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Tuesday, July 8, 2008 Minimize
E3 2008: The Xbox 360 Price Drop
By CheapyD, 07-08-2008
I figured I'd kick off CAG's 2008 E3 coverage with a short article on the impending Xbox 360 price drop.

It was just about 1 year ago that CAG favorite speedy1961 broke the story on the $100 PS3 price drop. The news was to be a surprise announcement revealed at Sony's E3 press conference, but speedy's early access to Circuit City's Sunday ads, and his subsequent posting on CAG, let the cat out of the bag weeks before E3 2007.


Fast-forward to today and it appears that Microsoft is taking a page out of Sony's playbook. A $50 Xbox 360 Premium (20GB) console price drop initially appeared in early leaks of the Sunday ads for July 13th-19th from Best Buy, Radio Shack, and K-mart, and now speedy1961 has gotten his hands on Circuit City & Target's ads, which also list the $300 console. Speedy's ads also reveal that Target will be throwing in a $25 gift card with the console purchase.


If we remember back to last year, it turned out that Sony's PS3 price drop was really just a temporary maneuver to clear out the 60GB inventory and make room for new models, such as the 80GB Motorstorm Bundle. The new bundle took over the old $500 price point of discontinued 60GB console. It appears that Microsoft is taking a play out of the Sony playbook, and will replace the the 20GB Premium, with a new 60GB system.


I'm guessing that the new 60GB system will be revealed next week at E3 and be priced at $349.99, the current price of the 20GB model. This would give them a $50 price (and 20GB storage) advantage over Sony's 40GB PS3. It is also a safe bet that these new Xbox 360 consoles will contain the new (and hopefully more reliable) Jasper chipset.


Before running to Target to take advantage of their $25 gift card offer, the smart shopper should consider waiting until July 14th to see exactly what Microsoft announces at E3. Perhaps the new model will include include some kind of pack-in, such as the rumored motion controller.


Unless there is some new functionality added to take advantage of it, I find it very difficult to get excited about a larger hard drive. Beyond downloading HD movies from the Xbox Live Marketplace, I haven't found any compelling reason why someone would need anything larger than 20GB. I've got a very large library of Xbox 360 games and downloaded content and I've still got several gigs free on my 20GB drive.


However, if a new 60GB Xbox 360 includes the Jasper chipset which finally solves Microsoft's abysmal reliability problem, a $50 cheaper console that spends time in the repair shop isn't going to seem like such a great deal after all.



photo credit: milkham



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