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The Real Reason Behind the 360 Price Drop

The recent announcement of a U.S. price drop for the Xbox 360 has set off shockwaves through the tubes of the internet. Blogs and forums have been buzzing with half-cracked theories of why Microsoft decided to lower the prices of the Arcade, Pro, and Elite 360 units. Most of the wild speculation was centered on the ongoing console "war" between the 360 and the PS3. Fanboys are screaming "Microsoft is scared shitless" to "They are getting desperate!" or the succinctly put "PS3 pwns!" Before I drop a logic bomb on fanboys' heads, lets get the facts straight. Here are the numbers:

New price points
360 Arcade: $199
60GB 360 Pro:$299
120GB Elite: $399

That's right kids, the Xbox 360 has officially become the lowest priced current generation video game system effectively undercutting the Nintendo Wii by 50 bones. You say, "That doesn't matter because we all know that the 360 and the PS3 aren't competing with the Wii." Really? The fact is that these new price drops have little to do with competing with the PS3 and everything to do with taking a slice of the Wii's pie this Christmas season.

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tocrazed4you3324d ago

Shockwaves are they talking about? I think we knew about the price drops weeks prior to the announcement...

sonarus3324d ago

The optimism for the 360 and its recent price cut is very amusing. Double sales from first week doesn't even get it anywhere near wii sales.

HighDefinition3324d ago (Edited 3324d ago )

The price drop is because the ARCADE unit is the best thing you can EVER buy, EVER. It makes NO differnce to game makers and LBP is just another game.

Sweet, know I feel better.

RememberThe3573324d ago

I don't care what people say, the arcade is a rip off. You might as well get the pro, thats were the value lays.

ReBurn3324d ago (Edited 3324d ago )

I think that it's fair to say that the $199 model isn't really aimed at anyone who is reading this site. Parents and grandparents are who this thing is aimed at, because like the article says, when there are no Wii's this is going to be a lower-cost alternative. There are going to be lots of crumbs falling off of Nintendo's table due to their shortages, so why not capitalize on that?

To be honest I've thought of buying one of these to put on another TV in the house. Why not? It sure would relieve the traffic to my main TV to play games. I wouldn't need to store music or movies on it. That console wouldn't need to go online. It wouldn't be playing old Xbox games. So, with all of that in mind, why isn't a $199 Xbox 360 a decent deal?

I'm curious to see how the new prices do this year. I doubt we see any impact to the Elite version at $399. When you stack its features up against the PS3 I think it falls short. The $299 Pro isn't all that great of a deal for a 3 year old console, IMO. I'm not sure there's enough in the box to justify $100 difference between Arcade and Pro. You get a hard drive and an HD cable. You lose the arcade games and the memory card. That's a toss-up to me. I think a better price structure would have been $199-$279-$349.

Why o why3324d ago

more good comments. sweet.

AAACE53323d ago

The shockwaves he meant were the negative comments made by sony fans. You had to have heard them on here... "MS are Desperate!", "360 is failing bad!", "Sony's killing the 360!"

Like I said a short time ago, they probably made the price cuts to cut into nintendo's market! MS and Sony aren't directly competing with Nintendo, but nintendo has been taking alot of their sales. A large majority of Wii owners are the same people who bought a Ps2 last gen, but chose to purchase the Wii for the cheaper price because they don't play many games!

So now that MS has figured it out... I hope Sony figures it out and drop the price! Yes I know the Ps3 has all the power and the price is justified, but people like to buy stuff for cheap prices.

himdeel3323d ago (Edited 3323d ago )

...then they better lower the 360 to $99. That's the only way I could see them seriously cutting into a slice of the Wii sales.

I don't get the Wii sales because I'm not interested in that system but they are massive. The Wii is the wooley mammoth in terms of sales. The 360 is the human that has just realized they can use sharper stones instead of smooth ones and are going after the mammoth via this price cut.

Beast_Master3323d ago

If you are a parent then why would you buy a 360 for your kid no matter the price? It has almost no games for kids, viva pinata, lips and scene it? You could make the same case for PS3, except they at least have R&C and LBP. I am not saying that parents will not pick up the 360 because of the price point but don't think that the Wii is out selling the 360 because of its price either. The Wii is selling so well because almost all of its games are kid friendly.

hazeblaze3323d ago

I agree with the article. However, this still comes off like desperation from Microsoft considering that they've been outsold by BOTH the Wii and PS3 all year. It does put Sony in an interesting position though... if 360 sales really double, I wonder will Sony still stick to their guns about not dropping the price this year. If they were able to knock an extra $100 off the price of their skus, it would probably kill Microsoft's momentum for the rest of this gen.

