Monday, November 07, 2005

Christmas 2005: iPod Nano Tops Xbox 360

A new Macerich Company poll reveals the number one most-requested gift this holiday season is Apple's iPod Nano. No big surprise, there, as the Nano is a sleek, innovative device that's proven to be an outstanding portable music player and the fashion accessory of the year.

What is surprising is the item that placed second (if a distant second) to the Nano: Microsoft's Xbox 360. I've been considering picking up an X360 when the new model comes out November 22nd (due to its including an integrated Media Center Extender). The next-generation gaming console, which sets new standards for graphics performance, requires anyone wishing to maintain backwards compatibility with older Xbox games to purchase a premium version boasting an integrated hard disk. Out of the gate prices for that model appear set at $399. Even at that incredibly inflated cost finding one will be difficult.

Retailers are only offering pre-release bundles, most of which require buyers to also purchase four to eight games with the console, pushing the already bloated price as high as $999, in the case of Toys R Us. That's preposterous.

If anyone at Microsoft is listening, you had a chance to position your new console as the number one most-requested gift item. Apple beat you out, though. And now, your chances to recover are fading fast. Instead of helping shareholders maximize value, rumors on the street claim supply issues (some people allege purposeful to generate more marketing buzz at launch) may hinder sales.

Then again, this is the same division that's lost four billion (billion, as with a b) dollars since its inception. So I guess a blown debut shouldn't come as any surprise at all.

If Microsoft, and retailers, insist on building ludicrous margins into the Xbox 360 this holiday season, I'll take the cash I was going to invest in one and give my money to Apple. That $400 will buy a new Nano and a ton of iTunes. And, I won't have to leave my house or sleep in a tent outside some forsaken Best Buy to get one.

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