Xbox Price Drop To $149 Now Official

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Xbox Price Drop To $149 Now Official

Posted by simoniker on Monday March 29, 2004 @06:16AM from the less-money-less-problems dept.

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."

50 of 527 comments (clear)

Slashdot has officially jumped the shark when... by Anonymous Coward · 2004-03-29 06:17 · Score: 4, Funny

...it starts trumpeting quotes from rappers as news.
Obvious question to follow... by El+Camino+SS · 2004-03-29 06:18 · Score: 4, Interesting

When exactly does Xbox2 come out?
also in canada by Coneasfast · 2004-03-29 06:18 · Score: 4, Informative

they also dropped the price in canada to $199 CDN

--
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1. Re:also in canada by AndroidCat · 2004-03-29 07:17 · Score: 4, Funny
  
  Anyone know how street pricing works?
  After you buy from a sidewalk vendor, you notice that you bought something with slightly name, like "X-Boks". Still, I'm pretty happy with my Roleks watch.
  
  --
  One line blog. I hear that they're called Twitters now.
This guy needs to lay off the marketing pills... by AssProphet · 2004-03-29 06:18 · Score: 5, Funny

"[I] believe that the system's cultural influence as a social entertainment brand has only just begun."

This just in: rampant usage of the xbox has increased usage of the word owned!
...thanks guys.
Loss by DarkBlackFox · 2004-03-29 06:19 · Score: 4, Insightful

So what kind of loss is Microsoft taking now to ship these things?

If they already sold the X-Box for below cost, wouldn't this just hurt them further?
1. Re:Loss by Egekrusher2K · 2004-03-29 06:23 · Score: 4, Interesting
  
  Not necessarily. As time goes on, it costs less and less to manufacture these. The video core, which is kind of a haggle between a Geforce 2 and a Geforce 3 (basically, an overpowered Geforce 2 w/ vertex and pixel shaders), was beyond what PC manufacturers had out at the time. Now, we are 2 cores BEYOND that, so manufacturing costs have dropped signifigantly. As far as the processor goes- it's a 700mhz Celeron, which costs practically nothing to manufacture now. The 8GB hard drive they are using is now TINY comparatively. In short, that's how they do it.
  
  --
  Listen to my experimental-industrial-techno!
2. Re:Loss by Troed · 2004-03-29 06:29 · Score: 5, Informative
  
  No. Microsoft pays a fixed amount of money per chip to nVidia, Intel etc. They might have been able to cut something on the DVD-drives and harddrives, but manufacturing 8Gb-drives isn't cheap if you need to sustain a whole factory line just for one customer.
  
  The reason MS is in bed with ATI for the next system is because nVidia didn't agree to suggested price cuts by Microsoft.
  
  You're also wrong on the GPU. It's a Geforce 3 with an extra Vertex Shader, like the Geforce 4.
  
  --
  it's in my head
3. Re:Loss by ooPo · 2004-03-29 06:31 · Score: 5, Interesting
  
  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.
4. Re:Loss by mercuryresearch · 2004-03-29 06:54 · Score: 4, Informative
  
  Actually it's no so clear this has to do with "price cuts" on the graphics chips per se.
  
  ATI negotiated the deal in a radically different way from Nvidia -- they sold IP, not chips at a specific price.
  
  The gamble in chip manufacturing is usually that you price the chips at a (near) loss at the start, and improvements in manufacturing result in cost reductions and profits later on in the process.
  
  Nvidia used this model for the original X-box deal, but the design wasn't finalized and additional complexity was added, raising manufacturing costs (this is what triggered the arbitration between Nvidia and Microsoft over the last couple years.)
  
  In any case, the X-box chips Nvidia sold weren't terribly profitable to them. I seriously doubt any chip manufacturer would accept a repeat of the arrangement. Obviously ATI didn't -- and had Nvidia negotiated a deal like ATI's on the original X-box the present situation would have probably been different -- the trade off being the potential profits would likely have been lower had the manufacturing cost reductions actually worked out.
5. Re:Loss by smackjer · 2004-03-29 07:11 · Score: 5, Funny
  
  Wow. Stop the presses.
  
  You JUST figured this out?
  
  --
  
  This is my sig. There are many like it, but this one is mine.
This is our chance to strike back!!!! by Anonymous Coward · 2004-03-29 06:19 · Score: 5, Funny

They were already selling them at a loss! Let's all go out and buy one of these, that will be striking a great blow for open source!!

Silly M$, this is an exploit for their business, not just Windoze.
1. Re:This is our chance to strike back!!!! by Cthefuture · 2004-03-29 06:32 · Score: 4, Interesting
  
  I believe an XBox might make a nice Mame (prefer) or MythTV box.
  
