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Microsoft Drops Xbox 360 Pricing

Posted by Soulskill on from the more-or-less dept.

Kawahee was one of several readers to tip news of a price cut for the Xbox 360. This comes after Sony dropped PS3 prices and unveiled the Slim model last week. The 360 Elite will now retail for $299, but will no longer ship with HD cables. The 360 Pro has been reduced to $249, but Microsoft is phasing it out. Analysts don't expect this new price point to be a huge boon for sales because the Elite doesn't match the PS3's hardware capabilities and is still more expensive than the Wii. Microsoft has "no plans" for a smaller version of the 360.

35 of 169 comments (clear)

  1. MS needs to be thinking about the 720 by elrous0 · · Score: 3, Insightful

    The 360 is nearing the end of the typical console lifespan (which has always been about 5 years, give or take) and is getting a bit long in the tooth anyway. A DVD drive and 4-year-old CPU are already starting to hold it back (several new games are coming out for it that will have to span across several DVD's, versus one bluray for the PS3). They really should be looking at a new generation console soon (for 2010 or, at least, 2011). If they wait too long, Sony is going to start trouncing them with the stronger hardware of the PS3.

    And this time MS, for the love of God, please put some effort into making a hardware design that doesn't cause another RROD fiasco, or take a step BACKWARDS with no standard hard drive. That was just shameful.

    On a personal note, how about making your online architecture a little more friendly to MMO's? The PS3 has several in the pipeline, and you don't have any. There are only so many FPS's and racing games I can put up with before I want some innovation. Backwards compatibility probably wouldn't hurt either. Just my opinion.

    --
    SJW: Someone who has run out of real oppression, and has to fake it.
    1. Re:MS needs to be thinking about the 720 by d3l33t · · Score: 2, Insightful

      They cant afford to drop the current software development cycle. Why do you think every other console figures a minimum 8 year cycle.

    2. Re:MS needs to be thinking about the 720 by elrous0 · · Score: 2, Interesting

      The standard has always been 5 years, even through the early 80's console collapse and several recessions. IMHO, any console maker who ignores this (especially in this competitive market) does so at their own peril. It was Sony's attempt to drag out the PS2 cycle to 6 years that allowed the 360 to finally gain a foothold over Sony to begin with.

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
    3. Re:MS needs to be thinking about the 720 by SnarfQuest · · Score: 2, Funny

      If you want backwards compatibility, shouldn't you get an XBOX 180?

      --
      Who would win this election: Andrew Weiner vs Andrew Weiner's weiner.
    4. Re:MS needs to be thinking about the 720 by elrous0 · · Score: 2, Insightful

      I would point out the multitude of problems with that response, but I'm not going to start yet another PC vs. console pissing contest, thank you. Suffice it to say that the PS3 is getting some MMO's on their console finally, but MS is not. And I think a truly next generation console needs to expand its capabilities to handle all game genres.

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
    5. Re:MS needs to be thinking about the 720 by alvinrod · · Score: 5, Informative

      I think that they're going to stick with the Xbox 360 for a while longer.

      First of all, they have previously stated that they wanted to be profitable this go around. Even though Windows and Word are still a large cash cow for Microsoft, they can't afford to continue to bleed money in other divisions. They probably would reach profitability on this current generation and have started making up for the losses of the original Xbox if they hadn't run into the red ring problems. That probably set them back a year or so at least.

      They're also in no real danger of being one-upped by Sony either. The PS3 may have technical superiority, but it's not by a large enough margin to cause people to move away from the Xbox 360. Sony also has a lot of costs to recoup as well and it doesn't appear as though they're in a hurry to release a new console any time soon.

      It also seems as though Nintendo has begun to hit market saturation with the Wii at its current price. The sales have been down over the last few months and there's still no word of a price cut. I'm expecting one around Christmas, but they may be running out of steam. If anyone needs to come out with a new piece of hardware it's Nintendo.

      If they announce a new system in the near future, sales of their current generation will probably tank. At that point Sony will be able to catch them in sales and they'll end up as the also ran of the current generation. It's likely that they're discussing hardware options for a future console at this point and possibly sharing some of that information with third parties that they'd like to keep close. It's also unlikely that they'll rush in attempt to be the first out of the door as it cost them a lot this time around.

