You may think everyone under the sun has money to throw around all over the place, but that just isn't so.
Only the most hardcore have gaming PC's, and game consoles. Not to mention it's just stupid to buy a $1000+ PC just to play Xbox 360 games, instead of just paying $300 to play them on Xbox 360.
If you don't have a high-end PC, and want to play any of the PC-Xbox 360 games, what are you going to do? Buy an Xbox 360 naturally. The PC-Xbox 360 games are not exclusive, but they are isolated to only two platforms PC and Xbox 360.
One of the two platforms is a lot cheaper than the other($1400 PC or $300 Xbox 360 Core), giving it the advantage. There are Direct X 10 graphics cards out right now that cost more than a whole Xbox 360. A freaking little card that is useless on it's own.
Buying an Xbox 360 is even cheaper than upgrading a PC in many cases. Another advantage.
Not to mention there are many games on Xbox 360 that will never be released on PC, so you get an even better deal. And, you never have to upgrade Xbox 360 with a new graphics card to play it's newest games.
In addition, many of the games that do get ported from Xbox 360 to PC are done so several months to a year after they are released on Xbox 360. Another advantage for owning an Xbox 360.
Gaming PC's are not mass market friendly. They are far too expensive, and far too much hassle for the average consumer. Even upgrading a PC is expensive.
If PC's costed $200(Try $2000)you'd have a point, but as it stands Xbox 360 titles going to PC has so little impact on Xbox 360 sales it's not even worth mentioning.
Microsoft is not targeting PC gamers with Xbox 360. They stressed again and again that their target is the mass market. They even want to get the Xbox 360 to the mass market price of $200-250.
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