  Is it expensive to get the thing running Linux? I saw someone in this thread mention modchips being more expensive than $150. Do you need a modchip to run Linux? Is there a cheaper "hacker" way? I can solder.
  
  Can you add more RAM to it? How about hard-drives? Does it have a free PCI slot?
  
  I mean, $150 for a 1 Ghz (?) P3 and nVidia card sounds like a good deal to me since I need more of these cheap "weak" machines for common stuff like MythTV and arcade machines.
  
  In normal PC terms, $150 would only buy a 1.3 Ghz Celeron+Motherboard with GF440MX video. You'd still need to add RAM, a hard-drive, power supply, and a case.
  
  --
  The ratio of people to cake is too big
2. Re:This is our chance to strike back!!!! by PhoenixFlare · 2004-03-29 06:57 · Score: 4, Insightful
  
  Nintendo needs to get over the gaming is for kids only thing, but they've made and continue to make some quality games.
  
  The people that think Nintendo only promotes "kiddie" gaming are the same ones that won't play a game because they think their friends will laugh at them, playing something with bright colors and/or bouncy music is embarassing, etc.
  
  And yet again, this PA comic is appropriate.
  
  I realize you're not (directly) bashing Nintendo, but this rubbish that they only target little kids needs to stop. Just because they make games without massive blood, violence, or sex does not make them any less mature or enjoyable.
3. Re:This is our chance to strike back!!!! by Lumpy · 2004-03-29 07:05 · Score: 4, Interesting
  
  Besides, who's going to sink $150 into the thing and not get a game or two for it?
  
  i did... in fact I bought 2 of them.
  
  they both sit on my network in my bedroom and my daughter's bedroom as Mythbox playback units.
  
  work great and you cant build a playback box for myth for anywhere the price of an X box.
  
  --
  Do not look at laser with remaining good eye.
4. Re:This is our chance to strike back!!!! by Anonymous Coward · 2004-03-29 07:19 · Score: 5, Informative
  
  Can you add more RAM to it? How about hard-drives? Does it have a free PCI slot?
  
  The memory is soldered onto the mainboard, so unless you are an electrical engineer who has insides with the Xbox team, I doubt you'll be able to add RAM to it, nor or a PCI slot.
  
  The 3 most common ways to allow you to run unsigned code (such as Linux) is to either:
  
  1) Follow the soldering instructions, which require you to solder (IIRC) 2 seperate spots on the bottom of the mainboard. I tried this with a friend, and he fried his mainboard. I would not suggest doing this unless you have some good experience with precise soldering of electronics.
  
  2) Use the James Bond 007 exploit, which requires a specific saved game to be put onto a memory card, and then once you load that saved game from within James Bond, it will allow you to load unsigned code from the Xbox. The only problem, atleast when this exploit first came out, is that you have to redo the exploit everytime you want to reboot your OS (or everytime you want to load some new unsigned code).
  
  3) Buy a modchip. There are plenty of companies out there that sell modchips that don't require any soldering (but the chips can be a pain in the ass to line up correctly at times). There are also the chips that require soldering, sometimes up to 10 or more seperate points.
  
  Unless you have A) The money to burn, or B) The skills to solder, I would suggest buying a no-wire modchip such as the Matrix. I purchased a few of these from easybuy2000.com (no personal affiliation, just a happy customer) and have had no problems.
And so it begins... by Anonymous Coward · 2004-03-29 06:20 · Score: 5, Interesting

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!
Xbox price cut coverage everywhere by securitas · 2004-03-29 06:21 · Score: 5, Informative

Here's some links from an almost-submitted post.

Microsoft Cuts Xbox Price to $150

Microsoft has cut the price of its Xbox game console to about $150 ($149.99), a $30 drop. The price cut was widely expected by analysts in a move to spur slowing console sales for the Xbox as the current generation approaches the end of its cycle, and gamers anticipate the next-generation of consoles in 2005. Microsoft also announced several price cuts on Xbox games and titles including 'Xbox Music Mixer, Project Gotham Racing 2 and Crimson Skies: High Road to Revenge.' More coverage at CNet, CNN Money, ZDNet UK, AP via Seattle PI and Bloomberg via Seattle Times. (Microsoft press release)
New Milestone? by pegr · 2004-03-29 06:21 · Score: 4, Funny

Is it a significant milestone when a console becomes cheaper than the modchip for that console?
Re:Slashdot has officially jumped the shark when.. by jared_hanson · 2004-03-29 06:21 · Score: 5, Funny

Saying "jumped the shark" has sooo jumped the shark.

