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4 Reasons for Microsoft's Xbox to Go as Big as Possible
>> From seekingalpha.com:
[QUOTE]
Microsoft currently offers three Xbox 360 models. The Arcade, with no hard drive. The Premium with a 20GB hard drive. And the Elite with a 120GB hard drive. This is all going to change, to much bigger drives, and there are four reasons why.
* Firstly there is the business model of the hard drive manufacturers. They compete mainly not on price, but on disk size instead. They are constantly driving up the capacity of their drives (by 40% a year compound) using technology whilst trying to keep prices constant.
* The second reason is the demise of HD DVD. Now that it has gone Microsoft say that they are not going to switch to BluRay, instead they are going to concentrate on downloading content.
* The third reason is profit. The more storage space someone has, the more content you can sell them.
* The fourth reason is competitive advantage. By switching to downloadable content instead of physical media for distribution Microsoft can be seen to be more advanced than Sony. Also far more customer friendly.
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Full Story: seekingalpha.com
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