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Xbox 360 Halo 3 Special Edition Console will be priced at $399.99  (Source: Microsoft)

The Xbox 360 Premium will now feature an MSRP of $349.99  (Source: Microsoft)
Microsoft's Xbox 360 gets its first official price cut

When Sony cut the price on its 60GB PlayStation 3, the industry turned its spotlight on Microsoft for a response. Shortly after Sony's price cut, Wedbush Morgan Securities analyst Michael Pachter predicted that Microsoft would cut the price of the Xbox 360 Elite, Premium and Core to $399, $349 and $249 respectively.

Shortly after Pachter's comments, Microsoft Game Studios VP Shane Kim hinted that a price cut was indeed in store for the Xbox 360. Kim noted that Microsoft needed to better compete with Wii in the entry-level arena. "We need to compete effectively for that customer and part of that is getting to the mass market price point for the console. We definitely are working on that area," remarked Kim.

"The timing depends on a lot of different factors and we'll just keep evaluating those," added Microsoft's Robbie Bach.

The chatter surrounding the price cuts became deafening once leaked sales flyers for major retailers began hitting the web. Ads for Wal-Mart and Toy "R" Us showed the Xbox 360 Premium priced at $349. One day later, a Circuit City ad was leaked which mirrored the $349 price for the Premium and added $449 and $279 price tags for the Elite and Core respectively.

Today, Microsoft officially announced the price drops for the three existing Xbox 360 SKUs. Beginning August 8, the Elite, Premium and Core will carry an MSRP of $449.99, $349.99 and $279.99 respectively.

In addition, the previously announced Xbox 360 Halo 3 Special Edition Console will be priced at $399.99 when it hits store shelves in September. The Halo 3-themed Xbox 360 features an HDMI port like the more expensive Elite and an "authentic Spartan green-and-gold finish." Microsoft also notes that the console will come with a Play and Charge kit.

Those that rush out to buy the new cheaper Xbox 360s may wish to go ahead and register for Microsoft’s new online service site for the console – it’s likely that you may need it in the future. In fact, many may just simply want to wait until the new Falcon-based Xbox 360s hit store shelves despite the current temptation of lower prices.



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Still not satisfied
By phatboye on 8/7/2007 2:17:39 AM , Rating: 2
Maybe I'm a little too picky. I mean, now that the price is right now I'm a little worried about getting the RROD. Even though the warranty has been extended to 3 years, I'd rather MS release a hardware revision that fixed the problems that plagued that older models instead of an extended warranty so that I don't have to worry about the console breaking after the warranty expires.




RE: Still not satisfied
By bgm063 on 8/7/2007 2:41:04 AM , Rating: 2
I agree. That RROD should concern everybody until MS fixes the problem once and for all. I personally have newer and older consoles, and I definitely can say that I have the piece of mind of knowing that if it's 5 to 7 years down the road and I wanna play an older game for old time sake, I don't have to worry about some hardware failures. I know it's to be expected with older consoles, but to be on Xbox 360 no. 1,2, and 3... I'll pass on it.

Make no mistake about it. Price.. OK. Game library.. decent. Just sucks to know that your console could be UPS or Fedex bound to MS.

As far as the price goes, still makes me wonder how much folks can be swayed into buying the core when the Premium gives you so much more. even if wired controllers are no biggie to some, it's hard to say that about the HDD.


RE: Still not satisfied
By therealnickdanger on 8/7/2007 8:05:41 AM , Rating: 5
You could live in fear all your life, too. The Internet is definitely full of stories of doom and gloom. Plenty of FUD, little fact regarding the RROD. Some of you (no one in particular) need to just chill out and stop expecting perfection. I mean, it's not like spending 200K on a Bentley, we're talking $300 for a gaming console. Get beyond yourself and realize that you're spending next to nothing to have hours upon hours of fun as well as getting an unparallelled warranty in the minority chance you'll have a problem.

