Right now, I can buy a 120GB hard drive to drop in a PlayStation 3 for $69.99 from NewEgg.com [Update: I'd previously listed this as $44.99 with an incompatible drive]. To do the same thing with an Xbox 360, it’d cost me $179.99.
But why does it cost so much?
Microsoft has claimed that comparing their plug-and-play hard drive is akin to comparing apples to oranges, that Microsoft goes the extra mile to ensure the customer can simply slap their hard drive on a machine and it’ll work.
MTV Multiplayer contacted iSuppli, a company with a long history of examining consumer gizmos to discover their real cost. We had them look at Microsoft’s 120GB hard drive and estimate whether — or how much — the company’s marking it up.
iSupli representative Krishna Chander expects the hard drive came from electronics manufacturers Toshiba or Seagate . When the hard drive ships to retail, it comes pre-loaded with starter software (i.e. Xbox Live Arcade trials) and “specific Gaming Instructions and some levels of the OS,” said Chander.
Unlike an off-the-shelf drive that can simply be loaded into your standard PS3, Chander explained, the Xbox 360 drive’s pricing also includes color tuning and packaging. This begins to drive the price up from what you might see at an online retailer like NewEgg.
The software-loaded drives are then sold to what’s called Value Added Resellers (VARs). These folks take the base drives and apply the casing and packaging. iSuppli expects VARs purchase the drives for $75, before charging $5 to add their part to the final package that ends up appearing at your local games store.
These drives are then delivered to Microsoft. iSuppli believes the markup on the drives could be as much as $20, making the drives $100 a pop for Microsoft.
Microsoft then sets a suggested price for retail. In this case, it’s $179.99, though retailers are free to move that price up and down (but usually don’t). Amazon.com, for example, is currently offering the hard drive for $149.99 but GameStop (at least their online site) remains at $179.99.
iSuppli’s estimates, however, are just that: estimates. Could Microsoft be making this much profit? One thing is clear: unlike Sony, the company doesn’t have to worry about open competition among hard drive options for their console, the kind of competition that usually drives prices down.
May 6th, 2008 at 11:01 am
So in other words, Microsoft actively conspires to charge a premium for a commodity item such as a 2.5″ SATA hard drive. It’s one thing if they offer the drive for sale as a convenience for a premium, but when they start adding roadblocks to people changing the drives themselves, that just starts to sound evil. I mean, the only reason you need a bigger HD is to *buy* stuff from their Marketplace, so you’d think they’d make the price of entry a bit lower for those folks. There is really very little value added with the 360 hard drive other than the easy-release casing, which is really nothing more than a box with a fancy connector.
May 6th, 2008 at 11:23 am
The hard drive that you are describing on Newegg, for $44.99, will not fit into the PS3. The hard drive needs to be a 2.5″ not 3.5″. Get your facts straight before posting.
May 6th, 2008 at 11:32 am
Common Sense beat me to it.
The cheapest 120GB 2.5″ HDD on Newegg is $62.99.
This post = EPIC FAIL
May 6th, 2008 at 11:39 am
I agree with Andrew its Microsoft again marking up stuff to make the most money thats why I think its funny that GTA4 sales are almost the same even thought Microsoft advertised till it bleed and sony didn’t. you pay a little more for a PS3 but you get big upgrade ability.
May 6th, 2008 at 11:44 am
To the poster above (common sense). You should really use what your name states. Are you not aware that this is a complete external drive with housing etc. As the poster stated this CAN be dropped on the ps3. Simply plug it into one of the usb ports and it WILL be used as additional storage. I think everyone except you noticed this so who do you think needs to get the facts straight?
May 6th, 2008 at 11:59 am
Why do people insist on still using the phrase “Epic Fail” .. can we PLEASE try something new? I have some suggestions that might fit here. I will put them in context so that you all can understand it:
- This post has some serious disc read errors.
- This blogger red ringed this post.
- The facts in this post got caught up in endless levels of tech support.
- The coffin for this post will arrive in 48-72 hours. Once shipped back we will send over a refurbished post so you can repeat the process in another 30-45 days.
