Xbox 360 to get a price cut, too

Sony’s PlayStation 3 price cut will place the Japanese company’s flagship console closer to where the Xbox 360 is now, but Microsoft may have a retaliatory trick up its sleeve. Next Generation quotes a Wedbush Morgan Securities analyst as saying Microsoft will announce a price cut for the Xbox 360 tomorrow, right as the new E3 show kicks off. The price cut will reportedly hit all three variants of the console: the $299 Core model will drop to $249, the $399 Premium version will go down to $349, and the $479 Xbox 360 Elite will sink to $399.

That said, the analyst apparently didn’t reveal when the purported price cut will actually take effect. Sony’s PS3 cut will be applied in August, but it could take until the Fall for the Xbox line to go down in price. According to Mercury News writer Dean Takahashi, that’s when Microsoft will introduce the revamped version of the 360 based on 65nm hardware.

Update: It looks like the PS3 price cut is already in effect at stores like Amazon, Best Buy, and Circuit City.

Comments closed
    • roont
    • 12 years ago

    i love how on best buys web site they have a HUGE banner:
    “XBOX 360 ELITE!!!! NOW AVAILABLE!!!!”
    and yet theyre all sold out. making them…NOT avaialable.

      • sativa
      • 12 years ago

      wow. I wonder why they have them in that order though… it seems like if it was better than the elite they would have put it on the other side. maybe not though.

    • indeego
    • 12 years ago

    I’ll get the PS3 when it’s $200.
    I’ll get the Xbox 360 when it’s hardware is confirmed working, and the price drops again.
    I’ll get the wii when it drops $50g{<.<}g

      • wierdo
      • 12 years ago

      Apparently he doesn’t keep up with gaming trends very well ๐Ÿ˜‰

    • Joerdgs
    • 12 years ago

    What do you mean console wars? ๐Ÿ™‚

    • --k
    • 12 years ago

    From Takahashi article: “But everyone knows that if you cut your hardware price too much, you lose money. After all, Microsoft lost an estimated $3.7 billion on the original Xbox.”

    I wonder how MS got around the anti-dumping law.

    • derFunkenstein
    • 12 years ago

    Another update: I got an email from both Gamestop and GameCrazy saying it took effect immediately on the PS3 as well.

    • flip-mode
    • 12 years ago

    The failure rate is what worries me. I’m interested in the 360, but I’ll wait for the 65nm version and see if that improves the reliability of the thing. Then all I have to do is wait till I have money, a half-decent TV, and time before I write a check. So, around 2010 I might be shopping for one.

      • paulWTAMU
      • 12 years ago

      I feel you. The price cuts talked about for the 360 make it a viable alternitive to the Wii for me, while the PS3 is still out of my range–and truth be told, I’d like a 360. I just have to wait for money ๐Ÿ™‚

    • marvelous
    • 12 years ago

    Getting there. I still don’t have money to buy a premium. Maybe a core on sale. $200… ๐Ÿ™‚

      • derFunkenstein
      • 12 years ago

      just pony up the extra cash for the 20GB HDD. You’ll spend MOST of that money getting a memory card, you might as well get 40x the capacity for a few bucks more along with a wireless controller.

        • marvelous
        • 12 years ago

        I’m poor. ๐Ÿ™

        I have to save up $200. I have $100 now. ๐Ÿ™‚

        I was thinking maybe get the hard drive later on. I will just make a memory card myself out of usb flash drive.

          • SPOOFE
          • 12 years ago

          See, I have the money; just not enough liquid capital to indulge in a 360, just yet, given the sparse (for me) gaming offerings.

            • SGT Lindy
            • 12 years ago

            “the sparse (for me) gaming offerings.”

            Dam the 360 has more games…..current games….going for it than any other platform.

            • Lord.Blue
            • 12 years ago

            Yeah, last I checked it was over 200. Heck, gamestop.com has over 110 listings under just the ‘Action’ category.

            • lemonhead
            • 12 years ago

            Quantity != Quality. Flashier graphics does not a fun game make. Might sell a lot of copies though, box art is very deceiving. I’d say for any system, 1 good game for every 10 that you might get a few hours worth of playing.

            • SPOOFE
            • 12 years ago

            Same problem the PS2 had. All the Sony fannuts ranted and raved about the “massive library” for hours, but outside a few quality examples, most of those games were drek.

            One of these days I’ll spot something that I Absolutely Must Have. ‘Til then, I’ll leave the consolin’ up to other folk.

    • sativa
    • 12 years ago

    does walmart do price matching? i got mine 3 weeks ago.

      • crose
      • 12 years ago

      Nelson: Ha ha!

    • Alex
    • 12 years ago

    So if an Xbox 360 can be had for $250, and a Wii can be had for $250, will we see Wii cuts in the future too?

    Cuts make me happy… ๐Ÿ™‚

      • blastdoor
      • 12 years ago

      I wouldn’t count on it — people are buying a lot of Wiis. If I were Nintendo, I wouldn’t cut the price until I had fully caught up with demand.

