Microsoft is planning to cut the price of its Xbox 360?

#1 Novaoblivion on 26 Jul 2006 - 12:10

Hmm I have been thinking of picking up a 360 I wonder when they will price cut if they actually do.

(1 reply) #2 aclarke_31 on 26 Jul 2006 - 12:13

I personally don't think that will do anything. The nintendo Wii is out soon(ish) and that's going to be priced a lot lower than Microsofts and Sonys Games Consoles.

If they really want to compete in the games market they are going to have to bring it down to at least $225

#2.1 Ryster092 on 28 Jul 2006 - 16:19

Erm, no.

Price alone is not what determines the competitiveness of a product.

#3 Destruction.Thrash on 26 Jul 2006 - 12:38

Who didn't see this coming?

(1 reply) #4 WelshBluebird on 26 Jul 2006 - 12:43

I don't think they actually have to bother.
The PS3 is priced well above the 360 anyway. And the Wii seems to target a different group that the 360 does.
Although if they do cut the price by $100, I bet you won't see UK prices being cut by the same amount (£55).

#4.1 Disjunto on 26 Jul 2006 - 13:17

uk prices will drop around £20 if at all

#5 Kushan on 26 Jul 2006 - 12:49

And at $299, it will stilll be about $150 more than I'd be willing to fork out for one, at least until they get a decent game out onto it.

#6 onesolo on 26 Jul 2006 - 13:18

When Xbox Media Center could be installed in a Xbox 360 then I might buy one...

(2 replies) #7 Raa on 26 Jul 2006 - 14:10

As Above ^

When I can play $2 backup discs instead of my $50 retail ones, i'll consider it :

#7.1 Unwonted on 26 Jul 2006 - 22:11

Most Xbox 360 games will play on dual-layer discs without a modchip. So go buy!

#7.2 Ryster092 on 28 Jul 2006 - 16:21

Most manufacturers offer a cheap return and replace scheme for damaged discs, so there is no need to use "backups". On the other hand, if you want to leave your discs out of their cases and not handle them correctly, thats a different matter. But that is hardly Microsoft's concern.

#8 coldgunner on 26 Jul 2006 - 16:49

If microsoft lower their prices considerably, they could possibly take a lot of custom from sony and make itself the dominant force on the console market. as above, I think the Wii will be the most successful next-gen console cos its going for a different market and gametype. Look at the DS for eample!

#9 thagame on 26 Jul 2006 - 17:02

compete? the xbox at full price is still alot cheaper then the ps3. the price drop will just make it laughable.

(2 replies) #10 stifler6478 on 26 Jul 2006 - 17:05

I'm not one to usually ask, but why is this news? I only ask because of this line, "Microsoft Taiwan denied the report, asserting that it is misinformation."

That's not saying they aren't commenting on rumors, that's saying it's not true, as has been said by MS before.

-Spenser

#10.1 Smigit on 26 Jul 2006 - 22:01

well why would MS confirm it? They wouldnt want to cripple sales in the meantime would they?

#10.2 Ryster092 on 28 Jul 2006 - 16:23

Quote - Smigit said @ #10.1

well why would MS confirm it? They wouldnt want to cripple sales in the meantime would they?

That is true, however I agree with Stifler. The quality of news on Neowin is very hit and miss recently. Apparently even the most vague rumour which is officially denied is considered news worthy.

(1 reply) #11 thenay on 26 Jul 2006 - 19:12

That'll be more attractive from a price point of view. Wii will still be cheaper though.

PS3 might get troubles from this but its the same idea when PS2 was around for a year or so and Xbox was was launched and was more expensive, it still did okay. Time will tell.

#11.1 Ryster092 on 28 Jul 2006 - 16:25

Yes, but the Wii is not really in the same category as the Xbox 360 and PS3. It is not really next-gen. The Wii's biggest advantage is the innovative changes to control methods. It is not much more powerful than the Gamecube from what I have read.

#12 seta-san on 26 Jul 2006 - 20:54

it's a good start at least. used ones should drop in price also due to this.

(4 replies) #13 Blackice on 26 Jul 2006 - 21:13

with Microsoft's XBOX division losing $1.26bn this year, I doubt they're going to do that. If they negotiate a manufacture price drop, it'll be to make their profit losses less. Pretty much all games companies lose money with the hardware. Its in the software and subscription packages that they hope to make it back and more. That hasn't happened so far for the 360.

But Sony have a plethora of top-selling franchises out for the PS3 launch: GT4, MGS4, DMC3, and I think GTA will be a launch title, too. That, and Sony's already excellent relations with hardware manufacturers (and they make lots of the hardware themselves), means that they do have an edge. Also, the CELL R&D costs were split across the triumvirate, and CELL chips are being mass-produced for things besides the PS3 (CELL chips are already being used in some IBM servers, aren't they?).

I reckon within 6 months or so after the PS3's launch, we'll see it drop in price. That said, I'm tempted by the 360 a lot. A drop in price might be just the right thing

#13.1 Smigit on 26 Jul 2006 - 22:06

"with Microsoft's XBOX division losing $1.26bn this year, I doubt they're going to do that. If they negotiate a manufacture price drop, it'll be to make their profit losses less. Pretty much all games companies lose money with the hardware. Its in the software and subscription packages that they hope to make it back and more. That hasn't happened so far for the 360."

