Monday, November 10, 2008

The real cost of buying a 360 (not so cheap afterall)

I always see people posting on message boards and using it as an argument for others to buy that the Xbox 360 is 'so cheap'.
But in reality, the only reason why the 360 is so cheap compared to the 360, is because it doesn't come with half as many features that the PS3 does.

I live in Australia so i'll be using the prices in $AU.

New RRPs for 360 skus (announced today)
Arcade – $299 (no hard-drive)
Pro – $399 (60gb hard-drive)
Elite – $549 (120gb hard-drive)

Some uninformed people may consider these to be cheap. However, this is not the case at all.

Real cost of ARCADE
Console - 299
Hard-drive (needed to do pretty much anything) - 20GB (119.95) - 60GB (149.95) - 120GB (199.00)
Wireless network adapter (who doesn't have a wireless router) - 149.95
12 month XBL gold subscription (needed to play online and access content at a reasonable time) - 89.95
Quick charge kit - 49.95
= Arcade with 60gb hard-drive 588

Real cost of PRO
Console - 399
Wireless network adapter - 149.95
12 month XBL gold subscription - 89.95
Quick charge kit - 49.95
= Pro with 60gb 688

Real cost of ELITE
Console - 549
Wireless network adapter - 149.95
12 month XBL subscription - 89.95
Quick charge kit - 49.95
= ELITE with 120gb 839

These are basic features that come standard with the PS3.
Compare all of these to the 80GB PS3 (only console still on sale in Australia):

Real cost of PS3
Console - 699
Wireless network adapter (built in) - free
PSN subscription - free
Quick charge kit (not required. all controllers come with long lasting li-on batteries built in) - free
Blu-ray player - free

The closest price to the PS3 is the 60gb 'Pro' package once you add in all of the features standard with the PS3. But there's still something missing; a blu-ray player. A blu-ray costs 394 for a standard Sony one.

So people can now stop using the 'wow, the 360 is so much better because it's cheaper'. The only reason it's cheaper is because all of the SKUs are only half the console the PS3 is standard.

In conclusion, the PS3 contains superior hardware (advanced cooling - a lot less noisy and runs quietly) at a very similar pricepoint at an excellent price if you have a HDTV that can play Blu-rays.

Now let's look at Microsofts ridiculous markups on all accessories.

Hard-drives
20GB (119.95) - 60GB (149.95) - 120GB (199.00)
These are standard 2.5" hard drives. They aren't 'special' in any way. The PS3 allows any standard 2.5" hard drive to be used easily swapped in. No need for a 'data transfer cable' too.

Here are the prices at which a user can easily buy a 2.5" hard drive for.
20GB - not even worth comparing. 20GB hard drives aren't available for retail anymore.
60GB - same with 20GB. 60GB hard drives aren't available for retail anymore.
120GB - can buy 120GB Samsung 2.5" SATA for 55. 160gb for 74. 320gb for 149.

Mark up for 120gb hard drive = $95

Wireless adapter
Wireless network adapter - 149.95

Wireless card built into PS3. Supports same protocols as 360 wireless adapter.
Supports 802.11g (which is the standard), slowly being overtaken by N.

Netgear USB WG-111 24
Yep. a $24 product has the exact same features as a $150 one.

Mark up for wireless adapters (G) = $126

XBL subscription
12 month XBL gold subscription - 89.95

I completely understand that XBL is a service and not a feature like PSN is. However, it just isn't justified to be at such a cost.
The only thing that XBL does over PSN is provide a better interface for playing online. Interface being the way you can communicate / play with friends.
Most XBL games rely on P2P servers. The largest recent one is Gears of War 2. Microsoft made many millions off the first game. Now the second one has released, they couldn't have put a tiny bit of their gold pot towards proper servers to provide a much better experience to their customers. Most Gears of War 2 players have had a disastrous experience with Gears of War 2 multiplayer so far. The matchmaking system sucks as much as Halo 3, and the P2P system isn't working as well as the first game.
Why couldn't Microsoft put in some of the many millions profit they make from XBL subscriptions into some real hosting servers for big titles like Gears of War 2?

Microsoft rips off its customers at every possible opportunity in the supply chain, and its customers take it like a bitch and accept it.
360 owners are already paying hundreds for technology that was already considered old at it's release in 2005 (cooling sytem, dvd rom, the use of batteries (AA batteries were standardized in 1947 fyi) - 50 year old technolgy).

At current, a PS3 from a technology point of view is superior when compared to the 360. There just isn't any denying it. Most people who have a brain capable of processing thoughts consider a blu-ray player (soon to be standard media technology) to be worth more than the small price difference of the PS3 against a 360 PRO.

To all the 360 fanboys, stop sucking Microsofts cock. It isn't needed as they have more than enough money to pay for someone else to do it for them.
Stop using the excuse of a 360 being 'cheaper' or 'superior value', because as i've shown with this post - it isn't.

