Microsoft targets gamers with HD DVD promos

Super XP · 11-05-2007, 07:03 AM

Quote:

Microsoft targets gamers with HD DVD promos
http://www.videobusiness.com/article/CA6497144.html

By Susanne Ault -- Video Business, 11/2/2007
NOV. 2 | Despite selling 210,000 of its Xbox 360 HD DVD add-ons through September—more than any individual Blu-ray standalone player—Microsoft’s strategy is to market the unit as a niche accessory.

This stands in contrast to Sony’s PlayStation 3 strategy, in which Blu-ray movie playback is an integral component in the company’s play for the mass market.

In fact, the attach rate of the HD DVD drive to the 6.8 million Xbox 360s in the U.S. is just 3%.

Microsoft is expressly targeting the drive to gamers through a variety of narrowly focused promotional bundling programs at Best Buy, Wal-Mart, Amazon.com and others. “You need to get the Xbox system, and software, and then the drive, and titles. It’s not a mass-market proposition,” said director of marketing Albert Penello. “It’s a multi-hundred dollar proposition.”

Penello notes that because the 360 HD DVD drive is meant as an accessory for the gamer, and not a primary film-viewing unit, Microsoft has developed selective campaigns to promote the add-on.

In mid-October, Microsoft and promotional partner Universal Studios Home Entertainment were bundling a free first-season Heroes HD DVD within boxes of the 360 HD DVD drive at Best Buy. Universal and Microsoft also teamed up in October on an Amazon.com Xbox sweepstakes, in which people could win a Heroes-themed Xbox 360 console, Heroes HD DVD and HD DVD drive.
Also, as a subtle suggestion, Microsoft bundled the 300 HD DVD and DVD combo disc with Xbox 360 systems. Xbox users would need to own or purchase the add-on in order to playback the HD DVD side of the disc.

The Heroes bundles were offered the same week that Paramount Home Entertainment launched Transformers exclusively on HD DVD, considered the best-selling title in this format to date. Heroes also is one of the stronger HD DVD titles.

“We wanted to have a killer promotion at the time of the movie coming out,” said Penello. “We are trying to take advantage of the content that is coming out for HD DVD. You know that the [Transformers] movie hits to the core of your consumer that is interested in games and high-def movies.”

He promised upcoming 360 HD DVD drive promotional bundling around upcoming A-list HD DVD releases Shrek the Third and The Bourne Ultimatum.

“Every time we do one of these things, we do see a bump,” Penello said. “The Heroes [bundle] exceeded expectations. People are responding to these types of things.”

Cygnus · 11-05-2007, 08:01 AM

M$/Univ should also bundle the 5 free HD-DVD movie deal with the drive. The drive's price should also be drastically reduced due to the low cost of A3.

gallandro · 11-05-2007, 08:05 AM

Quote:

Originally Posted by Cygnus

M$/Univ should also bundle the 5 free HD-DVD movie deal with the drive.

I agree...

Yancy

IMpoor · 11-05-2007, 08:40 AM

They do let you get the 5 free HD DVD offer with the xbox add-on:
http://www.xbox.com/en-US/hardware/x...now/offers.htm
I am seeing that there are a few $100 limited supply Hd DVD players showing up. Why would you buy a $179 xbox add-on when you can get a HD DVD standalone for the about the same price? I bet with the holiday season upon us we will see some fantastic deals on standalone players. I would hold out for another month and keep an eye out for a good sale.

Cygnus · 11-05-2007, 08:55 AM

Cool I didn't know that applied with add on. I read that you can get 10 free movies with A3. I may buy one for that deal.

**bruceames** · 11-05-2007, 09:07 AM

Quote:

Originally Posted by Cygnus

Cool I didn't know that applied with add on. I read that you can get 10 free movies with A3. I may buy one for that deal.

I would go for it. The latest player basically for free considering the 10 movies are worth the 200 bucks.

Superman · 11-05-2007, 09:22 AM

I think all of those numbers might be too high, unless MS incorporates another price drop. I dont know why someone would prefer the add-on when it costs about the same as a stand-alone.

