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EGM August08 Rumour: Xbox 360 To Receive Hefty Price Cut This Fall

The latest rumour in the soon to be released issue of EGM (August 08) speculates that Microsoft is set to announce a huge price cut on Xbox 360 SKU's this fall.

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CAPT IRISH2957d ago

it seems like every EGM rumor has been posted

damrightfresh2957d ago

They have to do a price cut because Sony is whipping their a$$ world wide..How is Microsoft expect to win this year or next with no games..lol..

KimboSlice2957d ago

Hi everybody I'm new, I just wanted to add my two cents to this topic.

I believe that microsoft at this moment is making a profit off of the 360 hardware unlike sony. Even if sony IS selling more consoles than mocrosft at this time, sony is losing money with every sale. If this rumor proves to be true I think that MS will only lower the price enough to break even while another price cut for the ps3 will only hurt sony.

I think that MS will be happy even if ultimately the ps3 has a bigger installed base because the only thing that really matters is the bottom line. With the original xbox MS was bleeding funds this is not the case anymore.

Having a relatively better financial situation in the console division than sony, MS will then be better prepared than sony to launch a next generation console after this era is over.

kazuma2957d ago

hey kimbo shouldn't u be over at bangbus?

mikeslemonade2957d ago (Edited 2957d ago )

Kimbo, your right about Microsoft now making money off the 360 hardware but what about the xbox 1 debt $4 billion, the rare $300 million pay out, the GTA4 $50 million pay out, securing DMC4 multiplatform, paying for the Japanese RPGs Blue Dragon and Lost odyssey etc., getting all those timed exclusives, and the $1.5 billion pay out to extend to 3 year warranty. Right now PS3 and 360 are at the same level in terms of losing money but the difference is the 360 is a year older so they should be ahead.

And last of all please remember the PS2 the most successful system to this day was not making money off the hardware in its first 2 years.

Finch2957d ago

@kazuma I believe his avatar is the old Underground Street King fighter. He does go by Kimbo Slice so you can look him up. If i remeber right he was the one that made it big on the internet by busting out another guys eye ball in a match!

KimboSlice2957d ago (Edited 2957d ago )

mikeslemonade you make good points but I think that thanks to pressure from MS the ps3 will not produce profit for its entire lifespan, it's just a too expensive technology, with the cell and bluray (the cell is only recently being put in laptops as state of the art tech)

The point is that the PS3 will remain more expensive to manufacture proportionally compared to the 360.

The Wood2957d ago

i hear gannon the cannon is looking for you

Bladestar2957d ago

@mikeslemonade - debt? to who? can you point to a source where it show that microsoft had to borrow money that now they owe (you know hence why you call it debt)...
debt it's not equal to debt... how hard it that to understand?
Don't compare microsoft situation to Sony... Sony had to sell some of their assets to keep blu-ray and the Playstation brand alive... Sony had to borrow money to keep the company running... Microsoft just had to move funds from one of their pockets to the other... The xbox division DO NOT HAVE TO PAY ANY DEBT.... let me give you an example... did you see how much money microsoft was willing to pay for yahoo? Microsoft was willing to pay $44.6 Billion To Acquire Yahoo... were microsoft going to make that money back? hell no... is Yahoo worth that much? hells no... so why? because of market share.. because it would put them on a better position to compete against their competitors and because that would open other revenue streams... why should they care about 4 bil when it's securing a large marketshare and presence in the game industry... not to mention in people living room which is putting them closer to their goal of connected services and digital distribution... the xbox 360 is also putting them in map as far as harware is concern specially as software get's competitive and they are force to expand their target demographic... most of you are short-sided and see the xbox just as a small microsoft product when in reality is an important piece of the entire company strategy...

KingME2957d ago

First off, how much of that mess you posted do you actually have factual links or access to. The warranty extension, I thought that was 1 billion not 1.5 billion (Why would you try and tweek the numbers) I'm so sick of the average joe on this site posting numbers and quoting figure that they don't have a clue about while trying to make a point. The only real point you're making is the point that you don't honestly know what the hell you're talking about.

Please correct me if I'm wrong, but by all means do it with the links to support your data. Just trying to see who talking facts and whose just talking.

@damrightfresh
"They have to do a price cut because Sony is whipping their a$$ world wide..How is Microsoft expect to win this year or next with no games..lol.."