I have more points that i'll add at a later point of time as I think of it.
(ie i didn't bother referencing RRP prices. they're standards found on EBGames Australia and MSY for the computer parts. i'll add them in later, but they aren't really needed)
Thanks

21 comments:

Australian gamer said...

I left a part out.
The real cost of buying a 360 is your soul.

Unknown said...

Glad to see Australian's aren't stupid like us Americans. Most people over here just buy stuff with the lowest price tag, but never think about all the other stuff you need to make it "fully" functional.

Anonymous said...

I agree thanks for pointing the facts out. What put me off to buy a 360 was the RROD and the Playstation is more then a console it plays my Videos downloaded from Veoh it plays my music I can access it remotly via PSP if I travel and has many many more features to come in the future. Xbox is not competition but an alternative for Arcade Player simular to the Wii

wohdin said...

@dsmiles034: oh god hahaha oh wow. That's just rich. Do you know how many of you Microkids have been endlessly spouting that argument (and the many ones before it, all of which have been shot down), for how long? Get a new schtick, because HDDVD is dead. Where else is there to turn? That new miraculous several-hundred-GB DVD thing? Until that thing hits the market, Blu-ray is the only option anyone has for HD content. And it will have had more than long enough to settle in as the definitive medium by the time anything else even thinks about challenging it.

I'm not a Sony fanboy; I'm just someone with a bit of common sense. Seriously, go take an economics course or something. (And maybe some remedial English while you're at it.)

What is a "real game" anyway, mindless twitch-gunning? Oh yes, such endless joy

Unknown said...

Very good article. I've been saying this for ages, now someone has actually put the numbers down for everyone to see.

Unknown said...

"The real cost of buying a 360 is your soul." Lol!!! :)

Anonymous said...

Oh my word... an article with factual evidence on the internet?! Great story, further more, great moderation of the comments :)

Anonymous said...

The arcade pack isn't so bad. You do not need the hard drive to play single player games. A lot of folks don't have inteernet connection, let alone know how the console hooks up to it.

Give it some more credit. And this is coming from someone who prefers Sony ANYDAY over the comp...

Too_Hyuman said...

It probably wont make a difference at this point but you stated "who doesn't have one (wireless adapter)".
Last time i checked the packs didn't include a wireless adapter, if they don't wouldn't adding that to the total cost increase the price marginally, leading to a biased and unformed part of your very illustrative article?

Anonymous said...

On amazon I'm finding prices $100 or more cheaper than the ones you have listed down, for example:
Elite - $375

and my 360 set up has been far cheaper as i've just hooked it up with a cheap ethernet cable to my router.

And xbox live isn't necessary at the end of the day (I think you get 3 months of free live gold with new profiles anyway), nor is the quick charge kit. The point is whatever comes in the box is enough to get you gaming as long as you have a game.

Interesting to see wireless network things cost so much though, glad i stuck to cable.

Don't get me wrong, I've used the PS3 and it's an alright console, I just prefer the 360

Anonymous said...

And yet the 360 is cheaper. I use to have a PS3 but I sold it and kept my 360. Although you get more bang for for your buck, these added features mentioned above I couldn't careless for.

This generation, Bluray isn't a factor, specifically movies. Yes, it's a nice added feature but when you consider that less than half, if not more in the entire population don't have HDTVs, that added feature is next to worthless. Hell I have a 32' 720p Aquas HDTV and I don't care for it. It looks nice but all I care for is games.

And PSN is crap. I played CoD4, among some other onlines games on the PS3, too and the online experience is no where as good as XBLive. I'd rather pay for good quality service than having something for free worth crap.

Anonymous said...

that's a slam dunk article... I knew 360 had an overpriced proprietary hard drive but i didn't realise it was THAT overpriced. and $150 bucks for what is effectively just a wireless USB dongle is plain criminal.

i'm surprised sony aren't more aggressive about publicising these price distortions - when the numbers are all laid down like that it's crazy. Although i think you could probably shave $50 off for the 360 recharge kit (that's not really all that important) the XBL subscription and wireless kit are necessities, it's pretty stingy of microsoft to regard them as "extras". It's always taking into consideration that the cost of the XBL script "stacks" for every year you have the 360.

Anonymous said...

I am in no way denying anything said, or even trying to defend Microsoft.

I do not own a PS3, but I do own a 360. I am aware that while things that should be built in (wireless adapter, even a Wii has this and some argue it's technicially not "this-gen") and then they overcharge for it (Hard drives and wireless adapaters; the WA will run you $100 US). But the reason I own it is because I enjoy the games more.

