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Microsoft Announces Price Cut For Xbox

Posted by simoniker on from the more-box-for-your-buck dept.

fjord66 writes "Effective immediately, Microsoft's Xbox videogame console will retail for $179 in the United States." This wasn't the 50 buck price drop expected, but comes hot on the heels of Sony announcing a new bundle for $199 with an updated PS2 and the network adaptor, and $179 for disposal of the current PS2 stock.

36 comments

  1. Nintendo? by jxa00++ · · Score: 1

    Has Nintendo announced anything? Otherwise I feel they will be rapidly losing out of the three. GBA aside...

    1. Re:Nintendo? by Anonymous Coward · · Score: 0

      Who cares. I just got mine for $150 US with WW included.

    2. Re:Nintendo? by n_jed · · Score: 1

      But the gamecube is cheaper than the other 2 and includes a free game...

    3. Re:Nintendo? by Dreetje · · Score: 1

      Why are they losing out? They have great original games, which is what a console should be all about.

      I don't see what the XBox is good for, but making a small standard pc, which can be used to run Linux on ;). The games will get on the pc anyway. And on my pc I can play online games as well, and I can do my work on it too. What's so special about the XBox? Halo?

      Well I don't really see a disadvantage at PS2, but for the fact I just like Nintendo games better, and I can play the ps games on my computer as well ;)

      However, I seem to be one of very few. And even though I have such a strong opinion about it, I don't even own a cube yet (donate now! ;)). I guess I'll just stick to my gba...

      --
      Dre
  2. Will a $20 cut matter? by Tom+Courtenay · · Score: 3, Insightful

    Does any body have data on what kind of effect a price cut this small will have on sales?

    I would think that Microsoft would do well to stand their ground at $199. There's a certain appeal of seeing a system that's more expensive than the 3 year old PS2. A $20 price cut makes them look somewhat desperate. Regardless, a price cut this small seems pretty meaningless when you're dealing with something upwards of $175.

    I could however, see this working if they did a pack in with an extra controller & a grade A title. Heck, even bundling under-performing titles like Orta & Muto would help out.

    --
    If you could be anything you want, I'll bet you'd be disappointed.
    1. Re:Will a $20 cut matter? by Drakin · · Score: 1

      It will matter, particuarly if they hold steady at that price point after the current PS2 stock is sold out and all that's avaliable is the $199 set.

      Though, it's hard to find a bare X-Box system, normally all I see is the bundles...

    2. Re:Will a $20 cut matter? by Acidic_Diarrhea · · Score: 2, Interesting
      I don't know if I agree that it will matter. If I'm considering buying a console and weighing my options between the XBox and the PS2, a 9% difference isn't going to be a huge consideration. I'd be much more apt to look at game libraries, support, and expected lifetime of the system.

      If I were already willing to spend $180, I don't think $20 more is going to sway me a lot. Maybe you're right - I'm talking from my own personal vantage point. I just didn't think that consumers were so fixated on price and saving that extra few bucks that they'd make it the only consideration.

      Why did I buy a PS2? GTA III. Why haven't I bought an XBox? There's no killer game that I feel I need to have and can't get anywhere else. Why am I heavily considering buying a Gamecube? Zelda. My train of thought keeps the price point firmly at the back. I mean, all three consoles are in the same general price zone so I don't think the differences make it a significant selling point.

      But Microsoft must have people who analyze the market and I guess they've determined I am completely wrong and that $20 is a big deal.

      --
      I hate liberals. If you are a liberal, do not reply.
    3. Re:Will a $20 cut matter? by bobm17ch · · Score: 1

      I think this is more of strategic pricing aimed squarely at making the XBox + Halo 2 bundle hit the $200 mark when it`s released. And hey, any more buyers of the hardware meantime means more sales when the next round of AAA titles are released...

      --
      \\ Mitch
    4. Re:Will a $20 cut matter? by amuro98 · · Score: 3, Insightful

      Microsoft isn't being aggressive enough.

      Instead of simply matching Sony's price cut, they should either drop to $150, or announce a bundle deal consisting of the DVD remote, a starter kit for XBox Live all for $180. THAT would begin to make XBox competitive.

