Dragon,
The target price of the x-box is around $300-400. If you’re like me, you probably spent at least that much keeping your computer current over the last 12mos. My point is these new x-box/consoles are going to be DISPOSABLE. You don't upgrade them, you replace them every two years just like console systems of the past. I promised my wife I would get the family a Playstation 2 for Christmas this year. Unlike us, my wife wants to turn on the computer and get her emails and play a game or movie. She has no interest in upgrading video cards and hard drives. I bet you 90% of home computer users are more like her then us. I just got my copy of Computer Gamers World today and they had a very interesting article about this subject. They had a line in the article that was great-“They can have my electric screw driver when they pry it from my cold dead fingers”.
Let me make a couple of points not covered in the article. First, the hybrid consoles are going to demolish the low-end pc market. If Microsoft offers a network card and SVGA video converter as upgrades, then you might see a lot of interest from corporate workstation users. My workstation at work is a P166, 32mb ram, 2.4gb Hdd and no Cdrom or floppy. And this machine was my Y2K upgrade!!! I would love to replace it with an x-box. Secondly, there will be upgrades. You will be able to buy proprietary branded ram and hard drives. They will probably be relabeled clone pc parts at triple the price. (Just like genuine IBM PC’s and Nintendo Parts). And don’t forget these machines will have USB and firewire ports.
I’m not saying that all desktop computers are going away. They will still be a market for those beige boxes we know and love. I’m just telling you hybrid consoles are going to capture a bigger piece of the market than you expect. Believe me when I tell you I’m no fan of console games. I work for a company that builds branded PC’s and we’re designing our own hybrid box. I know of a couple of competitors doing the same as us. Finally Nintendo, Sega and Sony are all working on advanced hybrid boxes themselves. The upcoming competition is going to be a financial blood bath and the winners are going to be guys with the deepest pockets.
- Tacticon