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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 fibreoptik on 8/4/2008 2:17:52 PM , Rating: -1
It's still worth it to shell out the extra $200 to have a Blueray player and generally better console.

PS3 > Xbox 360

Don't argue about the games available for 360 because it has a full 1 year headstart on the PS3. :p

RE: Whatever
By DanoruX on 8/4/2008 2:21:52 PM , Rating: 5
Who cares about the games when PS3 has the movie of the year - Metal Gear Solid 4

RE: Whatever
By D3coy on 8/4/2008 3:48:10 PM , Rating: 4
Didn't it win an award for "Best Game within a Cut Scene"?

RE: Whatever
By FITCamaro on 8/4/2008 6:10:16 PM , Rating: 1
I'll admit the cutscenes are long. Great game though.

The 360 and PS3 are both equal when it comes to games. With the 360 having a slight advantage due to the far better online integration.

RE: Whatever
By larson0699 on 8/4/2008 8:14:41 PM , Rating: 3
Equal's pushing it.

Xbox exclusives, Live, Vista, and cost are why I've slowed down on upgrading the PC and not even considered buying a PS3.

I've not had the ring (yet) but will be getting my hands on a Jasper the minute it arrives.

RE: Whatever
By fibreoptik on 8/4/08, Rating: -1
RE: Whatever
By Elementalism on 8/4/2008 3:39:27 PM , Rating: 5
That 1 year head start excuse is getting old.

RE: Whatever
By StevoLincolnite on 8/4/2008 4:36:12 PM , Rating: 2
I agree, Take the Wii for Example, that was released well after the Xbox 360 and it has been selling like crazy in comparison, why hasn't the PS3?

Anyway, If anything I have bought more games for my Xbox than any previous console, I have: Halo 3, Call of Duty 4, Naruto: Rise of the Ninja, Dragon Ball Z: Burst Limit, Assassins Creed, Bioshock, Gears of War 2, GTA IV, Ninja Gaiden 2, Unreal Tournament 3, Mass Effect, and I'll be grabbing Spore and Fable 2 and the almighty Gears of War 2 on the day they are released.

Which really does show how many good quality games are there for the platform, I would love to know some attachment rate numbers for the various platforms, as that to me is the more important data, as the companies usually make money on the games not the consoles, and it generally shows the average quality of a systems game collection.

RE: Whatever
By fibreoptik on 8/4/2008 10:47:34 PM , Rating: 1

I have: Halo 3, Call of Duty 4, Naruto: Rise of the Ninja, Dragon Ball Z: Burst Limit, Assassins Creed, Bioshock, Gears of War 2, GTA IV, Ninja Gaiden 2, Unreal Tournament 3, Mass Effect, and I'll be grabbing Spore and Fable 2 and the almighty Gears of War 2 on the day they are released.

Holy crap buddy! Go out and get some sun or something! Wow...

RE: Whatever
By StevoLincolnite on 8/5/2008 3:42:48 AM , Rating: 2
It maybe my console, but I do not play it for any longer than 2-4 hours a day at the most, I mainly use it as a HTPC/MP3 Playback device for my entertainment system, besides who can play games when Work is in full swing. o.0

RE: Whatever
By fibreoptik on 8/4/08, Rating: -1
RE: Whatever
By Logica on 8/5/2008 5:50:00 AM , Rating: 2
People don't usually remember this or more likely prefer to ignore a very significant fact. Of the 3 main console markets in the world being Japan, USA and Europe. The 360 only has a lead over the PS3 in ONE of them, being the USA. MS might as well pull the 360 from Japan, since it really isn't selling, and the install base for the PS3 in Europe surpassed the 360 this year with the gap getting wider and wider by the month.

This is happening with the so called "limited" games library for the PS3. This situation will only look better for Sony as time goes on.