      Right now, Xbox's biggest edge is their online play capability. They have more online titles than PS2, and they should be exploiting this edge!

    5. Re:Will a $20 cut matter? by angle_slam · · Score: 1

      I don't know if price will make that much of a difference at all. I chose PS2 because of GTA and GTA3. Since most sports games (the biggest console sellers) are available on all 3 consoles, it doesn't make sense for me to get an XBox, considering I already have a library of games and most games will be on all systems. Even at $150, I would choose PS2 because of its superior library. If MS really wants to be competitive, they have to get some HUGE exclusive releases. If EASports were to become MS exclusive, the gap between PS2 and XBox sales would shift dramatically in the fall (when the hockey, football, and basketball games get released). Of course, EA isn't about to give up the PS2, because of all the sales it has there.

    6. Re:Will a $20 cut matter? by amuro98 · · Score: 1

      At this point in this generation of consoles, it's clear that the PS2 is the clear winner based on its library. That's not really the point, though.

      However, that doesn't meant that Microsoft should just back off altogether, especially if they intend to release XBox2.

      This is why just dropping the price $20 isn't enough. As another poster pointed out, if I'm going to spend $180 anyways, going up to $200 isn't a big deal. However, dropping the price to $150 - now that's different. It's a sort of psychological barrier as well, even though it's only a $30 difference between $150 and $180.

      Also, the one area where XBox does and will continue to do well in is with online games. Even if you say online gaming isn't for you, and is, at best, a niche in the market that's all Microsoft really needs to be successful. Bundling a 1 year subscription of XBox Live with the Xbox, and maybe an online game, would be a STRONG statement by Microsoft to Sony saying "WE are the console for online play. Follow us if you can!" If Microsoft can end this generation of consoles being able to claim victory in any area of the industry, it'll make their launch of XBox2 that much more viable and interesting.

      However, by simply dropping their price $20 to match Sony, they're just following in Sony's footsteps and that's not how you become a leader People point to the billions that Microsoft has overall and how this was going to insure the success of the console. While this is an outrageous statement, it still doesn't explain why Microsoft hasn't been more aggressive with regards to the pricing of their console. Yeah, dropping the price to $0 would incur the wrath of Sony for unfair trade practices, but what's wrong with $150? Heck, if Microsoft wanted to be REALLY agressive, I say they bundle 1 year of XBox Live, the DVD remote (Sony won't be able to claim their's is the only one that plays DVDs 'out of the box'), a cheap online game, in addition to the current XBox bundle for $150.

      You don't get noticed if you don't raise the bar, and you certainly don't get ahead playing catch-up and match-up with your competitors. I know that "competition" is a new concept to Microsoft, but they better learn...fast.

    7. Re:Will a $20 cut matter? by Anonymous Coward · · Score: 0

      The thing people seem to be overlooking is that M$ are bleeding out of their ass already on the Xbox:

      http://economictimes.indiatimes.com/cms.dll/html /u ncomp/articleshow?msid=46235399

    8. Re:Will a $20 cut matter? by Anonymous Coward · · Score: 0

      Sorry, that link should be

      http://economictimes.indiatimes.com/cms.dll/html/u ncomp/articleshow?msid=46235399

    9. Re:Will a $20 cut matter? by Anonymous Coward · · Score: 1, Interesting

      microsoft isn't being aggressive enough.

      say wha?! they've spent tons of money marketing the thing and you are saying they aren't being agressive enough?

      half of that marketing money goes to surreptitious campaigns like getting stores to put bigger ads in their catalogs and flyers for the xbox, getting retailers to make more room in their gaming areas for the xbox and highlighting it over its competition, incouraging retailers to have their sales staff sell xbox over the other consoles, giving spiffs to those salespeople, making sure that gaming, scifi, movie conventions have an xbox presence and giving out keychains and id badge loops with their logo on it, among many other things.

      think i'm kidding? do some of your own investigative findings...

      mark my words, i am betting that in a few years there will be a major antitrust lawsuit and investigation about microsoft using even more underhanded (the things above are only mildly underhanded) business practices to further their monopoly into the videogame business...

    10. Re:Will a $20 cut matter? by Guppy06 · · Score: 1

      "Microsoft isn't being aggressive enough."