**bruceames** · 11-05-2007, 09:32 AM

I'm sure they'll sell at least 100k in Q4 just because of the xmas season. It makes a nice xmas gift, IMO. Bundling the 5 movies is a big help, however the standalone price war will surely erode sales somewhat.

Super XP · 11-05-2007, 10:26 AM

What MS needs to do is somehow tap into those 6.8 million Xbox 360s users with a nice affordable HD DVD add-on bundled with HEROES S1, the 5 free mail in offer etc. I think $129 is the magic price for the HD DVD drive IMO.

GLOW · 11-05-2007, 11:19 AM

Quote:

Originally Posted by Superman

I think all of those numbers might be too high, unless MS incorporates another price drop. I dont know why someone would prefer the add-on when it costs about the same as a stand-alone.

QFT

Lee Stewart · 11-05-2007, 11:23 AM

It depends on whether MS is willing to drop the price of the AO to compete with SAL players. If they don't get the price down near the $99 level - IMO - they will sell less than 30,000.

No matter how you add up the movies you receive - you STILL need to layout the cash to buy the player.

pappylap · 11-05-2007, 11:53 AM

What happened Glow get religious? I mean no Blu or PS3 support in your Avatar or Signature whats up?....I enjoyed your counterpoints...

Dare · 11-05-2007, 12:18 PM

Quote:

Originally Posted by pappylap

What happened Glow get religious? I mean no Blu or PS3 support in your Avatar or Signature whats up?....I enjoyed your counterpoints...

Glow did what I want to do, go purple. I wish I could be purple for a hundred bux.

hippy fascist · 11-05-2007, 01:08 PM

Quote:

Originally Posted by Superman

I think all of those numbers might be too high, unless MS incorporates another price drop. I dont know why someone would prefer the add-on when it costs about the same as a stand-alone.

Takes up less space

More likely to hang onto it if HD DVD loses (since it goes so well with the xbox)

VGA cable connection for people with tv's that don't have HDMI?

Superman · 11-05-2007, 01:12 PM

Not all TVs have a VGA port, and you will lose your HD audio.

I wouldnt pay $180 for an add-on when I could get a stand-alone with more features for $200 or less. But that's just me.

View Poll Results: How many XBXO 360 HD DVD player add-ons will MS sell to XBOX 360 Owners Q4 2007?
100K	4	21.05%
100K to 200K	9	47.37%
200K to 300K	4	21.05%
400K Plus	2	10.53%
Voters: 19. You may not vote on this poll

11-05-2007, 08:01 AM	#2
Cygnus The Bringer of Balance Join Date: Dec 2004 Posts: 6,832	M$/Univ should also bundle the 5 free HD-DVD movie deal with the drive. The drive's price should also be drastically reduced due to the low cost of A3. __________________ Toshiba 57H81 Kenwood VR-616 Comcast DCT6412 III XBox 360 GamerTag Sec0nd2N0n3 Last edited by Cygnus; 11-05-2007 at 08:05 AM.

11-05-2007, 08:55 AM	#5
Cygnus The Bringer of Balance Join Date: Dec 2004 Posts: 6,832	Cool I didn't know that applied with add on. I read that you can get 10 free movies with A3. I may buy one for that deal. __________________ Toshiba 57H81 Kenwood VR-616 Comcast DCT6412 III XBox 360 GamerTag Sec0nd2N0n3

11-05-2007, 09:22 AM	#7
Superman HD makes my pants tight Join Date: Dec 2005 Location: Baltimore, MD Age: 35 Posts: 2,603	I think all of those numbers might be too high, unless MS incorporates another price drop. I dont know why someone would prefer the add-on when it costs about the same as a stand-alone. __________________ Samsung 56" 720p DLP HDTV Olevia 42" 1080p LCD HDTV Onkyo TX-SR674 Receiver Onkyo TX-SR606 Receiver Velodyne CHT Front Row 5 piece speakers Sony SS-SR305 for 7.1 surround sound BIC H-100 subwoofer RCA HDV5000 HD DVD Player Toshiba HD-A3 HD DVD Player Samsung BD-UP5000 BD/HD DVD Player Xbox 360 Pro PS3 60 gig My own personal AV/HD forum

