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Chris Satchell says Xbox 360 with HDMI is just an experiment at the Microsoft HQ

Last week, pictures of a prototype Xbox 360 with an HDMI connector and a new scaler chip surfaced on the Web. Some took this as a sure sign that Microsoft was surely tooling a new version of its gaming console with updated features and improved technology, perhaps in response to both consumer demands and pressure from competitors.

During an interview with GameSpot at CES, Chris Satchell, general manager of the game developer group at Microsoft, addressed the rumors of an HDMI-enabled Xbox 360. He starts by saying, “We're always working on prototypes and new technologies and just playing with stuff in Redmond to see what's interesting. I think at the moment we have the widest available connections on the system. If you want to get great HD, I think we've got a good solution for that.”

Satchell then sidesteps the question for a bit and talks about the wide array of standards available to consumers and how Microsoft is always keeping an eye on that. He then returns to the original question and says, “At the moment, everything you might have seen is just looking at our experimentation back in Redmond, not really a product that we're thinking about announcing.”

With the Xbox Live Video Marketplace and eventual addition Xbox 360 IPTV, owners of Microsoft’s console will quickly find their 20GB hard drives without adequate storage space in a hurry. Another one of the rumored upcoming upgrades to the Xbox 360 is a bigger hard drive, which has been hinted at previously. Satchell responds to the cries for a roomier drive with the following: “That's not really something we're looking at today. We're very open to feedback on it. As we produce these services, if we see an increase in pressure that's something that will be interesting to look at, but there isn't any announcement today about any new configuration that may or may not be happening.”

Satchell also mentions in the interview that Microsoft currently has no plans to offer an IPTV product directly, instead opting to allow its telco partners to set pricing and bundle options for the product’s eventual rollout.



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By jelifah on 1/12/2007 10:00:41 AM , Rating: 2
My title is only slightly sarcastic.

Everyone complaining about proprietary hardware for the xBox needs to take a step back. They sold the console last year for an estimated loss of $100.

To me at least, Microsoft was always very upfront with their pricing schemes. You walk into the next generation console door very cheaply, just like you when you buy a razor or a printer, but they fully intend to monetize EVERYTHING on the back end. $60-$70 games, $2 per GB hard drives, etc.

In fact consider this:
At least 2 million units were sold at a $100 loss (Just speaking in general terms).
Microsoft is down $200 Million right away.
Now you need those 2 million people EACH to buy enough items to give you a net profit of $100 each. So, let's say they bought 2 games and another controller. That's maybe $150 in sales, and maybe $50 net profit at the most?

It appears to me that
The xBox 1.0 generation was a lost revenue product to enter the market (This is fact)
The xBox 360 may break even, or see a small profit
The xBox 3.0 generation will see Microsoft completely dominating the high end console market.




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