Kleptic3323d ago

Sonarus...totally agree...MS has long faced the fact that they are only competing with Sony...not by choice...but because Nintendo is running away with it...

and there are simply too many intangibles going into that...MS doesn't have a 'family' brand image...and that is what has caused the Wii to explode...the Wii is selling to people that will buy it as a toy for wii sports or wii fit for a few months, then throw it in a closet till the grand kids come over...Sony and MS have NO chance of appealing to the same market...

people have been saying it for years...its not JUST price...the 360 can be the cheapest machine on the market, but it will never sell like a Wii...the PS3 arguably the same, although they do have a global brand image that could allow the thing to sky rocket as well (after all there hasn't been a Playstation console that hasn't done that)...like or not, MS has not built that kind of brand for the Xbox...it easily appeals to the smallest market of all 3 systems...

the wii could be $100, and I wouldn't buy one...there are plenty of people out there that would say the same thing about the 360 and PS3...

Saint Sony3323d ago (Edited 3323d ago )

Yes, MS is far from Wii sale numbers, but they are after at least a slice of Wii's pie. Please do read it right. Double sales for PS3 would not take them anywhere near Wii either, but I'm pretty sure Sony would love that anyhow.

Sony on the other hand is making a mistake by ignoring Wii.
People do play games. Not everyone wants their console for curing cancer, this of course is a good thing, cancer is evil and needs to be cured for good, but this is about console gaming mostly.

Nintendo has done something right with the Wii. They make loads and loads of money with a machine that is not considered next gen. Would be stupid to ignore it.

Megatron083323d ago

I agree with Reburn's very well thought out comments. I have a friend (actually 2 of them) that is actually thinking of getting a 2nd 360 now that the price dropped. He and his wife love to play games but he never wants to let her play the 360 cause he's playing it so now he can get a 2nd one fairly cheap and they can even play together.

Well I do agree the pro is kind of high priced after 3 years but when you compare it to the ps3 I think its still a good deal. They add HDMI concention and up the HDD to 60gb and it ready to play HD games and online right out of the box (noted you a gold account after the trail expires). The ps3 you still need HD cables and a head set (but they do have free online) the hdd is only 40gb and it coast 100 dollars more. So when you compare the 2 the 360 pro suddenly looks much better imo.

madmike3323d ago

thats why you jump on every xbox360 news you are a bunch of sad mother f.ckers the xbox 360 will be in 2nd place and will beat your ass you wont get out of third place you sad fu,kers

+ Show (10) more repliesLast reply 3323d ago
rCrysis3324d ago

sony MUST price drop to compete seriously this Christmas.

Adamalicious3324d ago

I think it would make a lot of sense for Sony to get the PS3 to $299 for this holiday.

sonarus3324d ago

It would make a lot of sense but won't happen. The losses from the PS3 has hurt sony and sony is at a point now where they are ahead of the 360 so they aren't feeling the pressure to drop price. There will most likely be price drops next yr though but no price drop this yr. Unless offcourse PS3 sales drop drastically.

As long as the sales don't go below where they are at now, sony won't touch that price

el_bandito3324d ago

agreed, sonarus. There's no need for a price drop especially now the PS3's picking up in terms of sales. PS3's on a roll right now. We never know when the momentum its on right now will abate or cease; and before it actually happens, Sony should've already done these cuts.

NipGrip3324d ago

Sony has what you call a "lineup of games that are innovative" and not just rehashes with enemy grabbing abilities. Also, Bluray is a huge draw seeing it's the only HD option for movies and HDTV's will be sold en masse. No retail person would suggest the 360 over the PS3 to an intelligent consumer and the price is just right for the features you get. Consumers know this.

Guwapo773324d ago

I'm going to disagree w/o selecting disagree. I believe we will see another price reduction on the PS3 for either the day after Thanksgiving (50-100 one day sales) or for X-mas (50-100 permanent reduction).

himdeel3323d ago

...offer a mail in rebate for the purchase of one of the Platinum Games or additional controller when you buy a new system or a voucher for $25 of PSN content.