      There's only so much you can cut before you hit bone, even if you're Microsoft. Some would say that they had already hit bone at the $200 mark.

      "Right now, Xbox's biggest edge is their online play capability."

      How big of an edge is that, though? Is it something that's here to stay, or more of a fad that will burn out in a year or two? Let us not forget the wisdom of Penny Arcade when it comes to playing on-line.

    11. Re:Will a $20 cut matter? by torpor · · Score: 2, Insightful

      It will have a big effect on sales, for the simple fact that announcing *any* price cut into Press-Release land will put give favourable "Impressions" (marketing speak) to thousands and thousands of potential customers who may be tipped over the edge by the notion of 'XBox is cheaper now, maybe its time to buy'.

      Never, ever forget that the Press Release Machine is why companies do things like this.

      --
      ; -- the corruption of government starts with its secrets. a truly free people keep no secrets. --
    12. Re:Will a $20 cut matter? by amuro98 · · Score: 1

      Marketting only goes so far.

      I see far more PS2 related ads on TV than XBox ones.

      The area dedicated to the PS2 at my local store is 3x larger than the area dedicated to XBox.

      Let's face it, by now, if you're interested in gaming, you already know about the 3 consoles. Having them push their names in your face isn't going to convince you to buy a console. I don't see guys rushing out to buy Maxipads after one of THEIR ads, do you?

      No, Microsoft has to do something to get people's attention, maybe give them that final push to get them off the frence about buying a Xbox instead of a PS2. Dropping their price below that of the PS2 would be a start.

    13. Re:Will a $20 cut matter? by amuro98 · · Score: 1

      Considering how badly the XBox is doing against the PS2, I would think that *any* sort of edge would be pounced upon.

      I don't know if online gaming is going to truly be the wave of the future, or just a fad that dies out.

      Either way, people do agree that online gaming will see an increase over the next few years. Even if it dies out, if Microsoft is the leader in that area, I'm sure they're not going to be too upset...

      But right now, all I hear from Microsoft about Xbox is "Yeah! What Sony said, only buy ours instead!"

  3. It did drop by $50 (in Canada) by Anonymous Coward · · Score: 1, Funny

    No account, thus the AC posting

    FWIW, in Canada, the PS2 and Xbox both dropped by $50 CDN as of Tuesday night and currently both sit @ $250. If you factor in the sales tax on the difference, thats works out to a total savings of $57.25 (in Vancouver, BC).

    That ain't chump change, and represents a much larger drop than $20 USD drop in the US (* currency exchange).

    Still waiting to see if Nintendo will make any price adjustments on the Gamecube (still $230 CDN)

    1. Re:It did drop by $50 (in Canada) by Guppy06 · · Score: 1

      "That ain't chump change, and represents a much larger drop than $20 USD drop in the US"

      But all that does is bring it in line with the pricing in the US. 250.00 CAD is ~181.35 USD at the end of the last trading day. And also remember that the USD is still slipping slowly, which will make the CAD price more expensive again. The yen is heading south as well.

      "Still waiting to see if Nintendo will make any price adjustments on the Gamecube (still $230 CDN)"

      They have room to cut. That's about 166.84 USD.

  4. $20 is enough... by More+Karma+Than+God · · Score: 2, Insightful

    $20 is enough to pay for my copy of 007 so I can run Linux without a modchip.

    Now I need something worthwhile to do with it using Linux.

    --
    Go here to create your own Slashdot dis
  5. Disappointing by AvantLegion · · Score: 2, Interesting
    A price cut that small is definitely disappointing. Better than nothing, sure. But a $50 price cut would probably have sparked a LOT more consumer activity. Obviously, it wasn't going to match the first PS2/Xbox cuts last Memorial Day ($100 cut down to $199). But a $50 cut would have created a good buzz - especially since retailers and consumers were buzzing in anticipation of it. This wimpy $20 cut is just a disappointment to both.

    Time will tell, but I doubt we're going to see much of a spike in sales for either the Xbox OR the PS2.

    1. Re:Disappointing by amuro98 · · Score: 1

      There'll probably be a small spike in PS2s, but not for the reasons listed here...