May 6th, 2008 at 12:07 pm
Actually, “real common sense” - 62.99 is the cheapest you can get, but to be fair, you’d have to also buy a external enclosure in order to plug it into another ps3 the same way you do with xbox’s WITHOUT formatting. so bump the price up to about 85.99 totall and add a “MSRP” to about 100.00 and M$ is only ripping people off by about 80 hard earned dollars. Yeah, M$ and Sony can both suck a fat one.
May 6th, 2008 at 12:09 pm
This is typical of Microsoft. Add in the cost of a charge and play adapter ($49 USB cable + battery pack), a wireless network adapter ($99 for a USB wifi adapter) it becomes clear how they continue to make so much money on accessories. M$ took a page form the Nintendo 64 history book when it comes to charging Xtra for what is included with the Wii and PS3. Even their Live service ($79 per ann CA funds) at it’s core is on par with the PSN, which is free. The ‘X’ in Xbox must mean Xtra.
May 6th, 2008 at 12:10 pm
@ Frizzy Hair
You really showed up the author. Instead of the 360’s 120Gb HDD costing $134 more than it should, it only costs $116 more than it should. You, my friend, are a moron and Microsoft loves people like you.
May 6th, 2008 at 12:11 pm
While i believe the MS HDD is a bit over priced i have say that your flawed facts make it look much worse, first as already pointed out by others pick a 2.5” HDD for your test then i would suggest that a mid priced HDD and not the cheapest you could find would make for a fairer comparison.
We all have the option to refuse to purchase something we believe is too expensive and in the long run poor sales are just as good at driving down prices as competition, you can always vote with your wallet.
May 6th, 2008 at 12:47 pm
@Tripletags:
Might I suggest some more??
I will get you them eventually, you are going to have to just wait..
and wait..
and wait..
May 6th, 2008 at 12:47 pm
“This is typical of Microsoft. Add in the cost of a charge and play adapter ($49 USB cable + battery pack), a wireless network adapter ($99 for a USB wifi adapter) it becomes clear how they continue to make so much money on accessories. M$ took a page form the Nintendo 64 history book when it comes to charging Xtra for what is included with the Wii and PS3. Even their Live service ($79 per ann CA funds) at it’s core is on par with the PSN, which is free. The ‘X’ in Xbox must mean Xtra.”
Ok first off you dont need a charge adapter for the 360 to charge your controller’s it comes with a 6′ cable to charge with. You are an idiot if you game wireless. Lets really break things down shall we.
Well first off
Hdcables, come boxed with 360 but had to pay 40 bucks for ps3.
Mic, come boxed with 360 but had to pay 40 bucks for #$% on ps3.
Charging controllers, 360 came with 6′ cables but had to buy something to charge and play for the ps3 cause it only had 2′ cable 40 bucks for ps3.
Rumble Controller, come boxed with 360 but had to spend 55 bucks for ps3.
May 6th, 2008 at 1:12 pm
Hey I upgrade my Sony PS3 with a 160gig November 2007 for under $80.00. I currently have 52 demos and about 12movies a little music and some themes. I think I have about 72gigs left.
Hey This is why I love my PS3 at the end of this year I will be shooting for 300gig+ and that will be it.
May 6th, 2008 at 1:27 pm
@Common Sense
You’re right. I erroneously listed the incorrect hard drive size. I’ve since found a SATA 2.5″ hard drive that would slide into a PS3. It retails at NewEgg.com for $69.99. Thanks for pointing that out.
May 6th, 2008 at 1:47 pm
This is exactly why people shouldn’t turn to MTV for coverage of anything that isn’t Shot At Love or The Real World. Remember when these guys used to just play music videos.
This post should be appended and updated to accuracy. PS3 FTW!
May 6th, 2008 at 1:50 pm
@Patrick Klepek
Patrick, thank you for your response. I just wanted to make sure that people would not just start purchasing the hard drive, which was shown in your link, only to find out that it will not fit into their PS3.
May 6th, 2008 at 2:06 pm
Hardware is overpriced.Yeah so?
Games are overpriced,content is overpriced.HDTV’s are overpriced.
Could MS let us use our own drives?Yeah.Wouldn’t a usb drive be cheap and easy?Yeah.
Everyone knows (like the GW people)they will charge for air if they can.They already do selling things like jpegs,can’t get much lower than that.
I think the whole world would cheer if MS came up with a flat rate all you want price plan.An made Live free.(but they won’t).
