Xbox 360 Elite: Thinking Inside the Box
The Xbox 360 Elite is a good idea, but Microsoft really needs to think out-of-the-box if they want to succeed.
The advantage to being first to market is you have the market to yourself for awhile; the disadvantage is your product looks old first and people stop buying it. Xbox 360 sales have been slowing though they still seemed to be outselling the PS3 which is rumored to be getting a price cut shortly to boost sales.
The Deal
So far the response to this new product has been a bit tepid, the core advantages over the Xbox 360 are HDMI out (which is important if you have a current generation High definition TV or an HDMI switching receiver), a larger hard drive for downloading movies and shows (which there still aren’t that many of), and all the connecting cables (this isn’t trivial, good HDMI cables typically aren’t cheap and Sony doesn’t provide one for that very reason).
So for about $80 more than the price of the old fully loaded Xbox 360 you get about $220 USD ($180 for the drive separately and about $40 for the HDMI cable) and an easier set up if you can use HDMI. Of course if you didn’t really need the drive, and can’t use HDMI then that $80 for the color black which, if you’ve ever had one of these things painted isn’t a bad deal if you wanted one to go into your stereo cabinet.
Not a bad deal but not a great one either. If you were planning on getting an Xbox 360 this might be enough to get you to the store and buy one of these because the product is more forward looking in terms of configuration and a console has a service life of over 5 years so $80 USD is a small premium to pay for one that will probably be more likely to go that distance. But it isn’t a great deal and I think if they had just done a couple more things it could have been great.
What the Elite Should Have Been
A lot of folks are writing that it should have had a built in HD DVD drive. The problem with that is the market still hasn’t locked down on either format and until it does, repeating Sony’s Blu-Ray mistake with HD DVD would be foolish. Remember this thing will need to remain current for at least 3 years and in 3 years one of these two format will win or, and the odds favor this, neither will. If you were going to put in a high definition drive you’d need to put in one that ran both formats and that would push the player well into nose bleed territory with regard to price.
What they should have done, however, is put in a named high quality up-scaler like the Oppo DVD player we like so much, the Gateway 24” display, or the Dell 27” display. This would have allowed them to better position the product as one for watching DVDs and the second brand would have helped support the “Elite” brand.
The other thing is to make the product quieter. Both the PS3 and Xbox 360 are too loud to really be considered as good movie players. For games this isn’t a problem but if you want the device to really be used in home theaters and as a set-top box for High Definition movies and music you need it to be quiet. Arguably it is quieter than the PS3, one of the benefits to having that huge brick of a Power Supply, but it should be silent and it isn’t.
Looking Ahead for the Xbox 360
Long term problems for the Xbox 360 are that the Wii is currently outselling it sharply and projections out of the Japanese market have the PS3 passing the Xbox 360 in 2008 (which seems a bit of a stretch given current sales rates.). In addition, some of Microsoft’s biggest partners are viewing the Xbox as a competing platform to the PC. This last could have broad implications for Microsoft’s competitiveness in other markets because these vendors typically lower their commitment to Microsoft’s products and actually look for competing offerings to sell under circumstances like this.
Microsoft, in my view, is making a fundamental mistake with the Xbox, they are playing the game as others would play it and not focusing on their own strengths. The one place this isn’t true is in game development where they are now using common tools and games are now starting to come out that will run on PCs and the Xbox with little additional work (but this doesn’t work for all games as the two platforms tend to favor different game types).
What the PC vendors would like is the ability to emulate the Xbox in high-end gaming and Media Center systems so they too can benefit from the infrastructure Microsoft has set up. This would both make new PCs more attractive and it would allow the OEMs to come up with configurations that better target users than the Elite, or any console, spin might. It might also be a better path to profitability for Microsoft which has bought its way into the gaming segment but found margins consistent with their traditional profitability numbers elusive.
Of course they could also spin the unit out and let it compete on its own against Sony and Nintendo, it just isn’t healthy enough to survive such a move yet and that points to the fact that the current path is probably not the right one for the unit.
Wrapping Up
I’ve always thought the Xbox should have been Black and think it looks better that way, but they had a chance for a hit and they fell short probably because they were focused too much on costs and not enough on requirements. In the end they can’t cost reduce their way to strong profitability but rather they need to change the game, and until they do that we’ll likely all be spending more time talking about what they should have done rather than what they did. Granted that’s kind of what we are doing with Sony but beating Sony in this way is probably not the road to success.
Overall, this market would be a lot more interesting if the high-end players, Sony and Microsoft, would do a little more “out of the box” thinking right now. It is really being defined by Nintendo who has done a better job in that regard with their physical controller and a vastly more attractive purchase price. I think it would be wise for Sony and Microsoft to pick up their game a bit if they want to make money here.