RE: Whatever
By drothgery on 8/5/2008 10:33:33 AM , Rating: 2
Yes, but the PS3's sales in Japan have been bad (as opposed to the 360's sales in Japan, which have been effectively nonexistent), so it hasn't built much of a lead there. And, well, Microsoft says that reports of the PS3's lead in Europe are greatly exaggerated (since there's no reliable source like MediaCreate for Japan or NPD for the US, hard numbers available to the general public are lacking).

RE: Whatever
By Enigmatic on 8/4/2008 4:42:40 PM , Rating: 2
Why would anyone care about a one year headstart? Do you have some affiliation to Sony? If one console has better games because of the year head start, then so be it. Whining about a PS3 not having as good selection games because it was released a year later is irrelevant, if it's not worth it to the consumer it's not worth it. Bottom line.

Note: I'm trying to bash the PS3 here, just to incredibly pathetic one-year start excuse which I thought was all but extinct (but apparently some people still cling on to it).

RE: Whatever
By Enigmatic on 8/4/2008 4:43:10 PM , Rating: 2
Edit: Sorry I meant "I'm not trying to bash the PS3 here"

RE: Whatever
By fibreoptik on 8/4/08, Rating: 0
RE: Whatever
By Bryf50 on 8/5/2008 1:09:29 AM , Rating: 2
I dont understand, why would a consumer care about who had the development lead? If you went to a store now to buy either one, why would you care what one came out first when making your descision?

RE: Whatever
By Chaser on 8/5/2008 8:53:24 AM , Rating: 2
This a 360 thread. And you're off topic. (I am a happy PS3 owner, and MGS4 is a masterpiece with "optional" cut scenes spin doctors.) But really you need to get over it.

But I do have one question since I don't own a 360 and don't keep up on them very much. Does the Arcade version not have a hard drive? If so I think it would be very useful for M$ to market 360s only with hard drives and phase out the rest? Just my thoughts.

RE: Whatever
By kelmon on 8/4/08, Rating: -1
RE: Whatever
By Soldier38 on 8/4/08, Rating: 0
RE: Whatever
By Hiawa23 on 8/4/2008 6:19:52 PM , Rating: 3
I own both the PS3 & 360, & to say the PS3 is a piece of art & the 360 isn't is ridiculous. I own 50 Xbox 360 games, & 5 PS3 games so most of my gaming is on the 360, & it excels at what it's supposed to do, play games. I don't buy consoles to watch movies, so as far as I am concerned the 360 is every bit of the piece of art as the PS3.

RE: Whatever
By larson0699 on 8/4/2008 8:34:48 PM , Rating: 2
Right on!

IMHO the PS3--while a true, respectable wonder as a system--is overdeveloped and inadvertently focused on those with money or fanboys that thought, "Hey, the PS2 was good..."

I'm no Microsoft fan myself, but I would be a liar to say they haven't hit the nail smack on the head with both of their game consoles. Most of my sentiment on that is opinion (ergonomics, titles) but there is validity in that the 360 is the most universal and practical game system yet, based on its impact(s) on your wallet and overall experience (especially online). The hardware is a little worrisome, but for better or worse I'm glad that it wasn't their defining factor.

To be fair, your opinions could just as easily favor PS3, but I'd like to hear why.

RE: Whatever
By fibreoptik on 8/4/2008 10:36:36 PM , Rating: 2
Again with the number of games.

It IS getting old, isn't it? :p

RE: Whatever
By kelmon on 8/5/2008 2:51:16 AM , Rating: 2
Art is, of course, in the eye of the beholder, but I think the PS3 looks like shoebox. How it can be called "next-gen" is beyond me. Both the 360 and PS3 are nothing more than more powerful versions of the previous systems. Aside from prettier games nothing substantial has changed and you're playing the same games as you had from the previous generation (just look at all the damned sequels). If this is our idea of what "next-gen" constitutes then I think it's time to stop using the phrase in such hallowed terms.

Frankly, the last "next-gen" system, as far as I'm concerned, was the original PlayStation, although I'd also give a nod to the Xbox for bringing online gaming into the living room.