If this whole article is written to prove the Ps3 is better,it might be,might not be,so what!
I enjoy my 360 every day.I stream movies to it,play games,download demos,watch DVD’s.
I am happy with my system,I would be just as happy if i had a Ps3.
Lol,My Wii has turned out to be a dust collector.Fun but no content worth buying.
May 6th, 2008 at 2:21 pm
Hey Paul, I tried voting with my wallet once when I chose to buy a HDDVD player. Wow… that worked great
Point is that these companies are so huge, they don’t even care what the consumer thinks. They put billions into this stuff and they could care less what it costs the consumer. They hype up the product like its from outta this world so you think you just gotta have it. Then they back you into a corner and ??#@ you like the idiot you are
May 6th, 2008 at 2:29 pm
“You are an idiot if you game wireless.”
WTF? I don’t think I can come up with words for this.
May 6th, 2008 at 3:02 pm
I have both (360 and PS3) and like both for different reasons but trublue’s words “Even their Live service ($79 per ann CA funds) at it’s core is on par with the PSN, which is free. The ‘X’ in Xbox must mean Xtra.” is a complete crock. Yes, $49.99 (US) is a hefty annual fee to play online games but the PSN is nowhere near to “on par” with Xbox Live. I’ve downloaded demos on both and PSN is a LOT slower with transfers. I work at a gaming store and hear about 4x the complaints about playing online with a PS3 than on a 360. Both systems have their ups and downs, but with the online capabilities, you definitely get what you pay for.
May 6th, 2008 at 3:20 pm
The 120 gig drives for the 360 are model MHW2120BH from Fujitsu (at least all I’ve seen are).
May 6th, 2008 at 4:34 pm
Anyone remember the exploit that was in the original Xbox hard drive? People pirated a crap tone because of that hard drive hack. The new HDD has DRM and encryption so its much harder to pirate illegal content and run personal code. So M$ custom makes them so they don’t get messed with.
May 6th, 2008 at 4:41 pm
You can also get XBOX Live cards on Newegg for cheaper too. So instead of going to the store and buying a card for $49.99 plus tax, which would come out to ~$54-55, you can get a 12+1 month card on Newegg for $46 shipped. Just saved yourself $8-9. And they have been cheaper than that on Newegg before…so go and look every so often.
May 6th, 2008 at 5:20 pm
Let the Xcox suckers pay more for their shitty consoles!
They love uncle Bill!
May 6th, 2008 at 6:48 pm
TresTrendu is a blind fanboy and it shows.
1. I can buy a 10 foot 1.3 HDMI cable for $12 on newegg. $15 at Wal-Mart
2. I can buy an old PS2 microphone for $15-$20 ($10 if used) and plug it into my PS3 and it will work. I also bought a $10 (special offer) standard blue tooth 2.0 microphone from radio shack and it works on the PS3. (voice star model # VS610)
3.The PS3 controllers in all packages come wirelessly as a standard. They also come with a 4.5′ standard issue USB charge cable. I don’t have to buy batteries or charge kits. If my cable breaks I can buy another cable for $5 from wal-mart.
4. Sony, unlike Microsoft, made a deal with the company that had sued them for using rumble in their DualShock 2 controllers. The DualShock 3 controllers may be 55 dollars but at least they didn’t just bend over like Microsoft and let them have their way. Instead they allied with each other on a business deal.
You over exaggerated EVERYTHING!
In general the PS3 is more of an open source machine and it shows. Any standard issue HDD, USB, Flash Card, Blue-Tooth, or Compact Disc, up to DVD, works on the system. As opposed to Microsoft where they barely have ANY third party accessory support.
Why isn’t there a lot of third party accessory support? Because Microsoft made proprietary parts and put patents on each and every aspect of the console. Anyone who wants to make an accessory for the 360 has to buy a license for the technology.
That is why I called you blind son. Because you didn’t see the big picture and you missed a key nature of the PS3.
Everything for the XBOX 360 is over priced. (Even a face plate is $20.00 when it only cost’s $0.72 to produce.)
Also to access the XBL for multiplayer you have to pay either $50 or $80 a year. (Don’t deny it fanboys. There is a $20 3 month XBL card.) And the only difference between PSN and XBL is the ability to message friends while in game which IS NOT a big deal.
