Microsoft Cuts US Xbox 360 Prices

In keeping with its steady, worldwide price drops, Microsoft finally addressed its major market, North America, with significant price changes in preparation for this holiday season.

As of September 5, the price for the hard drive-less Xbox 360 Arcade unit will be $199, undercutting Nintendo's Wii by $50. The standard Xbox 360 and Xbox 360 Elite have been discounted to $299.99 and $399.99, respectively.

"Given the weaker consumer spending environment, the Xbox 360 should also now be in closer reach of more price-sensitive consumers," explained Lazard Capital Markets analyst Colin Sebastian to Gamasutra.

Microsoft points out that 75 percent of a console's sales occur once the system has reached the $200 point. Most notably, the Xbox 360 is now the cheapest console on the market for those opting out of the hard drive options.

Microsoft executive Aaron Greenberg told MTV Multiplayer that Microsoft's Core console is "complimentary" to the Wii, not a competitor.

"Our strategy all along has been to secure the core in our first couple of years, and I think we're done a great job doing that. We've always planned to broaden the reach to the masses, and we knew that having the games library, having the price point to do that is very important," he stated."

Attracting PlayStation 2 owners who are upgrading the this generation of hardware is more important to Microsoft than warring with the Wii.

"Tens of millions of those guys haven't upgraded yet. A lot of those guys didn't pay more than $200 bucks for their system and now we're speaking to those guys, as well," continued Greenberg. "I think we have a very compelling story for [PS2 owners] and there's a lot of very price-sensitive guys [that are] clearly a much larger audience than the Wii audience today. They [Sony] sold over 100 million consoles so there's got to be at a good least 80 million PS2 owners that haven't upgraded yet. From an addressable market standpoint, that would be the single largest addressable market for us."

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Logan Frederick:
They [Sony] sold over 100 million consoles so there's got to be at a good least 80 million PS2 owners that haven't upgraded yet. From an addressable market standpoint, that would be the single largest addressable market for us."

I thought 80 million (rough estimate) already transfered to the 360? I mean, from what I've heard, most people had a PS2 and switched to 360. Whatever.

But now I may actualy consider a 360, I certainly have more than enough money now but I'm just not to interested in some of it's games (that can also be bought on my PS3) for now.

For that price.. I might pick up a second one for the bedroom. Any serious problems / limitations that i should consider with the Arcade 360?

i bought one from the price drop and was pleased. it meant i could get 2 games with the pro version.

Logan Frederick:
Attracting PlayStation 2 owners who are upgrading the this generation of hardware is more important to Microsoft than warring with the Wii.

I upgraded from a PS2 to a 360 (PS3's too expensive).

In an unrelated note - the 360 Arcade in Japan is about $180. Maybe the lower price is do to lower demand for the 360?

Zombie_King:
In an unrelated note - the 360 Arcade in Japan is about $180. Maybe the lower price is do to lower demand for the 360?

Probably, the 360 is not so popular amongst the Japanese public, so a lower price ought to lower the bar for buying one.

Jumplion:

I thought 80 million (rough estimate) already transfered to the 360?

The Xbox 360 has sold 80 million?

Lt. Sera:
For that price.. I might pick up a second one for the bedroom. Any serious problems / limitations that i should consider with the Arcade 360?

There isn't a hard drive(256MB memory card).

shatnershaman:

Jumplion:

I thought 80 million (rough estimate) already transfered to the 360?

The Xbox 360 has sold 80 million?

Wouldn't be surprised considering all the 360's people had to buy because of the RROD.

Buuurrrrnnnneeeeddd??

My point was that many PS2 owners already switched to the 360. This is a smart move, but at the same time it does seem like they're trying to get the soccer moms to buy their console instead of the Wii because it's cheaper.

Whatever, I'm going to consider buying a 360 but not without learning a bit about bundles and getting a years worth of live and 5 games I'd care about on the 360. Which could be close, but most lose interest to me. Oh, and I'm DEFINATELY going to buy an extended warrenty or whatever.

Jumplion:

shatnershaman:

Jumplion:

I thought 80 million (rough estimate) already transfered to the 360?

The Xbox 360 has sold 80 million?

Wouldn't be surprised considering all the 360's people had to buy because of the RROD.

Buuurrrrnnnneeeeddd??

My point was that many PS2 owners already switched to the 360. This is a smart move, but at the same time it does seem like they're trying to get the soccer moms to buy their console instead of the Wii because it's cheaper.

Whatever, I'm going to consider buying a 360 but not without learning a bit about bundles and getting a years worth of live and 5 games I'd care about on the 360. Which could be close, but most lose interest to me. Oh, and I'm DEFINATELY going to buy an extended warrenty or whatever.

Fanboy much? (And wouldn't that mean the Xbox 360 has outsold the DS and Wii?P.S That's not true.)

A price drop means they want the Soccer Mom market? Makes Perfect Sense!

Paranoid? 3 years too short?

shatnershaman:
Fanboy much? (bad at math too well reading statistics at least.)

A price drop means they want the Soccer Mom market? Makes Perfect Sense!

Paranoid? 3 years too short?

Ehh, I admit it was a gross overestimate if an estimate at all. Ironically math's my favorite subject :D

Mah friend just re-bought his 360 after selling it for a ps3... laugh laugh... than he missed his 360 and bought one before he realized there was going to be price cuts. KARMA!