RE: Whatever
By Enigmatic on 8/4/2008 7:04:08 PM , Rating: 2
If it's not about the games then what exactly do you look for in a console? Being a well-built for me is a bonus, not an absolute necessity if the games are good enough. And you don't like the PS3 because of it's looks? Sorry sir, I think you have your priorities out of order.

RE: Whatever
By kelmon on 8/5/2008 2:42:37 AM , Rating: 2
Well, as I noted in my earlier comment, until the 360 arrived the concept of a console failing to work was pretty unusual. If I buy a product (anything, electronic or otherwise) then I expect it to work until at least the end of its warranty period and the built-in self-destruct kicks in. High-quality games are not much use if the console itself won't work. While the 360 has improved its hardware quality over the years it is a personal protest against the crap that was released through not buying a 360 today. I will not reward Microsoft for what they did.

My main issue against the PS3 is its price, rapidly followed by its obsession with Bluray. The fact that it looks like a shoebox doesn't help matters much. The current PS2 looks better and I can only hope that they can scale down the PS3 in a similar fashion. The silly Spiderman font doesn't help matters. Yes, the appearance of the system is a factor to me but it isn't a major one.

RE: Whatever
By Arribajuan on 8/4/2008 8:28:41 PM , Rating: 2
sorry but I could not care less for blue ray.

a 199 xbox 360 is good news for me...

RE: Whatever
By fibreoptik on 8/4/2008 10:38:43 PM , Rating: 1
Good for you. Have fun enjoying your wannabe HD games and movies... ;)

RE: Whatever
By Bryf50 on 8/5/2008 1:10:52 AM , Rating: 3
People like you give ps3 owners a bad name.

RE: Whatever
By kelmon on 8/5/2008 7:00:30 AM , Rating: 2
Is it really necessary to point out that HD games != good games? Super Mario Brothers 3 still ranks as one of the greatest games ever and that didn't even involve 3D graphics, let alone HD graphics. Who cares whether the game is HD? If the game is fun then that's enough and everything else is unimportant.

The idiotic impression that cutting-edge graphics are necessary to make a good game drives me nuts. You deserve to be hit around the head with a wet fish repeatedly. Please form an orderly queue...

RE: Whatever
By Chaser on 8/5/2008 10:25:30 AM , Rating: 2
Your queue doesn't speak for everyone. You like 2D games? Great! Glad you are satisfied. But not everyone is pleased with Donkey Kong like graphics or hardware. They expect higher capabilities for the prices they pay for the "next gen" consoles they choose to spending their hard earned money on.

RE: Whatever
By kelmon on 8/5/2008 12:14:56 PM , Rating: 2
You misunderstand me. What I am saying is that good graphics don't make a good game. A good game can be improved with good graphics, but if the game isn't there to begin with then simply adding pretty graphics isn't going to make it any good. Given this fairly obvious point, simply suggesting that games are better on Console A because it is more powerful does not make sense.

To be honest I tend to consider people who spent money on "next gen" consoles and who think the games are going to be better on the new console as mad. It's even sadder if you need HD graphics to gain pleasure from gaming. No doubt the next generation of consoles will come along with super HD graphics or something and suddenly the games you think are great now won't do anymore. It's all rather pathetic.

In fairness, I do think the 2D platform game represents the pinnacle of gaming but mostly because the jump to 3D messed up the controls. This probably shows my age.

RE: Whatever
By fibreoptik on 8/6/08, Rating: 0
RE: Whatever
By superunknown98 on 8/5/2008 3:17:21 PM , Rating: 2
Well thats funny because last time I loaded GTA 4 up on my 360 it was running at 1366x768. I fail to see how that is not HD? If you somehow think that content not on a bluray disc is not HD, then you have much to learn. If you really want to get technical, all consoles untill now are way behind Pentuim 2's and voodoo3's. PC's have been "HD" for over 10 years now.

RE: Whatever
By fibreoptik on 8/6/08, Rating: 0
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