Most people, outside of those planning to buy an Xbox 360 Elite, are understandably miffed that the 120GB hard drive will debut at a wallet draining $179. As such, Microsoft has received quite a bit of flack for the pricing of the unit. Major Nelson himself got an earful from us on the subject during the latest Fancast. Aaron Greenberg, group product manager at Microsoft, recently defended the 120GB HDD price in an interview with GameTheory. Greenberg noted a few reasons for Microsoft's pricing decision, among them that Microsoft requires stringent specifications for drive performance. In other words, they have to perform at specific speeds to provide an optimal gaming experience, and they must provide a certain level of security. Greenberg also notes that the 120 gig HDD price is comparable to other self-powered external hard drives on the market. Greenberg's statements are in line with what we heard from Major Nelson.Additionally, Greenberg notes that the pricing structure is consistent with the rest of the Xbox line. As he puts it, the $299 core becomes the $399 premium by adding a $99 hard drive. By adding a $179 hard drive to the core, you get the $479 price of the Xbox 360 Elite.
Sure, there are some expensive external hard drives out there, but we don't buy that Microsoft can't find comparable drives at lower prices. There are plenty of 120GB drives out there for much less than $179. Are we to believe that all of them fail to meet Microsoft's specifications?
[Via Joystiq]












Reader Comments (Page 1 of 2)
4-04-2007 @ 2:37PM
Grant said...
Step 1: have over-priced proprietary larger Hard-drive.
Step 2: ????
Step 3: Mad Profit$$$$!!!
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4-04-2007 @ 2:40PM
Jon C. said...
I do agree that the pricing follows the other 360 components. But I still think it's pricey for a hard drive that's pretty restrictive when it comes to backing up data.
And uh, having a MS employee defending a MS product doesn't do much for credibility's sake, y'know?
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4-04-2007 @ 2:52PM
Josh said...
The lack of demand will force them to lower the prices. Once MS sees that we're not going to buy it at such a ridiculous price they will be forced to lower it if they want the video Marketplace to be successful. You can't expect consumers to be restricted to 14 GB of space for demos, TV shows, movies, etc.
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4-04-2007 @ 2:58PM
Blaine Train said...
Ha!!! Microsoft just f**ked every 360 owner who wanted a bigger hard drive. Oh wait, that includes me. /wrists
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4-04-2007 @ 3:05PM
jsn said...
when you look at it from the standpoint of "what can I buy a 120gb 2.5" drive and a USB enclosure for", then yes, it's a bit over priced. If you look at it as a stand alone proprietary product, it's not terribly over priced.
Quantum makes removable disk backup systems that use 120gb cartridges that are nothing more than 120gb 2.5" drives inside a proprietary plastic case and they charge $199 per cartridge. So Microsoft isn't doing anything anyone else in the industry does. They are charging you extra for the packaging and the ability to use it within their proprietary system.
If it was required, I could see it being a big deal, but the drive isn't required to do anything on the 360, so if you don't want it, don't buy it. Just don't blow it out of proportion.
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4-04-2007 @ 3:11PM
Virtua Fanboy said...
I think that this is the last post I'm gonna make on this topic and basically it all boils down to this:
It doesn't matter what MS thinks.
It (and sadly) really doesn't even matter how it really...really is. (As in this is the best deal they can give us.)
What does matter is what We the consumer think. Not in the short run I know, but in the long run.
Sorry MS, but that is what really matters.
Sorry to sound to dramatic but I think it's time for a little reality check at MS. I think I speak for a lot of us when I say, "We'll only go w/you so far."
The End.
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4-04-2007 @ 3:15PM
J said...
Also need to take into account the drive speed. I don't know if it's 5400 or 7200, but 7200 RPM drives are a bit more expensive.
MS's pricing is in line with high level high performance 120gb 2.5mm drives.
Maybe you guys should dig around to see exactly what type of drive it is.
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4-04-2007 @ 3:15PM
King Keepo said...
I just bought a tiny USB powered external HDD for $109, so there are definitely cheaper ones out there.
And I don't see a real need to get a larger one yet. Unless you store a lot of the TV shows on the drive or cue up a bunch of HD content to view later, in which case I imagine it might be useful.