If the price is right and the games are there, just buy it. Get the extended warranty if it makes you feel better (3+2=5 years). Even if the worst possible statistics are true (30% RROD), that's still a 70% chance you'll never have an issue. Those are good odds. Besides, will your life be tragically altered if you are *forced* to send in your 360 to Microsoft *for free* to be fixed for *10 days*? Would that be too much to bear?

Even my Genesis had trouble playing games 5 years down the road. I took great care of it, but the contacts just got worn out eventually. When it came time to replace it, guess what: there was a sleeker, sexier model out (Genesis 3) for only $25 on clearance.


RE: Still not satisfied
By mdogs444 on 8/7/2007 8:32:06 AM , Rating: 2
quote:
I mean, it's not like spending 200K on a Bentley, we're talking $300 for a gaming console. Get beyond yourself and realize that you're spending next to nothing to have hours upon hours of fun as well as getting an unparallelled warranty in the minority chance you'll have a problem.


Although to a point I agree that to some people its not a huge amount of money. But none the less, $300 is on the cheap end - not even including a game. So to have the "hours of fun" as you state, youd really need to be spending upwards of almost $400 for a the system & a single game after tax - and that only being the core system, not including live. My argument is that depending on your financial situation, $400 can be considered an alot of money, especially for low income households with multiple kids.

Also, just an FYI - the 3 year extension ONLY covers the RROD, not the entire console. The entire console is still only 1 year.

But as far as the rest of your post I agree, if you want the system, just buy and quit worrying about all the internet FUD out there. Chances are if it breaks, it will be covered. It has much better graphics and game selection than Wii, at a fraction of the price of PS3.


RE: Still not satisfied
By therealnickdanger on 8/7/2007 9:04:16 AM , Rating: 1
Semantics? Of course you have to factor in the price of games, of course everyone's budget is different. Seriously, why nitpick and argue for the sake of?

We may as well drag this out. You could buy it from Newegg and not pay tax. If you like Worms, you could download it for $9 over Live Arcade using a free Silver account and get your "hours and hours" of fun for $288 + a the cheapest memory card you can find. You could buy one of the many used 360s off Craigslist that come with games and extra controllers for the same price as a new console alone. The 360 also comes with lots of preloaded Arcade and demo games. Backward compatibility. Media streaming.

We could discuss inflation as well as discuss the priorities of a low income household wasting money on a console they can't afford.

</rant>


RE: Still not satisfied
By mdogs444 on 8/7/2007 11:58:39 AM , Rating: 1
quote:
Get beyond yourself and realize that you're spending next to nothing


Its not nitpicking. Im telling you not to act like a conceded asshole because you dont think $300 or $400 is alot of money. That puts alot of people down who cannot afford to have those "hours of fun".


RE: Still not satisfied
By therealnickdanger on 8/7/2007 12:55:12 PM , Rating: 1
Tough.

When you place the cost of console gaming ($300+) into perspective (buying 20 DVDs, going to Six Flags 10 times, eating out at McDonalds every day for a month, etc.), what you get back from it is exceptional. Yeah, $300 as a lump sum sounds like a lot to anyone, even this conceded a-hole, but it's really not if you compare it to other purchases you make that you could suspend for a while if you have some discipline.

I can't afford a Bentley (not that I want one anyway), but I'm man enough to not be "put down" by my inability to afford it. Only losers get "put down" by stuff they can't afford - winners do something about it.


RE: Still not satisfied
By mdogs444 on 8/7/2007 1:43:18 PM , Rating: 2
quote:
Yeah, $300 as a lump sum sounds like a lot to anyone, even this conceded a-hole, but it's really not if you compare it to other purchases you make that you could suspend for a while if you have some discipline.


You dont think a gaming console is one of the items you should suspend purchasing in order to have discipline with your money? If you have to save for months and months to buy one at $300-$400, then its not a priority and should not be something that you tell someone else to "get beyond themselves" about.

To me and you, no its not alot of money. But my financial situation is very good, and have done well for myself. But that doesn't give me the right to think im better than anyone else or that my money is worth more than theirs. Everyone is trying to get by, and if they cannot afford a console, then dont put them down about it.