So tell me is there any cheaper alternative for anything XBOX 360 related? Anything at all? At least a charge cable?
Didn’t think so.
(Sure all of the SONY branded stuff is expensive but not as ridiculously as over priced as anything found on the XBOX 360 side.)
May 6th, 2008 at 6:51 pm
@Sam Fishery
Everything you claim is patently false and you don’t know what you’re talking about.
The exploit in the Xbox had nothing to do with the harddrive and you CAN use an off the shelf hdd, the problem is that M$ hides a serial number (of sorts) on the hdd firmware (much like a CD Key) you could buy a 120 gig M$ hdd copy the key, and take it back to the store and use your own drive.
May 6th, 2008 at 7:38 pm
@The_Con-Sept and every other PS3/Sony/PSN fanboy
As the owner of both 360 and PS3 and having played online with both, I don’t know how PSN can even be mentioned in the same breath as XBox Live. PSN is a mere shadow in terms of architecture, reliability, backbone, bandwidth and integration with native content.
PSN is free because its sh*te.
May 6th, 2008 at 7:46 pm
Id have to agree with Dirk Diggler there, don’t get into an argument over PSN and Xbox Live. I also own both and the PSN is pathetic in comparison to Xbox Live. How anyone can even say there close is beyond me. Intergration is the key.
Anyway back onto the article. It makes some good points and ever single company in the world tried to make profit (or else they wouldnt exist). Perhaps microsoft have bumped this price up a bit higher than they should have, but you can find it cheaper in places. It also works out cheaper if you get it with an Elite.
May 6th, 2008 at 8:03 pm
“One thing is clear: unlike Sony, the company doesn’t have to worry about open competition among hard drive options for their console, the kind of competition that usually drives prices down.”
The author has no idea what are the market forces. What is saying 100% wrong.The final argument shows someone that has no idea what competion is. Microsoft does not face any competition= MONOPOLY=100% control over price and supply. Sony = Competition= No control over prices and in general under competition the only one that really benefits is the consumer.
May 6th, 2008 at 10:18 pm
To Digg:
(An obvious nit picker. Ignored everything else but chose to hate on me because of the PSN and XBL section.)
Its not ****.
Its free. Can’t complain with it being free and thats how it should be.
PSN + Web browser + CMS > XBL.
In order for an XBOX 360 to gain access to a CMS you have to basically hack it with a communication server and an app.
Like I said. The only difference is the ability to send invites. Integration is the only thing correct in your list.
Reliability? Sure… Thats why you had 2 black outs and a site server meltdown in the past 6 months.
Backbone? All of your servers are based in Washington.
PSN servers are spread out quite evenly and there are 3 in the US. Thats California, Florida, and New York. Some of our dedicated servers are also consisted of PS3’s to process the data faster.
(Not all games use the same servers which is actually a good decision seeing that one game won’t interrupt another online game.)
Bandwidth? Thats an ISP affair. At any time they can limit your bandwidth.
Maybe you ought to take a look at both services on an IT level.
However the PSN uses a NAT connection.
I know the ups and downs of both services so don’t even bother telling me which is better “by far.”
I didn’t say PSN alone is better. Its close. A web browser just makes it even better even though its not integrated together.
Integration was the only aspect you got correct. Thats all you have on PSN because each part of the service is integrated instead of separated like the PSN and Web browser Combination. But XBL still is not better than a CMS.
(CMS = Clan Management System)
Just remember that PC > PS3&360.
May 7th, 2008 at 12:14 am
I have a PS3, I’ve played a 360 numerous times and have a Xbox sitting around somewhere. Obviously there are fanboys that are going to say OMG THE “INSERT CONSOLE NAME HERE”. But lets keep a open head because neither system has that much punch over the other.
Reliability: I think for reliability the PS3 has the vote hands down. I haven’t heard much news about systems that are DOA, or hardware failures that required a major recall. I’ve had games freeze in the PS3 for what ever reason but the PS3 still allows you to quit the game and you don’t have to even get up! (Not sure if the 360 is like this enlighten me if so.
Online Game Play: 360 has this one. With what was it 16 months of established gameplay ahead of the PS3, also not to forget the online features from the original Xbox. The PS2 never really had a solid online gameplay established. The PS3 is Sony’s real attempt at online gaming capabilities.
