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"And you all thought the PS2 launch was bad..."

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Tue 11/09/01 at 13:36
Regular
Posts: 787
Taken from the Wired Newsletter.

Online retailers have begun taking advance orders for Microsoft's forthcoming Xbox gaming console, but some consumers are steamed at being forced to buy extra games and hardware that add hundreds of dollars to the price.

The Xbox, Microsoft's hot new gaming console, will hit store shelves Nov. 8 for $299. It will likely be on every kid's Christmas wish list, but will probably be back-ordered for months.

Last week, retailers started taking advance orders, but to get a console before the holidays, customers are being forced to buy bundles of extra games and hardware that almost double the price.

Online gaming merchants such as ToysRUs.com and EBWorld are not selling the $299 Xbox console alone.

Consumers must also buy at least three games, which are chosen by the retailer, not the customer, plus a spare controller, DVD remotes and other extras. One of the games must be a Microsoft title.

"I would like to have a choice in what games I buy," complained Richard Grimes of Virginia Beach, Virginia, who balked at the prices of the bundles. "Chances are if you buy a bundle, you will pay $50 for a game you don't want."

The cheapest Xbox bundle offered by online retailers is $499 -- $200 more than the suggested price of the console alone.

Gamestop's top bundle, called the Ultimate Bundle, which comes with 14 titles and an extended warranty, sells for a whopping $1,200.

And some of the bundles cost more than the price of the goods sold separately.

One of EBWorld's bundles, for example, charged $500 for goods that would have cost $490 had they been sold individually.

"There's few of the bundles out there where you break even, but a few are $25 or $50 more than if you buy the pieces separately, which is unnatural if you ask me," Grimes said.

Grimes said he wanted to buy just the console and a few items at his discretion.

EBWorld did not return several phone calls requesting comment.

ToysRUs.com said bundling policy benefited the consumers, and hardcore gamers prefer to shop this way.

"We've observed the vast majority of customers are buying accessories and titles with the console," said Jeanne Meyer, vice president of corporate communication for ToysRUs.com. "We think it makes sense because they save on shipping and handling and get it all in one fell swoop."

But the bundling policy is not determined by the retailers: It is Microsoft's idea.

Microsoft set the minimum requirements for the pre-order program: Merchants must sell one Microsoft game title and two third-party titles, plus one extra controller; which titles come with which bundle is decided by the retailers.

"The diversity of offerings from retailers represents what consumers have told us they want, namely the choice to reserve hardware, software, accessories and various combinations thereof," said James Bernard, PR manager for Xbox at Microsoft. "If someone really wants a choice, on day one they can buy a console and whatever games they please. (Bundling) gives them a choice beforehand to reserve an Xbox and a couple of games."

Bernard said the console will be sold as a stand-alone unit when it ships on November 8.
Tue 11/09/01 at 14:04
Regular
"Back from the dead!"
Posts: 4,615
MS recon they will have machines on the shelves for the launch, but the PS2 had that in France and see how that turned out (It could just be the french though :D)!

Anyone who really wants one is going to preorder, not rely on the shelf stock. The fact that they can only get them with a load of stuff they dont want is appalling, and the face that bundles cost more than getting them seperate is worse!
Tue 11/09/01 at 14:02
Regular
Posts: 14,117
Wòókiee Møn§†€R wrote:
> Your Honour wrote:
> Whats the problem?

Somehow I can't see
> you having shrugged it off like that had this been the PS2 launch...
> :-)


Really, what makes you think that? *looks around, whistling innocently* :-)



I have to say, though...
> whether it's Microsoft's fault or not, a bundle that sells for more
> than the total cost of its parts is a disgrace.

I agree completely, and in my mind completey destroys the point of buying a bindle in the first place.

I buy a bundle to save myself some cash and get a number of games when I initially buy the machine. You normally get one or two poor titles in the bindle, but as I'm paying less, I'm not too bothered.

However, for the XBox launch, MS must be prepared, if they're selling launch bundles with 14 games, that's quite a lot. I can't remember excat numbers, but I don't think there were that many games at launch for either the DC or PS2, I could be wrong though...