Again, I'm not trying to be a fan boy (though I may come off that way), but Gears, Halo, Mass Effect, Fable, achievements (which I prefer over trophies) and not to mention that 360 owners usually get downloadable content before the PS3 or exclusively altogether (Rock Band DLC comes out 2 days earlier every week, Dead Space DLC is coming out ~1 week early, GTAIV DLC is exclusive). But I'm not gonna lie either, I'd love to be able to play MGS4 and Little Big Planet.

While the 360 has its downfalls, (mine just happened to RROD in the middle of the fall season, which sucks) there are some perks, as with every console/handheld. I mean, the PS3 has been putting off Home for how long now?

It's ridiculous to bash a console because there is usually something that's gonna be better about the other that some people prefer. Everything has its pros and cons. Don't let a pricetag be the only thing that sways you into making such a hefty purchase. Do some research (as some fine individual did on the price comparison) and see what fits best for you.

These bashings are getting ridiculous whether it be for consoles or games (Rock Band vs GH is getting annoying, as is Halo/Gears vs Resistance). Just enjoy what you have with the other people that have it. Why do you have to go and talk shit to someone because they have something different?

Anonymous said...

Ignorance is bliss.

I have an Xbox 360 60GB Premium in my room. It's hooked up to the internet via a bridge connection to my laptop, so I never needed to buy the wireless adapter.

Saying that, our PS3 is setup with a wired connection anyway - sometimes wireless just isn't as consistent or reliable as it's cabled alternative.

Not sure why you have mentioned the quick charge kit either, the PS3 doesn't even have that built-in, plus it's not necessary to charge the 360 controllers?

Your prices seem a bit inflated too - but I won't bother looking around the net seeing how much they really are in AU. Looks like people have pointed that out already.

Anonymous said...

Good article I suppose, shame it comes across like a fanboy rant :(

First off I own both consoles and could really be placed in the Sony camp since I owned both a PS1 and PS2 (now a PS3), the 360 is my first foray into the M$ camp.

Now the important part, the 360 IS cheaper than the PS3 no matter how you cut it or shift numbers. I buy a Gaming Console to play games, period. I don't use my console to play movies, I have an upscaling DVD player that does that nicely ... so that gets the cost of buying a blu-ray player out of the question. I only using my console for gaming so the necessity for a huge hard drive is negated. My network is maybe a foot away from my consoles so I don't need a wireless router AND I don't bother playing my consoles online anyway (I prefer to get friends and family over, it's more fun that way ;)) so I don't need to pay for XBox live. About the only thing of merit is the charge unit, it would be nice to have something similar provided with the 360 instead of using batteries that die all to quickly.

So if you want to turn your article on it's head I overpaid for my PS3 since half the "features" I won't use. At the end of the day a gaming console is just that, and from that standpoint alone the 360 is cheaper than the PS3. The fact that the PS3 has a load of extra features that the 360 doesn't have as standard just means the "extras" are being sold to you whether you want them or not.

That is my opinion from a neutral standpoint and I would hazard a guys a lot of people think the same way, as long as it plays games out of the box I don't care about all the extra stuff ... that's why they are called extras ;)

Anonymous said...

totally agree with everything you just said mate!

Anonymous said...

Hey, don't group me in your "stupid american" group, not ever American is stupid, only you.

Anonymous said...

@Justin. May need check your grammar before trying to prove your not stupid.

And who ever wrote this is crap. 89$ for live, your a liar face. And no you can buy a 20GB HD for 45 + shipping if you care to look on the internet. Here buy this and pay only 300 + tax/shipping.

Xbox - http://www.newegg.com/Product/Product.aspx?Item=N82E16868105004
Everything Else - http://www.newegg.com/Product/Product.aspx?Item=N82E16874103118

Anonymous said...

Erm... Try looking at tje 'Play & Charge' kit, not the quick charger. Thats $20 less...

Plus, 12 months XBL gold is only $75...

So please drop $35 dollars off all your prices... Which of course will not happen while you try to push your Sony fanboy point..

Plus digital downloads are the furutre of film distribution, not physical media, so who cares about blu-ray?

Anonymous said...

Well written article. People claim they don't want this and they don't want that but sooner or later they're gonna need it. You don't have to use all the features on the PS3 if you don't want to use them. I could buy all games and no bluray movies. The PS3 gives you a choice, the 360 doesn't.

Glad to see someone tell it like it is.

Scott said...

Great write up.

The other bit u left out is the fact that the Xbox 360 is @ the end of its processing life.

Gears of War 2 used 95% of the processor, yet PS3 games are still in the 25-30% processor mark.

The next couple of years (as always happens with the Playstations, just look @ the history) games will come out such as killzone2 that will push the processor more and more, and we will see games that wont be portable to the 360, or will have to downsample so much that they look terrible on the 360.

I.d also put money on MSFT bringing out 1 or 2 new consoles before the PS4, so I am putting my $$ in a longer term investment in the PS3.

Also PlayTV launching this year so my PS3 will become a TiVo too - woot.