      They're also between a rock and a hard place in terms of making a decision of whether they'll move heavily towards digital distribution. They probably don't want to put a Blu-ray drive in their next machine as it increases the cost and justifies Sony's position. A DVD drive likely won't cut it for the next generation of games and the hard drives being included in consoles aren't there in terms of size yet. They'll need at least 500 GB drives if they want to move towards digital distribution and given the drives consoles are currently shipping with it will probably be another 2 years before 500 GB drives come standard. I don't foresee Microsoft using a PPC chip in their next console either which will probably kill backwards compatibility or add to the cost of the machine if they decide to support it.

      They likely have plans, but I don't expect them to make any moves until either Sony or Nintendo does something first. My bet is on Nintendo just because they're flush with cash and really lagging behind in terms of hardware, especially with both Sony and Microsoft releasing motion control features in the near future.

    6. Re:MS needs to be thinking about the 720 by Cornflake917 · · Score: 5, Insightful

      On a personal note, how about making your online architecture a little more friendly to MMO's? The PS3 has several in the pipeline, and you don't have any.

      Wrong.

      If they wait too long, Sony is going to start trouncing them with the stronger hardware of the PS3.

      Sony has had over 3 years to "trounce" them. This hasn't happened yet. Why would the stronger hardware aspect of the PS3 all of the sudden start attracting gamers away from the 360?

      --
      Abaddon: An Xbox 360 Indie game
    7. Re:MS needs to be thinking about the 720 by medv4380 · · Score: 2, Insightful

      Given that the PS2 still has a good number of units sold every month and is close to what the 360 sells they are probably thinking this is becoming a 10 year cycle or something longer. Nintendo was right when they said that more expensive hardware wasnt needed for more advanced game development. MS just needs to make their system cheaper and more reliable.

    8. Re:MS needs to be thinking about the 720 by Jaysyn · · Score: 3, Interesting

      Not that I care about consoles, but if I did I still don't see myself downloading a multi-DVD game to play on one.

      --
      There is a war going on for your mind.
    9. Re:MS needs to be thinking about the 720 by KDR_11k · · Score: 3, Insightful

      It also seems as though Nintendo has begun to hit market saturation with the Wii at its current price. The sales have been down over the last few months and there's still no word of a price cut. I'm expecting one around Christmas, but they may be running out of steam. If anyone needs to come out with a new piece of hardware it's Nintendo.

      No, they just went without a killer app for too long. Their strategy does not allow for pricedrops that quickly, especially when it's known what needs to be done to restore the sales without a pricedrop (namely releasing more killer apps). Besides, they just came out with a new piece of hardware called the Motion Plus. Since they don't consider graphics and processing that important they won't release a new system just to upgrade those.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    10. Re:MS needs to be thinking about the 720 by Anonymous Coward · · Score: 5, Insightful

      The PS3 no longer costs $200 more? It also plays Bluray movies? People already have 360s and it seems like an upgrade?

    11. Re:MS needs to be thinking about the 720 by thule · · Score: 3, Insightful

      It also seems as though Nintendo has begun to hit market saturation with the Wii at its current price. The sales have been down over the last few months and there's still no word of a price cut. I'm expecting one around Christmas, but they may be running out of steam. If anyone needs to come out with a new piece of hardware it's Nintendo.

      Nintendo is blue ocean. They are not trying to compete in the red ocean that is Xbox and PS3. MS and Sony have to price cut because they are fighting over the same pie.

      The Wii is finally getting some interesting third party games. The MotionPlus is awesome and makes a huge difference in certain types of games. Less "waggle" and more precision. Nintendo really doesn't need to do anything right now. Sure, they'll have an HD console someday, but for now, the Wii is doing just fine.

      A lot of people think that New Super Mario Wii is going to be HUGE (especially in Japan).

      They likely have plans, but I don't expect them to make any moves until either Sony or Nintendo does something first. My bet is on Nintendo just because they're flush with cash and really lagging behind in terms of hardware, especially with both Sony and Microsoft releasing motion control features in the near future.

      This is exactly why hardware performance doesn't matter. Nintendo *is* flush with cash and has moved many, many more units and they did it with lesser hardware! They weren't fighting over the current "hardcore" market. They were going after expanded market.

