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Xbox 360 Software Attach Rate Is 'Alarming'


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#1 Xbox-Scene

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Posted 21 November 2006 - 11:22 PM

Xbox 360 Software Attach Rate Is 'Alarming'
Posted by XanTium | November 21 17:22 EST

 
From gamasutra.com:


The latest issue of Jason Kraft and Chris Kwak's 'Video Game Journal' for the Susquehanna Financial Group examines the software attach rate for the Xbox 360, and explores why such an "alarmingly high" rate may not bode well for Microsoft's next-generation console.

Specifically, the report cites the recently announced Xbox 360 attach rate of around five games per console sold as confirmed by Microsoft in October, a number that was up from the roughly four games per console attach rate announced by the company at the console's launch in 2005.

It concludes: "We believe the unusually high attach rate on the 360 is a sign of an increasingly unhealthy console growth rate, and should be worrisome to publishers and investors."
The analysts further explain their hypothesis by offering that a significant portion of the Xbox 360 consoles currently in circulation were purchased by hard-core gamers, who, by definition, purchase a lot of games.

In conclusion, the authors state, "If the Xbox 360 sports an attach rate of ten by holiday 2007, it will probably be because it has failed to gather critical momentum. What does it benefit publishers and investors if ten games are being purchased by a total audience of 10 million 360 owners? It doesn't take effort to see that a console with an attach rate of 8 and an installed base of 50 million is superior to a console with an attach rate of 12 with an installed base of 20 mln."


Read More: gamasutra.com




#2 TerminatR

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Posted 21 November 2006 - 10:36 PM

You can help out the Xbox 360 by having an attach rate of zero laugh.gif

Edited by TerminatR, 21 November 2006 - 10:37 PM.


#3 Hmerly

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Posted 21 November 2006 - 10:51 PM

Ummm, so this report is saying having a high attach rate is hurting the 360??? I don't get it, don't these companies make money off the games? So, having a high attach rate means more money means more games for everyone to enjoy. How is that a bad thing? The argument that haivng a lower attach rate with a higher installed base doesn't hold water since the barrier to more widespread adoption is the price of the 360 itself. The 360 is not going to cost less than 200 anytime soon so arguing it is not succeeding because it doesn't have a 50 million installed base is silly, especially considering it is just a little over 1 year old. How many other consoles reached 50 million in one year? Heh, I don't think any.

#4 andrusk

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Posted 21 November 2006 - 10:54 PM

The whole time I was reading this, I was waiting for the punch line. When it never came I realized these people were serious, and now I'm just confused. huh.gif

#5 bucko

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Posted 21 November 2006 - 11:05 PM

lol I hate analysis. They use OTT topic titles with underlying statements that mean nothing.

If the 360 had no attachments they would still moan. It's a good thing, m$ loose a lot of money making each 360.

They will never clamber it back without attachments.

#6 joey27

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Posted 21 November 2006 - 11:06 PM

What the fuck are this guy's talking about? uhh.gif you could have an attached rate of 0.5 like the ps3. does that mean that ps3 is not in deep shit here,or what because this does not make since at all.

#7 BasicAir

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Posted 21 November 2006 - 11:25 PM

This guy is a fucking idiot. High attach rates are bad for MS and bad for the dev. studios. WTFever. Seriously --- What a fucking idiot.

I am so sick of these ridiculous analyst articles on X-S. Just stop posting them already, my God.

#8 sirjonesalot

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Posted 21 November 2006 - 11:27 PM

so if i understand correctly these guys are saying selling more is a bad thing?? I really need to start my own analysist company so i can get paid to pull shit out my ass too!~

#9 JohnnyVegas

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Posted 21 November 2006 - 11:29 PM

Blah.. WTF?

This is the dumbest report I've read in while. It literally makes no sense.
I trully believe the video game instrudy attracts the strangest comments in business I have yet to see.

I've been thinking all wrong up till now!! How stupid am I!?!?
I would rather work 80/hrs a week for $10/hr then 30/hrs a week for $30/hr.

To be fair though, I think what they are trying to say is it's better to have 50 million units selling 6 tiles then it is to have 25 milion units selling 10 tiles.
I get it but to be fair hard core gamers are early adopters and of course we see that this first year. Most average people adopt a little later in the cycle. So it's WAY to early to even comment on this. This is way this article is crap.

Edited by JohnnyVegas, 21 November 2006 - 11:44 PM.


#10 thax

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Posted 21 November 2006 - 11:31 PM

The article has some good insight on the hardcore gaming audience. The example figures are purposely exaggerated however, as it is unlikely the x360 will have an installed base of 10 million while the PS3 or wii has a base of 50 million. In addition even though the original xbox had a small installed base as compared to the PS2, the sales of xbox titles quite often beat out the PS2 sales.

Counter Comparison:
100 million consoles, 1 in 10 purchase a title per year means 10 million titles sold.
25 million consoles, 1 in 2 purchase a title per year, means 12.5 million titles sold.

A hardcore gaming base early in the consoles lifecycle can really solidify that consoles lead as development houses target that console for new title due to good game sales. The casual games follow suit with the most successful console in terms of installed base and game selection.

#11 sausage-n

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Posted 21 November 2006 - 11:31 PM

well im pretty sure the Wii and PS3 will have much higher attached rates , simply because you cannot copy there games..(espically ps3, anyone have a bluray burner?) where as everyone and there dog copies xbox games, I think i have purchased roughly zero.

#12 ExitRooster

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Posted 21 November 2006 - 11:38 PM

QUOTE(sausage-n @ Nov 21 2006, 03:38 PM) View Post

well im pretty sure the Wii and PS3 will have much higher attached rates , simply because you cannot copy there games..(espically ps3, anyone have a bluray burner?) where as everyone and there dog copies xbox games, I think i have purchased roughly zero.


ANYTHING can be copied/duped/ripped, in time.. LoL - Your exact statement, modified to fit the times, was once said about the original Xbox, lol..

I agree that the article is completely moronic. Furthermore, the only thing that will HURT the publishers is that jacked up fee they have tacked on to the "next-gen" consoles.. You can get the same game for $20-$30 LESS on PC in many cases.. I didn't mind $49 for a title on da Box, but this $59-60'ish crap needs to end. LoL.

#13 JohnnyVegas

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Posted 21 November 2006 - 11:40 PM

QUOTE(sausage-n @ Nov 21 2006, 04:38 PM) View Post

well im pretty sure the Wii and PS3 will have much higher attached rates , simply because you cannot copy there games..(espically ps3, anyone have a bluray burner?) where as everyone and there dog copies xbox games, I think i have purchased roughly zero.


That assumes that every one in the country is a pirate-thief like yourself.

If everyone was pirate-thief like you then the game industry would not exist. Maybe very hard to believe, I know, but there are human beings in the world whom don't even know XBOX-SCENE even exists.

I can tell you that the PS2 was modified for thiefs long before XBOX1 was and the numbers still kept going. So your statement is plain false.

Get a life tard.



#14 pure3d2

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Posted 21 November 2006 - 11:55 PM

These guys don't know what the fuck they are talking about. I've worked for them before.

#15 ModdingManiac

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Posted 22 November 2006 - 12:04 AM

In a way it makes sense..If they are selling few systems but to hardcore gamers who buy a lot of games then they are making money because remember that MS looses money on the 360 console/hardware (it costs more to make it then what they sell it for) but makes it up on the software/games that they hope to sell.....now if you sell a whole shit of 360 consoles to people who really don't play games that much and aren't buying games or are pirating then they don't make much money..

Edited by ModdingManiac, 22 November 2006 - 12:06 AM.





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