Xbox 360 launch

From Wikipedia, the free encyclopedia

The Xbox 360 launch marks the release of the first high-profile seventh generation video game console. It is Microsoft's second foray in console development succeeding their 2001 launch of the original Xbox.

Contents

[edit] Viral advertising and alternate reality games

The promotional campaign for the Xbox 360 began on March 30, 2005, with the opening of an alternate reality game called OurColony. Throughout March and April OurColony.net offered challenges to its community, rewarding solutions with cropped pictures of the console and game screenshots. On May 12, 2005, the ARG section of OurColony closed, visitors were instead greeted with a promotional video hosted by J. Allard. OurColony participants were allowed special access to insider info and previews before release to the general public.

OrigenXbox360.com was the next viral marketing campaign from Microsoft. Unveiled on September 27, 2005, the website, hosted by talking rabbits Boss and Didier, offers visitors an opportunity to enter in various contests. The initial contest was a raffle that required participants to answer three trivia questions regarding the Xbox 360 for a chance to attend a promotional pre-launch event. New contests include a Halo 2 tournament and a competition to design a "Gamertile" (an avatar icon). The design for the website employs flash animation of a Bonsai tree and bland elevator music to create a serene environment that is punctuated by visually intense psychedelic episodes involving the host rabbits.

October 2005 saw the launch of "Hex168", another viral marketing campaign commissioned by Microsoft and executed by the Marden-Kane advertising agency. On October 13, 2005, members of the TeamXbox forums were directed to the Hex168.com website through mysterious messages posted by someone called "Lutz".[1] This website hosted a number of images that appeared to perpetuate obscure conspiracy theories, but sometimes contained oblique references to Xbox 360. The campaign was later revealed to be a U.S. contest that offered participants a chance to win one of three hundred and sixty Xbox 360 console bundles six days before the official launch.[2] Winners from Hex168 were invited to attend the Xbox 360 launch party in Palmdale, CA, and given VIP access to games, food, and special areas (all free of charge).

[edit] Xbox 360 Lounge

Xbox 360 Lounge at night
Xbox 360 Lounge at night

To boost Xbox 360 awareness in Japan, an "Xbox 360 Lounge" was constructed in Aoyama, Tokyo, close to a popular upscale shopping area.[3] The lounge was composed of three main areas: a 256 m² event space equipped with five large display screens, an area containing Xbox 360 game kiosks, and a 70-seat café. It was open daily from November 1, 2005 to February 12, 2006.

[edit] Announcement

MTV's Xbox 360 TV special hosted by actor Elijah Wood
MTV's Xbox 360 TV special hosted by actor Elijah Wood
Bill Gates on the Cover of Time Magazine with an Xbox 360
Bill Gates on the Cover of Time Magazine with an Xbox 360

The official unveiling of the Xbox 360 occurred on May 12, 2005, on MTV in a program called MTV Presents: The Next Generation Xbox Revealed. The special was hosted by actor Elijah Wood and featured a musical performance by the band The Killers. The Xbox 360 was also featured on the cover of TIME Magazine's May 23, 2005 issue with an article written by Lev Grossman. The cover shows Microsoft chairman Bill Gates holding up one of the units. In the article he says "It's perfect... The day Sony launches (PlayStation 3), and they walk right into Halo 3."[4] Read more at wikiquote. Microsoft executive Robbie Bach later clarified this statement, saying "Philosophically the point Bill was trying to make is that we're not just going to ship and not have great stuff coming up."[5] Gates himself later clarified that "Halo 3 will ship when Bungie is ready."[6]

The system, along with some playable games, was shown off at E3 2005. The demos were running on "Xbox 360 Alpha Development Kits" which were Apple PowerMac G5s, chosen due to the PowerPC processor architecture that the machine shares with the Xbox 360. Microsoft claims that most of the games were running at 25-30% of full capacity because they were not running on actual systems.

