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Xbox 360 Arcade Price Drop  (Source: VGChartz)
Microsoft price drop will make Xbox 360 Arcade cheapest next-gen console

The console wars are raging now as the PS3, Wii, and Xbox 360 fight for top spot in market share. One of the reasons the Nintendo Wii is so popular is its price tag. The Wii is currently the lowest cost next generation console available.

According to VGChartz, the Wii may not be the lowest priced console for long. According to an image acquired by VGChartz, the Xbox 360 Arcade console will get a price cut to $199.99 on September 7, 2008. The price cut would come only a few months after the 20GB Xbox 360 received a price cut to $299.99 and the 60GB Xbox 360 was announced.

Microsoft has said in the past that it knows the sweet spot for console sales is $199.99. VGChartz reports that when Microsoft dropped the price of the Xbox 360 in Europe to 199 Euro in February of this year, the console sold at significantly higher volumes than before the price cut was put into effect. VGChartz reports that it’s tracking information shows that the Xbox 360 sold 100% more units in the 6 months after the price cut than before.

The low price leaves many wondering if Microsoft can actually be profitable at a $199.99 price point. At launch the Xbox 360 cost about $525 to build and by November of 2006 the price according to iSuppli to build the Xbox 360 was about 40% less.

DailyTech reported in September 2007 that the Falcon CPU revision in the Xbox 360 made the CPU about 50% less to build. In May, DailyTech reported that the Jasper update would be on the market in August, which would coincide with a significant price drop for the Xbox 360 in early September. The cost to build the Xbox 360 Arcade could be reasonably expected to drop again with the Jasper update.

In short, Microsoft could well be profitable at the new $199.99 price point for the Xbox 360 Arcade. However, when first launched Microsoft was more than willing to take a loss on the console to get them into homes. Microsoft could be doing the same thing with the Arcade and selling it as a loss leader to increase its market share.

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By FITCamaro on 8/4/2008 1:51:24 PM , Rating: 2
Now drop the 20GB model to $249 and you'll be golden.

RE: Wow
By adam92682 on 8/4/2008 1:58:27 PM , Rating: 2
I'll be first in line when the price drops to $199

RE: Wow
By jabber on 8/4/2008 2:12:02 PM , Rating: 4
Now give us a HDD case that we can fit any 2.5" HDD of our choosing in so we can make more use of this machine.

I am not paying over $200 for a 120Gb drive.

Big mistake messing around with the HDD's. Some not having one, some have but too small small, some have but slightly larger. Now we have another small size.

RE: Wow
By Arribajuan on 8/4/2008 8:36:58 PM , Rating: 2
I agree,

I think they are really dropping the ball on that one.

They should sell reasonably priced drives and lower live membership costs and really push for online content.

I think it will create more attachment to the console and bring more revenue to everyone in the 360 ecosystem.

RE: Wow
By Alexvrb on 8/5/2008 12:26:57 AM , Rating: 3
The 360 has the most online content of the three, hands down. They've been pushing for online content from day one. Heck, with the latest XNA developments, we're even going to see a lot of homebrew content on XBLA.

As for the price of the drives, you'll get no argument there. They should be a little more reasonable. But by the same token, I really like the portability. It's like having a massive memory card. So it's really a give and take.

RE: Wow
By Locutus465 on 8/5/2008 12:42:12 AM , Rating: 2
Personally I think they should just open up USB discs and write the x-box os to support NTFS/exFAT... Problem solved...

clarification, yes the console technically supports USB discs now but it's limited... No video store downloads allowed for instance... ugh :P

RE: Wow
By daftrok on 8/4/08, Rating: -1
RE: Wow
By waltzendless on 8/4/2008 5:01:37 PM , Rating: 2
Allow me to keep the list going for you...

8) Transforms into a Autobot
9) Transforms into Jessica Alba
10) Brews beer
11) Grills steak
12) $249 MIR
13) Pumps out infinite gasoline

RE: Wow
By PrinceGaz on 8/4/2008 6:43:16 PM , Rating: 2
I'd 100% agree with you provided 9) was changed into

9) Transforms into Jessica Alba or David Beckham depending on the user's preference

Different people like different things :)

RE: Wow
By larson0699 on 8/4/2008 8:37:27 PM , Rating: 2
I'd just like to quote my good friend Luda:

Six David Beckhams on a trunk full'a Kickers.


