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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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RE: Whatever
By kelmon on 8/4/2008 5:18:07 PM , Rating: -1
My personal position is that I will never give Microsoft money for such a badly designed console system that it's taken them years to get right. I honestly don't care what the games are like (odd, I know). Microsoft rushed development of this system to get out first and the customers paid the price (literally) with unreliable hardware and crappy repair times. I have no intention of rewarding Microsoft for this practice despite the improvements that have been made and the very nice price. Unfortunately, it seems to have worked so well for them that they'll no doubt do it again and I can only hope that gamers are more sensible the next time around and give Microsoft the finger until they can demonstrate that the next Xbox is a good and reliable system. Honestly, I'd never really even heard of games consoles failing until the 360 arrived.

As for the PS3, that can take a hike as well due to the price and, frankly, I don't like its physical form. That said, at least Sony produced a good piece of hardware that doesn't seem to have been rushed, although due to this they continue to play catch-up. In this respect I commend them but have to note that they spent so much time and money on the Bluray feature and I have no interest in that so the value in the console to me is greatly diminished. I am not paying an inflated price for a feature that I don't care about.

Both the 360 and PS3 have been disappointing for various reasons. But for me the biggest disappointment in all this has been the "next-gen" games, which are basically the same as the "last-gen" games only now they're more expensive. Arguing that one level of mediocrity is better than another seems rather pointless.


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.


"So if you want to save the planet, feel free to drive your Hummer. Just avoid the drive thru line at McDonalds." -- Michael Asher

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