Matthew Yi X Marks the Box in Parry to Sony Microsoft ...

Source: www.ischool.berkeley.edu
Topic: Xbox 360

Short Desciption:
There are two versions of Xbox 360 systems Microsoft. offers. The highend version priced at $399 includes a wireless game controller a ...

 

Content Inside:
Matthew Yi X Marks the Box in Parry to Sony Microsoft Introduces New Game Console Page 1Jinghua Luo IS224 Fall 2005News Item #3 Matthew Yi X Marks the Box in Parry to Sony Microsoft Introduces New Game Console San Francisco Chronicle Monday November 21 2005. Discussion:In its current release of Xbox 360 Microsoft uses versioning to price its new generation of game consoles. There are two versions of Xbox 360 systems Microsoft offers. The highend version priced at $399 includes a wireless game controller a headset a DVD remote control and a 20GB removable hard drive. The lowend version which is $100 less expensive has only a wired game controller. It does not come with a headset a DVD remote control and a hard drive which are included in the highend version. Without a hard drive gamers cannot save their places in games. Users can buy a hard drive for $99.99. A cheaper alternative will be to install a memory card which costs $39.99. Pricesensitive consumers may choose the lowend version to save some dollars. Consumers with a higher willingness to pay can buy the highend version for the additional features. Microsoft also has a similar pricing strategy for Xbox live which in a complementary online service to Xbox systems. It allows gamers to download new levels in games play with other gamers and voicechat while playing. Users who value online multiplayer gaming can buy a gold membership for $8 per month or $70 per year. A silver membership is also available for those who do not want to pay for the service but it gives limited access to online content. Such versioning strategy enables Microsoft to effectively divide the market into different segments and let consumers selfselect into the suitable market segment according to their willingness to pay. As a result Microsoft can attract more customers and earn more profits through price discrimination. Page 2Return to regular viewX marks the box In parry to Sony Microsoft introduces new game console Matthew Yi Chroni ...

 

 

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