[QUOTE="lordking65"]Can Microsoft be pulling an April fools on abus consumers out it comming about late April?Singh_iz_King
They most likely are not pulling an april fools joke because it's past April at my time. Also the elites have arledy shiped in
stores and they are puting the elite on sale April 29th and microsoft wants the core system to battle the wii because its going to be cheaper than it and also there useing the premium because some people like the premium beter than elite and they are yousing the microsoft xbox 360 Elite to battle Sony's playstation 3. That is why they are makeing microsoft xbox 360 elite in the first place.
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The reason the Xbox 360 is split into three models is because of price segmentation. Essentially, Microsoft has goal of getting each user at the highest price they're willing to pay. There are many other ways to do this - rebates, coupons, business-editions vs user editions.
Airlines used to segment the market by lowering ticket prices when you stayed over a weekend. The reason for this was they wanted to segment business travelers (who have a higher willingness to pay) from recreational customers (who would seek a bargain).
In Microsoft's case, the only way to segment the market effectively is with models. They have the core to capture people who would not pay $400 for the premium, yet at the same time guarantee the gamers who wanted the premium will not buy the core by removing the HD cables, making the controller wired, and making the cost of the hard drive match the price difference.
With the Elite, Microsoft offers a "top of the line" model - they make it visually distinct from the "regular" models, and include a feature (HDMI) not found on other models. They then aim this at customers who can't stand the idea of not owning "the best" - the visual change lets them play off the common belief in technology that newer is better. The 120gb hard drive gives it the image of being a powerful media machine, and a perceived advantage as the console with the most storage space on the market.
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