Game Consoles - Introducing the new Wii and PS3

Xbox 360

The Xbox 360 is the successor to Microsoft's Xbox video game console, developed in co-operation with IBM, ATI, Samsung and SiS. Information on the console first came through viral marketing campaigns and it was officially unveiled on MTV on May 12, 2005, with detailed launch and game information divulged later that month at the prominent Electronic Entertainment Expo. The Xbox 360 is the first console to have a simultaneous launch across the three major regions, and the first to provide wireless controller support at launch. It is the first console to be released in the seventh generation of game consoles and will compete against Sony's PlayStation 3 and Nintendo's Wii. Microsoft believes that its push towards high-definition gaming, year-early head start and its Xbox Live online gaming service will help the console be successful.

About The XBOX 360

Microsoft's retail strategy involves two different configurations of the Xbox 360: the Xbox 360 SKU, frequently referred to as the Xbox 360 Premium Package and an Xbox 360 Core System SKU. At launch, the Xbox 360 was priced at US$399 and the Core System was priced at US$299. The Core System is not currently available in Japan, but will be released on November 2, 2006. Additionally in Australia and New Zealand the Xbox Live headset in the Xbox 360 Package was not included.

BusinessWeek magazine compiled a report that estimates the total cost of components in the premium bundle at US$525, sans manufacturing costs, meaning that Microsoft is losing money on every Xbox 360 system sold. It should be noted that the strategy of selling a console at a loss or near-loss is common in the console games industry, as console makers expect to make up the loss through game licensing. Furthermore, since Microsoft owns the intellectual property rights to the hardware used in the Xbox 360, they can easily switch to new fabrication processes or change suppliers in the future in order to reduce manufacturing costs. This flexibility stands in contrast to the situation Microsoft faced with the original Xbox, where manufacturing costs were never reduced below the break-even point. Microsoft is predicting that with the Xbox 360, a greater market share, yearly revenue through their Xbox Live service, and falling hardware costs will eventually make system sales profitable.

Storage

The Xbox 360 is equipped with a 12x DVD drive, capable of a maximum read rate of 16.0 MB/s. Games are stored on standard Dual-layered-DVD-ROMs with 7GB of usable space available for game content. The option to apply a regional lockout to games is available to publishers although DVD region codes are always enforced. Microsoft has implemented methods to prevent hacking through the drive. Later drive models have the external debug triggering removed and black hard glue added to cover all the chip and controller pins. The drive is able to read both DVD±R and DVD±RW in addition to being able to play DVD-Video out of the box, unlike its predecessor which required the purchase of an add-on remote. The system is also capable of playing standard CDs along with CD-R/RW, CD-DA, CD-ROM XA, CD-Extra, WMA-CD, MP3-CD, and JPEG Photo CD. Some user reported problems with the disc drive, as when a user changes the consoles orientation, the inserted disc may brush against the drive's pickup-assembly and incur scratches to it.

Announced at CES 2006 and first publicly shown at E3 2006, an external HD DVD drive it set to release in North America in Mid-November for $199.99. It will be released November 17, 2006 in Japan for ¥19,800. In Europe, the HD DVD drive will be released for €199.99/£129.99 in the U.K., France, and Germany. For a limited time, the HD DVD drive will be bundled with an Xbox 360 Universal Media Remote, as well as an HD DVD copy of Peter Jackson's King Kong. The drive will play HD-DVD Movies, although all Xbox 360 games will remain on the DVD format. Microsoft has no plans to include an internal HD DVD player in future Xbox 360 designs. The external drive connects to the Xbox 360 via USB and contains two integrated USB ports on the rear.

The Premium configuration of the system comes with an external Hard drive and it is optional to separately purchase one for the Core. The detachable hard drive has a storage capacity of 20 GBs and is not required for standard games. The 2.5" drive is connected through a SATA interface and the drive spins at 5400 rpm.