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The more basic Xbox 360 Core package  (Source: Microsoft)
Best Buy to drop all HDD-less Xbox 360 consoles

According to a Joystiq story, a certain nationwide electronics retailer may discontinue carrying the Xbox 360 Core package.

An internal Best Buy document, sent to the site from an anonymous source, clearly shows the Xbox 360 Core with the new status of “Deleted” from the system with an out of stock date set July 29, 2007. The document also shows the product information with “pref code: y,” signifying that “replenishment of this item is not expected.”

When asked to comment on whether or not the retailer document is a sign that the Xbox 360 Core will be discontinued, a Microsoft representative responded, “No. Xbox 360 Core remains an important member of the Xbox 360 family.”

The dropping of a less variant from a console family isn’t unheard of. Earlier this year, Sony discontinued the 20GB PlayStation 3, citing consumer preference for the reason of running with just the more premium model.

The choice to discontinue stock of the Xbox 360 Core may be solely exclusive to Best Buy. Latest retailer information on the upcoming Xbox 360 price drops indicate that even the Core system will be available with a $20 price cut to $279.

Microsoft has also said in the past that it believes that the $199 price point is a “sweet spot of the market.” The Xbox 360 Core may be a part of Microsoft’s strategy to dip below $200.

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Why not drop the price further?
By Xerio on 8/1/2007 9:35:58 AM , Rating: 2
If Microsoft themselves say that $199 is the "sweet spot", why not drop the Core system to $199 instead of dropping it out of the line up? They would probably out-sell the Wii (at least in North America) at that price point. They wouldn't even have to throw in a game.




RE: Why not drop the price further?
By mdogs444 on 8/1/2007 9:42:38 AM , Rating: 5
Just because the price is the sweet spot doesn't mean that the price is feasible at this moment in time.

They may outsell the Wii in N. American (although i doubt it), but in doing so at $199, how much money would they be losing?


RE: Why not drop the price further?
By Aprime on 8/1/2007 9:51:01 AM , Rating: 2
The negatives outweigh the positives (considerable loss on all consoles sold vs. greater software sales).

I would certainly buy a $200 Xbox 360, I don't know about you. :V


RE: Why not drop the price further?
By Xerio on 8/1/2007 10:07:39 AM , Rating: 2
Makes sense that they wouldn't because they would be losing money, but I definitely would buy one at $200.


By mdogs444 on 8/1/2007 10:16:40 AM , Rating: 4
Cmon guys, the price is not dropping to $199, and the console is not being Discontinued. The $279 price is not even effective yet, and its just Best Buy that has "Reportedly" chosen not to stock it anymore. Lets keep on track with the actual article.


RE: Why not drop the price further?
By artemicion on 8/1/2007 10:26:27 AM , Rating: 5
I love how people on the internet so often confuse "The Price *I* Would Buy The Product At", with "The Price The Product *Should* Be At"

I would buy an iPhone if it were $200. That doesn't mean that's the price that Apple should set it at.

I also love how people presume that they're aware of all the market variables that the marketing guys at one of the biggest &^%(-ing corporations in America are somehow ignorant of.

OMFG. SELLING MORE CONSOLES MEANS MORE PROFIT IN SOFTWARE SALES? SOMEONE HURRY AND TELL MICROSOFT. SURELY THEY HAVEN'T FIGURED THAT ONE OUT YET.


RE: Why not drop the price further?
By Xerio on 8/1/2007 11:25:20 AM , Rating: 2
I get that, but I just wonder why, if Microsoft is saying that $199 is the "sweet spot", the Core is not $199.

Now, if they lose money by setting the price at $199, but they will make money at $279, great. Then set the price at $279.

My guess right now would be that they are working towards the $199 price point. Maybe when they get down to 65nm they will be able to drop the price. Or maybe they are waiting for the holiday season?


By hadifa on 8/1/2007 7:50:28 PM , Rating: 2
quote:
I also love how people presume that they're aware of all the market variables that the marketing guys at one of the biggest &^%(-ing corporations in America are somehow ignorant of.


You have a lot of good points that I was itching to say myself, but thinking that the marketing guys or analysts are infallible is interesting. They make mistakes and some of them are huge. Sometimes it is easier to evaluate the situation from close up and the heat of the action -consumer point of view- than from the high ground! Think about OS2!


By FITCamaro on 8/1/2007 10:00:04 AM , Rating: 2
Read the freakin article.

Microsoft is not dropping the Core system. Best Buy is just going to stop selling it.


It's not the 20GB PS3 situation...
By ajira99 on 8/1/2007 12:51:06 PM , Rating: 2
The Core system has plenty of functionality as a media extender and an entry level gaming system (with caveats). Personally, I don't see the need for 3 SKU's, since the Premium should be phased out for the Elite (or consolidated with it) and the Core price should drop to $199. Regardless, I wouldn't trust Best Buy to give a true market perspective.




By FITCamaro on 8/1/2007 2:52:14 PM , Rating: 2
No a better situation would be for the Premium to replace the Core (becoming the Core) and the Elite become the Premium. Even at the original $299 and $399 price points that would be a hell of a value.


Acceptable Business
By mdogs444 on 8/1/2007 9:35:11 AM , Rating: 3
In all honestly, I could see this coming, and it makes very good business sense.

The core system is great - if for only to have a product on the shelf that shows a lower price. However, sales of the core system were probably not high enough to outweigh taking up the shelf space, and replacing that space with additional Premium & Elite console boxes. With or without the upcomign price drops, the Premium system really is the sweet spot of the Xbox 360 - when you consider the three models and what you get for the price of each one.

Also, it may be true that retailers are not making as much off the core system itself. That I can believe, but on the other side of the spectrum, someone buying the core system now only means that they have to buy overpriced accessories later - memory card/hard drive & High Def cables would be most common and most overpriced.

So in conclusion, my assumption is that this is just to use the stock space for the more expensive units that reap higher profits for the retailer.




Not so
By fbrdphreak on 8/1/2007 9:43:21 AM , Rating: 2
Someone on Digg posted & said they work at BBY and that it is just a mistake in the system. I doubt they'd drop it.




Best Buy Discontinued
By RosscoB on 8/1/2007 1:56:26 PM , Rating: 2
I have seen things like this before and it is my opinion that maybe this is proof of the "falcon" model of the Xbox releasing quick. Usually in the past things like this mean that there is a newer version or "sku" releasing and the old version is what is no longer being ordered.




They still need the core system
By edge929 on 8/1/2007 2:03:26 PM , Rating: 2
I almost bought a core system JUST to play Gears of War but I'm glad I held out for the possibility of a windows port. Imagine my enthusiasm when it was officially announced. I no longer have a reason to buy a 360 now, not a big Halo fan.

If Microsoft wants to attain that $199 price point SOMEDAY, then they will need the Core system to carry the flag to that point in the quickest fashion.




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