11-05-2007, 09:32 AM	#8
bruceames Moderator Join Date: May 2006 Location: San Rafael, CA Posts: 10,166	I'm sure they'll sell at least 100k in Q4 just because of the xmas season. It makes a nice xmas gift, IMO. Bundling the 5 movies is a big help, however the standalone price war will surely erode sales somewhat. __________________ Blu-rays: 55 Latest purchases: John Adams, Gone With the Wind, Up, Rocky: The Undisputed Collection

11-05-2007, 08:40 AM	#4
IMpoor High Definition is the definition of life. Join Date: Mar 2006 Posts: 312	They do let you get the 5 free HD DVD offer with the xbox add-on: http://www.xbox.com/en-US/hardware/x...now/offers.htm I am seeing that there are a few $100 limited supply Hd DVD players showing up. Why would you buy a $179 xbox add-on when you can get a HD DVD standalone for the about the same price? I bet with the holiday season upon us we will see some fantastic deals on standalone players. I would hold out for another month and keep an eye out for a good sale.

11-05-2007, 10:26 AM	#9
Super XP Star Trek: The Movie! Join Date: Aug 2007 Location: Toronto, ON. Canada Posts: 5,776	What MS needs to do is somehow tap into those 6.8 million Xbox 360s users with a nice affordable HD DVD add-on bundled with HEROES S1, the 5 free mail in offer etc. I think $129 is the magic price for the HD DVD drive IMO. __________________ Toshiba Regza 46" HDTV (46RF350U) LCD 1080p/24p Toshiba HD-A35 / HD-A3 / XD-E500 LG GGC-H20L Super Multi / PC Drive Onkyo TX-SR605 7.1 TrueHD/DTS HD MA Precision Acoustics™ 8Ch. Hi Def Loudspeaker Series DVD's = 200 = 130 = 10

11-05-2007, 11:23 AM	#11
Lee Stewart Behold - the future! Join Date: Jan 2007 Location: Albuquerque, NM Age: 58 Posts: 25,188	It depends on whether MS is willing to drop the price of the AO to compete with SAL players. If they don't get the price down near the $99 level - IMO - they will sell less than 30,000. No matter how you add up the movies you receive - you STILL need to layout the cash to buy the player.

11-05-2007, 11:53 AM	#12
pappylap Poopmaster Join Date: Dec 2005 Location: Way over Yonder Age: 4 Posts: 2,866	What happened Glow get religious? I mean no Blu or PS3 support in your Avatar or Signature whats up?....I enjoyed your counterpoints... __________________ Bar Wench...Where's my Waffle! You can checkout anytime you like but you can never leave.." 50"Pioneer KURO 111FD Pro Elite Pioneer BD320 Blu-ray player Pioneer VSX-919AH A/V Receiver 32" & 37" Olevia LCDs Sony DHG HDD 500 gig DVR Samsung DTBH260 Digital Tuner One Roll of Charmin Quilted Plus in each Bathroom...

11-05-2007, 01:12 PM	#15
Superman HD makes my pants tight Join Date: Dec 2005 Location: Baltimore, MD Age: 35 Posts: 2,603	Not all TVs have a VGA port, and you will lose your HD audio. I wouldnt pay $180 for an add-on when I could get a stand-alone with more features for $200 or less. But that's just me. __________________ Samsung 56" 720p DLP HDTV Olevia 42" 1080p LCD HDTV Onkyo TX-SR674 Receiver Onkyo TX-SR606 Receiver Velodyne CHT Front Row 5 piece speakers Sony SS-SR305 for 7.1 surround sound BIC H-100 subwoofer RCA HDV5000 HD DVD Player Toshiba HD-A3 HD DVD Player Samsung BD-UP5000 BD/HD DVD Player Xbox 360 Pro PS3 60 gig My own personal AV/HD forum

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