You actually stated right there why they actually SHOULD drop the price. If they drop the price they get more consoles onto the market which in term will see more games being sold. I'm sure if people bought two games that this would offset the price drop of the hardware or come pretty darn close. MS is going to make a loss on hardware either way, its part of their strategy. As such it's probably best for them to get as many xbox's out as possible and then get the games making the extra sales.

ANother way to look at it is the higher the price the more likely someone is to buy a PS3. Yes its considerably cheaper but perhaps not enough so to persuade many purchasers? Lowering the price can only help in the effort to grab away PS users or to persuade people on the fence and a sale is better than the alternative...which is no sale at all. I know when I'm buying something I'm usually prepared to pay a premium for something newer or that I really want as long as the price range is within my limits. Increase the price gap and the cheaper component looks all the more appealing especially since its tried, testeted and has a 1 year catalogue of games already.

#13.2 Blackice on 28 Jul 2006 - 04:54

[quote=Smigit said,#13.1You actually stated right there why they actually SHOULD drop the price. If they drop the price they get more consoles onto the market which in term will see more games being sold. I'm sure if people bought two games that this would offset the price drop of the hardware or come pretty darn close. MS is going to make a loss on hardware either way, its part of their strategy. As such it's probably best for them to get as many xbox's out as possible and then get the games making the extra sales.

ANother way to look at it is the higher the price the more likely someone is to buy a PS3. Yes its considerably cheaper but perhaps not enough so to persuade many purchasers? Lowering the price can only help in the effort to grab away PS users or to persuade people on the fence and a sale is better than the alternative...which is no sale at all. I know when I'm buying something I'm usually prepared to pay a premium for something newer or that I really want as long as the price range is within my limits. Increase the price gap and the cheaper component looks all the more appealing especially since its tried, testeted and has a 1 year catalogue of games already.[/quote]

Well, it could just be a slow first year (slow? does anyone have the first year profit reports for other consoles?), but a $1.26bn loss doesn't seem like the software cost is doing a good job as far as replenishing lost hardware profits are concerned. People usually buy a few games at launch, don't they? No good having a fancy new console and one game to play on it. I think launch may even be the time when they sell most amount of games.

And as for the age, there's a counter-side to that, too: people might think "well, the 360 is older, so the PS3 is more cutting-edge". I know both have their benefits and the 360 is better than the PS3 at some tasks, but to your average mum/dad/granny with enough cash, it may actually be what runs through their minds...

#13.3 Ryster092 on 28 Jul 2006 - 16:27

Smigit and Blackice, can you please learn how to quote correctly so your comments are easier to distinguish from the quote. Thanks.

#13.4 crackhbob on 31 Jul 2006 - 12:50

Quote - Blackice said @ #13

with Microsoft's XBOX division losing $1.26bn this year, I doubt they're going to do that. If they negotiate a manufacture price drop, it'll be to make their profit losses less. Pretty much all games companies lose money with the hardware. Its in the software and subscription packages that they hope to make it back and more. That hasn't happened so far for the 360.

But Sony have a plethora of top-selling franchises out for the PS3 launch: GT4, MGS4, DMC3, and I think GTA will be a launch title, too. That, and Sony's already excellent relations with hardware manufacturers (and they make lots of the hardware themselves), means that they do have an edge. Also, the CELL R&D costs were split across the triumvirate, and CELL chips are being mass-produced for things besides the PS3 (CELL chips are already being used in some IBM servers, aren't they?).

I reckon within 6 months or so after the PS3's launch, we'll see it drop in price. That said, I'm tempted by the 360 a lot. A drop in price might be just the right thing

I would suggest you lookup the release dates of all the games you mentioned

(1 reply) #14 rIaHc3 on 27 Jul 2006 - 01:24

MS has already stated that a price drop is NOT planned....

#14.1 Ryster092 on 28 Jul 2006 - 16:28

Yes, because Microsoft always will reveal their competitive strategy publically well in advance.

#15 jpcahn on 27 Jul 2006 - 02:18

Microsoft should wait until just before the PS3 launch and annouce a 50 to 100 dollar price cut and the immediate availability of Halo 3. Sony would be completely screwed even worse then they are now. That would be the final nail in the coffin. Either that or have 399 with two free games.

#16 realmccoy on 27 Jul 2006 - 02:38

A discount on the X360 sounds great, hope it happens before Christmas.

#17 ozgeek on 27 Jul 2006 - 09:46

I knew they'd do this.

When the Xbox 360 came out here in Australia in March, MS denclined about any plans to drop the prices but I don't believe them. I knew they will drop prices like everything does.

(1 reply) #18 Xavien on 27 Jul 2006 - 23:55

Personally i dont see how they can afford to drop prices so early. The 360 is still making massive losses and to drop the price now would result in considerably more losses.

Maybe Microsoft is fighting a war of attrition.

#18.1 Ryster092 on 28 Jul 2006 - 16:30

Or.. maybe a loss on hardware has always been the plan and it is better to get more consoles out into the market which will equate to increased games sales, xbox live takeup and marketplace downloads.

#19 brent3000 on 28 Jul 2006 - 03:21

TYhis will leave sony in some hot water

whats better a $1,000 console... or a $540 console... i know what i will pick...

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