      Sony is releasing a new hardware rev of the PS2 which allows the PS2 to use progressive scan for DVD movie playback. Current models can use progressive scan for games that support it, but cannot play movies in this mode.

      This new model, bundled with the broadband adaptor, even at $200, will be attractive enough to get people to buy a PS2, or in some extreme cases, buy this model to replace their older model at home.

      As for Xbox... the $20 drop is disappointing since it makes Microsoft look like they're not interested in actually competing with Sony, but just want to play the "me too!" game. *yawn.*

    2. Re:Disappointing by Babbster · · Score: 1
      I think that cutting the price to lower than the PS2 would indicate desperation. Also, is it possible that Microsoft is trying to avoid anything that looks like "dumping"? IANAL, so I don't know the answer.

      Personally, I think the better choice would have been to go the Nintendo route by leaving the price the same and giving away one game (from a selection of 5-10) of the buyer's choice with the system.

  6. Sod the deck, reduce the games by Kris_J · · Score: 3, Insightful

    Why bother with incremental price drops on the console when most potential purchasers are balking at the price of the games? The first company to halve the price of their games will probably lead the pack to the next generation of consoles.

    1. Re:Sod the deck, reduce the games by Guppy06 · · Score: 1

      "Why bother with incremental price drops on the console when most potential purchasers are balking at the price of the games?"

      Not someone who remembers what the prices of Final Fantasy "III" or Phantasy Star IV were when they were first released, are we?

    2. Re:Sod the deck, reduce the games by rhuntley12 · · Score: 1

      Actually I don't believe this is true. Most Gamecube games, atleast the hot titles you could buy for 20$ brand spanking new. I don't know if you still can, but I think at blockbuster you still can. And these were the big titles, like RE0, Metroid, Starfox. And as far as I know it didn't cause a huge buying spree of gamecubes.

    3. Re:Sod the deck, reduce the games by Hadlock · · Score: 1

      Also: You need to remember that the ratio of quality to crap games was alot better than it is today. I paid, I think $55 for FF "III" (FF6) when I was about 12 or 13 years old, and I'm still getting replay value out of that game.... most games released today, aren't worth the difference between what you paid for them and what gamestop will give you for it.

      --
      moox. for a new generation.
    4. Re:Sod the deck, reduce the games by Kris_J · · Score: 2, Informative

      Well, it hasn't happened in Australia. All new release consoles games are A$99 unless discounted by the store/chain. For the price of two games I can get the entire season 1 box set of Andromeda (or whatever).

    5. Re:Sod the deck, reduce the games by Dreetje · · Score: 1

      I guess the main issue is that if they sell the console, the games will sell as well. The costs of developing a game is quite high as well, where reproducing is peanuts.
      However I think the regular console buyer (addicts excluded) buys 1 or 2 games. For them it won't matter how much the games costs, they just buy a console for a short period of time.
      The players in this market all try to get their console in people houses cause they won't get another console most likely if they don't like it much afterwards.

      Then a free idea for Nintendo (cause I like them), they should sell the Cube with Sunshine/Metroid Prime on trial, if you don't like it bring it back! How many people would truely bring it back with either one of those great games? (Haven't seen Zelda yet)

      --
      Dre
    6. Re:Sod the deck, reduce the games by Anonymous Coward · · Score: 0

      Whatever. There were PLENTY of crappy games released back then - you just don't remeber them now.

  7. tempting me toward an Xbox: dyne::bolic by timothy · · Score: 1

    I've downloaded the ISO but not yet had a chance to burn. So, with that disclaimer (that is, I have not yet used it), I would like to point out that the dyne::bolic Linux distro is alleged to run on Xbox. (Modded only -- "of course," says the lead developer ;) -- oh well, no Xbox prize!)

    If it works well for me on a standard PC, I might buy an Xbox as an in-car audio / video player :)

    timothy

    --
    jrnl: http://tinyurl.com/c2l8yr / foes: http://tinyurl.com/ckjno5
  8. I'll have some data in a few weeks by Anonymous Coward · · Score: 0

    The best way to answer your question is to have some patience and wait and see... Kind of like prostate cancer, I guess.