    • heruur
    • 12 years ago

    Yep…right after I buy one too…. ๐Ÿ™

    • UberGerbil
    • 12 years ago

    Makes sense to introduce the price cut as part of the holiday shopping blitz. Announcing it now, not so much.

    I wouldn’t be surprised if MS makes Halo 3 part of an exclusive bundle with the 65nm edition for a month or two, so if you want Halo 3 you can either wait for late Nov or pay for a new XBox to get it in Sept or Oct. A re-launch with a (re)launch title. Especially if they offer some kind of trade-in, it would be a good way to get a lot of the old 360s out of consumers’ hands before they fail.

      • blastdoor
      • 12 years ago

      I wonder if launching early was worth the $1 billion charge. I suppose it might have been if the Wii hadn’t rained on their parade.

      I also wonder if they would be having these problems with failures if they had stuck with Intel. I guess we’ll never know.

        • lethal
        • 12 years ago

        The xbox division isn’t a money making machine by any stretch of the imagination. Up to 2006 MS had lost over 4 billion on the xbox division, and AFAIK, the 360 was in the same path of losing on each hardware sold, so if anything MS is following the trend :P.

          • Corrado
          • 12 years ago

          360’s are profitable now per unit sold or so i’ve read and that the only reason the division itself is still losing money is that the Zune is also part of it.

            • droopy1592
            • 12 years ago

            they aren’t including bricked boxes in that… I’d say they’re still losing money on the hardware, but not as much as people want to think.

            Hopefully all of this price cutting will force nintendo to offer the colors and maybe give some extra software or a price cut.

          • SPOOFE
          • 12 years ago

          Talking about how much money MS has lost on the Xbox is really kinda pointless because that was Microsoft’s stated intention all along; it’s why it hasn’t had any significant effect on their stock price.

            • blastdoor
            • 12 years ago

            If by that you mean the console business model is to use the hardware as a loss-leader in order to make it up on the software, then sure. But eventually they most certainly do want to make money from the overall Xbox effort (including software), and taking an unexpected $1 billion charge makes that kind of hard to do. They’re going to have to sell quite a few copies of Halo3 to make up for $1 billion.

            Microsoft’s attempts with both the Xbox and Zune are great for consumers, but so far have not proven to be great for Microsoft. Maybe they should move their entertainment division over to the Gates Foundation, because so far it’s basically been a charity for consumers.

            • green
            • 12 years ago

            true it was the original intention to lose money on hardware intially
            what wasn’t intended was the alleged 33% failure rate on said hardware
            which not only increases hardware costs but labour costs for people handling all the support calls

            as for their stock price, i’d say the windows/office divisions are keeping the company afloating pretty darn easy

            • SPOOFE
            • 12 years ago

            Both of you have it completely wrong.

            Microsoft’s stated business model was to lose money, overall, with the Xbox. That’s why their stockholders didn’t care. This was done in order, obviously, to get a foot in the living room door.

            It has nothing to do with “the console business model”. Sony, for example, has a model that is a little more extreme: The only way for their console to succeed is to be a roaring, raging success, to dominate the market with the PS3 the same way they did with the PS2. Microsoft, on the other hand, simply needs a big, non-majority chunk in order to turn a profit.

            In other words, think more long-term and less fanboy-term.

        • packfan_dave
        • 12 years ago

        I think all three console makers made absurd CPU choices in this generation (MS’s was the least bad, but that’s not saying much), but I’m not sure how MS could have stuck with Intel and launched in 2005 with something that could hold its own against the PS3 CPU-wise (though since console games are as GPU dominated as PC games, that might not have mattered much). Yonah and Presler weren’t out the door yet, let alone Conroe. So I think sticking with Intel and launching in 2005 probably would have meant going with Dothan; Smithfield was too power-hungry for a console.

          • blastdoor
          • 12 years ago

          Yeah, they would have had to wait about 6 to 9 months in order to go with Intel. It’s hard to say if that would have been worth it. Maybe not.

    • R2P2
    • 12 years ago

    Isn’t the strategy normally don’t announce a price cut until it’s going to come into effect, so you don’t kill sales? Microsoft would need to be really desperate for good press to announce a fall price cut tomorrow. You’d think announcing that warranty extension would have been good enough for now.

      • UberGerbil
      • 12 years ago

      Yeah, that’s definitely sound practice (dating back to the Osborne) and it would make sense; on the other hand, it’s the relatively dead summer months and they may be more interested in building momentum for the holiday shopping season.

        • BobbinThreadbare
        • 12 years ago

        I think their goal here is too kill PS3 sales, even if it hurts their own.

          • lethal
          • 12 years ago

          we don’t know when will this price cut take effect, so MS could say tomorrow on their press conference “price cut effective today”. That would both be a direct blow to the PS3 announcement and it would boost 360 sales, specially since they fell short of their expected 12 million mark by a few hundred thousand units.

    • Peldor
    • 12 years ago

    The PS3 price cut is already effective (see Amazon, Best Buy, etc). They’re supposed to intro the 80GB unit+Motorstorm for $599 in August.

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