--
-- Fighting mediocrity one bad post at a time.
2005 last I heard by metroid+composite · 2004-03-29 06:22 · Score: 4, Interesting

as previously reported on Slashdot. No specific details, though.
1. Re:2005 last I heard by pi+radians · 2004-03-29 07:18 · Score: 5, Funny
  
  Rumor has it you'll still be able to use your Xbox even after the Xbox2 is released, so worrying about backwards compatibility is a non-issue....
  
  --
  
  sin(6cos(r)+5A)
DUMPING by Anonymous Coward · 2004-03-29 06:22 · Score: 5, Insightful

So we have an established monopoly with $50b in cash in the bank now selling their product way below cost to steal market share.

how is this NOT dumping? if Sony or Hitachi did this with TV's they would be prosecuted.
Is this ethical, really? by Saven+Marek · 2004-03-29 06:23 · Score: 5, Interesting

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"

Adult mac desktops & wallpapers
1. Re:Is this ethical, really? by southpolesammy · 2004-03-29 06:41 · Score: 5, Interesting
  
  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.
  
  --
  Rule #1 -- Politics always trumps technology.
*Sigh* Here they come... by MacOS_Rules · 2004-03-29 06:23 · Score: 4, Insightful

Let's restrict the "We'll bankrupt Microsoft by buying the $150 XBox and coverting it to Linux" topics to replies to this post. This includes all cheap PC quotes from pricewatch, as well as arguments to the real cost of the XBox (better graphics, small HD, working from TV instead of monitor, monitor cost, yadda-yadda-yadda.) Not meaning to be a troll, but it seems 3/4 of the conversation revolves around these topics. [Well, there goes the Karma].

--
If a man's character is to be abused there's nobody like a relative to do the business. -Thackeray, William
1. Re:*Sigh* Here they come... by buffer-overflowed · 2004-03-29 06:47 · Score: 4, Insightful
  
  But you're not costing MS money, you're mitigating MS's loss.
  
  Say they pay $300 per unit, and are selling it at $150. For you to be able to buy that $150 unit MS has to be out $300 to make it. When you buy it, their loss shrinks from $300 to $150.
  
  And, if enough people buy it and then buy games for it(since more games are made as it penetrates further), the loss decreases. The only way purchasing an XBox hurts MS worse than not buying one is if it spurs a large amount of manufacturing of new units which then go unsold.
  
  You are in NO way hurting MS by buying an XBox, you're helping them. Feel free to do so, but stop saying you're costing them money. You aren't.
  
  --
  The key to the enjoyment of pop music is to replace any instance of "love" with "C.H.U.D."
Wake me.. by MImeKillEr · 2004-03-29 06:24 · Score: 5, Funny

..when they're giving the Xbox away in a box of Lucky Charms.

--
Cruising the internet on my TI-99/4A @ a whopping 300 baud!
Re:Still too much by Anonymous Coward · 2004-03-29 06:24 · Score: 5, Funny

I remember going out and spending $500 on a video card for a $2000 PC, then spending another $49 on the newest game. Basically, a $2,549 XBOX.

So I like the new price. :)
PS2 Price Drop Coming Soon by TrentL · 2004-03-29 06:27 · Score: 4, Informative

The article also mentions a PlayStation 2 price drop in mid-April, so don't buy an X-Box based on price just yet.
Sugar mama by millahtime · 2004-03-29 06:29 · Score: 4, Funny

It's called a sugar mama... all you need to do is get one. I did and it changed my world. She busys me toys to keep me entertained. Sometimes I feel like a dog just playing with the toys my owner bought. But then I play with my cool toys and don't care.

--
Evolution or ID?
PS2 Already 150... sort of by samsmithnz · 2004-03-29 06:30 · Score: 5, Insightful

I thought that Sony dropped the price about 6 months ago, but then added in a subsidized modem and slightly increased the price to 170, so that the price effectively stayed the same, but the value of your purchase increased.

Bunch of marketing crap really.
P. Diddy understands Microsoft by Anonymous Coward · 2004-03-29 06:30 · Score: 5, Funny

When you have no design skills yourself, you simply sample from someone who does.
Cheap Entertainment PC? by Anonymous Coward · 2004-03-29 06:30 · Score: 5, Insightful

With this new price point and the hacks for the XBox out there, is this worth purchasing as a MPEG, MP3 and PVR entertainment PC? I'm not really interested in the games for the thing, but if I can get a decent computer out of the thing for $150, I'd be game.

Thoughts?
Cluster Goodness by Ianoo · 2004-03-29 06:32 · Score: 4, Funny

50 x $150 = $7500

This gives me 35000MHz of processor power and 3200MB of RAM. That'd be a pretty nice setup.
Re:DUMPING (Not) by Troed · 2004-03-29 06:33 · Score: 5, Informative

Got news for you...all console makers sell their product below cost, and have for many years

Congratulations, you've fallen for a myth. The only consoles before the Xbox to have been sold at a loss are the Sega Saturn and the Sega Dreamcast.

