360 core price drop to $199 ??

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http://www.bloggingstocks.com/2007/06/11/microsofts-xbox-360-sees-significant-price-cut/

Microsoft's Xbox 360 sees significant price cut

Posted Jun 11th 2007

While the dismal performance of Sony's (NYSE: SNE) PlayStation 3 continues to weigh on the company's fortunes, the competition is making waves all over the place. First, the scrappy Nintendo has outdone everyone and has shown that consumer engagement means much more than technical performance and brilliance. The less-advanced Nintendo Wii has outsold the Sony PlayStation 3 for almost the entire time both gaming consoles have competed (since November of last year), and the numbers for the Wii continue to add up while the PlayStation 3's numbers are hunkering down looking for an escape from any media coverage.

Meanwhile, Microsoft's (NASDAQ: MSFT) Xbox 360, which was priced in the middle of the Wii's ($250) and the PlayStation 3's ($500 and up) price points has sold very well during the same six-month time period, trailing the Wii but ahead of the PlayStation 3. Adding fuel to this fire, Microsoft has announced that it will drop the price of the "core" xbox 360 gaming package to only $199 -- a drop from the previous $299. Was this price drop in Microsoft's business plan? Probably so -- but the company may have had to accelerate the drop based on how well the Wii is performing in sales compared to all the competition.

So there you have it -- the Microsoft Xbox 360 is now at $200 and the Nintendo Wii is at $250. I doubt Sony can even drop the PlayStation 3 price without completely losing its shirt, so I don't see any price drops on the PlayStation 3 in response to Microsoft's price cut, unless Sony is fond of kamikaze pricing schemes. So far, estimates have the Nintendo Wii selling 360,000 units per month, the xbox 360 selling 174,000 units and the PlayStation 3 selling at an 82,000 per month clip.
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Now doing the math, if this is true. It looks like the Premium and possibly Elite will drop in price as well.

$199 + HDD ($90) + Component cables ($40) + Headset ($20) + Wireless controller ($40)
= $390

thats $10 cheaper than the Premium w/ all the accessories
it also would include an extra wired controller making it a better package even at the lower price.

so 360 price cuts all around? or bogus story?

whatcha all think?
 
No way do all 3 versions drop $100. I could see a 3-tiered pricing of $250, $350 and $450 but I seriously doubt the Elite will drop at all since it's brand-new.
 
Hell, $200 for a Core is more than enough to get most people I know onboard, so if this holds true that's absolutely outstanding. If the Premium and Elite go down in price as well then that should signal about four to six people I know grabbing one just because of the price alone.

Good god, now I have to go find them controller deals.
 
[quote name='daroga']Interesting. One small correction, the wireless controller for the 360 is $50.[/quote]
well i was just getting the prices off amazon.
http://www.amazon.com/Microsoft-882224022408-Xbox-Wireless-Controller/dp/B000B6MLUA

they have it listed as
Xbox 360 Wireless Controller
Other products by Microsoft
Platform:
browse-icon-xbox360._V42827551_.gif
Xbox 360
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List Price: $39.99 Price: $37.82 & this item ships for FREE with Super Saver Shipping. Details You Save: $2.17 (5%)
Click to expand...

but that's all besides the point now. looks like the story's false anyway.:whistle2:(

oh well.
 
I think Microsoft should drop the price of the Core to $199.99 and package it with a free 256 MB memory card. Then maybe a sampler disc with a bunch of demos. This would be a perfect introductory bundle for people who haven't tried a 360 yet or for the average gaming family who has kids under 13 who want to get into next gen gaming.


Then they should drop the price of the Premium to $349.99 w/a free game allowing the Elite to be droped to $429.99. This would really help Microsoft out for x-mas sales, and for people looking to play Halo 3 etc (along with their stellar lineup of 360 games for holiday season)
 
Doubt it will drop. MS must be making a killing on the 360 now considering it is nearly 2 years old and still selling for the same price.
 
Bummer, seems like MS is missing their opportunity to bury the PS3 before any killer apps come out for it.

Then again, I'm not exactly an expert on why/when to slash videogame prices. I thought the 32x was an awesome idea.
 
The price drop is happening. Its a little premature right now to announce it. Look for the new lower price this holiday season...who knows maybe they'll announce it in July at the new e3
 
I just bought my console roughly 2 months ago...Walmart has a 90 return policy so could i get a refund for the difference if the price cut happens in the next month?
 
If the price cut happens soon I may get one. If not, Fall/Winter are going to be too good for me to care about getting a 360.
 
From the IGN link:

No Xbox 360 Price Drop, Says Microsoft

Companies say a lot of things. Their denial establishes nothing based on precedent.

