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Coming soon: Microsoft's PGR3 Xbox 360 bundle

This winter the Xbox 360 will finally have some new console competition on the scene. How will Microsoft attempt to protect its first mover advantage? One thing the company won't be doing is slashing prices. Microsoft put the kibosh on price-slashing rumors in May, and it should be no surprise why: the company loses money on the Xbox 360 hardware, perhaps as much as $126 per console. While we estimated that Sony will initially lose even more per console, Microsoft is in no hurry to widen their loses on the hardware. The Redmond giant reportedly hopes to be turning a profit on the hardware before the close of its fiscal year 2007, approximately 11 months from now; to meet that goal, significant price cuts can't be part of the short-term roadmap.

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arstechnica.com
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Marriot VP3716d ago

wow, a lot of errors and hearsay. What a lame article we've been through this how many times.

-first, 129$ lost per console is WRONG. They've sold 5 million, and MS's lost 414 million in Home and Entertainment total. Now consider the 360 to be a noticable but not major part of that peice of pie. If you divide them it's gonna say 80 per console but you know it's probably less than half that.

-Adding a game is the worst option for Microsoft, PGR3 sure but it's a year old and quickly outdated. You can't beat a price cut because we all know how lame it is to have a game bundled in. Most don't want it or bother to play it.

Bottomline is, if Microsoft wants to crush Sony's first year out they will have to drop the price of each console 100 bucks and keep it there. If they bundle a game like PGR3 which goes on ebay for 20 bucks do you really feel fortunate. The truth is that game bundling is the cheapest and lowest form of supposed price cutting.

To bundle a game it'd cost MS maybe 5 bucks each. CAUSE, the game's so old nobody's buying it. Remember the PS2 only really sold when it hit the 200 and under price, that's why I think the 360 will come out on top or break even with Sony. Because which ever serious console (wii excluded) reaches that first will of course sell big time to the irregular customers who don't want to pay 400-600.

ironwolf3716d ago

that all other products from the division only break even or also lose money. It's possible that the 360 losses are eating up profit from other products.

TheMART3716d ago

This Christmas I guess it will be bundled with Forza 2 and Gears of War

That would kick sales in higher gear!

Endless3716d ago

well they better do something because if they don't, the wii and ps3 will look more attractive to holiday shoppers.

TheMART3716d ago

According to what?

Wii is having it's own public.
The battle between 360 and PSZero is simple.
Game line up this Christmas:

360: main system sellers Gears of War and Forza 2

besides that a gamelibrary of 160 games

PSZero: wel urm. Genji 2? And much games that are crossplatform so no use for that.

And uh well bad yield on Cell will give great shortages. So there's not much for getting it this Christmas. Or you must have a crystal ball

gamerof3603716d ago

true the xbox360 is going to sell very well this Christmas...i can see the 360 as being the leader in the console wars then PS3 and then the Wii or the Wii then Ps3...but we'll have to wait and see

PS360PCROCKS3716d ago

pgr3 is not a bad game and if I bought one this christmas and got it free I'd feel fortunate, I got nothing free

Cyclonus3715d ago

360 $400
ps3 $600

theres your price drop right there.

3 months of Gold Live, 1250, MKP points, and a free game(and a great one at that) = more added VALUE that the ps3 can't touch.