Microsoft's Xbox 360 console has been a huge success among gamers. The company's "first out of the gate" tactic gave them the ability to build a foundation that Sony's PlayStation 3 has struggled to shake. However, the 360 saw a slump in sales early this summer, being outsold by the PS3 for several months. After narrowly outselling the PS3 in August, Microsoft drastically needed an announcement to jump-start it sales. This month, the 360 received its much-needed boost.
As of Sept. 5, Microsoft has dropped the price of its Xbox 360 consoles considerably, with an entry price of only $199 for the Xbox 360 Arcade (an $80 price cut). The Pro model now costs $299 and the Elite only $399 ($50 price cuts each).
The difference between the three SKUs is essentially storage space. The Arcade model comes with a Microsoft memory unit, while the Pro and Elite have hard drives sized at 60 and 120 GB. With the holiday season only a few months away, Microsoft's strategic price drop seeks to revitalize the sales of its console. With Nintendo's technically inferior Wii - still priced at $250 - continuing to fly off store shelves, there is absolutely no excuse for consumers not to take a step into the next generation of video games.