Microsoft targets Indian market with steep price tag

Hah, the 10% discount brings the core down to the price of a premium system. Still 100 dollars more than they should be paying.

That is not too bad at all. Last time I went to India, I saw many imported Xbox, GameCube, and PS2 consoles selling for around $500 US. There are a lot of foreign people living in India as well (especially in the major cities) that would love to get a 360. Also, India has a huge middle class at around 400 million+. Many westerners view India as a country filled with poor people, but that is not true. I think the 360 will sell well in India if it is marketed correctly. They need to get it into Bollywood movies and ads in Cricket games will help as well.

So they're going to have 100% of the market, where there are already 1.6 million gamers. What are those gamers playing anyway? The Phantom?

Waita... first "second-generation" console? Not that the numbering of the generations has been terribly precise, but I believe the second generation of consoles were the later 8-bit machines, the Nintendo Entertainment System and the Sega Master System.

Though admittedly, if Microsoft is putting themselves in that category, they can definitely claim that they have the most powerful second-gen console ever developed.

what the hell micro$oft?

making more profits from (relatively) poor nations?

Wow, 6 stars for doing math!!!

I watched a program called "world in balance" where they discussed world population and overpopulation. One segment discussed the socio economics of India in relation to thier population.
As soon as the big 3 get into China and/or India... expect a lot of moneybags to be made between them all.

btw... it was a really good program by Nova.

it is good, my i suspect, whether, microsoft is going to make X360 available in nations like, Bangladesh, Nepal, Srilanka, etc. I live in Bangladesh. I know, people here played &400-&500 when Ps2 came out. And now Ps2 and xbox, PSP and microsofts softwares have a huge market in Bangladesh. Instead of importing from abroad, it would have been better, if microsoft connects the country with global gaming technology. Here is to mention, Bangladesh qualified for the World Cyber Games in Singapore and out of 2000 who took part in direct competiton, at a single time, 2 were selected. That gives the number, how huge the market can be here. We took part in World Cyber Games in Singapore, earlier then India, and we are dying for new consoles. We have all the new consoles and games, as soon as they are released. Even, knights of the temple 2 for Ps2 is here, even before the ofiicial release date of gamespot, that is Octoboar 2006. Microsoft, recognise the market , would ya...

Bill Gates had a smile in his face when he said MS will launch X360 in India. May be because of the audience or may be it is hilarious in someway.

Great initiative by MS for 3rd world country gamers.
What about Pakistan and Bangladesh??

Its almost cheaper to fly to Japan and get one.

still cheaper than england. although, i do understand we earn more here, so that really is shafting them

India???

All I know about India is that the population is over a billion, everyone seems to be dirt poor because Dell keeps paying people there pennies to talk to me.

Why in God's green Earth would Microsoft even think that their console will sell there? I'm really surprised that this story isn't about them outsourcing to India to MAKE the 360 not buy it.
I suppose shear numbers are in their favor. With over a billion people even if only 1/100th of the population purchases one that's still about a 10 million consoles....man they really want to reach that 10 million mark before Sony huh?

That would be second generation for the Indian market. There wasn't a lot of direct marketing of game consoles to that nation until the PS2/GC/Xbox generation. It isn't unusual for regions that cannot justify an effort from the console's maker to be served by an importer who may or may not have official support from the console's maker. Sometimes they'll produce localized manuals and others the buyers are expected to know the foreign language or just work it out. Text and voice in the games will remain untranslated, unless hacked. Like another recent Joystiq article, one of the oddities of traveling in some regions is seeing how familiar products are sold.

There are no doubt some very real reasons for the higher price. Local tariffs could add a big chunk to any import, especially if it falls into a category where the nation in question's government is try to favor local suppliers. (Especially if they treat the Xbox as a computer rather than an entertainment device.) You also have a geographically huge region but with a smallish potential customer base. That customer base has to pay off the costs of localization for the product and following game releases. Which can get a bit complex across this very diverse region. A lot of the decision to enter India may rely on the high rate of English language skills in the middle and upper classes.

That is looking good. I live in Brazil, and yesterday I saw an ad for an offical Xbox 360 for USD 1,270.00!!! Yikes.

As Anand said, western percpetions of India are very wrong. There is a strong and healthy middle class of close to 100 million people and the country is expected to hit an economic boom in the next few years. Should that happen, the Xbox could do very well there being the first console in this generation. People are much too quick to sell Microsoft short on this. They're not stupid, they would not be thinking this unless they had done research and it showed buttloads of money to be made.

19,990 rupees!! omg! what are they thinking! I definately won't be buying a 360 now! This is insane! Why don't they just remove the DVD drive, strip the memory down to half and give me just a gaming console. That's all I wanted. I won't be able to afford my 18,000 rupee rent on this kind of budget. Oh Micro$oft, what are you thinking. I'm buying a Wii.

People who think India is just horrific poverty need to get a clue. There is a reason why so many tech jobs are shifting there. It isn't just guys answering support lines.