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By: Ian Bell
March 28, 2007 @ 11:18 AM
As I jokingly pointed out in the news announcement: http://news.digitaltrends.com/article12561.html
While I think the HDMI connection and larger HDD is great, what the heck is going to take advantage of the HDMI? The system doesn't upconvert to 1080P, it doesn't have a built-in HD DVD player or Blu-Ray drive…it's more for convenience than anything.
Let's make this baby REALLY elite. Package it with a combo HD DVD/Blu-Ray drive like you pointed out, include a nice 27″ display, maybe even more hard drive space, blue lights instead of green – I don't know. $80 for a little bit larger HDD and HDMI with black instead of white coloring, that's not Elite, that's an afterthought.
By: Steve Strowbridge
March 28, 2007 @ 11:28 AM
HDMI in a word, is a digital connection with a much higher image quality then the analog compositve vide input.
Regardless if they output in 1080i or 1080p (which you would have to own the approprite television for anyway) they are giving you a high quality digital output that also integrates the digital surround sound connection.
I've been doing a lot of reading on this subject when the product was still a “rumor” and the main reason why Microsoft didn't include the HD-DVD player was that the games aren't going to be produced on HD-DVD, so that option is a “movie only” option, and some games may just not be interested in HD movies, this allow the product to be sold cheaper.
I like the re-packaging of the product and am now ready to fork over the money to buy it.
The hard drive upgrade to 120GB is great, and Microsoft is moving forward in the HD media direction there is going to be a lot of on demand digital media available, and this new storage capacity will enable the downloading ans storing of a lot of content “TiVo” like.
It's still cheaper to buy this next-gen console then to spend the money to upgrade a PC to the same technical capabilities, the latest video cards are $300-$600 for PC's, a good gaming rig is still $1200+.
By: Bill
March 28, 2007 @ 11:33 AM
Hi Steve,
Unfortunately you are not going to see a huge difference between HDMI and Component Video in picture quality. For the Xbox 360, the HDMI only offers convenience and nothing more. The PS3 has to have HDMI because it supports copy protection for the integrated Blu-Ray player during movie playback.
By: CWW
March 28, 2007 @ 12:33 PM
$40 for an HDMI cable is ridiculous. I paid $5 for mine and it works just fine, even did a side by side with a $100 Moster cable no difference other than clever colors of the name brand cable. Xbox with HDMI cables is like a donkey with a spinning wheel. No body knows how he got and danged if he knows how to use it. Xbox doesn't have 1080p out so why mess with the “expensive” cable. The bottom line, you're paying and extra $80 for a paint job. Seems a bit high for some black plastic.
By: brian
March 28, 2007 @ 3:10 PM
“the system doesn't upconvert to 1080P”
any game can be upconverted to 1080p over component or vga connection. there are even a couple of native 1080p games.
HD-DVD output is capped at 1080i unless you're using a VGA connection.
I assume you mean that standard DVDs don't upconvert. Even if they did, what use would HDMI be? The disc really wouldn't have anything on it to take advantage of HDMI anyway.
However, both Games and the HD-DVD player can make full use of HDMI. I think there will be more games to come that will be native 1080p (Halo 3, I'm looking at you) and that will also take advantage of the higher-end audio specs like DTS HD.
By: Ceon
March 28, 2007 @ 3:54 PM
Wait.
Does the author really has PS3? PS3 is way quieter than Xbox360. This new X360 is no better than older ones in terms of noise. It has same components, just black case.
By: Ian Bell
March 28, 2007 @ 5:14 PM
Hi Brian,
HD DVD is not capped at 1080i, it does in fact support 1080P: http://reviews.digitaltrends.com/review4383.html
There are several players out there that upconvert old DVD's to 1080p.
I guess I made the mistake of not thinking that games on the Xbox 360 are not in 1080p, you are right, they are. So that would make sense for the HDMI port. I just wish it took advantage of upconverting DVD movies.
Another question, do we know for sure that the HD DVD add-on will output movies in 1080p when connected to the Xbox 360 Elite?
Ceon, The PS3 is a lot louder than the newer Xbox 360s. Any Xbox 360 manufacturered after November are using quieter DVD/CD drives in them.
By: Steve Morisette
March 29, 2007 @ 9:13 AM
One advantage to having HDMI on the xbox 360 relates to playback of HD DVDs with the add-on HD drive. Eventually, movie studios will implement the ICT (image constraint token) on discs and the image will be down resed over component to little better than regular DVD. On such discs you will need HDMI to get HD. HDMI is also the only way to get lossless audio out of an XBOX 360 (or PS3)since neither has multi-channel audio out.
