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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: 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.

"This is from the It's a science website." -- Rush Limbaugh

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