RE: Still not satisfied
By phatboye on 8/7/2007 1:59:02 PM , Rating: 2
That is such a dumb analogy. Sure a lot of people can afford to buy a console if they discipline themselves more, but that still doesn't change the fact that the console is expensive. With a little discipline I could afford that Bentley in 10 or so years if I gave up a ton of other unnecessary purchases, does that change the fact that the Bentley is expensive? No it doesn’t.

Also can someone please tell me why I cannot see the worthreading/not worth reading links anymore at the bottom of peoples post? I have no idea why anyone would vote this guy up to a 5.


RE: Still not satisfied
By mdogs444 on 8/7/2007 2:03:37 PM , Rating: 2
If you commented on an article, you can no longer rate any threads within the article.


RE: Still not satisfied
By therealnickdanger on 8/7/2007 3:24:59 PM , Rating: 3
Yeah, that's a bummer that they took that rating system away. I understand why they did, but still...

Well, we're gonna have to have one of those "agree to disagree" moments. I don't like it, but clearly you're not seeing where I'm coming from on this topic. I'll give it one last go though:

"Get beyond yourself". You are taking this in a much more derogatory tone than I wrote it. Perhaps it holds different meaning to me than you. I use it often whenever I try to put things in perspective. It's the idea that one can step back from his life and see the bigger picture. Nothing more.

A lot of people that feel financially weighed down, at least in this country, are so because they let their spending get away from them on things that nickel+dime them until they have nothing left. If you can step back, look at everything you spend money on, eliminate some little things that you don't really need, and focus on a goal, few things are out of reach (except for the proverbial Bentley).

Yes, there are some people that do scrape by and live paycheck to paycheck, always in fear of losing it all because they simply don't make enough money. Those people shouldn't be purchasing luxury items like 360s, PS3s, cable TV, broadband, and more importantly shouldn't FEEL BAD about it. Sorrow just robs them of drive. Whatever time and energy they do have left over should be applied to improving their life. People can do whatever they want, it's a free country, but I think it's pretty stupid to pine over material things you can't afford. In those situations, and to be blunt, you can either change your habits or continue to waste your time.

In closing, this has gotten way, WAY too deep for an article on price drops. Stick a fork in me, I'm done with this thread.

P.S. My bad on the warranty thing, I forgot that BB changed their policy and moved away from the "extended" warranty. Are you still able to renew them after they expire? I should know, I work there occassionally... :P

*re-insert fork*


RE: Still not satisfied
By phatboye on 8/7/2007 1:28:49 PM , Rating: 2
While the internet is definitely “full of doom and gloom” stories, it surely isn’t lacking in fanboys either. You fanboys are all the same stick up for your favorite company no matter what crap they throw at you. You really think that a 70% chance of having a console that works the way it should is good odds? Not only is that not good, its not even to the level of acceptable. It’s just down right poor and shows MS’s lack of quality control. And that 70% doesn’t even include console that are prone to scratch those +$50 games.

Lets put this into perspective, would you buy a TV were you knew it only had a 70% chance of working within the first year? Would you find it acceptable if your electricity in your home had a 70% chance of working in the first year? Would you buy a CPU or a cell phone that had a 70% chance of working? Even if all these things were backed by a 3 year warranty? Well maybe you would but I certainly wouldn’t considering that there are alternatives out in the market with better odds. So why should I hold that +$349 console to any less of a standard then what I would to any other product out there on the market.

quote:
Besides, will your life be tragically altered if you are *forced* to send in your 360 to Microsoft *for free* to be fixed for *10 days*? Would that be too much to bear?
You are assuming that it only takes 10 days (that MS’s claim). From what I’ve seen from various friends is that it’s more like 2-3 weeks. Then you have to go through the hassle of dealing with ms over the phone (I haven’t looked at the new website put up for the RROD so I can’t comment on that). And then what’s to say that the refurbished 360 that they send you back is without problems.

I’m sorry for expecting more out of a +$349 purchase that you do. Do I have high standards? No I just think you have low standards if you think it is quite alright to buy a product with a known 30% chance that it will fail within the first year.


