementing wireless would cost me thousands...but I digress...
So if you have no plans to use wireless, its not cheaper at all is it?