The contrast between tech centers like Bangalore and the poorest regions of the country are stunning but it only takes an hour to get from Beverly Hills to the most violent crime ridden parts of LA County. The same can be said for wealthy cities in most Western countries. Our working poor are fairly well off by comparison but aren't in the market for a PS3 any year soon.

Alot of kids do play there. I goto visit my family there every few years, and the console I see most there is the Gamecube among my relatives. Why? Pokemon

There are alot of small game shops around there, but they always have the games ~10$ higher than what you'd find in the States (compared to books over there; I boughtalot of huge Adobe/Cisco textbooks for like 20$ each along with some CDs)

The mentality to have fun is the same over there as it is anywhere else, especially the younger generation there. The want is there, but as the other posters have said, it's the price. My cousin works at Kodak over there and has a very good job in India terms- 30$k a year. So that's what you have to look at in terms of price

Maybe second generation in wide marketing... but I seem to recall Indian friends in high school (which was until '97 for me) who were familiar with the NES, at the very least, before they left India.

Actually, it wouldn't surprise me at all to see the 360 do well if peroperly marketed and the like. From what I understand of India, the reason that people trip over themselves to make half as much as they would for similar work here is because the costs of living are a third of what they are here - even less than that, in some regions. So their net earnings, after they pay for food, housing, and the like, are actually more than that of Americans. So the burgeoning Indian middle class has the means to look at a video game console and seriously consider it.

Since it might become pertinent in the future - anyone know what video format India uses? I personally suspect PAL (as they're a former British colony), but I'm not sure.

I thought this same conversation broke out last week when they announced PS3 pricing in the UK. You can not simply convert to the US dollar and tell us something is expensive unless you are planning to go there with US dollars and buy it.

This post is neither accurate nor informative unless you are planning to buy your 360 from India with US dollars.

Now... i could be wrong and this could be a rediculous price for consumer electronics in India, but i doubt it is outlandish.

"All I know about India is that the population is over a billion, everyone seems to be dirt poor because Dell keeps paying people there pennies to talk to me."

Wow.

Well you do have the tours of indian cities in which you see tons of starving people. Looking at some fact books do show a high poverty rate and standard of living that isn't very good compared to the US.

You also have those villages in which women get acid tossed in their face and then burned to death because the husband orders it.

Also I seem to recall there are several thousand deaths a year there due to snake bites.

350-400 million are below the poverty line and 40% of the country is unable to read.

It may be a market but don't get your hopes up that it will explode. They still have a long way to go before they lessen the social ills of the country. They have a lot of major challenges such as enviromental devastation that could wipe out any advance they could make as well as increasing numbers of HIV/AIDs cases.

What's the conversion rate for Indian Rupees and Hyrulian Rupees?

They will have to get some cricket games out fast seeing that it is the most popular sport in India.

*You also have those villages in which women get acid tossed in their face and then burned to death because the husband orders it.*

Oh true, there are places like that, but just a few decades ago there were places in the US were they would kill African Americans, just for being African Americans(probably still are) pretty much like anywhere else when there are regions where people are uneducated things like that will happen.

Ah, but how can Xbox succeed when the Indians are already running around with -Nintendo Money- hmmm? Clearly, the need a Wii.

Its a new market for Microsoft. Not all people there are poor. Those who can afford it may buy it, those who don't have many other issues to face. Buy or not, it's their decision not yours to assume.

Quite a few of you are complete assholes, but that's not why I'm posting. The misconception is that India is poor. It is. IN SOME AREAS. Also although there is a high amount of poverty stricken people there is also a high amount of the wealthy.

The funny thing is most of the people you would count as poor, as seen from their type of house actually have 36 inch widescrean tv's. It's just a different way of life there.

Even so there's a good chance that an Xbox 360 won't do well because learning and simply playing outside is more emphasised there. Thanks to the glorious sunshine-bar monsoon season. Also parents would be less willing to buy something for their younger children as the XBox is expensive and more of an adult gaming machine. Which in stark contrast to the GameCube which indead, while i'm loathe to say it, looks like a childs gaming machine.

It is extremly clever of Microsoft to realise the opportunity they have in India. A lot of American and European (not UK) companies are also realising the opportunites open in India now. Quite a lot of them have set up shops over there. There's a fairly big group of middle class citizens who are earning a respectable amount of money but need something to spend it on. They're only like the rest of the developed world. You earn money so you go and get a luxury good. I'm just hoping some countries here in the UK realise this opportunity and get up off their behind and take advantage of it before all the European and American companies take all the action. No offense to them like, its just we could do with a boost for the balance sheets.

You know i bought snes for $300 in 1995 in india. 19,000 is more than a month's income for i guess 80% of inida. When last time i when there my friend was playing sega gen. So i don't think it will last. I should be about 6 to 7ooo ruppes to sell.