      For the "hardcore" crowd, the PS3 is the way to go and MS could end up loosing some share to Sony.

    12. Re:MS needs to be thinking about the 720 by 222 · · Score: 2, Interesting

      Hardware sales have more or less been in line with each other when release dates are aligned. The Xbox obviously has higher total numbers given its earlier release. Cost wise the PS3 has a substantial advantage (Free online play, built in wifi, blu-ray player)

      Exclusives are a fair split these days, IMHO, a PS3 exclusive tends to look better than an Xbox exclusive. [Note: I OWN AN XBOX, AND LOVE IT. Quick plug... my PSN and XBL name is Malcorin :- ) Feel free to add me.]

      I think a lot of hardcore gamers would like to have both, and $299 is a price which seems to make that realistic. To quote a close friend of mine, "The price drop was exactly what I was waiting for".

    13. Re:MS needs to be thinking about the 720 by not+already+in+use · · Score: 4, Interesting

      A DVD drive and 4-year-old CPU are already starting to hold it back (several new games are coming out for it that will have to span across several DVD's, versus one bluray for the PS3).

      DVD is still a perfectly capable medium for video games. If you think the increased cost of a blu-ray drive is justified by the handful of games that happen to be bigger than a single DVD, you're smoking crack.

      and 4-year-old CPU... If they wait too long, Sony is going to start trouncing them with the stronger hardware of the PS3.

      How do you figure? Microsoft's 4-year old processor has kept up with Sony's, wait for it.... 4 year old processor. The Cell, by the way, hasn't lived up to the hype, unless of course you like running folding@home. Otherwise, the PS3 architecture is not a good fit for game development. The reason the 360 is trouncing the PS3 is not only because of cost, but because it is far easier to develop for.

      The PS3 has several in the pipeline, and you don't have any.

      If by that you mean the XBox has Final Fantasy 11 and Phantasy Star Universe, and the PS3 has none, then sure, I agree with this statement wholeheartedly.

      There are only so many FPS's and racing games I can put up with before I want some innovation.

      Yup. This is Microsoft's fault.

      Honestly... who modded this insightful??

      --
      Similes are like metaphors
    14. Re:MS needs to be thinking about the 720 by gbarules2999 · · Score: 4, Interesting

      The expanded market that bought a Wii, and Wii Fit, and Wii Sports Resort, and...oh. Nothing else.

      You can argue until you're blue in the face about how Nintendo's going in a different direction, but I bought a Wii early on and have felt the burn everytime I walk past that useless piece of crap in the living room. It does nothing better than the Gamecube and has only garnered the same old same old only Nintendo could get away with rereleasing over and over again. While the "expanded market" has already purchased, played and probably moved on from their Wii's (I know my circle of friends have, especially the non gamers), Nintendo's busy developing and tinkering as if people still care.

    15. Re:MS needs to be thinking about the 720 by thule · · Score: 2, Interesting

      I don't know what type of games you like to play, but you might want to take a look at recent releases and coming soon listings for the Wii. You might be surprised to find that things are starting to broaden a bit. I think that third party game companies were caught a bit off guard. They didn't know what to do with the Wii, so they ignored it. Now that over 50 million units have sold, Nintendo has their attention again. Deep Space Extraction, The Conduit, Cursed Mountain, and The Grudge are all targeted at the traditional gamer. Final Fantasy games are certainly targeted at the traditional gamer. So keep your mind open!

      If you haven't picked up a MotionPlus, do it! Tennis and golf games with the MotionPLus are amazing. Why would anyone play those types of games on a PS3 or XBox? Red Steel 2 should work much, much batter than the original title since it uses the MotionPlus.

      And come on, any true gamer would love the Virtual Console on the Wii.

    16. Re:MS needs to be thinking about the 720 by ookaze · · Score: 2, Insightful

      I think that they're going to stick with the Xbox 360 for a while longer.

      I think if they do that they will continue to crash and burn.
      Seems like they think Natal is their next console, their console rebirth.
      I bet this will crash and burn badly, and finish destroying their hopes of breaking even.

