Xbox Price Drop To $149 Now Official

bpitzer writes "It's official - Microsoft is cutting the price on the Xbox to $149, effective tomorrow, according to CNET News. Now, will Sony follow suit on the PS2? And how long until the next price drop? Maybe at this year's E3, making three in a row?" We previously reported on rumors to this effect, and other readers point to the official Microsoft press release, sporting a quote from noted tech analyst P.Diddy: "[I] believe that the system's cultural influence as a social entertainment brand has only just begun."

Comments

And so it begins...

[Anonymous Coward]

I wonder if Nintendo will/can drop their price below $99. Personally... I'm a big Nintendo fan. I can't believe, in the 2+ years I've owned the console, that it took me so long to try Metroid Prime.... what a delight!

Is this ethical, really?

[Saven Marek]

I must say I don't mind a price drop of this nature. As a consumer it's a good thing, at least short term where I lay out few clams and come up with a good product for the lower price.

However I'm sure nobody believes MS is anywhere near making a profit, indeed they're taking gigantic losses (not relative to their income of course, but in real numbers) to do so. Obviously Sony will be doing the same with the PS2 and whatever it's next box is, and Nintendo too if they release another.

Doesn't this just end up as a war of attrition, where the company who is most able to sustain gigantic losses comes out on top? Not only coming out on top but coming out as the ONLY contender. While it's not a monopoly situation now it seems clear to me it's heading that way.

I know nobody can prosecute a company on something they have not yet done, and there's perhaps no indication of who will win in the end out of the gigantic gaming manufacturers. Indeed, far be it for me to tell someone they CAN'T throw away their profits, but looking ahead it seems impossible to end up in any other way than someone with a massive monopoly. No new players, no competition between existing ones, and it won't end cleanly... because (forgive the cliche) in the end "there can be only one"

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Re:Is this ethical, really?

[southpolesammy]

Hmm...sounds like the end of the Cold War to me, when Reagan continually up-ed the ante in that great poker game of defense spending, knowing that either the Soviet Union is going All-In, or is going to fold.

And the rationale behind why the US did this? America could match the Soviets' defense spending dollar for dollar (ruble for ruble?) and still have enough budget left for other goverment programs to keep the conutry sustainable, while the Soviets cut everything in order to keep up with American defense spending. So while we had like 30% of the budget going to defense, the Soviets had like 80-90%. Ultimately, the US knew they could "outbid" the Soviet Union and that the outcome would destroy the Soviet Union's ability to govern, and therefore they would defeat themselves and crumble.

Sounds like history repeating itself again.

Re:Loss

[ooPo]

There was an article a few weeks ago about how Microsoft can't find 8GB harddrives anymore and has to pack in larger drives. This is why they can't get the cost of the Xbox down over time and is also why they're looking at not including a harddrive for the Xbox 2.

This is because the harddrive industry increases size instead of lowering prices. Quite workable for the pc industry but not very good for the console industry, especially since the Xbox is designed around 'only' having 8GB available. Larger drives are just formatted to have 8GB available.