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Tuesday, 2 September 2008
Japan has long been the heartland for Nintendo support. Release a 360 in Japan and plaster 'Nintendo' all over the box and it'll sell like a new Elvis Presley album. Yet, Microsoft have been adamantly chasing that market despite the polite nudge-offs that the Japanese have been giving them over the past few years. In a bid, perhaps, to do what Manchester City are currently doing the football industry, and become the ultimate games console for all walks of life in all 'theatres of war'.
The latest attempt by Microsoft to buy their success in Japan has resulted in them slashing the prices of all their Xbox models. From September 11th, the Elite will be dropped from $441 to $368 dollars, the Pro will be available for $275. The Arcade, shockingly, will go from $257 to $183 (that's just over £90!!! Cheaper than a DS lite in the UK [£99.99]). To put these numbers in some kind of context for British readers: in the UK, the Elite retails (according to prices on GameStation) at £259 (just over $510), the Pro sells at £200 (just under $400), and the Arcade goes for 159 (~$310). So for the arcade, that's a price difference of £60 between the UK and Japan. In other words, if you're thinking of buying an Xbox IMPORT! The games are cheaper too!
This, essentially, means that the Arcade model is $50 cheaper than a Wii, which retails out there for $231. A desperate gambit by Microsoft to steal the home advantage from Nintendo, which has often claimed to be the 'economical' choice for families. And, importantly, Nintendo, despite all their problems, have been able to afford it, by lowering the debt that producing the console itself has put them in. In other words, the smaller HDD and the, at times, 'last gen' software has in fact not mattered due to the market it's aimed at. Microsoft haven't really learned this lesson. It's market is, broadly speaking, people. Nintendo have aimed their products at a cross section of people that don't care for (and might not appreciate) the swarve graphics and astronomically complex game systems that Microsoft and Sony have put in their boxes. But Sony, as a side, know what they're doing, and have aimed their products for a market that appreciate the blu-ray and the processing speed.
Strictly speaking, Microsoft's hardcore has always been online gamers. With, arguably, the best online service around, the Xbox has always been able to rely on a community of gamers, rather than a chopping and changing casual gamer lot. This has made them take the middle ground, between Nintendo (who appeal to people who wouldn't usually game, and in a way, view the console as a toy), and Sony (who are geared towards making their equipment the best technologically [the PS2, you will remember was immensely ahead of its time in the field of graphics and game processes]).
However, I don't believe Microsoft are used to this position, and it's difficult for them. In the OS market, they have more or less total ownership over a great percentage of the market. Appealing to both big business and individual users. Mac and Linux are both highly specialised, though they are growing more popular. In an ideal world, I think Microsoft are aiming for a market strategy like that, achieved by making the 'catchment area' for the Wii and PS3 smaller; allowing a great percentage of the market to be appealed to by the Microsoft doctrine.
But this issue in Japan show exactly why they will fail in this. The situation is too far gone, and Microsoft came along too late in the game. The Xbox wasn't a Windows 3.1, it was just a successful third party candidate. Nintendo and Playstation are the original players in this game, and have their own loyalists. For Nintendo, this is Japan. N
intendo know exactly what Japan wants, and how to give it to them: and how to make a return on this. Microsoft can't do that, because it's stretched too far, every game has to be available for release in all the 'theatres of war' for it to make sufficient return on the games. Nintendo, on the other hand, can design games (and, more frequently than any other developer, does) that appeal just to Japan, and then release the bigger title games overseas too. And it can then export at greater profit, because of the Yen-Dollar exchange.
Then, finally, within this, and at the core of this, Nintendo have developed with the needs of the Japanese close to its heart. The Wii, with all its little niches and tidbits (like motion sensing), appeals to them, because it's been designed for them. Add a little bit of marketing alteration and this then appeals to families abroad, as the cheap, viable option. So Microsoft can undercut as much as they like, but the Japanese know what they want, and it's Nintendo that's offering it to them, like no other company can, and the price of it can go hang. Put it this way: if you lowered the price of Hell's Kitchen on the DS to £10, I'd still go for Battlefield for £40.
Labels: Original, PS3, Xbox360
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