      First of all, they have previously stated that they wanted to be profitable this go around. [...] They probably would reach profitability on this current generation and have started making up for the losses of the original Xbox if they hadn't run into the red ring problems. That probably set them back a year or so at least.

      No!
      Their only profitable fiscal year, they made less than $500 M (million) profit, and this was the Halo 3 fiscal year. They already lost $3 B (billion) dollars this generation on XB360, and lost $4 B on XBox (that's $7 billions in the hole for XBox brand at the very least). So the RRoD set them back at least 2 years back, most likely 3, and they have no chance of breaking even on the XB360 before 8 more years.
      That's because you should keep in mind that they're back to losing money since their first price drop, despite selling several internal development studios and cutting off others.
      And here comes another price drop. Their revenus also declined since their first price drop: sales didn't make up for the price drop of last year.
      They're in a very bad position.

      They're also in no real danger of being one-upped by Sony either. The PS3 may have technical superiority, but it's not by a large enough margin to cause people to move away from the Xbox 360. Sony also has a lot of costs to recoup as well and it doesn't appear as though they're in a hurry to release a new console any time soon.

      The problem is that technology or competitor doesn't decide what the consumer will buy.
      What will make them in a hurry to do anything is the gaming market.
      The problem of both HD consoles, is that they can't release a new console now, while at the same time they must release one soon, as their sales are dropping and they're not making money, but their business model requires that they sell lots of games.

      It also seems as though Nintendo has begun to hit market saturation with the Wii at its current price. The sales have been down over the last few months and there's still no word of a price cut. I'm expecting one around Christmas, but they may be running out of steam. If anyone needs to come out with a new piece of hardware it's Nintendo.

      This is pure nonsense.
      How come the Wii has hit market saturation while it sells more than the HD consoles put together at the worldwide level? Even in the USA alone, the biggest market, the Wii still sells more than any of the HD console.
      That's without a single price drop, in soon to be 3 years! And with a XB360 model cheaper than the Wii since more than a year worldwide!
      Given that, saying that Wii has hit any market saturation is pure nonsense.
      If anyone needs to come out with a new piece of hardware, it sure enough is NOT Nintendo.
      At best that's wishful thinking.

      My bet is on Nintendo just because they're flush with cash and really lagging behind in terms of hardware, especially with both Sony and Microsoft releasing motion control features in the near future.

      That's the problem: Nintendo will go on riding this generation and making lots of money while the others will painfully sell less and less. The HD consoles motion controls have not even a date of release, not even a price, they're just plain vaporware for now, but vaproware doesn't work in gaming.
      Nintendo doesn't care that they are lagging behind, as that is precisely part of their plan.
      Nintendo just moves like they want, completely unaffected by the HD consoles. On the contrary, those are the HD consoles that painfully try to catch up in Wii's path, but fail miserably for now.
      How come the fact that PS3 and XB360 are playing catchup to the Wii with motion control is seen as a strength? Especially when the Wii is still selling more than both combined?

    17. Re:MS needs to be thinking about the 720 by ookaze · · Score: 2, Interesting

      Sony has had over 3 years to "trounce" them. This hasn't happened yet. Why would the stronger hardware aspect of the PS3 all of the sudden start attracting gamers away from the 360?

      The PS3 is not even 3 years old yet, and not even 2.5 years old in Europe!
      Hyperbole?
      The XB360 has one entire year of sales without competition of headstart too.
      And the PS3 is now far less expensive.
      I don't think hardware will do anything though. These are videogame consoles, not technology items, but entertainment items. The games are what will count.
      The thing is that the poor output of exclusive games on the PS3 will have some of its best ones soon: GT5 and FFXIII (well, not completely exclusive).

  2. They probably are. . . by JSBiff · · Score: 2, Interesting

    It's been my experience that, when the 'new, smaller, cheaper' version of a console comes out, the next-gen console is probably only a year or two away. I think it's pretty clear they're not coming out with a next gen console this year (too late in the year with no hype; if you plan to release a new console, you target a Sept-Oct release timeframe, so that hopefully people buy them for Christmas, and you begin the hype 6 months or a year beforehand), but they could be planning a 2010 or 2011 release of a new console.

