Late Night Consoling

If you read this site, you are surely aware that Microsoft has just launched its next-gen console, Xbox 360, in North America. But hey, it's the news: Microsoft has launched Xbox 360 in North America. While those hopefuls who managed to get their hands on the consoles seem pretty pleased, it seems that even months of anticipating widespread shortages still didn't accurately represent the difficulty faced by most gamers trying to purchase a 360. Nationwide reports indicated extremely limited availability of the machine, with some stores receiving only a few units and apparently some receiving none at all (yet). Ebay auctions have consoles selling for thousands of dollars, and there have even been accounts of violence, with a few shoppers being mugged and stores being subjected to armed robbery. I spoke with a local EB Games representative who informed me that one local branch of the chain had most of its stock of Xbox 360s stolen prior to the official launch.

It's certainly nothing unusual for a console launch to be fraught with shortages, but this one seems a bit more extreme than is frequently the case. The console's extreme scarcity is no doubt due to several factors. For one thing, the machine uses new and not yet widely available tech, ensuring that production yields will be somewhat bottlenecked no matter what. Furthermore, Microsoft is attempting to supply most of the world (with the odd exception of certain territories such as Australia) with Xbox 360 consoles with a short two-week window, meaning their stock must further divided; generally, consoles take months to ship to that many locations worldwide. Finally, there's the simple fact that the number of gaming is growing, and with it grows the demand for such major products as a next-generation console.

Microsoft has pledged that, despite a rather underwhelming initial launch shipment, shelves will be replenished regularly into 2006.

With the Xbox 360 now theoretically available, Arik Hesseldahl of Business Week has an article detailing the estimated costs that go into the production of the machine. Based on research of the individual parts making up the console, Hesseldahl figures that each hard drive-equipped system costs about $525 to manufacture, including bundled parts such as cables and controllers. This leaves Microsoft with a loss per unit of about $125 with a suggested retail price of $399.99. Selling consoles at a loss during the launch period is nothing new; Microsoft did it last generation, as do most console manufacturers with the notable exception of Nintendo. During the Xbox generation, and at least at the moment during the generation launched with the 360, Microsoft's immediate goal is not to make a profit but to narrow the gap between it and Sony at any cost. After all, Xbox Vice President and Chief XNA Architect J Allard has stated that his driving goal in the games industry is the thought of PlayStation boss Ken Kutaragi's resignation letter framed on his wall.

By contrast, both Sony and Nintendo are more reliant on the profitability of their gaming divisions; most of Sony's non-gaming divisions are currently not in the best of shape, and Nintendo has no other major non-gaming divisions to absorb financial losses.

Nintendo has sent out a press release stating that in Mario Kart DS' first week of availability, almost half of its users have taken the game online via Nintendo's just-launched wi-fi gaming service. Of the approximately 112,000 Mario Kart DS owners in the United States, about 52,000, or 45%, have accessed Nintendo Wi-Fi Connection. The numbers are good news for Nintendo, which recently announced that it hopes to see an online attempt rate of 90% among owners of online-capable DS games. Currently, only two such games are available, the other being Vicarious Visions' Tony Hawk's American Sk8land. Next month, Nintendo plans to ship Animal Crossing: Wild World and in early 2006, Metroid Prime: Hunters, both online-enabled.

Curtis Jackson, the rapper known as 50 Cent, spoke to Reuters today about the recently-released video game based on his persona, Genuine Games' 50 Cent: Bulletproof (PS2, Xbox, PSP). The game is rated M for Mature, meaning it is intended only for gamers above the age of 17, but Jackson said, "Just because it is rated mature doesn't mean you shouldn't buy it for your kids. Play the game and explain to them what they are playing." The article notes that Jackson himself has a nine-year-old son; he further noted, "I think everyone knows that a game is a game. There's the part where you actually press start on the controller--after that you are playing a game." He also pointed out that popular culture in general is filled with violence, and that video games should not be singled out. In conclusion, buy 50 Cent: Bulletproof for your children.

The niche hit Monster Hunter series (PS2) is making its way to PSP. Previously rumored, the game has now been confirmed as Monster Hunter Freedom (PSP). The franchise is an action/adventure/RPG-ish affair that has players--rather obviously--hunt monsters and complete various quests in a fantasy world. The game will feature local wi-fi multiplayer battle and trading modes; it was not specified whether it will go online.