Print 25 comment(s) - last by silversound.. on Sep 2 at 12:07 PM

Microsoft announces Xbox 360 price cuts in Japan

According to a Reuters article, Microsoft Corp will slash the price of its Xbox 360 game console in Japan by about 30 percent. This will make the Xbox 360 cheaper than the Nintendo Wii and Sony Corp's PlayStation 3.

Microsoft will lower the price of the Xbox 360 Arcade model by 8,000 yen ($73.92) to 19,800 yen. The Arcade model does not come equipped with a hard drive and is the least expensive of the three Xbox 360 models.

The new price will make that model cheaper than the Nintendo Wii which sells for about 25,000 yen, and the PlayStation 3, which sells for 39,800 yen. Microsoft will also reduce the price of two higher models with hard drives by 5,000-8,000 yen, according to the Reuters article. The price cut will take effect on September 11.

The Xbox 360 has struggled in the Japanese market, with 684,695 units sold so far in Japan against the Wii's 6.67 million and PS3's 2.32 million, according to game magazine publisher Enterbrain.

Microsoft’s fortunes have begun to change recently with the Xbox 360 outselling the PS3 in Japan in weekly sales for the week ended August 10. The boost in sales was attributed to the Xbox 360 exclusive "Tales of Vesperia" role-playing game from Namco Bandai

Microsoft recently cut the price of its best-selling Xbox 360 Pro model game console with a 20 gigabyte hard drive to $299 from $349 in the United States. 

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RE: Thats already the case in the UK
By daftrok on 9/1/2008 1:29:55 PM , Rating: 0
I hope that these past 3 years has taught Microsoft that one SKU is a good SKU. Sony had that problem too but they are finally cutting down to one or two SKUs. At this point this is what they should do:

Take the Xbox 360 Pro, throw in an HDMI cable, throw in a rechargeable battery and wire, give it 120 GB HDD, get rid of Arcade and Elite, and sell it for $199. Watch the sales just pile in. And cut down the prices of the accessories because alot of them are ridiculous.

RE: Thats already the case in the UK
By StevoLincolnite on 9/1/2008 2:07:35 PM , Rating: 2
Problem with that is... Money.
The Arcade costs less for Microsoft to Produce, so they loose "less" on the console. (If not profit from it)
The Arcade also out-sells all the other Xbox 360 models because of the price, and some people do not require a Hard Drive at all.

Besides, HDMI cables don't cost that much anyway, and here the play and Charge Kit is only $14 at Kmart which isn't to bad, but if Microsoft sold a Million consoles, that's "14 million dollars" that is in our pockets and not there's, it's smart business sense really.

RE: Thats already the case in the UK
By daftrok on 9/1/08, Rating: 0
RE: Thats already the case in the UK
By daftrok on 9/1/08, Rating: 0
By neothe0ne on 9/1/2008 4:38:05 PM , Rating: 3
VGChartz is bullshit. They modify their statistics AFTER other people's records come out (NPD) WITHOUT notifying anyone or stating anywhere that they changed their numbers. In the past, they've also released sales figures for games which haven't been released due to being delayed...

RE: Thats already the case in the UK
By StevoLincolnite on 9/1/2008 2:58:29 PM , Rating: 2
Microsoft is still a company, if they can save a few cents by cutting a corner and ultimately achieve it's main goal of: Making more money, don't you think they will?

By theapparition on 9/2/2008 8:07:52 AM , Rating: 2
The flaw in your logic is that you're forgetting scale.

Put quite simply, would you rather sell 10 units at $1 profit, or 100 units at $.25 profit? In the end, you make more by selling with less profit, if your new price point can generate sales, that is.

Another factor, is game and online sales. With more consoles on the street, that means more game sales. Sales of the games is where the real profit is.

RE: Thats already the case in the UK
By Etsp on 9/1/2008 5:52:03 PM , Rating: 3
The problem with that argument is... Money. The difference between the Arcade and the other Xbox 360 models is the hard drive, or rather, the lack of one. (Simplified... I know there are other minor differences in the higher end models...)

The hard drive SHOULD be the single part of the system that makes the most profit for Microsoft, as it is ridiculously overpriced. If they aren't making a profit from that part, then they really need to rethink their manufacturing for it, which is unlikely.

So, the arcade does NOT cause Microsoft to make more profit, it in fact does the opposite. They are simply trying to lower the cost of entry for the consumer because of what DOES get them profit: Games sold, which is a function of Xboxes sold.

"Folks that want porn can buy an Android phone." -- Steve Jobs
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