J Allard defends 360 pricing, specs

Last week, Microsoft dropped the skinny on one of the holiday season's biggest questions: How much would the Xbox 360 cost? The answer came as a shock to some (budget-conscious gamers) and was not-so-surprising to others (industry analysts). However, both groups, and everyone in between, have one thing in common: If they want the first of the next-generation consoles that hits the market, they'll have to dip into their accounts and shell out at least $299, or $399 for a more tricked-out package.

Microsoft corporate vice president and chief XNA architect J Allard agreed to participate in an hour-long online chat with fans over the weekend, and as expected, much of the talk was focused on the pricing structure for the 360. The discussion was hosted and moderated by Xbox Live community manager Major Nelson.

Assisted by an able-bodied typist (Allard recently broke some bones after a mountain biking incident), Allard took questions from gamers regarding several aspects of the 360.

With no fear of being discredited or pink-slipped, participants in the chat were able to be more candid and uncouth than industry journalists with their questioning. Straightforward was the tone of the chat's most challenging question, "Why even offer the core package, [as] it [sic] seems quite useless."

Allard pointed out what Microsoft has been implying all along with the 360: The system is being aimed at a broad audience, not just hardcore gamers, an idea that comes up in the chat several times. "Recognize that more than 75 percent of the folks on Xbox have not played Halo. By introducing the Core System, we are sending a signal to the market that we are committed to this part of the market, just like with the Xbox 360 premium bundle that we are committed to."

He goes on to say that it is the company's aim to help expand the market. The Core System is not only aimed at gamers, but also aimed at those interested in jumping into gaming for the first time or those who will use the system for its multimedia features. By making the Core System upgradable, those who want to begin with a bare-bones system can eventually join the ranks of more-intense gamers by simply adding bits and pieces, such as the detachable 20GB hard drive. The "modular" structure system was also the main reason the company didn't offer a third, middle-of-the-road package.

For those that scoff at the $400 price tag of the Xbox 360 (one chatter summed it up simply by saying "Feels steep"), Allard defends the price. "It was worth noting that the PS2 launched at $368 (in Japan) with no hard drive, no online service, no [memory unit], no wireless [controller], no voice [via the included headset], no network adapter, no remote, and only support for two controllers. That's not the reason we priced the system this way, but it does provide a comparative frame of reference for what you are getting."

Many gamers who opt for the $299 Core System will invariably end up purchasing the 20GB detachable hard drive. To do so, Core System owners will end up plopping down $99, one dollar shy of the difference between the Xbox 360 and the Core System packages, sans the rest of the goodies. Why the high price of the detachable hard drive, particularly when 20GB hard drives can be purchased for less than $50?

"The 20GB hard drive is a 2.5-inch user-serviceable drive and is more expense than a PC 'crack the box' drive." Allard also deflects the questioning by emphasizing the value of the "compelling premium bundle."

Allard reconfirmed that the hard drive, which is seemingly more and more vital to the system, can be used to shorten load times, save games and game content, and store ripped music and other files. One concern of many gamers is that by not making a hard drive necessary, developers will makes games with customers who don't have a hard drive in mind. To squash these fears, Allard points not to the future but to the past.

"Consider this last generation, where somewhere in the neighborhood of 20 percent of game consoles had hard drives attached. This did not deter game developers from utilizing the hard drive both for exclusive games and cross-platform games on Xbox. This generation, our first-party team and our exclusive-content developers are just as committed to using the hard drive, and like they demonstrated with this generation, our third-party cross-platform developers are committed as well. Games like Splinter Cell, Madden, and Tony Hawk all demonstrated unique capabilities in hard-drive configured systems."

Allard wrapped up the chat with: "I know the multiple configuration strategy has introduced some confusion and concern with the hardcore gamers in particular. Hopefully this has helped explain some of the thinking that went into it. If you--like me--want gaming to get bigger and want to see more-creative games out there, we need to grow the market."

The Xbox 360 has been projected to be released in November. As for a specific timetable for the console's release date, Allard simply said, "Stay tuned."