• by Karl Greenberg , April 4, 2007

When Microsoft launched its Xbox 360 Elite, a new version of the Xbox360 entertainment system, it counted on strong pull for such features as an internal 120GB hard drive, a high-definition, multimedia interface, and downloadable hi-def shows from Xbox LIVE Marketplace.

Data from Toronto-based BrandIntel suggests, however, that the new version of Xbox, which retails at $479.99, may not resonate with consumers. Per the consultancy, which monitors Web pages and sites and analyzes blogs, discussion forums, message boards, information portals, media sites and newsgroups in several verticals, buzz about the Elite product is more negative than positive, although purchase intent is still strong.

Per BrandIntel, about 18% of the online talk was critical of the system. In addition, only 7% of discussion dealt with features Microsoft might have counted on to generate the most buzz: extra hard drive, high-definition capability. Still, 48% of gamers who made statements regarding purchasing the Xbox Elite said that they would purchase the system.

Mark De Paoli, analyst with the consultancy, says the issue is usability. "Most consumers don't have TVs capable of handling high-definition formats," he says, adding that for most, the hard drive is also superfluous. "Games aren't made based on 120GB hard drive, so the extra 100GB is gravy to them."

Still, purchase intent reflects the mileage Microsoft has gotten from the Xbox brand. The product's solid following is reflected in BrandIntel's December Web site tracking study on next-generation consoles. The study ranked Xbox second, with the consultancy noting in the study that relatively little online chatter about Xbox is a good sign, with comments neither too positive or too negative, indicating "a steady following, loyal customer base and its ability to withstand the hype of PS3 and Wii."

The study showed consumers considered Nintendo's Wii the best product because of its Nun chuck controller, and it is especially popular with families because the controller lets gamers use their entire bodies to participate in games. Microsoft's product got very little online commentary, which is not a bad thing, per the consultancy, because Sony's PlayStation 3 garnered positive opinions for a feature called PS3 Home, a kind of online virtual community, a kind of gaming version of Linden Lab's Second Life community, accessible through Internet connection from the console.

The consultancy uses a "sentiment scale" from 1 to 5 to garner positive or negative results. De Paoli says the tenor of online chatter is particularly relevant for gamers because the gaming environment is so close technologically to the Internet. "It's very technologically oriented, with newer consoles having connectivity with the Web on them, so it's a very similar space."

"I've got a feeling that Elite will sell anyway, but as far as the actual value, hardcore gamers are quick to slam it; they can't justify the price tag."