Uh, have sony not had MULTIPLE price cuts and sku changes? Have sony not bundled brand new titles like MSG4, Heavenly Sword, Motostorm, etc. and other games (that could have sold on their own) to help sell consoles? So, why would you talk sh!t when MS does something to sell it's console. You're pathetic...lol

The Wood2957d ago (Edited 2957d ago )

both of our beloved companies do what they can to thrive in this world whether its multiple price cuts or releasing their product early there's no best fit so to speak. All of you have made good points even if they are a little reactive.

cja6432957d ago (Edited 2957d ago )

I totally agree with what you are saying. The only problem is, you don't back up your own facts. You say that mike is tweaking the numbers, and that it only cost them 1 billion instead of 1.5 billion. Where is the proof?!
My point is, if you are going to demand links with proof from others, you have to give some yourself.

kwicksandz2957d ago

Ive never seen anyone suggest before that the 360 is the console with no games before ROFLMAO!

otherZinc2957d ago

The PS3 went form $599.99 to $299.99 in a year & a half!

So now what?

Lifendz2957d ago

I guess because you have the oportunity to accumulate more profit long term.

How silly are they going to look when they're charging for what Sony provides for free?

MikeGdaGod2957d ago

http://www.usatoday.com/mon...

"The charge will be $1.05 billion to $1.15 billion......"

Time_Is_On_My_Side2957d ago

I think of it the other way around because Sony is in it for the 10 year mark. Are you really ready to buy a next generation XBOX in two years from now? In the long run Sony's console will last the longest especially with the blu-ray disc technology. In my opinion this is a desperate move on Microsoft's part because their hardware won't last as long.

Like how Microsoft launch a year early without that move Sony would have dominated Microsoft. These moves made by Microsoft is just a way to keep in the race than to finish it.

Superfragilistic2957d ago (Edited 2957d ago )

The biggest problem for Sony is not the console itself but finance...
See this: http://www.n4g.com/NewsCom-...
and this: http://www.n4g.com/industry...

Losses last financial year for Sony's gaming division were $1.2bn, but that included an estimated $1.2bn profit on the mighty PS2 & PSP, which means the PS3 division actually lost close to $2.4bn or around $260/console of the 9.24m sold last year.

Sony whilst it would like to cut the price (and I'd love them to!), has already indicated a reluctance to do so this year as a result of shareholder pressure and such large losses (hence the shareholder press about them reducing PS3 costs year on year). They've publicly stated their preference for profit over console base in the short-medium term.

Given MS is now turning a tidy profit on sales and approaching break-even on the initial 360 investment, it could cut the price significantly with the confidence that Sony would be financially unwilling to significantly respond.

PERSONALLY:

I own all consoles so it won't affect me. But from a corporate strategy perspective if MS are truly serious about this generation they should go for the full retail kill and instead of a $50 cut they should be ruthless and go for something closer to $100, safe in the knowledge that for the next 6-12months Sony won't be able to enter a price war without significant shareholder backlash.

Silver3602957d ago

There is a thing called price elasticity. Which means people are willing to buy something at a certain price, but not all the people will at that price. And the lower the price gets the more people are willing to buy the product. MS has sold approximately 20 million units at the $329 - $479 price range over the last 2 1/2 years. they have just simply reached the limit of the audience they can reach at that price. While PS3 still has people willing to buy one at $400, that will slow down as more are sold at that price and everyone willing to spend $400 is sold to. A price now is needed for MS to reach a new market of gamers. It is not to "beat" the PS3 it a financial decision to spur sales and increase market share for long term growth. Don't ever forget the console war has business men running it and in the end it always about market share and profits.

N2NOther2957d ago

Finally a voice of reason and understanding. Bravo, Silver360.

If anything, as much as love my PS3, Sony has been screwing not only the customers but the retailers. Because of a lack of confidence in any one scu, they've discontinued models that customers bought warranties for. So now, they're forced to downgrade, or take a refurbished one because, for example, no new 60 gigs are available for replacement.

I've had to deal with some very unhappy people due to this and I completely empathize.

SL1M DADDY2957d ago

lol

Sorry, but the only way to get the PS3 for 299 is through the Sony Style Store online and a few retail deals that come and go. The retail price for it though is at 399 and is still selling like crazy worldwide. If they nocked down the price to a retail of 299, it would be making a killing over the great sales it is experiencing right now.

The funny part of this all is that the most popular version of the PS3 is the 80gb model and that is still 599. Every time I see it bundled with something it is sold out.