Please don't post myths - learn how to use Google.

--
it's in my head
Translation by dr_dank · 2004-03-29 06:35 · Score: 4, Funny

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."

Or for those of you who know Diddy-speak:

"yeah, uh huh, uh, thats right, c'mon now"

--
Where does the school board find them and why do they keep sending them to ME?
What are you talking about? by Iscariot_ · 2004-03-29 06:36 · Score: 4, Informative
Is it a significant milestone when a console becomes cheaper than the modchip for that console?

Check your facts before posting. No xbox mod-chip costs more than $100.
- System Mods
- ModChipNow.com
- EasyBuy200.com
- etc...
--

Go here for teh [sic] funny.
oh boy! by malus · 2004-03-29 06:41 · Score: 4, Funny

i've been waiting for this price drop! i'm going to go out tomorrow and pick one up! it'll sit right next to my PS2 which has been idle for the last 8 months due to Lack of Playing Time(tm). But at least i can say i have one!
Re:This guy needs to lay off the marketing pills.. by Have+Blue · 2004-03-29 06:41 · Score: 4, Funny

The major contribution of the Xbox to our culture so far has been corpse humping in first person shooters. Not really something to be proud of...
$99 by Labor Day??? by Viking+Coder · 2004-03-29 06:43 · Score: 4, Informative

Didn't I read somewhere that it was going to $99 by Labor Day? Or was that just an ugly rumor, and this is the only price drop I can really expect?

Nope, I'm not nuts - this was the rumor.

--
Education is the silver bullet.
Re:This guy needs to lay off the marketing pills.. by Repugnant_Shit · 2004-03-29 06:43 · Score: 5, Funny

I hate to be a spelling nazi, but you misspelled pwned.

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Vote for global prefs bug
why buy a game machine by sirinek · 2004-03-29 06:49 · Score: 4, Insightful

For a long time I wanted to play GTA3. I pondered buying a $199 PS2 and then said "Naah, I'll wait for the price to go down". That was a year and a half ago, and they are still $179. Last year I bought GTA3 for my PC and a game controller very similar to the PS2 controller. Together the pair cost me maybe $65 and the graphics blow away the PS2.
Re:Slashdot has officially jumped the shark when.. by JohnTheFisherman · 2004-03-29 06:52 · Score: 5, Funny

Well, if you listened to the original single version, you'd note that all that P. Diddy did was take a tape recording of "I, Cringely" complaining about MS and say, "uh huh, unh HUNNNHH" over the top of it.

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+5:offtopic,but anti-American
When does it become practical? by earthforce_1 · 2004-03-29 06:55 · Score: 4, Interesting

Since the Xbox is essentially a PC with a lot of anti-hack DRM crap built in, I wonder when it becomes practical simply to canibalize it for parts, stick on an "open" BIOS and turn it into a real low end PC?

Not as a basement hacker project, but as a commercial scale re-engineering effort. If you are replacing the BIOS with a one that will turn it into a regular PC and not play any PS/2 games, they could hardly be raided for piracy.

--
My rights don't need management.
Ah Yes! by Greyfox · 2004-03-29 07:11 · Score: 4, Funny

But if we each apply for a national foundation for the arts grant, buy 10,000 of the things, superglue them together to make giant Tux-the-Penguin statues and have them all shipped to Redmond, we can do two things:
1) Deal a financial blow to Microsoft that will make the EU fines pale in comparason and
2) Raise up our army of giant tux-the-penguins for the last battle against the Evil Empire (Microsoft.)
Hmm maybe I should lay off the cough syrup...

--
I'm trying to teach myself to set people on fire with my mind... Is it hot in here?
Re:Consider the Source by Vargasan · 2004-03-29 07:27 · Score: 4, Funny

I didn't even know P.Diddy knew such a large word as "entertainment", let alone it's meaning.

--
Putting the romance back into necromancer.
I just wish....... by MrIrwin · 2004-03-29 07:35 · Score: 4, Interesting

Somebody would make a tiny little box where I plug the TV in one side and my joystick on the other. On the top there is a little socket where I plug in my USB key full of MAME Roms.
I reckon a MAME emulator like this would could cost something like $25 at the factory door.

--
And if you thought that was boring you obviously havn't read my Journal ;-)
Re:Still too much by tssm0n0 · 2004-03-29 08:24 · Score: 5, Funny

you can push an assload of polygons

Exactly how many plygons can be stored up one's ass?
Re:In other news.... by superpulpsicle · 2004-03-29 09:07 · Score: 4, Funny

Meanwhile at Sony headquarters, execs are releasing PS2 with a new slogan

"Live in Microsoft world, but play in ours".