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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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RE: This Says It All
By mdogs444 on 8/7/2007 8:13:41 AM , Rating: 2
quote:
<sarcasm> Anyone really get excited over a whopping 6 percent "price cut" after nearly 2 years later? </end sarcasm>


A price cut is a price cut - regardless of whether we deem the amount was appropriate.

Considering the sales are higher than its main competitor (PS3), and the price is already hundreds lower than that of PS3, as well as they are losing money because of the $1+ Billion warranty program, we should just be happy with the fact that we get one at all.

Even with the fact that the RROD issue is widely known, the console has been on the market for 2 years, and has seen steady sales for the past year. The Wii has put up strong forceful numbers since its release, and the PS3 was only a major hurdle during its inital release and has since calmed down to the point of very limited sales.

The price drop is meant as a marketing tool to attract newer customers who else would have bought a Wii because of its low price point. It is also meant as a scaling tool to still be hundreds less than the PS3 with its recent (temporary) drop. Consider the fact that the new 65nm process has not even been put into these production systems yet, so its not like they are dropping the price to reflect savings on their manufacturing processes.

I just dont see why people make comments that are not of productive nature. All it leads to is fanyboys and trolls coming out of the woodwork to make matters worse.


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