[edit] Release dates and pricing

Date Location Xbox 360 System Price Xbox 360 Core System Price
November 22, 2005 Canada
United States[7]
CD$499.99
US$399.99
CD$399.99
US$299.99
December 2, 2005 Eurozone
Norway
Sweden
UK
Latvia
Finland
Ireland
Portugal
399.99
NOK3395,-
SEK3995:-
£279.99
Ls320.00
409.99
409.99
409.99
299.99
NOK2595,-
SEK2995:-
£209.99
Ls240.00
309.99
309.99
309.99
December 10, 2005 Japan JP¥39,795 JP¥29,000
February 2, 2006 Colombia
Mexico
COP$1,200,000
MXN$4999.99
COP$900,000
MXN$3999.99
February 24, 2006 South Korea 419,000 339,000
March 16, 2006 Hong Kong
Singapore
Taiwan
HK$3,120.00
SG$660.00
NT$13888
HK$2,340.00
SG$535.00
NT$10888
March 23, 2006 Australia
New Zealand
AU$649.95
NZ$699.99
AU$399.95
NZ$549.95
July 7, 2006 Chile CLP.329.990 CLP.259.990
September 25, 2006 India Rs.23,990 Rs.19,990
September 29, 2006[1] South Africa R3699 R2699
November 3, 2006 Czech Republic
Poland
CZK11900.00
1699.00
CZK8999.00
1299.00
December 1, 2006 Brazil R$2999.00 (US$1400) not released
February 10, 2007[2] Russia
RUB15,699 (US$640) RUB10,999 (US$450)
February 26, 2008 [3] Peru S/.2249.00 (US$762) not released

[edit] Titles

Eighteen launch titles were available for customers in the United States, Canada and Puerto Rico on November 22, 2005. The European countries had seventeen titles available for the launch date of December 2, 2005. Japanese customers, however, only had six titles to choose from by the time the Xbox 360 was released on December 10, 2005. This discrepancy is partially accounted for by the time needed to localize the games.

Title North America Europe Japan
Amped 3 Yes Yes No
Call of Duty 2 Yes Yes No
Condemned: Criminal Origins Yes Yes No
Every Party No No Yes
FIFA '06: Road to FIFA World Cup Yes Yes Yes
GUN Yes Yes No
Kameo: Elements of Power Yes Yes No
Madden NFL 06 Yes Yes No
NBA 2K6 Yes No No
NBA Live 06 Yes Yes No
Need for Speed: Most Wanted Yes Yes Yes
NHL 2K6 Yes No No
Perfect Dark Zero Yes Yes Yes
Peter Jackson's King Kong: The Official Game of the Movie Yes Yes No
Project Gotham Racing 3 Yes Yes No
Quake 4 Yes Yes No
Ridge Racer 6 Yes Yes Yes
Tetris: The Grandmaster Ace No Yes Yes
Tiger Woods PGA Tour 06 Yes Yes No
Tony Hawk's American Wasteland Yes Yes No

[edit] Regional sales

[edit] North America

Prelaunch reports assumed that Microsoft would intentionally restrict supply[8] although there is nothing to support this and Microsoft has said they released all units into supply chains as quickly as possible.[9][10] Evidence indicates that Microsoft launched with all consoles available at the time, and was operating at maximum production capability (that is, they did not withhold produced consoles). They did not, however, build up a sufficient supply of consoles to satisfy the entire demand at launch. This allowed them to launch several months earlier than would otherwise be possible, but also led to shortages.

Immediately after the launch, reports about the new machine's technical glitches started coming out. Some reported the Xbox 360 crashing with errors, some reported the hard drive does not respond in certain situations while others report error messages during various games or unusually fast overheating.[11] The manual contains warnings about not placing the Xbox 360 on soft surfaces or in enclosed spaces to avoid heating problems. Microsoft claims that these problems are to be expected on a large scale release for a console and the number of reports versus the number of consoles released was very minimal. Microsoft stated that they would look into the reports and offered assistance reachable by phone.

The high demand for the Xbox 360 led to some owners almost immediately re-selling their console for vastly increased prices. eBay in particular was a popular location for such offers with thousands of consoles going up for auction, some selling for many times the original retail price. It was reported[12] that 40,000 units appeared on eBay during the initial month of release, which would mean that 10% of the total supply was resold.

