DailyTech - Microsoft Cuts Xbox 360 Price in Europe, Confirms Elite Console

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Gadgets Microsoft Cuts Xbox 360 Price in Europe, Confirms Elite Console
Marcus Yam (Blog) - August 20, 2007 12:25 PM

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22 comment(s) - last by spluurfg.. on Aug 22 at 2:50 AM

Xbox 360 to be fashionably black in Europe on August 24 (Source: Microsoft)

Xbox 360 drops 30 Pounds in the UK

Microsoft today announced an estimated retail price drop for its Xbox 360 family of consoles in the UK, as well as confirming the availability of the Xbox 360 Elite. On August 24, new estimated retail pricing will come into effect for Xbox 360 in the UK.

The Xbox 360 Premium will be reduced by £30 ($60) to carry an estimated retail price of £249.99 ($497). The entry-level Xbox 360 Core console will also be reduced by £20 ($40) to carry an estimated retail price of £179.99 ($358).

Xbox 360 Elite will carry an estimated retail price of £299.99 ($596) when it launches in the UK this Friday.

"We're pleased to be able to offer Xbox 360 at a new, lower estimated retail price," said Stephen McGill, Head of Gaming & Entertainment, Xbox UK. "We pioneered the successful concept of multiple products for multiple categories of consumer. First-timers will love the Xbox 360 Core system, which offers an affordable entry into high-definition gaming. The Xbox 360 Elite, with its large hard drive and wireless controller, will appeal to casual and experienced gamers and families. The Xbox 360 opens up whole new avenues of entertainment for those who seek the ultimate gaming and entertainment experience.”

"Whether it's our lead in console sales, record-setting games and accessory attach rates or our leading online service, evidence is everywhere that Xbox is thriving," continued McGill. "When you combine that momentum with these great-value offerings with our unbeatable Christmas game line-up, it's clear that Xbox 360 is uniquely placed to take the UK by storm this Christmas."

Earlier this month, Microsoft cut prices by up to $50 for the U.S. market. Canadian gamers also saw lower prices with a drop of up to $100 CAD. Along with the price drop also came HDMI ports on the latest batch of Premium consoles, which now share the same motherboard as the Xbox 360 Elite.

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UK pre-tax markups

By psychobriggsy on 8/20/2007 12:53:21 PM , Rating: 2

quote:
"the Elite, Premium and Core will carry an MSRP of $449.99, $349.99 and $279.99 respectively."

quote:
"The Xbox 360 Premium will be reduced by £30 ($60) to carry an estimated retail price of £249.99 ($497). The entry-level Xbox 360 Core console will also be reduced by £20 ($40) to carry an estimated retail price of £179.99 ($358).

Xbox 360 Elite will carry an estimated retail price of £299.99 ($596) when it launches in the UK this Friday."

$279.99 US => $358 ($305 excl. VAT) UK so a $25 markup (9% - not too bad, must be clearing stock)
$349.99 US => $497 ($423 excl. VAT) UK so a $73 markup (21% - whoa!)
$449.99 US => $596 ($508 excl. VAT) UK so a $58 markup (13%, - reasonable)

Better to buy the Elite in the UK now than the Premium, you'll get ripped off less. The Premium should be £229.99 to be honest.

Compared to the markups (percentage wise) for the PS3 and Wii the above prices are quite good. Damn Rip-Off Britain :(

RE: UK pre-tax markups

By omnicronx on 8/20/2007 1:07:29 PM , Rating: 2

And i thought you guys got screwed for having big yellow teeth..jk ;)

Does the increased price have to due with European union import taxes? or is it just a plain markup to cover the 'extra' production/shipping costs (pal implementation for old tv's, shipping to europe etc..)

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RE: UK pre-tax markups

By Zurtex on 8/20/2007 1:22:12 PM , Rating: 3

-_-;

Bad jokes aside, we get an increased price because technology companies like screwing over Europe, particularly the U.K. Why? Because every other technology company does, so there's no competition there.

The extra tax on consoles in the U.K (after VAT) amounts to about 1.5% for the first year and quickly drops to 0% after 3 years. It amounts to 0% for the PS3 because they can claim to be a PC as you can run code on it openly. PAL conversion is rather easy for something like the 360, given it natively runs in 720p, so it has to scale down for NTSC as well.

But typically companies put anything from a 5 - 30% mark-up on things like this.

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RE: UK pre-tax markups

By omnicronx on 8/20/2007 2:48:50 PM , Rating: 2

quote:
PAL conversion is rather easy for something like the 360, given it natively runs in 720p, so it has to scale down for NTSC as well.

It only runs at 720p natively in HD mode, if you are using the analogue connections, it would have to output 576i pal, so the hardware configuration would have to be a bit different from the NTSC models (which run at 480i).