The Platinum games are good games and are great spring board towards the purchase other titles. Likewise the $25 PSN voucher would encourage people to get online and see all the good things PSN has to offer like the game content and video.

mfwahwah3323d ago

I think Sony isn't concerned with this console war at the moment. They are a company that needs to make a profit. They can go and counter everything MS and Nintendo do, every time, but that would yield them with a bankrupt gaming division.

Right now, I believe that Sony's plan is to just do their own thing, and put their competition in second on their priority list. They need a profit now. They can worry about the war later, or in the next gen.

thewhoopimen3323d ago (Edited 3323d ago )

Why would sony drop ps3 prices to $299? There are barely any bluray players out there that sell under $299 right now. Would make absolutely no sense.

@2.5 I doubt Sony will do a perm pricedrop. Perhaps a temporary discount or rebate for the holidays.

+ Show (5) more repliesLast reply 3323d ago
silverchode3324d ago

lol they're trying to make it seem bigger than it is

RememberThe3573324d ago

If sales doubled like they say then thats a pretty big deal. The thing that matters is if the sales stay that way.

NipGrip3324d ago

Has only been reported by a MS email. And while it wouldn't be surprising to see that surge, it's longevity that matters, don't you 360 owners understand that word? Longevity? The ability for something to last? Slumping sales, dying systems, failed HD movie formats, lack of innovation in games and instead milking already shallow gameplay ideas.. Does anything last over there at MS? If it wasn't for hype, why.. They'd have little now wouldn't they? Hype only carries you so far and the fat lady is warming up to sing for Santa.

RememberThe3573324d ago (Edited 3324d ago )

Excuse me for being a gamer, and trying to enjoy each system. What you said make sense, but the way you said it made you sound like a fanboy, and your not going to get through to anyone that way. Just calm it down.

mfwahwah3323d ago

So what, you expect him to address 360 owners by not calling them 360 owners? I'm a PS3 owner, nothing wrong or "fanboyish" about using that to call someone something.

Anyway, I agree with NipGrip. 360 doesn't seem to last very long with things, except Halo 3.

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DA_SHREDDER3324d ago

Its finally down at the price where it needed to be since launch. Ive never seen such an over priced piece in my life.

Dyingduck3324d ago (Edited 3324d ago )

Now...

A 200 dollars Oven fits your budget?

lol...

TheColbertinator3324d ago

I hate the Arcade SKU.MMO makers like Blizzard and NCsoft would pay attention to the 360 if hard drives were pre-installed on the 360.Besides,that thing is a rip-off by not including a hard drive,because who plays Live nowadays without an HDD? They should just axed the Arcade SKU and replaced it with the 20GB selling at 200 dollars

mboojigga3324d ago

MMO isn't going to sale a console. Funny how this console regardless of Wii's sales has the most software sold. Give it up about this BS with the arcade. The Wii doesn't come with a hardrive and isn't HD and is doing fine. The Arcade is a better bargin than the Wii. Give it up trying to knock the arcade when it can play every game out there with the option to "UPGRADE" which seems to be lost in some of you fanboys vocab. What is funny to me is how some of you fanboys will defend the PS3 about installs and simply say

"throw money at it and put a bigger hardrive in it"

So the intent to buy a bigger hard drive was for the sizable installs that come on games like recently announced Bioshock instead of purchasing a bigger hardrive for the benefit of DLC, games and movies?

Fuc*ing Joke.

eagle213324d ago (Edited 3324d ago )

The funny thing is 360 fanbabies don't get mad over Mass Effect, NG2, etc, etc. having framerate drops and screen tearing while Ninja Gaiden Sigma runs flawless on PS3 at 1080p 60fps (not 30fps....lol)

I guess the arcade is holding YOUR games back. Plus I've heard that the issue will not improve regardless if they give you those "optional" installs...

LMAO. That's the joke. :P

mboojigga3324d ago (Edited 3324d ago )

The best you could come up with was Ninja Gaiden LOL WOW. I own a PS3 so stop with the you 360 fanboys.

Then you want to bring up about the "optional" installs which is exactly what they are. Okay guess I should be mad because MS is offering it as an option. Thank god I bought the 80 gig a year ago. I would have gotten even the backwards compatibility and hardware features I won't get with the new versions coming out today. Thanks for pointing out about options.

TheColbertinator3324d ago

I don't give a damn about sales or pie charts or any of that business crap.I want a 360 optomized MMO.It would help many fans of the genre come to the 360 if the HDD was readily available.

As for 360 vs. PS3 fanboys,I honestly dont give a damn.I just want my 360 and others peoples 360s to stay strong.An HDD would help.

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