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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.

8 of 36 comments (clear)

  1. 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.

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    1. 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.

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    2. 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!

    3. 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.

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  2. $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.

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  3. 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.

  4. 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 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).