AHHHHH i understand what it is. The expensive tag brings money back into the US. We spend So much money importing things from other countires that all the money is goin out of the US. To get the money back we have to sell things they want and put a MASSIVE price tag to get a lot of money back.

When a country has several hundred million people living on a dollar a day you can call the country a very poor place or a place with a wide disparity in social conditions.

There may be a market but I would want to research it and make it a test run before commiting hundreds of millions of dollars to it at least.

The potential for a backlash is very great against games due to their subject matter and fanatical religious communities in several parts of India.

There may be a 100 million class people that can afford it the question is will they buy it in enough numbers to justify the venture.

As for 36 widescreen tvs? ahem where do you get that from the Foreign quarter of the major Indian cities?

Hate to tell you but in a lot of countries there is a huge differance from what you find in the cities where there is often a foreign business practice to the rural areas.

Most of the world still uses tvs manufactored 30-40 years ago.

Wow... why is india getting charged more than anywhere else?
440 for the core system? that means the premium will be like 540 right?

Guess a 600 PS3 aint looking so bad to some now heh.

You know, getting that many rupees is not that hard, finding the bag that can hold that many before running out of room is.

That 600 PS3 will cost a grand in India when it gets imported. It's already close to 800 bucks for the UK if memory serves.

Now that is fucked up...


I hope when I go to Bangladesh this Summer, I hear news of the 360 coming out in 2008 for roughly 20,000,000 taka or w/e currency we have there...

The 360 core for Rs.19,990 ~ $440, thats Suicide!!. We can very well get a premium for that price.

The premium 360 console from Lik-Sang costs about $496 including shipping. Plus India is a pro-Sony market filled with modded PlayStation 2s, and Indians are not dumb to consider the 360 as a next-gen console, cos they think that games must be cheap and everybody I know spends about Rs.100 ~ $2 for a new pirated game. How come they would afford $64.99? They dont have any Xbox games as i know for backwards compatibility.

But,I think it would be bought by the elite Gamers and Actors and only about 50,000 consoles would be sold at the end of 2006. Many people have alredy pre-ordered the PlayStation 3's that's region-free gaming. I get a blu-ray player and a 60 GB hard-disk. Check out the real price comparison of the 360 and PlayStation 3 at gizmospot.blogspot.com

Hans,

who the hell are you calling 3rd world country. India is not a 3rd world country. get your facts right.

Microsoft Xbox 360: Price US $ 399
The Microsoft Xbox 360, is said to be cheaper than the PlayStation 3, but further research on the subject reflects that infact the Xbox 360 is costlier than the PlayStation 3. Just compare the features and the overall prices including all the accessories.

The Console: US $399
Features: 20 GB Hard-Disk, 2.4 GHz Wireless controllers (upto 4), Power PC processor (Three cores at 3.2 GHz each), 3 USB ports, Wi-fi is optional with a add-on adapter (802.11a, 802.11b, and 802.11g) sold separately for US $100, External HD-DVD drive will retail for about US $200, Online Gaming Service 'Live' for $49 per year for actual playability. Micro downloads will be available for Game Content. HDMI add-on port for the Xbox 360 will be probably about US $50. Number of Xbox 360 titles = 160 titles. About 1000 Xbox titles to be backward compatible with the Xbox 360. Total Games Playable on the Xbox 360 = 1160 Games.

Total Price of the Xbox 360 Including all the Accessories = US $399 + US $200 + US $100 +
US $50 + US $ 49 = US $798.

Sony PlayStation 3: Price US $ 599

Features: 60 GB Hard-Disk, Integrated Bluetooth, Integrated Wi-fi, Motion Sensitive Bluetooth Controller, Cell Processor (Seven cores at 3.2 GHz each), Inbuilt Blu-ray drive, Inbuilt HDMI port, Free Online Service dubbed 'PlayStation HUB' with free Online Gaming. But downloadable Game content would be through micro payments. Number of launch titles for PlayStation 3 = 15*. Number of PlayStation playable titles including PlayStation 2 are said to be about 15,000 titles*. All this for only US $599.

Which is Cheaper PlayStation 3 or the Xbox 360, see for yourself.

Second Gen? dont you mean next gen.

Ameen, What are you talking about. This has nothing to do with the topic. Those are two of the most suspicious posts I've ever seen. I smell a troll.

Regardless, Microsoft has defined a good market for the Xbox 360 that may be able to help deflect current sales failures in Japan. Nothing but an installed based in Japan will help long-term, but this will at least help them reach their lofty goals.

Those that think that India is on par with 3rd world nations are sadly mistaken. India holds one of the world's largest populations, of which a large proportion are middle class or higher. There is less saturation in terms of entertainment goods. Also, the poorest areas are outside of urban centers where Microsoft will probably not be trying to sell the system. This is a business decision, and probably a wise one.

Last time I went to India, (summer 2001 I think?) video games were already pretty popular. An arcade near where I was staying was apparently shut down because kids kept skipping school to play.