Print 51 comment(s) - last by sxr7171.. on Nov 29 at 7:55 PM

Microsoft talks about reducing its costs, not ours

With the Xbox 360 having been on the market for over a year now, the rumors of an impending price cut have been constantly batted around. Microsoft even stated back in 2005 before the console first launched to expect yearly price cuts on the Xbox 360.

As certain factors started playing out in Microsoft's favor including the delay of the PlayStation 3 from spring 2006 to fall 2006 ( March 2007 for Europe) and the higher price tags of $499 and $599 respectively for the 20GB and 60GB PS3s, Microsoft backed off on talks of price cuts. When asked about an Xbox 360 price cut in early October, Peter Moore simply said "certainly not." A Microsoft spokesman followed up later in October by stating that there are "no plans to adjust the price of the Xbox 360 this year."

In a recent interview with A+E Interactive, Microsoft’s Robbie Bach is asked about the inevitable release of the next generation “Xbox 720.” Bach’s response was that the engineers are always working on the future products, but that cost reducing the Xbox 360 “seems to be the first order of business.” Lower overall component costs will likely come into play as the hardware used in the Xbox 360 ages along with a planned die shrink from 90nm currently used on the Xenon processor to a 65nm SOI process in 2007.

But while Microsoft is looking to reduce costs to improve the profitability of its Entertainment and Devices Division, it’s still unclear as to when customers will actually see any dramatic price cuts directly from Microsoft. Some vendors are taking matters into their own hands by offering special promotions or rebates with Xbox 360 systems, but Microsoft will likely let the PS3 dance around in the ring for a few rounds before it starts unloading with price cuts.

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360 NEEDS..
By Combatcolin on 11/28/2006 6:20:35 AM , Rating: 1
Bigger HD as standard.
Option of usable Ext USB 2 HD
HD-DVD as standard
HDMI enabled cable.

Price cut.

Im in then!

RE: 360 NEEDS..
By XtremeM3 on 11/28/2006 6:49:14 AM , Rating: 3
All of that and getting the price cut too is asking a little much huh? :)

Not that those aren't all things I think would be great in the 360, but all but the Ext USB drive usage cost $. Hard to cut prices when adding more.

Although MS could afford to drop the price to continue taking a loss on the 360, or just minimize profits, and they could do it just to F!@# with Sony. But imagine the price difference between a $300 Premium 360 vs a $600 PS3. 2x the price is a pretty big deal. Yeah yeah, i know how much more the PS3 comes with, but I'm talking about - "Hmmm a game console for 300 bucks or a game console for 600 bucks." Imagine MS selling a $500 xbox with a 100GB HDD, HD-DVD player built in, and an HDMI cable. I think they could do that and still make money on the beast.

I just wonder how many parents are now telling their kids that want a PS3 for Christmas, "What about that XBox 360 you wanted...I'll get you that instead." Just to save a couple hundred bucks. Imagine that if it was 1/2 the price.

Just my .02


"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive

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