RE: Wow
By Arribajuan on 8/4/2008 8:39:02 PM , Rating: 2
now that would bring fifa game into a whole new dimension ... :P

RE: Wow
By fibreoptik on 8/4/2008 10:41:00 PM , Rating: 3
You mean... "different STROKES for different folks"? >.<

RE: Wow
By fibreoptik on 8/4/2008 10:43:49 PM , Rating: 4

by waltzendless on August 4, 2008 at 5:01 PM

9) Transforms into Jessica Alba

Hopefully not the preggers version or the version with the kid and saggy, afterbirth tits.

RE: Wow
By larson0699 on 8/5/2008 3:20:56 AM , Rating: 1
Of course not.

I prefer the Idle Hands version myself.

RE: Wow
By silversound on 8/4/2008 3:07:06 PM , Rating: 2
In line? I dont think there will be a line just to buy an arcade

Xbox has plenty in stock and its been this price on sale prices in many places..
Elite already cut the price, no need to wait till September. has 120GB Elite already going for $399 plus two free games..

Microsoft really trying to get as many customers as possible to counter Apple's attack... (Sony and nitendo in game console section)

RE: Wow
By therealnickdanger on 8/4/2008 3:37:19 PM , Rating: 3
You mean drop the Arcade altogether and make the 60GB model $199. Then lower the price of the HDD by itself to $50. Then offer the Elite with a 120GB HDD, built-in Wi-Fi, and Blu-Ray and sell it for $399.

Then you're really golden. :P

RE: Wow
By larson0699 on 8/4/2008 8:39:38 PM , Rating: 2
You mean we actually have to price this thing like a game console?


RE: Wow
By mcturkey on 8/4/2008 5:14:07 PM , Rating: 2
The 20GB model is gone. They pulled a Sony when they cut the price to $299 to clear out inventory and discontinued it, quietly, replacing it with the 60GB at the old $349 price. This isn't entirely a bad thing, mind you, but definitely not what a lot of people expected. If this supposed price cut to $199 for the arcade (and hopefully $299 for the 60GB) doesn't happen, Microsoft is going to have a disappointing holiday selling season without a blowout title like Halo 3 to really move the metal.

RE: Wow
By sweetsauce on 8/4/2008 5:43:59 PM , Rating: 2
If only a game like Gears of War 2 were coming out...wait a minute!!!

RE: Wow
By larson0699 on 8/4/2008 8:41:02 PM , Rating: 2
To hell with GoW2...

Duke Nukem Forever baby!

RE: Wow
By mcturkey on 8/4/2008 8:56:34 PM , Rating: 2
Gears of War 2 will not move systems in the way that Halo 3 did. Yes, it will be big, but it will not sell a million+ systems by itself.

RE: Wow
By therealnickdanger on 8/5/2008 9:05:27 AM , Rating: 2
At this point of saturation (~20 million units), it's really hard to sell systems based purely on one title anyway. GOW2 will move systems, Fable2 will move systems, Madden will move systems... even Netflix will move systems. When Halo 3 came out, the Halo 2 people were still sitting on the sidelines. The same could be said about MGS4. At those moments in time, both titles prompted the remaining diehards to enter the next generation.

RE: Wow
By bill3 on 8/4/2008 6:23:52 PM , Rating: 2
The 20GB model is EOL/clearance.

However, you could probably make a do it yourself 20Gb unit for about that. Since 60GB HDD's are now the standard and the 20GB standalone HDD for $99 will be eliminated also replaced at that price point by the 60, you should be able to find 20GB's on ebay for around $50 (in fact I think you already can).

I'm probably gpoing to get the 60GB HDD to install games, and in that case I'll be dumping my 20GB on ebay. I'm sure lots will have the same idea.

You'd still need a hi def cable in this scenario since Arcade doesnt include one, but I'm sure you could pick up a cheap HDMI cable.

"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates
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