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RE: UK pre-tax markups

By omnicronx on 8/20/2007 3:05:21 PM , Rating: 2

I would also like to point out, the system could require output of 50fps in HD mode, although the resolutions would remain the same(unlike pal vs ntsc), pal region tv's may still require 25fps (50hz) TV's. I am not sure what digital televisions are capable of in europe, but i know there is still a difference in the PAL area spec to the NTSC are spec.(I am refering to the area of where the systems are used, NTSC and PAL formats are really non existant in HD formats, as they both use the same base system, but the framerates are still different). So although your TV may play 720p@30/60hz, some cheaper tv's may require 720p @ 25/50hz.

I could easily see where the price difference came from if this is the case, as there would have to be a different manufacturing process, and ms/sony/etc are putting the extra costs on the consumers instead of themselves.

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RE: UK pre-tax markups

By spluurfg on 8/22/2007 2:50:45 AM , Rating: 2

For various items, some of it is taxes (there's a 17.5% sales tax in the UK), some of it should reflect the higher cost of distribution networks and labor, and the smaller markets in general.

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RE: UK pre-tax markups

By WxGuy192 on 8/20/2007 1:28:57 PM , Rating: 2

Would it be illegal to set up an online trade of sorts? I mean, I could buy 10 XBox 360s in the USA, and sell them to UKers for some price that's cheaper than retail in the UK yet more expensive than retail in the USA. That way, I make money (a commission of sorts), and you'd save money. Sounds like a win-win situation, which makes me think it's illegal somehow ;)

(honest question)

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RE: UK pre-tax markups

By MrDiSante on 8/20/2007 1:41:08 PM , Rating: 2

Better ask Sony and Lik-Sang. http://www.dailytech.com/article.aspx?newsid=4679

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RE: UK pre-tax markups

By Nightskyre on 8/20/2007 2:05:36 PM , Rating: 2

You'd also run into standards issues. The UK uses the PAL standard, whereas the US uses NTSC. If someone in the UK bought a US X-Box 360, they'd have to buy US X-Box 360 games; the cost of which would quickly absorb the savings by buying a US console.

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RE: UK pre-tax markups

By sviola on 8/20/2007 2:45:47 PM , Rating: 2

That's not a big issue...Here in Brazil (where I live) we use PAL-M as our TV standard and we have been modding videogames since Sega Genesis to have it playing on our standard. :)

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RE: UK pre-tax markups

By omnicronx on 8/20/2007 3:17:44 PM , Rating: 2

The pal/ntsc standard is nonexistant in HD formats. The framerates for the two regions may be different, but the color system/resolutions etc, remain the same.

So it depends on what TV you have, my HDTV is capable of playing 'pal area video' at 50hz instead of 60hz, although the resolution remains the same(i use the term pal area for countries that previously used the analogue pal format). I am sure many european/pal televisions have the same features. My cheap epson projector also allows 50hz input, along with any other HD format you can think of.

Back to the region issues, it has nothing to do with PAL vs NTSC but the fact that some 360 games are region codec like DVD's, you cannot buy a game from region 2 and expect it to work in region 1. of course is a long list of games that are not region specific, infact i think most games are no region coded at all.

The only time NTSC/PAL becomes an issue is when using analogue connections. You can not use a NTSC Xbox360 with analogue connections on a PAL TV. the broadcast format is different, and the resolution is different, they are not compatible at all.

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RE: UK pre-tax markups

By Zandros on 8/20/2007 7:30:05 PM , Rating: 2

Obviously you will pay UK/EU taxes, though it will still be cheaper. Other possible costs would be toll, if any + customs fees.

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RE: UK pre-tax markups

By Proteusza on 8/21/2007 4:12:53 AM , Rating: 2

I bought some American DS games from eBay, partly because I couldnt get them here. Much cheaper.

I dont think it would be legal, because Sony and Microsoft wouldnt like it, and that means its a no no.

You wouldnt want the children of Sony's senior management to go without their new Bentleys and Ferraris for Christmas would you? That would just be cruel.

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Black is sick.

By therealnickdanger on 8/20/2007 12:44:08 PM , Rating: 2

Ever since the first time I saw that the 360 was gonna be white, I was pissed. I couldn't understand why they would stray from the A/V rack-friendly black color. *sigh*

I've thought about painting mine, but eventually I'll just have to get an Elite, I think.

RE: Black is sick.

By omnicronx on 8/20/2007 12:58:54 PM , Rating: 2

Meh, when i thought the white was a pleasant refresh from the usual black and grey console. It fits in nicely with my setup even though everything else is black.

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RE: Black is sick.

By therealnickdanger on 8/20/2007 1:56:46 PM , Rating: 2

Agree to disagree. When in Rome.

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RE: Black is sick.

By Alexvrb on 8/20/2007 7:05:13 PM , Rating: 2

A whale's vagina?

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RE: Black is sick.

By Darkskypoet on 8/20/2007 8:40:46 PM , Rating: 2

It's funny in a way... I always assumed it was an external hint that it's essentially a G5. lol. Mac went white, Xbox 360 with G5 went white. The funnier part, is before they had a lot of shipping 360's, it was a mac type part in the opaque enclosed box setup to run the demo games before product launch.

Mac goes intel, MS goes Power PC.. Funny.

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