According to the NDP Group, North American sales totaled 326,000 units in November.[13] In Canada, all 32,100 units available for launch were sold. By the end of 2005, Microsoft stated it sold roughly 200,000 units.[14][15] As of January 1, 2008, the Xbox 360 has sold 9.15 million units in the US.[16][17][18]

Analysts believe Microsoft did not meet the original worldwide target of 2.75-3 million units sold in the first 90 days after launch,[19] and Microsoft revised their initial 90 day estimate down to 2.5 million units,[15] though their 6 month sales estimate remained unchanged at 4.5 to 5.5 million consoles.[14]

The Xbox 360 was released in Mexico on February 2, 2006. Retailers such as Liverpool, Wal-Mart, Blockbuster, Sam's Club, CompuDabo, Game Planet, gdGames and Cyberbox started to sell consoles, games, and accessories. Some department stores were selling the console at 6,000 Mexican pesos (~US $550).

[edit] Europe

Microsoft confirmed that 300,000 units were available for the European launch.[20] As in North America, thousands of Xbox 360 appeared on auction websites like eBay, selling for more than twice their retail price.[21] The shortages led to some consumers criticising retailers, and others attacking Microsoft itself for failing to fill demand.[21] In turn, some retailers blamed Microsoft for failing to provide enough consoles in the Christmas period.[21] By the end of 2005, Microsoft stated they sold 500,000 consoles in the region.[14][15]

[edit] Japan

While other regions such as the United States or Europe enjoyed successful launches, sales in Japan have been very slow. In fact, only 103,990 units had been sold by the end of April 2, 2006.[22][23]

Some believe this is mainly due to the other popular and prospective video game handheld consoles like the Game Boy Advance, Nintendo DS, and PlayStation Portable, all of which have sold far more than the Xbox 360. Others have attributed this slow start to titles such as Dead or Alive 4 and Enchant Arm missing the launch date, while others point to the marketing strategy that focused on selling the Xbox 360 as a fashionable item when customers were looking for an affordable or a high performance gaming console. It should also be noted that ToHeart2 XRATED, a highly anticipated hentai PC port of the PlayStation 2 game of the same name, was released one day prior to the Xbox 360's Japanese launch;[24] this might also be a factor in the console's low launch sales.

For his part, Famitsu Xbox 360 editor-in-chief Munetatsu Matsui pointed to Dead or Alive 4's absence as the main factor behind the slow start. He even added information that over 60% of his readers had planned to buy the much anticipated Tecmo fighting game. The 2-day 62,135 sales figure of the Xbox 360 is a little past half of the 123,334 units of the old Xbox that Microsoft sold in the first 3 days in Japan in February 2002.

Initial predictions were highly optimistic as the highest rating launch game reviewed by Famitsu, Namco's Ridge Racer 6, scored 35 out of 40 stars. Namco expects to sell 500,000 copies of Ridge Racer 6 in Japan. It should be noted that this number is roughly equal to the number of Xbox units sold in Japan by November of 2005. Microsoft Japan executive Yoshihiro Maruyama stated that he expects sales of Xbox 360 in Japan to hit one million units sometime next year. Maruyama is widely credited for attracting support from Japanese game developers.

To entice people into buying the Xbox 360 some retailers are offering discounts on the system if they sign up for a 2 year broadband contract, similar to cell phone deals in the US.

On the day of the launch, Capcom unveiled their Xbox 360-exclusive sci-fi game Lost Planet, which features South Korean actor Lee Byung Hun in the lead role.

Since the release of Blue Dragon, the console has gained popularity. On October 19, 2006 all 10,000 Blue Dragon preorders bundled with a limited edition Xbox 360 Core system were sold-out in Japan.

[edit] Latin America

The Xbox 360 was released in Mexico on February 2, 2006. Retailers such as Liverpool, Wal-Mart, Blockbuster, Sam's Club, CompuDabo, Game Planet, gdGames and Cyberbox started to sell consoles, games, and accessories. Some department stores are selling the console at 6,000 Mexican pesos (~US $550).

