Third-party 360s 'unlikely,' analyst says

by Randy Nelson { Jul 1st 2008 at 2:55PM }

Last week's rumor that Microsoft is planning to license the 360 hardware out for use in other electronics has yet to be officially confirmed or debunked, but a key industry analyst reckons such a plan just doesn't make sense. Speaking to GamesIndustry.biz, Wedbush Morgan's Michael Patcher says that it would ultimately prove "too expensive" to licensees to make for good business.

Patcher does feel that a move like this might benefit Microsoft "as a way to penetrate more difficult markets like Japan," but that he doesn't see it being beneficial in other territories. The licensing of 360 tech would cause electronics makers to incur additional cost per device, which "would place the hybrid device at a disadvantage" in terms of retail pricing, he explains.

Tags: hardware, michael-pachter, microsoft

Reader Comments (Page 1 of 1)

caramelzappa @ Jul 1st 2008 3:12PM

Is there a way to read joystiq or engadget without analysts?

Boy With Balls on Chin @ Jul 1st 2008 3:19PM

I just analyzed your comment and I say no.

Phi Nguyen @ Jul 1st 2008 3:27PM

LOL. Good one. So, wait, is it Pachter or Patcher? Either way, he is an imbecile.

rv @ Jul 1st 2008 4:11PM

Why does everyone hate on this guy so much? He's just an analyst trying to get another Ferrari, give him a break.

Seriously, though, why? 50% accuracy is pretty good in a world of infinite possibilities.

LameDuck @ Jul 1st 2008 7:36PM

I think it's analyst in general. I know I'm sick of them constantly "analyzing" something and then when what they say happens then all have a collective orgasms with shouts of "I TOLD J00 SOO!!!!" thrown in.

I swear, if the PS3 ever kills the 360, we will all die in a flood of analyst and fanboy juices.

caramelzappa @ Jul 1st 2008 8:57PM

Anyone could make the same guesses or better than analyzing. Speculation does not deserve to be paid.

50% accuracy is one thing, but most of the things they get right are because it's the obvious buisness choice and couldn't really have gone another way unless the company was crazy. Someone's guess at what a company is going to do is not worth anyone's time.

Marty @ Jul 1st 2008 3:21PM

I had mixed feelings about the whole 3rd party 360 thing.

On the one hand, you could get far cheaper SKU's of varying configurations... you could get a 360 that used a standard hard drive, or with a Blue-Ray drive. It could make it very hard for the competition to compete in terms of value and quantity.

On the other hand though, you could potentially lose a lot of quality, depending on who licensed the technology and what they did with it. You get the possibility of one Xbox running games better than another (or not at all). And you move the whole console into the realm of confusion that computers still seem to rest in for many people, with many different configurations, compatibilities, etc.

I'm still not sure where I stand on this, but if the rumors just turned out to be rumors, I wouldn't lose any sleep over it.

brokenscope @ Jul 1st 2008 3:45PM

If this was true, you would hope that Microsoft would force some some standards on the equipment, and they would sell the 360 parts as opposed to let other people make their own.

I mean this is MS and the love making other people use their standards amirite?

el serpiente @ Jul 1st 2008 5:45PM

" you could potentially lose a lot of quality"

LOLOPPOTAMUS!

LameDuck @ Jul 1st 2008 7:31PM

My daily amount of troll wouldn't be complete without a dose of el serpiente.

el serpiente @ Jul 1st 2008 10:38PM

Don't get so offended, LameDuck. It's just a console, not your momma.

LameDuck @ Jul 2nd 2008 9:31PM

My mom says your a troll too, and you have a small penis. Also, she wants her panties back. She said something about yours being dirty after reading the SDF website. I don't know... Anyway, have a nice day.

lol @ Jul 1st 2008 3:31PM

Well, depending on how they did it, in limited quantities, it might work...slim chance though.

It would work in Japan, but that would mean getting a reputable Japanese company to house the hardware, kinda like how Panasonic made the Q.

If there were, say, a Toshiba branded 360 that had some kind of extra (like built in wireless, or an SSD), it might work in Japanese markets. Otherwise, I think it would just be rather pointless.

Here, I think it would ultimately create unnecessary competition. Lots of people have 360s, and there are already enough SKUs on the market, I don't want to have any issues with a philips 360 interacting with a samsung 360 interacting with a best buy insignia 360 due to peripheral crap.

Licensing out the hardware is usually something companies do when the system is taking a bow, or having trouble (See: 3D0, Genesis 3)