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.

[Homicide]

3 to 1 in America? Sorry, I just don't see that happening.

Stop disagreeing bots.

[juuken]

Um...*SILLYgon*, Nintendo surpassed Microsoft in America if I'm not mistaken. Plus, America isn't the only country out there. Go look at a freakin' map before you talk out of your ass...AGAIN!

[NegativeCreep427]

"Go look at a freakin' map before you talk out of your ass...AGAIN!"

Hey man, some things are just inevitable...

[-Maverick-]

"I see"

LOL Ok, Siligon. Everything's going to do the complete opposite of what's been happening, in every country all over the world... becuase that's what your little brain can "see"

You fail douche.

3FIXME is doomed.

[TheDeadMetalhead]

No price cut is going to do justice to the victims of RROD that have bought five 3fixmes, now is it?

@Siligon
3 to 1? Are you in an evil parallel universe?

[Isaac]

299 for a 20GB 360 is still too much. It should be 249, while the 40 GB PS3 should be 299. The Wii should be 149.

[Imallvol7]

the wii should come free with a game purchase, lol.

[grashopper]

It does...unfortunately the game is $250 dollars

[NO_PUDding]

grashopper

+Bubbles all the way..... hilarious.

[gogators]

and a price drop should be more substantial than 50 bucks. 249 is more reasonable.

[Bloodwar]

I paid 79 for a second hand PS2 because I didn't see any justification getting a new PS2 for 149. How much should they be now, since it is a last generation game console?

[Imallvol7]

I think that the next pricedrop that will actually make a big difference in sales is something below 200$. 300$ is how much PS2's sold for new so thats really not mainstream still.

[Mozilla89]

So they can sell more consoles. Obviously it doesn't take a genius to figure out why. Maybe I should write an article about why FW 2.4 came out.

[GiantEnemyCrab]

Funny how you get a disagree. I guess there is another reason why companies do a price cut?

Anyway, I agree they want to stay as competitive as possible and move product.

[Mozilla89]

lol thanks, maybe they were disagreeing with me on writing an article...
Its seems people disagree when you say that Microsoft wants to sell more 360's.

[aceitman]

ITS NOT TO SELL MORE LIKE OH WHERE SELLING ALOT SO LETS LOWER THE PRICE SO WE CAN SELL ALOT MORE .... NO ITS WE ARE LOSING GROUND WE HAVE TO DO SOMETHING LOWER THE PRICE AND MAKE AVATARS AND MOTION CONTROLLERS LIKE THE WII AND MAYBE WE CAN GET BACK AHEAD LIKE WE WERE THE 1ST YEAR OUT AHEAD OF NO ONE BECAUSE WE WHERE THE ONLY NEXT GEN OUT

[Hercules]

because i may get flamed by fanboys, but this caught my eye, i dont see this doing any good, except Microsoft losing money, what if people still dont buy the console? i mean there are 19 million users? but everyday i seen 360 in pawn shopps, more than anything else...maybe its just my area....go ahead and hit the disagree button, im sure you wont leave feedback

[gumgum99]

Unless they have a tried and true solution to RROD, this method would only do so much in the long run(in theory).

[gnothe1]

the PS3 has seen MORE price drops than the 360, an has been out less time, but nobody seems to think Sony dropping the price was bad. I think the 360 has held its price way to long but if it was selling why drop it. unless its needed!!

[gumgum99]

It kinda is. I just happen to be at Best Buy today and theres enough 360s to make a great wall of china

they really aren't selling as well as they used to

[solidt12]

I am all for a 360 price drop because that puts pressure on Sony to drop there price so I can buy a second PS3. lol :)

[DJ]

Sony's price cuts have been Appreciated by consumers, not hated on. Gnothe is simply an odd exception.

And technically they've only had two price cuts: the 60GB dropped $100, and the 80GB did as well. 360's technically had three price cuts: Arcade dropped $30, and Premium dropped by $50, and the Elite dropped by $50. But that's mainly because they had more SKUs out at the same time.

It'd be great if Sony could drop prices drastically during the holiday season again, i.e. by $100.

[Xbox is the BEST]

level. Most people willing to spend $349-$449 on a system already bought it. Plus it has been on the market for almost 3 years without a real price drop.

[PimpHandHappy]

lol

if they made it 200 bucks i would agree with ya because thats about what its worth IMO

Just wait till the Holidays to really see who is where

[Silogon]

I say 3 to 1 this year on xbox 360's in America. Wait and see.

