Microsoft to drop price of 360 to maintain price advantage

lI AL3X Il · 07-09-2007

Microsoft to slash price of Xbox 360 - Pachter // GamesIndustry.biz

Apparently Microsoft is cutting the price of the 360 to maintain the price advantage over PS3.

hypnoticgoat · 07-09-2007

Wow sweet i was thinking of buying a second 360....be a little easier on my poket book now!!!

Brutal 4ngel · 07-09-2007

I already read this earlier, but I'd like to quote a post from another forum I visit, as it's an excellent post as to how the business is going right now :

Quote:

MS/Sony price war looming

Sony - $499 for the 20GB model PS3 (discontinued), $599 for the 60GB model.
MS - $299 for the core system (no hard drive), $399 for the premium (20GB HDD), and $479 for the Elite (120GB HDD).

However, there's about to be a shake up, beginning on July 12th. Not just prices, but new SKUs entirely. NOTE, the PS2 60GB model drops to this price on July 12th. The rest of these changes occur between now and November.

Sony:
60GB model - $499
80GB model - $599, comes with Motorstorm and new sixxaxis controller with rumble.

Note, the 20GB model has ceased production, and should already be sold out.

Microsoft:
Core (no HDD) - $249
Premium (20GB) - $349
Elite (120GB) - $399

These, starting in September/October timeframe, will be new XBox 360 "Falcon" systems. Project Falcon is a new version that has 65nm CPU/GPU, which means less heat, lower cost, and MUCH lower defect rates. Reducing the size of components is normal, and this system will not have any compatibility issues with the older system.

I intend to get an Elite this Christmas, if the reliability reports are better. NOTE: The new Elite SKU will be white, not black like the current limited edition Elite.

And another :

Quote:

Why would people cry that the PS3 is still too expensive and yet back up the glories of PC gaming? I've seen video cards alone that run to $600 to get the same look as a PS3/360. Then it'll go haywire six months later even if you think you've got the talent to put your own box together.

I don't see a 360 price drop coming in response to this. Microsoft does not have the magical oceans of cash money that everybody seems to think. It's kinda hard to walk up to your stockholders and say "XBox 360 is not selling well, the Zune is, to put it mildly, a miserable failure, Vista is not catching on yet, and 360 repair prices are going to total $1.15 billion. Can we cut the price on the 360 and buy all of these companies that teh intarwebz say we have the acres and acres of solid gold money to buy just so we can stay in a 'mine's bigger than yours' fight with Sony"?

Things haven't gone as swimmingly for Microsoft as everybody thinks, and I don't think they'd be willing to widen the gap between sale price and production price, when $400 seems to be a reasonable asking price for the system anyway.

Should be interesting...but you do have to ask yourself...will M$ drop the price even with Halo 3's release lingering...because as we all know, Halo is the money maker...

lI AL3X Il · 07-09-2007

Quote:

Originally Posted by 4ng31

I already read this earlier, but I'd like to quote a post from another forum I visit, as it's an excellent post as to how the business is going right now :

And another :

Should be interesting...but you do have to ask yourself...will M$ drop the price even with Halo 3's release lingering...because as we all know, Halo is the money maker...

Yea i was wondering about that too, how the hell can they drop the price of the 360 when they need to give back so much money becuz of repairs. Pluz they extended the warranty, i dont kno how there gonna pull that off, on top of that they were supposedly gonna buy Yahoo for 50 billion but i havent heard anything about that from the first time i saw it. Also i read sumthing else on PS3 that says Sony was trying to sell the PS3+20GB HDD+Motorstorm for $600 I dont really look into the pricing becuz im never gonna buy one in my life but i dont think thats the right price for that.

D Warrior23 · 07-09-2007

well yeah it is interesting and all, but I came across this article and it says that sony wont be cutting prices.

Sony has no plans to cut PlayStation 3 price - Yahoo! News

Brutal 4ngel · 07-09-2007

Quote:

Originally Posted by D Warrior23

well yeah it is interesting and all, but I came across this article and it says that sony wont be cutting prices.

Sony has no plans to cut PlayStation 3 price - Yahoo! News

It's already been confirmed : We're Slashing Prices: Sony Confirms PS3 Price-Cut, 80GB Bundle - Kotaku

Darkstar · 07-09-2007

Ahhhh, very cool indeed. Finally a price drop for the 360.

Brutal 4ngel · 07-09-2007

Quote:

Originally Posted by Darkstar

Ahhhh, very cool indeed. Finally a price drop for the 360.

That's still an analyst rumor.

GoatLove · 07-10-2007

I would think that they will drop the price in 2008. They want as much money to come out of 2007 year as possible(halo 3 alone is going to sell plenty of 360s). If they do it...i would expect it to be Q1/Q2 2008(obviously if not then....then after).