  3. Low-end HDMI Cables by Nerdfest · · Score: 3, Informative

    Low-end HDMI Cables are about $3 on MonoPrice.com, etc. Not a big loss, but a bit inconvenient if you don't have a couple lying around. I hope this doesn't boost sales of Monster cables.

  4. For one by OrangeMonkey11 · · Score: 5, Interesting

    MS need to quit making gamers paid for Xbox Live; granted Sony PS3 network has its' issues but it is free to play. I never like the idea of paying full price for the game then have to pay a monthly/yearly fee to be able to play it online.

  5. Re:Keep Trying by matang · · Score: 2, Insightful

    "wii toy" - right, because the other two are deal-making, shuttle launching, techno-heavy pieces of equipment. "hey guys, we better get some xbox360s in here before people stop taking us seriously."

  6. The price drop is interesting..... by 8127972 · · Score: 3, Interesting

    .... When they get the reliability improved so that they don't have a 54.2% failure rate, then I might consider buying one.

    --
    This is my opinion. To make sure you don't steal it, it's covered by the DMCA.
  7. Price increase for the UK by thetoadwarrior · · Score: 2, Insightful

    Thanks for using the UK and the exchange rate to boost your profits, cunts.

    http://www.edge-online.com/news/xbox-360-elites-price-cut-arcades-raised

    I'm sure the reason they haven't done this all over Europe is because they're only popular in the UK so they feel they can get away with this.

  8. it's a good move, deal with it. by tisch · · Score: 2, Interesting

    remember the slogan that nearly killed apple? "what you use at work, you'll use at home." ? well, MS knows this. it's tried and true. they are the only system with a flagship online game of magnitude. no ps3 game can touch it as far as participation goes. "what your friends play, you will play." it doesn't matter that the system is worse for more money, people want to play with other people they know. it's not meerly for gameplay. this is why the wii, the most technically inferior of the three is still going for 250$. people want to play with friends while drunk. nothing wrong with that. ps3 can't get the same feeling for $299, and xbox can't for its new price either. each has their perks. this was a good move by microsoft, and they'll milk the 360 until you can run emulators of the games on netbooks for less money.

  9. Have been waiting for this by Kalendraf · · Score: 2, Interesting

    I originally held out buying a 360 until the 65nm processor came out (Falcon version). But then due to the RROD problems, I opted to wait for the 65nm GPU as well (Jasper version). Those have been out for a while now, but it's still somewhat hit or miss as to whether the Elite version you get has a Jasper board (65nm CPU + 64nm GPU) or an older version. However, it appears now that most of the new elites and nearly all arcade versions have Jasper. My only reason for holding out longer is that I suspected a significant price drop on the elite was coming.

    Now that the price is dropped, I'll finally get one. I'll just make sure to doublecheck that it's rated at 12.1 amps so I know for sure that I'm getting a Jasper.

  10. what about the peripherials ripoff...... by Sobakus · · Score: 5, Insightful

    The most required price cuts are for the outrageously expensive wifi adapter and the absurdly overpriced 120 gb hard drive. I have an original xbox 360 with 20gb hard drive (only had 1 RROD, hoorray) and I can barely install 1 game, and forget about movie downloads or a couple of demos unless you uninstall that game. Right now in spain a 120gb harddrive + wifi adapter will actually cost you more than the full xbox 360 arcade pack. To all you PS3 fanbois, bless Sony for letting you put any hard drive you wish. Believe me, after years fighting with a ridiculous 20gb drive thats one hell of a feature (...insert envy emoticon here...) WTF Microsoft??!!!!

    1. Re:what about the peripherials ripoff...... by 93+Escort+Wagon · · Score: 2, Insightful

      The most required price cuts are for the outrageously expensive wifi adapter and the absurdly overpriced 120 gb hard drive.

      Wait a minute... is that correct? The 360 doesn't even have wireless networking built in? You've got to be kidding!

      --
      #DeleteChrome
    2. Re:what about the peripherials ripoff...... by Lectoid · · Score: 3, Informative

      Do what I did for me and two people I know, hack a cheap 120 GB WD hard drive to work. http://www.pcworld.com/article/150970/upgrade_your_xbox_360s_hard_drive_on_the_cheap.html

      --
      Is it just me, or do you hate it when people say "Is it just me..."?
  11. This is not even really a price drop. by Anonymous Coward · · Score: 3, Insightful

    They are phasing out the Pro model at $250 and dropping the Elite model to $300. However, once the Pro models are gone it's still going to cost you $300 to get a Xbox 360 (the Arcade model doesn't count). So, how exactly is this a price drop? I suppose you could argue that it is a value increase (as you are getting 120 GB instead of 60 GB), but I certainly wouldn't call it a price drop.

