This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
11/17/2005
XBox 360, Upgrade or Downgrade?
The new Xbox 360 is scheduled to be released onto the market this week, but those coming in the first shipment have already been sold out. For those of you who can’t wait to get out of class to spend hours in front of the big screen hunting down your roommates in a game of Halo you might want to think twice before you go out and purchase the new Xbox system. There are two versions of the system, the hard drive-less "core" system for $299 and the premium package for $399. But those who buy the lower-cost version are in for a surprise — they won't be able to play any of the Xbox games they already own. There are many hidden costs in getting the full advantage from the new Xbox 360 such as needing a high definition TV to enjoy the ability of the systems amazing graphics. By the time you’re done getting all of the right accessories you may be looking at nearly a thousand dollars. The system has a very limited game selection and won’t play many of the old games from the previous system. I say if you want a game system go out and get the old Xbox or PS2, save yourself hundreds of dollars, and use the extra money for a good cause this holiday season.
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1 comment:
Bob ... you missed the ManEc.
Why offer two versions? Because the demand for the higher priced one is less elastic.
Why have less backward compatibility? Becuase that makes people upgrade their games - it's backdoor bundling.
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