In Colombia, the Xbox 360 was officially released on the same date as Mexico. With a price tag of $1,200,000 Colombian pesos (~US $520), the premium package pre-order was sold out almost immediately. Retailers such as Almacenes Éxito, Panamericana, Blockbuster, Pepe Ganga, K-Tronix, Carrefour, La 14, Vivero, and Hiperbodega Alkosto have since started selling the console, games, and accessories.

On July 7, 2006 was officially released in Chile [4]. With a price tag of $329.990 Chilean peso for the premium package and a price tag of $259.990 Chilean peso for the Core Package.

The console was also announced in Argentina in mid-2005, with "100% probability" [5] that sales will begin in December 2006. But a year later, in May 2006, Microsoft pushed the launch date to December 2007 [6]. Still, it's very unlikely that Microsoft will actually sell their product in Argentina, considering the low sales of game consoles in the country: Sony introduced the PlayStation console in 2004 (almost 10 years after launch date in Japan), and a few months after that, the PlayStation 2, both costing twice as much as the "bootleg" imports, available in the country for years. Also, the price of the games is far from what the average gamer can afford, in the order of $100 to $180 USD, while PC game prices are adjusted, costing between $20 to $60 USD.

[edit] Brazil

After months of promotions and speculation, on December 1, 2006, Xbox 360 finally arrived in Brazil [7]. Only the Premium package (with the games Perfect Dark Zero, Kameo: Elements of Power and Project Gotham Racing 3 included) was available, and retailed for R$ 2,999 (~US $1450). Some of the games, like Viva Piñata, were entirely rewritten in Brazilian portuguese since the launch of the console. Games are available at R$ 99~159 (R$ 159 for new games, and R$ 99 for the rest).

On August 31, 2007, Microsoft announced that the price of the Brazilian Xbox 360 Premium bundle price would be decreased to R$ 2,499 (~US $1250). The price table for games remained untouched since the launch.

Halo 3 was launched at the country in the same day as the rest of world (usually the games arrive a week or a month later), with the Legendary, Collector and Standard versions, as the U.S. market. The blockbuster Halo 3 and Viva Piñata: Party Animals were also entirely rewritten in Brazilian portuguese.

The Xbox Live isn't available at the country yet, but Microsoft expects to launch it on the first quarter of 2008.

[edit] Hong Kong, Singapore, South Korea, and Taiwan

The Xbox 360 was released in South Korea on 24 February 2006.

It was released in Taiwan on 2 March 2006. Promotions included one free limited edition PGR3 faceplate bundled for the initial shipment, and a gamepad-game combo pack containing Kameo and a wireless gamepad.

The launch date for Hong Kong and Singapore was 16 March 2006, delayed from original 2 March 2006 launch date. In Hong Kong, there are promotions include: free PGR3 faceplate with purchase of selected titles, DOA4 collectibles with purchase of an extra game, and reduced price when purchased with cross-promotional items.

[edit] China

Microsoft is set to launch the Xbox 360 in China in the coming months.[25] Microsoft has taken a "careful approach" to the release in the region.[26] This is due to concerns about piracy.

[edit] Australia and New Zealand

The Xbox 360 was released in Australia and New Zealand on March 23, 2006, three weeks after the initially projected release date. According to GfK, a German institute specializing in market research, the Xbox 360 launch was the most successful in Australia's history at that time, selling over 30,000 consoles in the first four days. This title now goes to the Wii, which sold about 2,000 more units.[27][28]

Microsoft elected not to package an Xbox Live headset with the premium system configuration; a Media Remote is included instead. In addition to the two system bundles, Microsoft released a "VIP Pack" priced at AU$149.95, that contains Perfect Dark Zero, a Faceplate, Wireless Controller, promotional DVD, and membership to the Xbox 360 VIP website. Purchased separately, the price of the items would add up to AU$209.85.

The Xbox 360 became the fastest-selling console in Australia, with 30,421 units sold in its first four days. The previous record was held by Sony, where the PSP was king with 27,055 units sold in the first four days. But the record was soon broken by Nintendo which sold 32,901 Wiis in the first four days since its launch on December 7.

Before the release of the Xbox 360 in New Zealand, the Xbox 360 bus toured New Zealand making 13 stops in cities around the country.