As for Junken this has nothing to do with Nintendo, why bring them into this? Who cares if nintendo's toy is outselling the xbox 360? More over, if it is outselling the 360, it is crippling the ps3, spunk worm.

[juuken]

Looool, what the hell is a spunk worm?

Nintendo does play a big part in this console war because they're outselling both the PS3 and the 360. But they're starting to stumble, especially due to the Wii Fit so that will leave Sony and Microsoft fighting for first place in no time.

That's why I mentioned them *SILLYgon*.

[Thoas]

The reason juuken brought it up is because the Xbox 360 had year head start over PS3 and Wii. The Wii is killing the Xbox 360 in worldwide sales even though Xbox 360 had a year head start. Shame on you Silogon for not knowing facts.

[kazuma]

yes yes sillygon, we all know the nintendo is a toy and whatever u say, still it placed nintendo in number 1 or 2 in the console business, right alongside sony. do you know where microsoft still is at? 3rd

[gumgum99]

its funny how they arent doing $100 price drops.

that is, if they really want to make a knockout punch to sony

[QueefyB]

whoops silogon is out of bubbles time to edit the posts lol microsoft had to cut the price because walmart are discounting ovens so they had to retaliate

[juuken]

...xDDD

[Aclay]

I still feel that Microsoft's price drop on the 360 right now still seems like a move of desperation because they know that Sony has been gaining momentuem lately with PS3 sales due to MGS4. I wonder why Microsoft just didn't wait until the holiday season around the launch of Gears 2 in November to drop the price because in my opinion, that would have been a better time for a price drop.

But honestly a $50 dollar price drop isn't much at all. I think that anyone that could afford to buy a 20GB 360 at $299 could have afforded to buy one at $349.

[gogators]

the 360 over priced. It's over priced at 349 and still over priced at 299. The pro 360 should be approaching the low 200's by now considering how long it's been available.

[NegativeCreep427]

Sillygon is out of bubbles. There is a God, and he hates annoying little bots as well...

[25]

they need to make the price drop bigger than that because it still is an unreliable system. they said the newer 360s wouldn't have the same problem as the older ones, but there was a story where the elites were having the same red rings problem.

[GiantEnemyCrab]

And that story was proven to be a hoax.

Think whatever you want but for someone who owns 2 360's(one is launch unit and 1 is the latest Falcon mobo)and both work great and have seen hours and hours of gaming I am not going to call that unreliable.

I'm not going to say RROD doesn't exist but I feel confident in the Falcons fixing the issue. Of course, some will fail since the RROD can mean any type of hardware failure and nothing is perfect but I think they are much more reliable than the early launch systems.

[25]

well, my first xbox screwed up on my when i downloaded the shivering isles pack for oblivion, now the replacement that was sent is having disk tray issues. i can't send it back anymore b/c its not covered. so if this one breaks i won't be buying another. well, not until microsoft gets its act together. or like i said, make a huge price cut.

[25]

you mean people are satisfied with a 33% fail rate? man, that is some loyalty!

[QueefyB]

hey guys i just saw a discovery channel special and they were talking about the bot species and they said they prefer hot climates and unreliable hardware did you happen to see it if so did you tivo it because i think if sony showed the video tape at e3 then microsoft would have to go into hiding

[Tunerboy8732]

I bought mine back in march this year for $350 and I feel that is a solid price for everything you get.If you bought everything seperate it would cost alot more but $300 just seems too low in my opinion.

[DJ]

You could either get a Wii for $249, or get a much more powerful console with a superior gaming library for $279. The problem is that Microsoft's console can't keep up with the PS3's software momentum and superior specs, so they're trying to replace Nintendo's position. What they should do is accept the fact that Xbox 360 is a console for hardcore gamers who want exciting/violent games with a strong online component. They need to cater to THAT audience and allow people who are warry/unfamiliar with the Xbox brand to decide whether they want to be part of that unique gaming community.

Somebody needs to smack some sense into the MS Entertainment Division and tell them "Don't be afraid of being yourself." Gears of War and Halo are great icons, and they need more like them. Also, they need more advertising, straight up. Remember these ultra badass commercials? THIS is what they need to start putting out again:

http://youtube.com/watch?v=...
http://youtube.com/watch?v=...

