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Print 26 comment(s) - last by h0mi.. on Jun 27 at 2:44 PM

Xbox 360 HD DVD drive more popular than standalone drives

The HD DVD Group announced in April that it had sold over 100,000 players in the U.S. in its first year of availability. The numbers only represented standalone players, and did not include sales of HD DVD PC drives or the Xbox 360 HD DVD player.

A Microsoft representative told CNET UK that 155,000 Xbox 360 HD DVD add-ons have been sold in the U.S., making it the “biggest-selling accessory” ever sold for the console. By “biggest-selling,” Microsoft may be referring to the overall revenue, as it would seem unlikely that the HD DVD add-on would be more popular than extra controllers. Each HD DVD drive retails for around $200.

Even with the combination of standalone HD DVD players and the Xbox 360 add-on, the overall number of HD DVD-capable players is less than the total number of Blu-ray playing machines. The difference between those two, however, is that every HD DVD player or drive is purchased with the intention of playing movies. On the other hand, not every Blu-ray machine is (with the majority of them being PlayStation 3 consoles) purchased for movies.

Even though there is more Blu-ray hardware in the hands of consumers, the HD DVD side averages more movies sold per machine. According to CNET, an average of one disc per Blu-ray machine is sold, compared to four discs per HD DVD machine. Nevertheless, overall disc sales for 2007 are still in favor of Blu-ray.



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I think the next step should be integration
By steven975 on 6/25/2007 6:30:24 PM , Rating: 2
I think if MS wants to win the "format war" the next step is to integrate the HD-DVD drive. I think that the costs will come down enough with the upcoming 65nm version that they could do this with NO price increase (smaller GPU, CPU, and smaller power supply, case, etc).

An Xbox360 with an HD-DVD even at the $399 price point will likely spur demand significantly (and many current owners will upgrade, too). Given the 360's already healthy month-to-month lead over the PS3 and the added value of a HD-DVD drive I think that a new version with HD-DVD will sell very well and eventually overtake put the HD-DVD format in the lead over Blu-Ray.




RE: I think the next step should be integration
By jadedeath on 6/26/2007 12:07:05 AM , Rating: 2
That's a bad idea:

1} because that'll add 200 bucks to the 360 price and they'll see their sales lead diminish and disappear entirely by the end of the year.

2} there will be FAR too much temptation with an internal HD drive to put games on HD disks, the second you do that you alienate the already established 11 million 360 owners that you have as an established base.

3} adding a drive into the 360 itself will just add to the already massive problems that the 360 is having with returns and people sending them in to get repaired, more components = more problems.

4} the drive is not made by Microsoft, it's made by Toshiba, if they threw the drive in the 360 they'd have to pay Toshiba for the royalties for the equipment, Toshiba might like that, Microsoft would not.

Logan


RE: I think the next step should be integration
By steven975 on 6/26/2007 11:24:48 AM , Rating: 2
It won't add $200. The current external retails for $200 already.

You'd be eliminating the retail margin, the redundant case and power supply, and removing the existing DVD drive. The net add to cost would probably be in the $70-80 area.

I think this would be offset by the reduction to 65nm for the GPU and CPU as well as the resulting smaller power supply and case that would ultimately be needed. I think once they do the 65nm revision, they could keep the same $400 price point. The $299 version would probably have the DVD drive only, though (if they did it).

Obviously, they'd have to keep the games on DVD, but the HD-DVD drive would ultimately help them sell more consoles.


By jadedeath on 6/26/2007 5:52:47 PM , Rating: 2
The external retails for 200 because Toshiba is undercutting themselves in order to gain market penetration.

If Microsoft were to make the drive external then they'd have to pay royalties to Toshiba for every 360 that they make because it's Toshiba's tech, not Microsoft's and that ADDS to the price.

Plus {as previously mentioned} the second you release a game on HD-DVD only you piss off the fanbase of gamers that you've developed already that has signed on to make your console a success.

At every turn, it's a bad idea for Microsoft to do this.

Logan


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