By: Ben
March 29, 2007 @ 2:12 PM
I really disagree with this article. I don't think the author actually plays games because if he did he would realize that MSoft is the real leader regardless of current sales. Neither the Wii or the PS3 have any good games to speak of. Wii owners have bought into a gimmick (and consist of children and old people) that will eventually die off.
The 360 has superb graphics and sound, the best games available and unparallelled online play. Anyone who is a true gamer knows Xbox Live is really the best aspect of the system. Xbox Live has 6 million members…HELLO! Not to mention achievements which at first seem gimmicky but are really ingenious and addictive.
The price is perfect for what you are getting. I personally don't care if you can move around the Wii controller because the system is grossly underpowered. The 360 provides enough power to create game situations that were not previously possible and not possible on the Wii. The Wii doesn't even play DVDs.
The 360 is not without it's faults, however I wonder when people will give Xbox the credit it deserves because it's the best.
By: Brett Conrad
March 29, 2007 @ 9:09 PM
Bett, seriously you are such a fan boy. How are games for the Xbox 360 better than the Wii? The Wii is selling out continually!!
By: Brett Conrad
March 29, 2007 @ 10:15 PM
I meant Ben.
By: Big Ben
April 2, 2007 @ 12:42 PM
Brett, you are retarded. The Wii is somewhat of a child's toy don't you think? I believe Ben is completely correct. What sort of games are out for the Wii that are even remotely comparable to that of the 360? And will any one MLG gamer even consider a tournament of any real scale on the Wii? No! The online portion of the Wii stands no comparison to Xbox Live. I also think that PS3 stands no comparison to the 360 either the graphics card in the PS3 is better, but the processor sucks. If the processor in the PS3 was so good, don't you think that PCs would be using the same “Cell” processor? They aren't though are they? They are using chip based processors comparable to that of the 360. The only reason your misinformed statistic that the Wii is selling out makes any sense is because Children play more games than young adults, and children would also play with something so childish and ridiculous as a swing your arms and run like an idiot Wii and not a powerful system like the 360.
By: Ben Krupt
April 2, 2007 @ 4:51 PM
How the hell is the Wii a childs toy? I am 35 and think its a blast to play. Its fun at parties or just hanging with friends. I think the Xbox 360 is good too, but the Wii games are a lot more fun IMO…
By: Jason Howard
April 2, 2007 @ 5:15 PM
Uh, stating the cell processor is not good is such a moronic statement its not worth anymore effort to respond.
As for the Wii sucking: The wii is targetting a different audience, the casual gamer. Not the hardcore gamer.
The hard gamers will either chose the PS3 or the Xbox, and Nintendo knows this. However, the Wii is a blast to play. They are outselling both the Xbox and PS3 combined right now, so thats testament enough.
I prefer the Xbox360 to the PS3 right now, but thats because the games are finally getting good. I mean finally because up until Gears of War, there wasnt a game available for the Xbox360 that made me want to go out and buy the system.
Trust me… the PS3 will come out with a game that is their must buy that will sell the PS3 like hot cakes as well, just give them time. This is the same scenario that happens everytime a new system is launch, with the exception to the Wii.
By: William
April 3, 2007 @ 4:50 PM
Hindsight is a wonderful thing. We can all look back and say what the 360 SHOULD have been..
Personally, I would have designed the 360 so that moving parts could be relatively easily removed and upgraded/replaced without the need to send the entire console away to lands unknown. Sure the HDD can be removed/added but the DVD drive can't.
I'm glad they decided to have an external HD-DVD drive. It means if the internal drive fails I can use that instead!
By: clement
April 12, 2007 @ 8:59 PM
To the Author and everyone saying xbox quieter than PS3.
Y'all are just fools reporting false information.
I have an xbox 360 and a PS3, and when it comes to noise, the 360 is no where as silent as the PS3.
And don't even talk about the new one as it will be same I beleive. and none of you have used it to say the contrary so shut up.
By: Ricky
January 27, 2008 @ 9:46 PM
The XBOX 360 is an okay system. It lacks the functionality of the PS3. Both have great graphics, but the PS3 already has Blu-Ray built in, and it also upconverts standard DVD's to near HD quality.
To those who think HDMI is unnecessary, you need to adjust your eyes. Component is not High Definition. It cannot be used for upconverting. There is a stark difference of picture quality between component and HDMI. I've worked with home theater products for over a year now. I've seen the difference it makes.
To make things simpler the XBOX 360 in my opinion is overrated. Yeah it has more storage and games but it does not have the functionality that people want these days. With everything turning high-def, people don't wanna spend extra money. Working at Best Buy, customers end up buying the PS3 when I tell them that the HD-DVD attachment for the XBOX is separate. They don't wanna pay extra! I don't blame them.
If you're looking for serious, hardcore gaming then yeah go ahead and get the XBOX. But if you're looking for a great all-around package…buy the PS3.