So $200 for the Arcade + $180 for the 120Gb addon hd = $380 vs. $400 for the Elite. But you don't get that nifty black case. But you do get to defer the costs say $200 at Christmas, then spend the $180 from your tax refund check a few months later. And save $20 in the process.

bkd69:
So $200 for the Arcade + $180 for the 120Gb addon hd = $380 vs. $400 for the Elite. But you don't get that nifty black case. But you do get to defer the costs say $200 at Christmas, then spend the $180 from your tax refund check a few months later. And save $20 in the process.

I don't think the Arcade model comes with an HDMI cable, and it comes with a wired instead of wireless controller. I think it's a break-even on price between an Elite and an upgraded Arcade if those are important to you; if not, then Arcade+HD is the way to go.

-- Steve

And these price drops happen everywhere else......when?

THE PRICES WERE ON THE WAY TO BEING EVEN, why do americans get everything cheap, I am in england, we have no nice beach tax?

(we do have "pay for lazy c*nts" tax)

Does Canada get a cut on the 360's too? If so, then you should change the title.

Random argument man:
Does Canada get a cut on the 360's too? If so, then you should change the title.

Yes it does, and it's getting heavy ad-copy in the fliers here too.

Also, I just heard that it's likely the 120GB hard drive is going to get a $20 price cut... dammit, I bought mine last Tuesday.

-- Steve

The library of games for the 360 along with the recent coup of Final Fantasy has me thinking I need to join the "trifecta console" crew. This just brings me closer to that eventuality.

Is there really anyone who actually can get by with just the Arcade? The lack of capacity really has me wondering. I don't suppose there are any Arcade owners who can comment.

For this price I may just pick up a second 360 for Lanning.

Any chance Sony will react to this and lower PS3 prices ?

I don't care if the think came down toe $100/£50, if the thing keeps breaking after a year or two, what's the point.

Builder a stronger 360 please M$.

I am still not sure wether I should but a 360 or PS3, but the lower priced makes me think I should just buy the 360 instead.

this makes me wonder about something, i'm guessing that m$ has realized their folly and is trying to undercut prices so it can get a lot of ppl to get a console before they bring out a brand new one

i'm not really bothered by the price cut nor am i even tempted to trade my ps3 for a 360. i think it's a sign they are scared about something

tho i think they could also be thinking about debuting a new console shortly or at least a new 360 with a blu-ray that can play blu-ray games, so if you want to play certain games you'll have to get the new console

i might be way off but you have to question why they are dropping the price so much, the console hasn't been out for very long, especially considering when the ps1, ps2, xbox and such took to hit the sub-$200 plateau

cleverlymadeup:
this makes me wonder about something, i'm guessing that m$ has realized their folly and is trying to undercut prices so it can get a lot of ppl to get a console before they bring out a brand new one

i'm not really bothered by the price cut nor am i even tempted to trade my ps3 for a 360. i think it's a sign they are scared about something

tho i think they could also be thinking about debuting a new console shortly or at least a new 360 with a blu-ray that can play blu-ray games, so if you want to play certain games you'll have to get the new console

i might be way off but you have to question why they are dropping the price so much, the console hasn't been out for very long, especially considering when the ps1, ps2, xbox and such took to hit the sub-$200 plateau

Uh didn't the Cube hit it really quickly? And PS3 had 2 $100 price drops within the first year. Were they scared?

shatnershaman:

cleverlymadeup:
i might be way off but you have to question why they are dropping the price so much, the console hasn't been out for very long, especially considering when the ps1, ps2, xbox and such took to hit the sub-$200 plateau

Uh didn't the Cube hit it really quickly? And PS3 had 2 $100 price drops within the first year. Were they scared?

Also, we're coming upon the third anniversary of the 360's launch this November 22nd; it's not exactly "early" to hit the $200 mark for a base model.

-- Steve

Indigo_Dingo:
Trying to capture the Ps2's market is rather a dumb stratedgy. People will still want the sequels to their games, and so they will eventually have to get a Ps3.

Like the sequels to GTA:San Andreas,Devil May Cry 3,Final Fantasy 12,Guitar Hero, stuff like that?

Indigo_Dingo:

shatnershaman:

Indigo_Dingo:
Trying to capture the Ps2's market is rather a dumb stratedgy. People will still want the sequels to their games, and so they will eventually have to get a Ps3.

Like the sequels to GTA:San Andreas,Devil May Cry 3,Final Fantasy 12,Guitar Hero, stuff like that?

No, more like God of War, Ratchet and Clank, Metal Gear Solid, Jak, Sly, SOCOM, Shin Megami Tensei, Disgaea, the next Ico game, Yakuza, stuff like that.

Considering GTA sold about the same as all of those together... and Yakuza,Disgaea and Sly?

Yay 4 price cuts!

This could be good for me considering my mums out of work : D

shatnershaman:

Indigo_Dingo:
No, more like God of War, Ratchet and Clank, Metal Gear Solid, Jak, Sly, SOCOM, Shin Megami Tensei, Disgaea, the next Ico game, Yakuza, stuff like that.

Considering GTA sold about the same as all of those together... and Yakuza,Disgaea and Sly?

ummm take MGS out of there, MGS has sold close to what GTA4 has sold

Anton P. Nym:

Also, we're coming upon the third anniversary of the 360's launch this November 22nd; it's not exactly "early" to hit the $200 mark for a base model.

-- Steve

earlier than when the ps2 hit it if i'm not wrong