EDIT: I just hope my current system holds up until it happens. Nothing would suck worse than replacing it an having a price drop less than a month later.
 
Even if ("when," really) there's a price drop, it's not gonna be a hundred bucks. That's serious wishful thinking. Expect a more modest ($40 off the Premium and you've got "A 360 for $360") drop first.
 
why would microsoft have any desire to cut the costs??? The systems are still selling well, and with xmas and halo 3 coming soon, i dont see any reason for them to. I would expect that they would throw in an old game first before they dropped the price. I think GoW would be an excellent choice for the packin but, probably more along the lines of PGR 3
 
I find it hard to believe Microsoft is that fucking retarded - meaning, to not drop the price. Just because the PS3 is slow doesn't mean the 360 is "selling well."

Price drop this fall, whether they admit it now or not. It's not like other companies get in the habit of announcing them months ahead of time.
 
It's a good deal if it happens. Especially for those people who are out of the MS warranty and have to cough up a bit of cash to get their 360 repaired. It *almost* makes the 512 memory card worth it if your just gonna use it for save files and nothing else. But lets remember you still have to shell out $100 if your a new user and want a hard drive, so that would make it $300 either way... which is still a good price.
 
Sony could slash price by $100 too now. They just had the major breakthru with the manufacturing process of the bluray diodes that are saving them over $100 per system.
 
Microsoft has announced that it will drop the price of the "core" xbox 360 gaming package to only $199
Click to expand...

No... they haven't.

Whether or not they do soon, this article is bullshit. The truth is they have not dropped the price. The thing is even filed under "rumours", and yet the article states that the drop has been announced.

This is just complete bullshit.


Now, if this WAS true.... that would be fucking awesome, except for the fact that the core doesn't have a hard-drive.

They should cut the core, drop the premium to $300 or $250, drop the elite to $400, and add HDMI to all consoles universally.
 
[quote name='Brian9824']Sony could slash price by $100 too now. They just had the major breakthru with the manufacturing process of the bluray diodes that are saving them over $100 per system.[/quote]

I'm hoping for both to cut price (and the award for stating the obvious goes to.........) that way I can get a PS3 and a cheap Core for when my 360 breaks down. Which judging from the anecdotal evidence on this forum will be some point in the near future.
 
First of all, a company's first retort to ANY type of rumor is to deny it (look at the response to the rumor of the Elite or Sony's PSP and a million other rumors that turned out to be true). Secondly, I can't see that now would be the time for a price cut, but who knows; I would expect to see one in the September/October timeframe to drum up holliday business, but if they did it now they may be able to get more $$ during the summer dry-spell.
 
Considering Halo 3 is coming out in Sept...a price cut now would spark some interest in the 360 for the next couple months and then that momentum would carry over to the holiday season when Halo 3 comes out.
 
Halo 3 will move consoles at the current price point though.

I'm guessing, but October 15th they'll announce a price cut and Christmas bundle. $50 off the core and a pack-in of Perfect Dark Zero/Kameo. Maybe even toss in a 64MB memory card. 3 months of Xbox Live gold as well.
 
[quote name='Brian9824']Sony could slash price by $100 too now. They just had the major breakthru with the manufacturing process of the bluray diodes that are saving them over $100 per system.[/quote]

do you mean they are making them for $500, or that it is a $100 less then the $800 or so that it is rumored to be the manufacturing cost.
 
[quote name='terribledeli']Halo 3 will move consoles at the current price point though.

I'm guessing, but October 15th they'll announce a price cut and Christmas bundle. $50 off the core and a pack-in of Perfect Dark Zero/Kameo. Maybe even toss in a 64MB memory card. 3 months of Xbox Live gold as well.[/quote]

haven't they already packed in those 2 games...I would think something a little more recent...
 
[quote name='ryanbph']haven't they already packed in those 2 games...I would think something a little more recent...[/QUOTE]

As far as I remember, no. There was those wal-mart bundles that had Moto GP 06, Call of Duty 2, or Burnout Revenge.

Maybe Viva Pinata and Fuzion Frenzy dual disc then. Or maybe Tenchu Z and Vampire Rain. Microsoft isn't going to let a major release slip into a bundle.
 
[quote name='PawnTakesKing']Not gonna happen, guys:
http://gamerscoreblog.com/team/archive/2007/06/08/551072.aspx
As great as it would be, I think $299 is here to stay for the time being.[/QUOTE]
That means nothing. Microsoft will deny a price cut until at most a month before it happens. It would be stupid of them to do otherwise. It would kill sales of their console between the time they announce the cut and the time the cut actually happens.

