Why Microsoft will not confirm the Xbox 360 price drop

Just a few days ago we showed a scan of a Radioshack flyer indicating a price drop for the Xbox 360 and now there is more evidence that this covert price drop will happen very soon. At this point you could consider the price drop practically official. Details after the jump.

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Blackmoses3757d ago

They are planning on comming out with a new console soon and don't wanna say anything about it just yet. They are just trying to get rid of the ones out there.........
.. I kid, I kid!!!


Peow3757d ago

Only 400 for an Elite? I might end up picking one up. Still, I don't see enough games that interest myself apart from Mass Effect and the JRPGS. Banjo was one of them but after I found out it's got more vehicle gameplay than actual platforming like the original, it's out :(.

Anyway, The price drop will definitely get a big burst of sales, I'm sure.

Xavier_X3757d ago

"Anyway, The price drop will definitely get a big burst of sales, I'm sure."

So far none of the price cuts on the 360 have caused anything but a brief blip in sales that then return pre-price cut sales levels. In Europe the 360 can be bought for cheaper than the Wii and it dead across mainland Europe and only really still alive in sales in the UK.

The 360 is selling at essentially the same rate as the first Xbox. It's around 19.5-20 million now, and the first Xbox was 24-25 million when it went out of production in June 2005. The 360 has around another 9-10 months to reach the same worldwide sales level as the first Xbox. But so far in 2008 Microsoft has only shipped just over 2 million new 360s worldwide.

The worldwide sales rate and the distribution of sales across regions - mostly US and UK - strongly suggest that Microsoft isn't attracting any significant new gamers beyond their existing 24-25 million Xbox owners.

deeznuts3757d ago

You must have missed the elite bundle sale at dell where it was $299, then $349.

AAACE53757d ago

No matter what anyone says... That $199 price for an arcade will garner alot of attention. Yes it doesn't have a HDD, but like I said in another post... Some people don't have any interest in going online. We do cause we are true gamers, but some people just want to play the games and don't care about who's online or care to pay for the internet because they are still living in the past!

People like games but don't want to spend alot of money with the american economy in the situation it's in. So I think the $199 price will attract alot of gamers who haven't made the next-gen jump yet (Madden fans), and could possibly slow down the Wii obsession!

TeeJay3757d ago

The 360 is well over 20mil. And when this price cut hits in N.A. you are going to see the 360 start to go mainstream over here.

Anyway, in response to the article. MS isn't announcing the price drop for the same reason any well run business doesn't announce them. It hurts sales prior to the price drop, because people wait to buy the product.

thewhoopimen3757d ago

I disagree. I think the US market is already saturated with Wiis. The $199 arcade isn't going to change american minds.

Bangladesh3757d ago

This Christmas will be all 360 in N.A. I don't know where some of these sony fans live, but N.A. is already 360 country. That's why we were the last to get the price drop.

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ape0073757d ago

cause maybe the wanna see how much impact is going to happen

if a big one happens confirm it now

if a small one happens,confirm later

IzKyD13313757d ago

does Microsoft make a profit with each 360 sold? or are they selling at a loss?

jamesrocks31473757d ago

of course they make a profit......

DJ3757d ago (Edited 3757d ago )

The Pro and Elite systems are slightly profitable at their current price points, the Elite more than the Pro.

Xavier_X3757d ago

No they are not.

The most recent comments from a Microsoft exec confirmed that they still were losing money on the console hardware. It was admitted in the Q&A after their quartly report.

Although you just have to look at their recent financials for the E&D division to see that it is the online fees and other non-console hardware sales that are keeping 360 out of the red right now.

That is one of the major reasons why there is no way in hell Microsoft is going to make online gaming on the 360 free of charge.

AAACE53757d ago

Technically they reported that the 360 has been profitable for a little over a year I believe. But you gotta wonder if the monetary compensation for the r-rod incident can be accountable in those figures.

f7897903757d ago

During the fight they waste vast sums of money.

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trancefreak3757d ago

and to all those people who thought they were getting a deal with the 20 gig at 299. U just never know how prices will pan out.

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