    I bought a Xbox 360 Pro a year ago for $300. I've had no problems with it and enjoyed it a lot. However, if I were to do it all over again today I would go with a PS3. Back then a PS3 was $500. Today, however, for the same price as a Xbox 360 you get built-in Blu-ray, WiFi, and a standard hard drive interface. On the hardware front it's not even a contest. Xbox 360 has some great exclusive games, but so does PS3 (I hate exclusive games, but that's the world we live in). On top of that, Xbox Live is $50 a year. Xbox 360 was killing PS3 from the start (and rightly so; who pays $600 for a console?), but now the PS3 is in position to reverse that trend. Meanwhile, half of all Xbox 360s are failing. The future doesn't look so bright for the Xbox 360...

  12. Re:it's not a good deal by Amarantine · · Score: 2, Insightful

    Funny that none of the points you mention are about the actual games. I mean, we are talking about games consoles, right? Why not choose the console that has the games you like most, instead of having a pissing contest about dvd playback quality and hard disk size?

  13. Microsoft desperately slashes Xbox 360 price by David+Gerard · · Score: 4, Funny

    Illustration: The new accurate Xbox 360 logo

    Microsoft has discounted the entry-level Doesn't-Do-Much Xbox 360 to $200 from Friday, $50 cheaper than the Nintendo Wii. (This will translate to a GBP250 price point in the UK.)

    "We are thrilled to be the first next-generation console on the market with a big 'Microsoft' logo on it to reach $199, a price that invites everyone to enjoy Xbox 360," said Aaron Greenberg, marketing marketer for Xbox. He says this will cause a "smash and grab" mentality amongst consumers. "And not 'grab and smash' as they throw it out the window when it gets a red ring of death again."

    The models that actually play anything worth playing will, of course, stay at $300 and $400. "But history shows that more than 75 percent of all console sales happen after the price falls below the $200 mark. Which would be the PS2, PSP and DS ... uh, forget I said that."

    Greenberg assures consumers that the new cheap Xbox 360s will not be refurbished red ring of death casualties. "Not all of them. Honest. However, twenty Xbox lifts every morning will be much better exercise than Wii Fit."

    Microsoft Japan is already actually paying people to take the machines, with little success. "We hope more people will be able to enjoy Xbox 360," said marketing marketer Takashi Sensui, "and we can stop enjoying quite so many of them. We also have this fine pile of HD-DVD drives ... Wait! Come back!"

    Greenberg further assured consumers that "the Xbox 360 will kick the PS3's ass every way from Friday, you wait and see." Nintendo were unable to comment in time for this story as they were still too busy trying to make Wiis fast enough to keep them in the shops.

    --
    http://rocknerd.co.uk
  14. skip the wifi adapter by clarkn0va · · Score: 2, Informative

    Get yourself an inexpensive ASUS WL520gu router and install the latest tomato firmware. Blammo! Instant wireless bridge for 4 ethernet devices, no client drivers required. You're welcome.

    --
    I am literally 3000 tokens away from the chaotic crossbow --Stephen
  15. Re:why not just upgrade the CPU and GPU? by tepples · · Score: 2, Insightful

    At that point, it's called a desktop computer and not a console.

    It's a console as long as it uses cryptographic methods to shut out any development that is not part of a day job, such as development done by students and hobbyists. If it were a computer, I could load GCC onto it.

  16. Fat PS3 is a desktop computer. by tepples · · Score: 2, Interesting

    You mean kinda like the same way I can load GCC onto my PS3?

    You have a fat PS3, which is switchable between a game console and a desktop computer at boot time. But I have a feeling Sony will discontinue it in the fourth quarter of this year, just as it discontinued the fat PS2 in favor of the slim PS2. And like the slim PS2, Xbox 360, and Wii, the slim PS3 is exclusively a game console.