Why Microsoft is cutting its Xbox 360 price on Sunday

Microsoft's plan to cut $50 off the price of its Xbox 360 Pro video game consoles is all over the web. The company is expected to announce it will start selling the Pro model for $299 on Sunday, July 13, just before the E3 game show in Los Angeles. But not everybody remembers why this happens like clockwork.

[Expy]

In other words, they're paying for your first year of live.

[socomnick]

Go ahead guys keep saying that to make yourself feel better. Ill go back to finishing Ninja Gaiden 2, then I got to finish disc 4 of lost odyssey.

[soxfan2005]

This is a US price cut, and MS dominates the PS3 in the US. Desperation? Hardly. This is more like when Sony cut the price of PS1 when it was in first place, and it cemented its lead for good.

[FPS nut]

Sony cutting it's price twice in it's first year was desperation, this is just because it's time for a price drop. Console prices go down, thats what they supposed to do. A console going down in price yearly is a good thing, a console going down in price twice in a year is "oh crap! were in trouble"

[dantesparda]

It doesnt change the fact that the PS3 has been catching up to the 360 quickly (about 5-6 million behind worldwide), while at a higher price tag, having less games, and releasing a year behind. Face it fanboys, the 360 has lost alot of its steam, while the PS3's has been picking up in comparison'

This is an act of desperation because their sales are stagnant to going down, and they need to do something to give it a boost. But i dont think its gonna work. Their line-up is uninspiring and full of a bunch of games that i could care less about, other than Gears, and that just looks like more of the same. This whole generation all these price drops have done is give the sales a short-lived boost and that's it, then its back to selling like usual. Yet every time both sides (the fanboys) exaggerate the effects it's gonna have. When will you people learn? Youse are just to blind by your own fanboyism to see straight. Im glad i dont sweat either system.

[AAACE5]

For some reason, I feel like this is a test! If they drop the price and the unit sells well, I forsee them cancelling the arcade unit! I know it sounds crazy, but it seems to fit if a price drop is done!

[luxarific]

Opus is supposedly in the wild already.

http://forums.xbox.com/2066...

[HowarthsNJ]

Is that what they said?

Why the backwards step in tech?

[Mc Fadge]

Perhaps that's what they cut out?

[fishd]

cause sales aren't that good,simple!

[GiantEnemyCrab]

Let's see if you say that same thing when the Playstation 3 gets a price drop.

The system has been on the market coming up on 3 years now with barely a price cut. It seems to me like the time is right. Yes, the 360 isn't selling as stellar compared to something like the Wii but neither is that other console.

[NO_PUDding]

What are you even talkign about? ^^^

Both 360 and PS3 are stellar systems. Better than the Wii.

But PS3 has outsold the 360 this year, even with this very nice price cut.

[DJ]

PS3 actually has been outselling 360 in both North America and Worldwide for 2008.

[aceitman]

the ps3 is selling more world wide and the ps3 40 gig has been on the amozon top 20 at 14 now and has never been over 20 ive been keepin an eye on it and the 360 elite at the 81 spot and the 20 gig 360 at the 59 spot that should tell you how each system is selling at one of the largest online stores

[socomnick]

yea the ps3 has been outselling the xbox 360. Dont forget what it took. 2 100 dollar price cuts in 1 year out of desperation.

[DJ]

Only selling 200K units a month worldwide?? Dayum, haha. The first price cut didn't do much of anything, but the 40GB introduction (and 80GB reduction) definitely saved their asses.

I still find it surprising though. 40GB PS3 is still $130 more than an Arcade unit, but the PS3 sells more? What the hell?

[BRACHATTACK]

They're panicking and getting desperate. But if they feel comfortable doing another price drop, they must feel confident of a surge in sales. If the elite got a price drop i would consider getting one.

[GiantEnemyCrab]

Another price drop? This is a US price cut the last price cut was in EU.

Considering the console has been on the market almost 3 years now without a major price cut I don't see it as desperate at all. Desperate is when you cut the price in the first year ala Sony.

@5.2: Read my comment again I did not say they weren't stellar systems. I said that neither of them are selling stellar when you compare them to the Wii. Besides being a cultural phenomenon the price was also important. Yes, the PS3 has outsold the 360 but considering it's the market leader and has these potential PS2 owners it should be wiping the floor with the other system's and it is not. The amount it is beating the 360 by is not that much and it is being stomped by the Wii (so is the 360).

@5.3: Then why are Sony still losing money on the console? They cut price because the launch was a disaster and the sales numbers at the time were abysmal. Don't try and spin it that Sony were doing consumers a favor here because there motivation was to get product moving and it wasn't at the time of launch. Having more space is always a good thing, but don't dismiss DVD9 because the 360 has a huge library of great games and several GOTY titles. Not to mention as this article points out, the best games are on the 360 (by the numbers).

http://www.n4g.com/xbox360/...

[NO_PUDding]

Sony was desperate though.

Microsoft had no competition that was already supported. And when that situation arose last generation, look how quickly they bailed on the old Xbox. Thank god Sony didn't do that.

[NakedBeeArthur]

"Desperate is when you cut the price in the first year ala Sony."

Bzzttt!

The PS3 had the brand new BluRay drives with the very expensive diodes that dropped almost 100 dollars that allowed Sony to drop the price. CDs and DVDs had both been on the market for three years or so when the PS1 and PS2 first hit the market.

And now that investment is paying off for Sony and Microsoft is stuck with an outdated and gimped 7GB storage format.

[Silogon]

Strange, they say this. I see xbox 360 outselling ps3 3 to 1 this year. We'll see.

[NegativeCreep427]

Desperation price cuts don't necessarily guarantee an increase in sales volume over you're direct competitors, and with the ever-increasing momentum of the PS3, don't expect Sony to just sit on their hands and not respond in some similiar fashion.

[Thoas]

When you make up things it makes you look like a even bigger fool than what you are. 3 to 1 Worldwide? I think not.

[juuken]

...*blinks*

You are an ignoramus.

Nuff' said.

[Pain]

new modles and New Xbox in 09.

[Silogon]

Talking about America, tune smith.

[The Goulet]

3 to 1??? lol!!! the xbox is still overpriced when compared to the PS3. The xbox still is losing worldwide sales as time goes on and Ps3 is picking up and selling more units per month worlwide then the 360. The price cut will help but IMHO it isn't enough.

Goulet

[Thoas]

You do know there's a world outside the U.S. right? You are a sad Xbot with poor facts.