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Microsoft invests big to put Xbox online
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Posted by: Tweaker
Even as it is slashing the price of its Xbox video game console, Microsoft is planning to invest millions to develop an online service, dubbed Xbox Live, that will link the consoles and allow for online gaming.
A Microsoft representative said the company plans to spend $40 to $50 per Xbox to create the interactive network. Some analysts have estimated that 10 percent of Xbox users will sign up in the early life of the network. Microsoft expects to sell 3.5 million to 4 million Xbox units for its 2002 fiscal year, which ends June 30.
Xbox Live will be a subscription service. Similar to the pricing plans for cable TV, Microsoft will offer a basic service for one price along with higher-priced premium services. Microsoft will unveil pricing and further details of Xbox Live at a press conference late Monday.
While it could attract users, the online strategy also increases financial risk for Microsoft. The company already loses about $120 on each Xbox it sells, making up the difference on software titles. Sony and other console makers also sell their consoles for less than the actual manufacturing price, with the intent of profiting off software.
What sets Xbox apart from it's peers however is the fact that it's got a built in ethernet port (internet ready) and is backed by a company that's willing to put down a considerable lump of cash to bring gaming online. I don't see Sony or Nintendo doing anything like that!
I just can't help but wonder though with the increasing number of civil lawsuits, the anti-trust suit(with yet unknown possible penalties), the EU anti-trust suit(with a hint of HUGE penalties), projects that are bleeding cash and more being added, how long till the horde is spent?
Source: CNET News
Posted by: SKYHN
These online plans are the worst ever. If they think 10% of Xbox owners are gonna sign up, they are sadly mistaken.
Cost of playing Xbox per year = $960(and thats with basic)
Most exclusivly console gamers will look at $960 and think "Hmm....I can either buy 19 games or play Xbox online." Which do you think they will choose?
Posted by: Canis Lupus
 Quote:
Originally posted by SKYHN
Cost of playing Xbox per year = $960 (and thats with basic)
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Where did you get these figures?
Posted by: SKYHN
$25 a month for Xbox Basic Service, $55 a month for Broadband. $25x12=$300, $55x12=$660.
Posted by: Canis Lupus
Ah, so it included Broadband costs ... and this is only for those who do not have Broadband internet installed in their homes yet... so the yearly subscription rate for Xbox is actually $300 for those who already have Broadband connections...
Kinda like factoring in how much it costs to play Everquest a year ... around $780 dollars 
Posted by: SKYHN
Yes, but Im talking people who exclusivly play consoles, not those with PC and console. Most console gamers only have a console, so therefore they probably have Dial-up internet if any at all.
Posted by: Swilo
Numbers are easily tinkered with, I suggest you label what you're listing to avoid getting flamed.
$25 a month is still a little pricey for people who only play maybe an hour a day though. Any word on how long you need to sign up for or is it just done by the single month?
Posted by: JANNA
its 49$ a year for their service or 4$ a month.
their market is the folks that already have broadband for their computers and an xbox. i think they are barking up the wrong tree myself. since i hate voice command and talking to people in a game in real time voice i cant think of a single reason to play xbox online. the only way i would get xbox online service is if they offered a way to say dload new content each month for their games and dload patches to games. but just to play the games?? no thanks.
i bought the xbox to play offline on my couch while i watch TV on the split screen. i think they should invest money in making the xbox controller into a PC gamepad.
Posted by: SKYHN
As I can see, Janna doesnt think consoles should be online. I feel the same way. I dont want to really see any game for a console online. Thats what PC gaming is for.
One of the games announced for "Xbox Live" is Counter-Strike. What will re-releasing a 2 1/2 year old game on a console do? It doesnt make much sense. And now Star Wars Galaxies is going to be on PS2 and Xbox. Thats another game that should stick to PC.
Maybe in another 4 or 5 years Consoles will be ready for Online gaming, but now is just not a good time.
Posted by: TotalRecall
So, SKYHN, consoles aren't designed with fun with friends in mind? 
Posted by: SKYHN
Quote:
Originally posted by TotalRecall
So, SKYHN, consoles aren't designed with fun with friends in mind?
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Of course they are designed with fun and friends in mind, I just dont think that consoles are ready for online games, especially MMO's.
If you go look at different boards the same questions are on them - How much does it cost? Then when you tell them, they say "Im not paying to play." When the monthly fee for FFXI was announced, people were mad and said they would only pay $3 a month.
And with Xbox Live, all the games will be on one network run by microsoft. Can you say "Gamespy Arcade"? I think the worst part of it is that any MMO game that comes out is not going to be run by the company that made it, but by MS.
If consoles are targeting those with a PC and broadband connection already, then they are gonna have a crappy turnout with online play. I would estimate that Exclusively console players, meaning they play only console games and either dont have a PC or have a PC with Dial-up, are gonna look at $55 a month for broadband(or their parents are) and say "I dont think so."
Just my thoughts about Consoles going online. I used to like the idea but now I see its not good at all.
Posted by: Null Actor
FYI, xbox live = 50$ for one year.
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