Man, where do I begin? Personally, I think Microsoft is really lacking focus right now. They have Sony right where they want them, the Wii doesn't have much in the way of compelling software atm, it's a perfect time for them to strike while the iron is hot. IMHO, the best course of action for them is to get a $199.99 Core system onto store shelves. That's the one move that can catapult them to a 20 million worldwide installed base. The Black 360 with hdmi and 120gig HDD for $479.99 isn't going to do a damn thing for their installed base. What the Frick are they thinking? I know there is demand out there for a hdmi slot, and there is also demand for a larger hard drive, but this new Sku isn't what they need right now. What they really need is a price drop. More specifically, a $100 price drop for the Core version. $199.99 is the magical price point. You get a console to $199.99 for the first time, and that's when you typically see a HUGE spike in sales. Sure, the current Core model is a bit of a tard pack, but as the saying goes..."money talks and bullcrap walks". $199.99 is extremely compelling to the Mother that is standing at the register in GameStop trying to determine which system to buy her 13 year old brat. Sure, she will quickly discover that a memory card is absolutely mandatory, but she will likely discover that after the purchase has already been made. Plus, with the introduction of the 512mb memory cards, the regular ones will come down in price. There might even be 3rd party memory cards out there for like $19.99 or something. So you get the tard pack for $199.99 and a 3rd party memory card for $19.99, and you're basically in business. You can play Gears of War or Crackdown, or whatever, and save your games. You might not have too much other functionality, but who cares? You have just added 1 more person to the installed base, and ultimately, that is the key to winning this war.
We've heard the news that Devil May Cry 4 is coming to the 360 day and date with the PS3 version, and news like this continues to demonstrate the power of having the largest installed base. But you can't simply rest on your laurlels of having a 1 year head start and 1 killer app in GOW. Sony is starting to get some quality games coming out for the PS3 (Motorstorm, VF5, Oblivion, etc, etc), and it's only going to continue. Many have seen the pics and video of the PS3 version of Ratchet and Clank, and games like that could easily turn the tide for Sony. Microsoft needs to stop bullshitting, and take the bull by the horns and stick it to their competitors while they still have this golden opportunity. A $199.99 core system is the way to do that.
I remember back to an old 1upYours podcast, in which Shane Bettenhausen was discussing how the Microsoft guys had come to their offices to show them the new HD-DVD add on. While they were there, the 1up and EGM crew asked them off the cuff, if they were going to be phasing out the core system at some point. (all of this is off the cuff, mind you, and off the record). Supposedly the Microsoft guys told them that it was exactly the opposite. They claimed that the core system was going to be their Golden Goose, and the ticket to winning this console war. The theory was, that the core system would allow them to eventually have a 360 box priced at $199.99. That this magical price of $199.99 would ultimately be the key to winning this war. It would allow Microsoft to gain such a huge lead in worldwide installed base, that neither PS3 or Wii could possibly catch up. The lead would just be too great, too early, and it would become obvious to publishers that the 360 was going to be a long term player, and that you have to make the 360 your lead sku This would create a snowball effect, that would then spur even greater 360 sales, etc, etc. Supposedly the Microsoft guys told the 1up guys all of this off the record, and that none of it is official, but that they have huge plans for their core system.
Now, almost one year since that podcast, here we are talking about a $479 360 system that doesn't even feature a built in High Def DVD player, nor a wireless adapter. So, not only are we not talking about the price drop, something that is actually needed to somewhat erode those giant pyramids of stacked 360 systems at your local Best Buy, but we are actually talking about a price increase? WTF???
Microsoft stay fekking focused, and forget about all this other shite and get your damn Core system to $199.99. Otherwise, your nice little installed base lead that you have going on right now, is going to wither away into nothingness while more and more games looking like the new Ratchet and Clank get released on the PS3.