The Wood2957d ago

in europe its cheaper than the wii. the 360 is doing fine'ish in the US, its Europe and the rest of the world that MS should be focusing on. The price cut may not spur as much growth that people think. good shout Silver360, that reminded me of business school:)

KingME2957d ago

Okay, my number for 1 billion dollars was on the lines of clarification not fact. Notice I said "I thought that was 1 billion not 1.5 billion " I never quoted a bunch of statistics whereas the other guy did. So, if you are going to try and analyze someone's comment, at least know how to read the context.

Additionally if you need a supporting document here is your link:
http://www.xbox.com/en-US/s...

Mike punched out a bunch of numbers from all kinds of directions without one single link for support his fact. Also, if a person is going to start initially making quotes on company's finances, they are the ones that need to support their comments, not those that object to them.

If I say I can fly, and you object to it. You don't have to prove that I can't fly it's up to me to prove that I can.

+ Show (20) more repliesLast reply 2957d ago
Lucas222957d ago

hopefully sony will do the same

fenderputty2957d ago (Edited 2957d ago )

although I'm sure they would like to not lower the price for a little while longer.

Someone at Gaf forum has said that this rumor includes a PS3 price cut as well.

It's about damn time. I can't wait until both of these consoles get to levels that people can afford.

Amanosenpai2957d ago

Sony really needs a price cut... Sony is sinking...

The XBox is cheaper and BETTER BY FAR in many ways...

fishd2957d ago (Edited 2957d ago )

What's wrong with you?you are a 360fan and have a avatar of snake standing on x360 from SDF.com!lol

Lucas222957d ago

or at least drop the prices of the games to 49.99, i wish

fenderputty2957d ago

Software is where these guys make their money. Their willing to loose money on hardware just so they can push the expensive software.

Stryfeno12957d ago

Well it is about time....I have a couple of freinds who waiting on the price drop.

deeznuts2957d ago

I've been resisting. But a huge price drop will make me buy one over an updated video card for sure! Then I'll have all 3 (and four because I probably will still buy a damn video card)

rawd2957d ago

Arent hefty price cuts what they did to HD-DVD players before they went extinct

Shaka2K62957d ago

Hahahahahaha look at Europe the xbug 180 is half the price of the PS3, and PS3 still kills it week after week hahahaaaaaaaaaaaa.

xbug 180 = DEAD!

TheMART2957d ago (Edited 2957d ago )

Nah, hefty is what they did to the PS3 in 2007. From 600 to 400 bucks overnight!

360 went from 400 to 270 bucks (Premium) in 2.5 years now. So it won't be strange to cut it another time close to its 3rd year this fall/winter

EDIT

@ Pooface below

Wrong. In Europe it is like this:

Arcade 199 Euro
Premium 269 Euro
Elite 349 bucks

USA didn't get the price cut yet we got here some months ago.

GiantEnemyCrab2957d ago

No, it's called being competitive. Did you say those same things when $ony dropped the price of the POS3 in the first year?

poopface12957d ago

what sony did last year, while removing crap. mart I thought you knew all about the xbox. the premium costs 350 now. The core/arcade is 280(only 20 drop) but they added xtra stuff with it.

Isaac2957d ago

The 60GB PS3 went from 599 to 499, then it was replaced by the 80GB PS3. The 20GB PS3 was 499 and then it was replaced with a 40GB one with WiFi that cost 399. So it went from the 599-499 range to the 499-399. Later, the 80GB appeared to be phased out but then it came out again at 699 with Metal Gear Solid. PS3, despite its $100 drop, is still the most expensive console and it is outselling Xbox 360.

Furthermore, it is normal for Xbox 360 to have lasted so much time with the price so high. After all, it came out first (just like the PS2 last a lot with a 299 price tag), and it was also a lot cheaper ($299-$399), a $200 dollar difference which game Microsoft a lot of room to breathe.

Get your facts straight next time, idiots.

Rageanitus2957d ago

Difference is 360 will not go extinct but all they are doing is attempting to adapt to market conditions.

Max Power2957d ago (Edited 2957d ago )

i am sure you mean that the 80 gig MGS bundle is 499 since returning, it maintained that pricepoint not increased it. (usd)

Rageanitus2957d ago

were you not one of those who kept bring up the idea that Sony did not do a real price drop.... LOL

Pain2957d ago

Time to Flush out the crap in time for Xbox 3 in 09!!!

lolM$supporters

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