I don't really have an opinion on when a cut is going to happen, but using what an MS rep says as evidence is just foolish.
 
Well, no kidding, they'll deny any price cut until the very moment it happens because they don't want people waiting for it.

However, without MS (or to a lesser extent Nintendo) making any moves I don't see MS having a need to cut prices before Halo 3 comes out, in any case. Sell a bunch of systems at the current price because of that, then, *maybe*, cut prices right before the holidays to bury Sony. But it is more likely they will bundle something.

They are sort of already doing this with all the retailers offering Viva Pinata or Fusion Frenzy 2 with the purchase of a system (based on the repeated occurance of this deal at different retailers I'm sure this is a MS-driven promo). And hasn't CC been including extra wireless controllers off and on? That's a $50 break right there (and at one point weren't they doing the game + a controller?). I would expect to see more of that (maybe with a more recent game) before an across-the-board price cut.

However, I could also see the Core dropping to $199 without a change to the other SKU's if they were simply phasing it out. Now granted, it looks like that particular info was from a quote taken out of context, but it would make sense as some point. Just think of how many (high profit) accessories they'll sell as a result!
 
expect price cuts to be told at E3. Hell few years back everyone kept saying there is no way in hell the prices would be cut. Then E3 hits and boom price cuts.

I remember when i heard the PSP would fall from 250 to 199. Called up sony and they said the PSP was selling so fast it would be stupid to cut the price. 2 days later sony comes out

PSP 199


LOL so just dont expect anything till E3

I think the cube and PS2 should see price cuts this year (i dont think they had one last year) Ususally every 2 years
 
[quote name='trq']Even if ("when," really) there's a price drop, it's not gonna be a hundred bucks. That's serious wishful thinking. Expect a more modest ($40 off the Premium and you've got "A 360 for $360") drop first.[/quote]
i think $100 is more than reasonable.

the original xbox's 1st cut was by 33%. which would be $133 this gen. or $270ish.

to a customer's eyes $270 looks like $30 more than $250. but $400 looks like $200 more; they tend to look at the first numbers which differ and subtract.
 
[quote name='Brian9824']Sony could slash price by $100 too now. They just had the major breakthru with the manufacturing process of the bluray diodes that are saving them over $100 per system.[/quote] not really. they reduced the price to about $17 i think it was in jan from last year when they began making them pre launch when it was costing them something like $140. but it wasnt recent. and just because they have that drop doesnt mean the rest of the system is cheaper now. it was still almost a $200 loss back at launch. so i'd be surprised if theyre not building them for a loss still. and even if they have mananged to build for no loss. they still have to amortize their gargantuan 2 billion dollar loss somehow. they're trying to do it now by firings, theyve laid off a couple hundred ppl in the past couple months. first in europe now in the US just a few days ago. because they certainly arent making the money back on licencing costs at this point, and they want to pay off the loan (yes they had to take a loan out) for the PS3 development & launch asap.
 
Even though microsoft denies the rumors, it doesn't mean that it won't happen. It might not happen in a month or two but it will happen sooner or later. Look at the elite, didn't they deny that also?
 
common sense tells them not to announce it until its imminent. If you knew 100% that the consoles would drop in price in 2 months - would go out and spend $100 more now?
 
[quote name='propeller_head']not really. they reduced the price to about $17 i think it was in jan from last year when they began making them pre launch when it was costing them something like $140. but it wasnt recent. and just because they have that drop doesnt mean the rest of the system is cheaper now. it was still almost a $200 loss back at launch. so i'd be surprised if theyre not building them for a loss still. and even if they have mananged to build for no loss. they still have to amortize their gargantuan 2 billion dollar loss somehow. they're trying to do it now by firings, theyve laid off a couple hundred ppl in the past couple months. first in europe now in the US just a few days ago. because they certainly arent making the money back on licencing costs at this point, and they want to pay off the loan (yes they had to take a loan out) for the PS3 development & launch asap.[/quote]

http://biz.gamedaily.com/industry/feature/?id=15931

It was recent. Bluray drive used to cost $125 with a major part of that being the diode. Now its about $8 as of this month. This went into afftect end of april and they are starting to see the results now that they've actually had time to make a good number.

Bluray player being cheaper makes the system cheaper. Simple fact.

I also never said they still aren't building them for a loss, but like the article mentions the more systems they build the cheaper it gets.
 
[quote name='Brian9824']http://biz.gamedaily.com/industry/feature/?id=15931

It was recent. Bluray drive used to cost $125 with a major part of that being the diode. Now its about $8 as of this month. This went into afftect end of april and they are starting to see the results now that they've actually had time to make a good number.