Costs: PS3 over time is cheaper than the 360 hands down. If you factor in the launch prices for the 360 Premium which was roughly 400$ then you add in the costs of adding on accessories and etc along with the cost of Live Subscriptions the prices start to add up.
I am cutting this short as I need to leave to do something. Overall Both systems are pretty even right now. Let’s get our heads out of our a**** and say hello to the world. But I am deep down inside a PS3 fan. ^_^
May 7th, 2008 at 4:11 am
(Yawn) You guys really get me, you $#$$% and moan just because someone made a slight mistake.
Here in the UK, I have a 120Gb HD for my ps3 and it cost me £45 ($90 in mickey mouse money).
You started off this string my saying that a HD cost X amount and now you moan about which console is better, grow up. If you have one, you can afford it can’t you so stop sucking your dummies and going on about costs!
My Xbox360 and PS3 cost way more than yours in the first place.
Did you guys never think about ‘copying’ the Xbox360 hd contents as an image and transfering it onto a ‘new’ larger hd??? if you didn’t you really must be stupid or lack the mental capability to carry out such a thing or you just can’t drag yourself away ‘playing games dude’
In real terms, you know nothing and think less.
May 7th, 2008 at 6:07 am
Hey, Patrick… I remember you from 1up.com
So, lets see what you can get for $179.99!!
http://www.newegg.com/Product/Product.aspx?Item=N82E16822149072
Well, $169.99 will get you a 320GB 2.5″ SATA HDD (that will just slide right in to the PS3’s harddrive bay)… MS is still ripping people off anyway you cut it.
May 7th, 2008 at 6:46 am
In other words Xbox360 hard drives are over priced and Microsoft is using stupid reasons to try and justify the cost. When will they get it… first the ring of death then mass producing of a zillion different 360 models (in hopes of catching Wii hardware sales, and trying so desperately to stave of the serging PS3 sales) with the same problems is laughable.
A serious or casual gamer know that to get the best gaming experience you must own a Wii and PS3, thats it. 360 can keep it over price wireless adapter and now a ridiculous priced hard drive.
May 7th, 2008 at 10:13 am
@ g-spank
If you don’t want to be **%~ed like an idiot then stop being one, you decided to be an early adopter of HD and that’s your own fault since anyone with sense would have waited to see how the format war played out, voting with your wallet means not buying a product you feel is over priced it doesn’t mean buying a cheaper rival format with an uncertain future, if sales for a product are poor they will have to lower the price to spur sales.
Try learning some self control and let the people with money to burn decide the outcome of format wars.
May 7th, 2008 at 10:26 am
@Actually, real, common sense…
one thing about the PS3, is that you dont need an external enclosure, you dont even need to put in the one **#@~ if you dont want to, its very simple to remove the old hard drive and place a new one in, who wants an external enclosure?
May 7th, 2008 at 10:45 am
I get so tired of all you whiners about how MS or Sony or however - is out to @$~?* you out of your money - well here’s one for you all you morons out there have you ever heard of capitalism. Businesses are out to make a profit, if you don’t like it don’t buy it - I personally own all 3 systems but if you condemn a company for making money then you are a stupid consumer that’s why we have private companies and not a government run companies. Do you begrudge Ferrari for selling their cars for so much? No - you just can’t afford them and if the same is for the xbox 120 HD then move on or wait for MS to lower the price because nobodies buying them.
May 8th, 2008 at 11:50 am
It’s true. MS cares more about money than Sony.
If you’re going to be stupid enough to put a dollar sign in either of their names, you’ll have to do it for both. Sony is perfectly aware that there’s a good chance something you’ll be hooking into your PS3 is Sony made and even that could likely be hooked into a Sony made TV.
This HDD is ridiculously over priced and I hate that 360 owners don’t get many choices in regards to these type of things, but this “M$” crap has to end. Yes, we get it. You’re very clever, just like the other 4,000,000 people who have done that since the start of the Internet. Move on.
May 8th, 2008 at 2:30 pm
@Out to make money?
Wow you must be a Big Tymer….
May 22nd, 2008 at 5:50 am
Well you see,
There’s these pre-loaded demos…