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Microsoft to slash price of Xbox 360 - Pachter

$80 off Elite, $50 off Premium models to maintain pricing advantage

Following Sony's USD 100 price cut announcement, leading industry analyst Michael Pachter has gone on record predicting that Microsoft will quickly follow its rivals' lead and slash prices on all Xbox 360 models.

The Wedbush Morgan analyst expects the recently released Xbox 360 Elite to go from USD 479 to USD 399, the Premium model to see a drop from USD 399 to USD 349 and the Core system to be reduced from USD 299 to USD 249.

"We expect Microsoft to follow with a price cut of its own," said Pachter.

"Last week, Microsoft announced a slight Xbox 360 shipment shortfall and we do not believe that the company is prepared to allow Sony to erode its pricing advantage.

"We think that the console manufacturers will continue to cut price as their production costs come down, and expect sales to ramp significantly this holiday season," he added.

The company does not expect Nintendo to reduce the price of the Wii or DS, "as sales for both are still very strong and are anticipated to remain so through the end of the year

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Dlacy13g3728d ago

This could really hurt Sony. Especially the Elite comparison.

Shadow Flare3728d ago (Edited 3728d ago )

what? the elite is a piece of crap. I really don't think that'll be affecting the ps3. If a gamer wants a high-end console, they'll pay for one that'll at least last them through the week's shopping.

The way i see it, is in shops, the ps3 might have made the bigger price cut than 360 according to this article. People will instantly think 'It's a bargain' because they knew how expensive the ps3 was before. And when the new games for ps3 come out, that'll shift many a console. 360 will also sell a lot thanks to Halo 3. But i believe now is the time ps3 will start closing the gap on 360 until it'll one day run rings around it. (Not red rings)

Xeoset3728d ago

#1.1

Don't start with fanboy banter. Keep your opinion to yourself.

Anyway, I expect MS to just drop the core and replace it with the Premium, but with the Core they could also drop it a cool $100 and it'll take away the pricepoint of the Wii.

Microsoft have a few options:

-Drop the price and compete make the Sony price drop seem worthless.
-Replace the Core with the Premium, saving them money and still taking away the PS3 pricepoint
-Drop them all by $100 and take away both the PS3 and Wii pricepoint

Can't wait till E3 ;)

Rockstar3728d ago

I Disagree,

A lot of PS2 owners out there are waiting for a PS3 price drop, not a 360 price drop.

I think a 360 price drop will mean nothing when they make their decision, because again they are in the market for a PS3.

But we'll see in time.
If I'm right, I'm right, If I'm wrong...good on M$ converting all those Sony owners.

Either way, It's rather exciting to watch unfold.

Dlacy13g3728d ago

Problem is .....

The Sony price cut is not going to feel like a price cut. They LAUNCHED the console with two SKU's of $499 and $599......

and guess what...they still have two SKU's with a price point of $499 and $599.

As for the Elite compared to EITHER PS3 SKU..... It has 120GB vs 60 or 80 for at MINIMUM $100 less. It has HDMI just as they do. Wifi and Blu Ray are the missing factors. But guess what...they have not been a big winning factor so far so why do you think all of a sudden they will be now?

Fact is the Elite compares VERY favorably to either Sony SKU and even more so the games on both consoles to date have not shown Sony's PS3 to be a better machine. So until the games really start to outshine the 360....which so far they haven't....then the Elite is going to be a big thorn in Sony's side.

VaeVictus3728d ago

@ 1.4

People who grab the Elite want the bigger hard drive and HDMI and are most likely to be audio/videophiles. There is no reason to get a console w/ HDMI if you don't have too unless you want to watch video's IMO. HDMI 1.2 (360) vs HDMI 1.3 (PS3) is a comparison that will go in the favor of the PS3 b/c of audio reasons, though minimal it is something to consider. Also, the PS3's hard drive is easily upgradeable and can be done so for very little money and very little effort, so the hard drive argument isn't really all that big a deal. I don't know why Sony is bringing an 80G sku. They should stick w/ the 60G and leave the $600 price point alone. It's only hurt them so far. Unless they plan to phase out the 60G it makes no sense. I have plenty of space on my 60G hard drive. With the media streaming capabilities of both the 360 and PS3 there is no reason for massive amounts of storage.

Also Known As3728d ago

a better prediction for the elite would be 429.99

i Shank u3728d ago

theyd be more competitive to the elite. but still, if someones wants to get an elite w/Onlive play, the true price would be $450, only $50 cheaper then ps3(not including HDcable). Sony isnt as far off anymore IMO.

Whoever said MS should replace the core with premium has a good idea; i think they should keep the core for a little to sell off remaining stocks at $250, giving the 360 the appearance of Wii-like affordability, then axe it or keep it after seeing how it does.

+ Show (4) more repliesLast reply 3728d ago
BubblesDAVERAGE3728d ago

This is the worst price drop i ever seen..that 80 bucks should have never been on that elite..and the 50 price drops..this is a joke to me...even sony price drop of 100 bucks probably wasn't enough ...but i think its good enough for them to sell some systems for a bit

Vojkan3728d ago

50USD is not a joke. Let be honest here 360 is very cheap console for what it offers(talking about premium).I think biggest problem Microsoft had or has is that their console died easily, which with new 3 year warranty they admitted. So many 3 red rings storys turned me off, so if they can somehow remove that negative image, it get better for them.

Xeoset3727d ago

^^^

With the new Faclon hardware inside it (65nm chipsets), the new Heatsink and Pipe Technology running inside it and the 3 year warranty as standard, you'll never see another RRoD again.

MS were late, but damn are they delivering on both fronts now.

ASSASSYN 36o3728d ago (Edited 3728d ago )

I have been waiting on the 65nm and a price cut to get a 360 elite. This is very good news for me. And am I the only one whom finds it funny a major competitor has already experienced a price drop WTF sony.

bizzy123728d ago

ok now you can get a 360 and a game for 420 istead of 470 that better than nothing plus once halo3 drop 50 more dollars comming off

Mighty Boom3728d ago

The core 360 for the price of the Wii!? Its will not only screw Sony but it will put a dent in Nintendos pocket too... MS is looking like a juggernaut.

Armyless3728d ago (Edited 3727d ago )

-just sayin.

Edit: Someone disagreed? Why? Does this "MS price cut" include free Xbox Live? I don't think so.

Ignorant Fanboy3727d ago

He also forgot to mention buying an HD cable for the PS3. And the $50 a year to replace PS3 controllers after the batteries wont hold a charge.

So it kinda evens out price wise, but PSN has along ways to go before its anything near Xbox Live.

I have both.

Armyless3727d ago

HDMI-cable (I think that's what you're trying to say?) $13.99
http://www.google.com/produ...

And by the way, that's for an HDMI ready console. Next?

What makes you think the batteries will die in a year? The console hasn't even been out for a year.

You are paying for a subscription service that comes free on the PS3.

It is incorrect to neglect the cost of the 360-Live subscription service.

Next?

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