Bluray player being cheaper makes the system cheaper. Simple fact.

I also never said they still aren't building them for a loss, but like the article mentions the more systems they build the cheaper it gets.[/quote] first of all the drive doesnt cost $8. an analyst is predicting that the LED diode will cost $8 sometime in June. thats not taking into account BR's more expensive & complex dual lens assembly or the loader itself. the (3 month old) news is also in relation to sony announcing it's plant's sales of BR diodes to other manufacturers. this doesnt mean that they hadnt gotten around the substrate issue that screwed up the yield so bad and increased the cost so much on launch before the press release. anyway, i was wrong about the $200 loss, iSuppli had it at a $250-$300 loss.
chart1_111607.gif
 
[quote name='propeller_head']first of all the drive doesnt cost $8. an analyst is predicting that the LED diode will cost $8 sometime in June. thats not taking into account BR's more expensive & complex dual lens assembly or the loader itself. the (3 month old) news is also in relation to sony announcing it's plant's sales of BR diodes to other manufacturers. this doesnt mean that they hadnt gotten around the substrate issue that screwed up the yield so bad and increased the cost so much on launch before the press release. anyway, i was wrong about the $200 loss, iSuppli had it at a $250-$300 loss. [/quote]

Your putting words in my mouth again. Never said the drive was $8. Said the DIODE was. The diode is the majority of the cost as the physical components needed for a bluray and dvd drive are basically the same with the main difference being the diode.

Secondly prices go down. That link you posted is over 7 months old. I can guarantee if anyone where to do a price difference now you'd see at minimum a 30% decrease in cost over a seven month timespan.

It's not surprising to see the consoles sell for a loss. Xbox 360 sold for $127 profit loss and PS3 was selling for a $241 loss with their main model. As multiple articles mention a $100 drop is a definite possibility with the decreased costs they have. At least as much as the 360
 
[quote name='Brian9824']Your putting words in my mouth again. Never said the drive was $8. Said the DIODE was. The diode is the majority of the cost as the physical components needed for a bluray and dvd drive are basically the same with the main difference being the diode.

Secondly prices go down. That link you posted is over 7 months old. I can guarantee if anyone where to do a price difference now you'd see at minimum a 30% decrease in cost over a seven month timespan.

It's not surprising to see the consoles sell for a loss. Xbox 360 sold for $127 profit loss and PS3 was selling for a $241 loss with their main model. As multiple articles mention a $100 drop is a definite possibility with the decreased costs they have. At least as much as the 360[/quote] you said and i quote "Bluray drive used to cost $125 with a major part of that being the diode. Now its about $8 as of this month."

and i know prices go down, i said that. im just pointing out they would have to go down A LOT ($340 since launch) for them to not to have a loss w/ a $100 price drop. Merrill Lynch said a month or so back they expect it to cost sony $320 to produce in 3 years. now assuming that the BR drive costs have dropped $100 since iSuppli's initial estimate. that's a $140 a year drop on avg. which means that they wouldnt even be able to sell them w/o loss until 2k8 if they kept the price the same as today. however the majority of that cost reduction will be in the move to 65nm and chipset integration. the chipset integration probably wont show up till 2010 if it follows the same timeframe as the PS2. 65 nm could show up this year or next. they sure arent making much on licencing costs right now and theyve got a hefty loan they need to get paid off & are 2 billion dollars in the red.

when the cell and rsx are moved to 65nm they wont need as hefty a PSU or cooling setup. the question will be will they move the cell to 65nm w/ a revision then follow it w/ the 65nm rsx further down the line. or will the do it like MS and postpone the CPU reduction to coincide w/ the GPU for a single less expensive revision. ATi has already moved the 65nm on their desktop cards, nVIDIA hasnt. so if they do decide to do a coinciding reduction it could well be mid 2k8 before it happens.

the other price reduction coming w/ the production increase in cell which will eventually end up in everything from washing machines to refrigerators. but thats another 8 years down the line at least.

now the 360 will have to have a price drop this year or else it will earn the title of the console longest to go w/o one. the question is, will sony match it and try to stay competitive; or will they stick to the mentality of "for consumers to think to themselves 'I will work more hours to buy one'. We want people to feel that they want it, irrespective of anything else."
 
Considering Sony NEEDS to lower the cost as soon as possible, i would count on new models rolling out with incremental changes; basically, when the 65nm part is available, they will use it. Makes sense to start cutting costs ASAP. Would you rather save $100 now...for about a year. Or wait a year and save $150? Doesn't make sense to wait on other parts to come down in price.
 
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