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Microsoft's Mattrick on the varying 360 models: 'consumers like choice'

Posted Jul 24, 2008 at 4:45AM EST by QJ Staff

Listed in: Xbox 360 Tags: Don Mattrick, Microsoft, MTV, xbox 360 titles

Mattrick explains Microsoft's 360-related business decisions - Image 1

Over on MTV's Multiplayer blog, Stephen Totilo was wondering about Microsoft's recent actions. To date, they've discontinued the 20GB Xbox 360 model and lowered the price for it, replacing it with a 60GB model at its US$ 349 price point. They're also continuing to sell the hard drive-less Xbox 360 Arcade model, which doesn't make immediate sense given the push for more storage.

Well, Don Mattrick, head of Microsoft's Xbox division, explained both decisions. Says Mattrick of the Xbox 360 20GB discontinuation and the introduction of the 60GB Pro Model:

What weÂ’ve made a decision is that we can deliver three times the amount of storage to consumers with our Pro [version of the machine]. We wanted to work with our retail partners to manage the channel. And whenever you have a transition like that you need to develop a program against it. I think what weÂ’ve done is over-deliver value to consumers.

Of Microsoft's continuing sales of the Xbox 360 Arcade Model, Mattrick explained that it was a matter of offering choice to consumers:

What weÂ’ve learned is that consumers like choice. So weÂ’re providing a choice in flexibility to consumers. ThereÂ’s different entry points. ThereÂ’s different types of experiences people want to use. That program is working for us. Retailers like it. Consumers like it. So thatÂ’s why we have it.

All in all, the steps they're proposing seem like good moves in light of the recent strength of their competitors. We'll have to wait and see if it turns the tide their way, however.

Microsoft officially announces Xbox 360 20 GB price cut, unveils 60 GB unit

Via MTV Multiplayer

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Don't forget that there are people who can't afford a $350 system right out of the gate and have enough money left for a game, but they might be able to afford an Arcade, MU, and a game then upgrade with an HDD later.

In my opinion as a consumer, the Arcade competes well with the Wii from a pricing standpoint.

If you really want a 360 it would probably make more sense to save up for a Pro, but if you wanted a system right now and there was no Arcade version of 360 your only option would be a Wii. That translates to a lost sale for Microsoft.

# The 360 needs a real price cut. — yworob 2008-07-25 19:19

Now that the $350 version has a 60 gb harddrive the elite really kind of seems like a ripoff at $450. The 360 has been out for almost three years but the price has barely come down. They are really leaving the door open for Sony by not lowering the price of the consoles.

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Microsoft's Mattrick on the varying 360 models: 'consumers like choice'

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