Personally, I'm not to bothered about the XBox situation, as I'm almost definately not going to get one at launch, so it's not really an issue for me, but I can imagine some people would be annoyed.

But as I already said, they could always just go into a shop on launch day and buy exactly what they want.
Tue 11/09/01 at 13:54
"High polygon count"
Posts: 15,624
Your Honour wrote:
> Whats the problem?

Somehow I can't see you having shrugged it off like that had this been the PS2 launch... :-)

True, the machine will be available as a standalone in the shops, but it's not ideal Microsoft forcing online retailers to bundle things in that fashion.

Many people these days prefer to shop online, and thus are effectively forced into taking things that they otherwise may not want.

I'm all for bundles at a good price, but I prefer to be able to choose my own games. Granted very few shops will give you the perfect bundle, and this is not a situation restricted to Microsoft. Apart from speciality bundles like Sony's GT3 pack, you always get lumbered with the games that the retailer can't sell or doesn't think will sell.

I have to say, though... whether it's Microsoft's fault or not, a bundle that sells for more than the total cost of its parts is a disgrace.
Tue 11/09/01 at 13:41
Regular
Posts: 14,117
Whats the problem?

Ok, it DOES seem strange that some of the bundle's are more expensive than if you bought the bits seperately.

But remember, you don't HAVE to buy like that. You CAN wait until launch and just walk into a shop and buy what you want and get them all seperately.

Microsoft aren't FORCING you to spend $1200 or whatever on a bundle.

It's your money, you can spend it how you want.
Tue 11/09/01 at 13:36
Regular
"Back from the dead!"
Posts: 4,615
Taken from the Wired Newsletter.

Online retailers have begun taking advance orders for Microsoft's forthcoming Xbox gaming console, but some consumers are steamed at being forced to buy extra games and hardware that add hundreds of dollars to the price.

The Xbox, Microsoft's hot new gaming console, will hit store shelves Nov. 8 for $299. It will likely be on every kid's Christmas wish list, but will probably be back-ordered for months.

Last week, retailers started taking advance orders, but to get a console before the holidays, customers are being forced to buy bundles of extra games and hardware that almost double the price.

Online gaming merchants such as ToysRUs.com and EBWorld are not selling the $299 Xbox console alone.

Consumers must also buy at least three games, which are chosen by the retailer, not the customer, plus a spare controller, DVD remotes and other extras. One of the games must be a Microsoft title.

"I would like to have a choice in what games I buy," complained Richard Grimes of Virginia Beach, Virginia, who balked at the prices of the bundles. "Chances are if you buy a bundle, you will pay $50 for a game you don't want."

The cheapest Xbox bundle offered by online retailers is $499 -- $200 more than the suggested price of the console alone.

Gamestop's top bundle, called the Ultimate Bundle, which comes with 14 titles and an extended warranty, sells for a whopping $1,200.

And some of the bundles cost more than the price of the goods sold separately.

One of EBWorld's bundles, for example, charged $500 for goods that would have cost $490 had they been sold individually.

"There's few of the bundles out there where you break even, but a few are $25 or $50 more than if you buy the pieces separately, which is unnatural if you ask me," Grimes said.

Grimes said he wanted to buy just the console and a few items at his discretion.

EBWorld did not return several phone calls requesting comment.

ToysRUs.com said bundling policy benefited the consumers, and hardcore gamers prefer to shop this way.

"We've observed the vast majority of customers are buying accessories and titles with the console," said Jeanne Meyer, vice president of corporate communication for ToysRUs.com. "We think it makes sense because they save on shipping and handling and get it all in one fell swoop."

But the bundling policy is not determined by the retailers: It is Microsoft's idea.

Microsoft set the minimum requirements for the pre-order program: Merchants must sell one Microsoft game title and two third-party titles, plus one extra controller; which titles come with which bundle is decided by the retailers.

"The diversity of offerings from retailers represents what consumers have told us they want, namely the choice to reserve hardware, software, accessories and various combinations thereof," said James Bernard, PR manager for Xbox at Microsoft. "If someone really wants a choice, on day one they can buy a console and whatever games they please. (Bundling) gives them a choice beforehand to reserve an Xbox and a couple of games."

Bernard said the console will be sold as a stand-alone unit when it ships on November 8.

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