RE: Still not satisfied
By mdogs444 on 8/7/2007 1:38:22 PM , Rating: 3
quote:
You are assuming that it only takes 10 days (that MS’s claim). From what I’ve seen from various friends is that it’s more like 2-3 weeks.


10 BUSINESS DAYS is 2 weeks my friend.


RE: Still not satisfied
By phatboye on 8/7/2007 1:59:53 PM , Rating: 2
ok, you got me there.


RE: Still not satisfied
By therealnickdanger on 8/7/2007 2:49:09 PM , Rating: 2
I can tell you first hand that I was bummed when my 360 died on me (not even RROD-related), but after 10 minutes on the phone with Microsoft - really friendly and thorough - they over-nighted a shipping box to me, I sent out my 360, and I got it back fixed in 10 days (actual, not business). They also gave me a free extension on my Live account. This was in April or something, well before the 3-year RROD warranty announcement.

So you can see why I am a "fanboy", because I enjoyed my 360 for well over a year without issue and when it broke, they fixed it free and fast while also giving me a bonus gift - all while I was already PAST the standard 1-year warranty. I do have high standards, and Microsoft not only met them, but exceeded them, even if it was after the fact. So I want to recommend and will recommend the 360, even with a "30% failure rate". Isn't that how it's supposed to work?


RE: Still not satisfied
By phatboye on 8/7/2007 5:06:06 PM , Rating: 2
Well I'm glad you had a great experience and that you got some free stuff out of the deal but I still think it's better to wait a few more months (hell I've waited this long) for the new revision of the 360 to be released. Hopefully it will be a little better built.


RE: Still not satisfied
By Evelation on 8/7/2007 1:39:56 PM , Rating: 2
quote:
If the price is right and the games are there, just buy it. Get the extended warranty if it makes you feel better (3+2=5 years). Even if the worst possible statistics are true (30% RROD), that's still a 70% chance you'll never have an issue. Those are good odds.


70% of never having an issue is considered good odds? If everybody thinks like that, pretty soon we will have cars that die 30% of the time, TVs that have 30% less life, printer inks that run dry 30% quicker ... and paying the same price. If consumers don't demand quality, companies won't provide quality. $400 is a lot of money for most people, unless of course, to those who think spending $200K on a Bentley is a good deal.

BTW, the three year warranty only covers RROD. But the 3+2=5 years statement is too ignorant for me to even bother with it.


RE: Still not satisfied
By therealnickdanger on 8/7/2007 2:02:28 PM , Rating: 1
Yeah, we've been over this before: 3 years is RROD only, I know, I never said anything to the contrary. And yes, you can add 2 years on to that via Best Buy's extended warranty. Not sure why that's hard to understand. Does 3+2 not equal 5? I admit I did that math off the top of my head and without a calculator, so forgive me if it is incorrect.

Hey, I'd love 100% guarantees on everything in life too, but it's not gonna happen. I'm not suggesting you adopt a new philosophy based on a rule of 70%, it's just that assuming it were truly that bad at one point, the problem has been identified, a fix is in place, a warranty is out there to more than protect customers' investment, and there's a slew of great games out now with more on the way. The juice is worth the squeeze. :P


RE: Still not satisfied
By mdogs444 on 8/7/2007 2:07:49 PM , Rating: 2
quote:
And yes, you can add 2 years on to that via Best Buy's extended warranty. Not sure why that's hard to understand. Does 3+2 not equal 5


no there is no 3+2.

Best buy will offer a 2 or 3 year warranty. It starts immediately, not after the MS warranty ends. And if it did start when the MS one ended, it would still only be for you 3 years max. The actual warranty on the 360 is 1 year, not 3 years.


RE: Still not satisfied
By hrah20 on 8/7/2007 3:57:29 PM , Rating: 2
I agree with you that ms should fix the problem, but at the same time I'm not going to wait, I bought a second xbox360 but this time is an elite and if it breaks (that Im shure it will)so be it, in the meantime I will be playing, I don't think that a 65nm chip is going to prevent you from having a RROD, can't live in fear all the time my friend, I already replaced the premium once, and I'm shure its going to happen to my elite too.


"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton














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