Anyway, someone will find a way to map any old notebook drive soon enough and we'll be able to pick them up for cheap.
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4-04-2007 @ 3:18PM
J said...
Forgot to mention, if I recall correctly, MS uses SATA for the data connection. MUCH faster than USB. ;)
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4-04-2007 @ 3:20PM
KR said...
Yeah, sure. Maybe next up he can tell us why their memory cards are fairly priced. Cut it out Greenberg!
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4-04-2007 @ 3:20PM
franoculator said...
pffffft, I say.
"Microsoft requires stringent specifications for drive performance."
Right...
Hard Drive Manufacturer: "Here you go, MS, this hard drive will render the list of videos in your media blade Uber-fast, and can generate a list of XBLA games at turbo speed!"
MS: "No, Hard Drive Manufacturer, we'd really prefer a 15-20 second delay before the video list appears on the screen. Same goes for the downloaded games on the XBLA screen."
Hard Drive Manufacturer: "Oh, sure, we can do that, but it'll double the cost of the drive."
MS: "That's cool, we'll pass the cost on to our customers."
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4-04-2007 @ 3:33PM
Eric said...
Since the 20gig at $100 is absurbly overpriced too, that's not much of a defense...
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4-04-2007 @ 3:40PM
andres said...
again are you some of you retarded do you not know how the marketplace works. You can download delete then download again for free (except movies) on any item you pay for. So you do not need a larger hard drive
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4-04-2007 @ 3:40PM
mike k. said...
What people are failing to realize is that retailers will get desperate, and since the HD isn't the main component you'll be able to find them for cheaper on the internet on the likes of Amazon. I'm betting a few months after release Amazon has this drive for at least 150, which I think is a bit more realistic a price. I would have really love a 120GB for 120Bucks deal though.. but oh well.
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4-04-2007 @ 3:44PM
Dave said...
"As [Greenberg] puts it, the $299 core becomes the $399 premium by adding a $99 hard drive."
No, it doesn't, because the core system doesn't come with a wireless controller or any of the other stuff the premium system does, or did (remote?).
"By adding a $179 hard drive to the core, you get the $479 price of the Xbox 360 Elite."
Yes, and that's all you get -- the price. No HDMI, no black finish, etc.
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4-04-2007 @ 3:45PM
Jonah Falcon said...
Um, the MS hard drive is also SELF-POWERED, which jacks up the price. I suggest you check out 120GB, SELF-POWERED, HIGH-SPEED, NON-PARTITIONED external hard drives.
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4-04-2007 @ 3:56PM
Mark said...
I agree with Dave. Their calculations for that are wrong. Just factoring in the HDD price is why most people aren't buying the core system in the first place. "If I buy that I need to spend $100 to get the HDD anyway, so I'm better off buying the premium and getting the extras that are included."
So If I don't have a system then $80 more for an additional 100 GB, black finish and HDMI... let me think about that. If I have a premium system then $170 for a larger replacement to my HDD? No way!
The 120GB HDD make it easier to rent movies and shows over the marketplace. If you want to encourage people to do that, then you should be selling these things for $100 and dropping the price of the 20GB.
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4-04-2007 @ 3:57PM
dunnypop said...
I think the point that microsoft is missing is that you can't use this harddrive other than with the 360.
With a high end external harddrive, atleast you can use it with various PC's, home systems (that can use external HD's) and gasp, a PS3...
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4-04-2007 @ 4:12PM
Dracula Jones said...
I still think they should be basically giving these away like cellular providers give away phones. All we can use them for is storing more stuff that we buy from Microsoft anyway, right? Pack them with a year of Gold... anything to offset that cost and steer customers to Marketplace.
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4-04-2007 @ 4:28PM
Maiq The Liar said...
I'm really suprised the MS guy even said anything. It's kind of salt in the wound. Yeah it's spendy...will I buy it? Of course. This is kind of similar to how Apple works...new iPod's, new products come out, etc...they are all overpriced. But there is a fine line between too much on the consumer and profitability for MS. Heck they have to make some money on this...you all understand that's how a business works right? This is not a common thing that people are going to upgrade to...especially if you don't really need it right now. It's a transitional product. If you need it you buy, if you don't need it shut up and quit whining.
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