Analyst likes the Elite but sees software as Xbox 360’s biggest ace

As much as some analysts think that the Xbox 360 Elite is a validation of Sony’s HD strategy and that it’s a good move on Microsoft‘s part, since it only means more options for the consumer, other analysts have noted that it doesn’t necessarily mean a larger market share for the said console maker.

GamesIndustry reports that IDC analyst Billy Pidgeon that the new hardware may sway some power hungry gamers, but it’s in software where dominance lies. He explains:

The Xbox 360 Elite may sway some gamers waiting to decide on a new system, but I don’t expect the Elite to have much an effect on the 360’s market share this year.

…The higher price and the 120GB hard-drive upgrade should increase revenue for Microsoft and for retailers, but system-selling games such as Halo 3 will increase the 360’s position more significantly.

Pidgeon notes that although the Xbox 360 is more in direct competition with the Sony PS3 and their all-around solution strategy, he believes that Microsoft is going after first place and sees Nintendo as a competitor. He also sees Microsoft’s expansion of Live to Vista systems as an aggressive move to increase and grow the Xbox Live community and the Microsoft audience.

Like Pachter, Pidgeon also estimates that the price of the Premium Xbox 360 may be lowered.  He also notes his interest in seeing how the 120GB hard-drive will fare as an upgrade option for current Xbox 360 owners. He adds that he feels that the price for the HD upgrade is a bit steep.

As much as some analysts think that the Xbox 360 Elite is a validation of Sony’s HD strategy and that it’s a good move on Microsoft‘s part, since it only means more options for the consumer, other analysts have noted that it doesn’t necessarily mean a larger market share for the said console maker.

GamesIndustry reports that IDC analyst Billy Pidgeon that the new hardware may sway some power hungry gamers, but it’s in software where dominance lies. He explains:

The Xbox 360 Elite may sway some gamers waiting to decide on a new system, but I don’t expect the Elite to have much an effect on the 360’s market share this year.

…The higher price and the 120GB hard-drive upgrade should increase revenue for Microsoft and for retailers, but system-selling games such as Halo 3 will increase the 360’s position more significantly.

Pidgeon notes that although the Xbox 360 is more in direct competition with the Sony PS3 and their all-around solution strategy, he believes that Microsoft is going after first place and sees Nintendo as a competitor. He also sees Microsoft’s expansion of Live to Vista systems as an aggressive move to increase and grow the Xbox Live community and the Microsoft audience.

Like Pachter, Pidgeon also estimates that the price of the Premium Xbox 360 may be lowered.  He also notes his interest in seeing how the 120GB hard-drive will fare as an upgrade option for current Xbox 360 owners. He adds that he feels that the price for the HD upgrade is a bit steep.