[edit] Philippines

Microsoft Philippines announced on May 8, 2006, that it will officially launch the Xbox 360 in the country [8]. Although no details about pricing, launch games and Xbox Live were mentioned, Microsoft Philippines general manager Antonio "TJ" Javier stressed that his company intends to market Xbox 360 products and services to Filipinos.

"This is the best-selling hardware from the world's biggest software company. How can anyone not want to bring this in?", Javier stated dispelling speculation that Microsoft Philippines intentionally did not want to conduct a domestic Xbox 360 launch.

It is most likely, and most logical, that the company will sell the Asian edition Xbox 360 in the country. Still many people could only wonder how Microsoft Philippines will market the console and games considering the fact that most game retailers and specialty stores around the country are already selling products with competitive prices.

An estimated 2,000 units of Xbox 360 were already sold in the Philippines since December 2005. The figure includes consoles imported from the United States, Japan and Singapore.

Local distributor Banbros is now distributing the Xbox 360 in the Philippines, with Microsoft's blessing. The lone package available includes the Xbox 360 Premium system with an additional wireless controller, Halo 2, and Dead or Alive 4 for 28,500 pesos ($568). This also includes a one year replacement warranty.

[edit] References

  1. ^ "Rumor Control: World of Warcraft 360 and Vice City Stories, gamespot.com, 14 October 2005
  2. ^ "Hex 168 Contest Rules", hex168.com, 18 October 2005
  3. ^ "Xbox 360 Lounge opens in Tokyo", GameSpot, November 2, 2005
  4. ^ "Out Of The Xbox, TIME, 23 May 2005
  5. ^ "Halo 3 ready 'when it's ready'", Eurogamer, 4 October 2005
  6. ^ "Halo 3 will ship when Bungie is ready, says Gates, gamesindustry.biz, 10 January 2006
  7. ^ http://www.theinquirer.net/en/inquirer/news/2005/09/15/xbox-360-release-date-confirmed
  8. ^ "More Xbox 360 launch and technical details", arstechnica.com, 1 November 2005
  9. ^ "Replenishments, Recall Rumors, and Replacements", majornelson.com, 30 November 2005
  10. ^ "Questions surround Xbox 360 shortage", seattlepi.com, 18 November 2005
  11. ^ "Xbox 360 Crashes, Defects Reported", 1up.com, 23 November 2005
  12. ^ "40,000 Xbox 360s Sold on eBay", Next Generation, 2 December 2005
  13. ^ "U.S. November Game Sales Decrease Confirmed", 14 December 2005
  14. ^ a b c "Xbox News from Today's Earnings Announcement", johnporcaro.com, 26 January 2006
  15. ^ a b c "Microsoft Shareholder Webcast"
  16. ^ Michael McWhertor (2008-01-18). Who's Winning The Console War In The US?. Kotaku. Retrieved on 2008-01-19.
  17. ^ James Brightman (2008-01-17). NPD: U.S. Video Game Industry Totals $17.94 Billion, Halo 3 Tops All. GameDaily. Retrieved on 2008-01-19.
  18. ^ Brandon Boyer (2008-01-18). NPD: 2007 U.S. Game Industry Growth Up 43% To $17.9 Billion. Gamasutra. Retrieved on 2008-01-19.
  19. ^ "Moore on 360 launch: "Nothing's perfect", gamespot.com, 9 January 2006
  20. ^ "300,000 Xbox 360s planned for Europe launch", MSNBC, 27 November 2005
  21. ^ a b c "Xbox 360 sells out within hours", BBC, 2 December 2005
  22. ^ "Japan: Weekly hardware sales for 3/27 - 4/02", 7 April 2006
  23. ^ "Japan: Weekly hardware sales for 12/26 - 1/1", 6 January 2006
  24. ^ XBOX XRATED, 13 December 2005
  25. ^ "Microsoft to launch Xbox 360 in China soon: sources", Reuters, January 15, 2007
  26. ^ "Microsoft taking careful approach to Xbox 360 in China", Punch Jump, 24 February 2006
  27. ^ Wii breaks Aussie sales records - News at GameSpot
  28. ^ GfK reports the Xbox 360 beats PSP Australia Launch Record March 29, 2006