[gnothe1]

you said Microsoft's console can't keep up with the PS3's software momentum and superior specs,

software momentum, ok we've had MGS4 release which i love but what else. both systems got big games coming out, so what sony games are you expecting to light up the charts this year.

superior SPECS. you never been more right, that's ALL the PS3 have is superior specs because looking at actual game performance the 360 wins hands down an easy.

then you say the 360 caters to the hard core, well last time I looked at both my consoles library the 360 have a bigger variety of games,has more RPG's, more action,more racers, an a bigger selection of arcade pick up an play games,so where does that put the PS3.

[DJ]

It's a style. Just compare Blue Dragon to something like Fable 2, and you'll see what I mean. And don't even try the old "Specs don't equal performance" rant. We've played Uncharted and MGS4, and the proof is undeniable.

And of course Xbox 360 has more games in Genre A, Genre B, etc. It's been out an entire year longer than the PS3 (in NA and Japan) and 16 months longer in Europe. If they had the same amount of games, that would be incredible. But that's the past, and it's important to stay within the current year. For 2008, PS3 wins in software lineup. Hands down. There's a reason PS3 has been outselling 360 all year round, and it ain't because of the Playstation Store revamp.

[GiantEnemyCrab]

LOL! Love the fishheads here trying to spin this as some negative. The system that has the best games is now going to be more affordable! How dare MS!

[meepmoopmeep]

the 'best games' and 'lower price' sure didn't help in EU and JPN

[kazuma]

XD

[BLUR111]

The console war is so amazing dude yea way to go N4G. keep the fanboy news a comin. yeaaahh ps triple G!

[meepmoopmeep]

well, maybe this will help in N.A.
it sure didn't in EU or JPN

even with the BEST GAMEZ EVAR

[thenickel]

Here we go with another day of insecure people bashing there rival console and complaining like little annoying children. If you don't think this price drop means anything then just get out of the 360 threads and go focus on whatever it is your actually intending on going to buy or sticking with. This site has become an hilarious freak show with people having nothing better to do then poke at others out of no respect. You can't even take one post serious which is ashame because the people with something to say thats relevant to the story can't even be heard. Disagree all you want and whine back but you guys are truly pathetic.

[Bladestar]

"ever-increasing momentum of the PS3" ahhhhhhh ahahaha! what are you talking about... sells of the PS3 sunk like the titanic 1 week after metal gear... hell even VGChartz which usually put the PS3 winning though NPD says otherwise drop the PS3 like there is no tomorrow... damn you sony hermaphrodites (and leg humpers) get 1 game (metal gear) for them to believe that it's all over for the xbox 360 the PS3 won the console war.. haha! even in the US when the xbox 360 leads the xbox 360 by 6,000,000+....

Do you know what's going to happen to the PS3 after this price drops and the E3 announcements? PS3 will drop in sells by 30%.. xbox 360 will sell 2-3 times more... sony will have to desperately drop the price of the PS3 for a 3rd time... announce some games that will not be out for another 3-4 years... in order to sell some consoles... release another GT demo to counter Forza 3... Sony's stocks will drop another 15% since it will be obvious that if the PS3 plans to complete this gen they have to forget making a profit of the PS3...

You say, "There are other countries out side of america?" uhh.. do you know that there are other planets in the universe.. so why don't you grab your little rocket (powered by the cell and blu-ray) and move to one of them... the same way many of you don't care about how well the xbox 360 is doing in america... I can care less about how bad the xbox 360 is doing in Iran, germany or japan... how does that affect me? the games I play sometimes are not even released in many of those countries... take a look at Europe.. you always get the games late... and games sometimes are not even release in your region... big example.. Germany... ohh wow.. the PS3 is winning in germany... and the xbox 360 is losing.. yeah?... why do I care.. most developers wont even publish their games in that region.. not even translate it...
The US represents the biggest larger region in the game industry... 1 language, 1 country rule.. not to mention the UK, Canada, and other english speaking countries where the xbox 360 has a larger installbase than the PS3... which guarantees western like games by defaults... how about JRPGs .... ohh I am not worry about that... microsoft don't mind b!tch slapping with pocket change so japanese developer can support the console... isn't this the reason why the xbox 360 have a lot more jRPG games released and a lot more in the oven?

[NegativeCreep427]

All of Sony's E3 announcements and updates will only further the consumer interest in the PS3 and the fall line-up/ early 2009 schedule will continue to carry that momentum in sales volume that has been going forward since the first quarter of 2008. Sales for the individual MGS4 bundle dipped a little after the initial week and a half but sales of regular 40 gb PS3 models have still maintain very respectible levels. Bladstar start to think outside of that little individual portion of info that you decide to only focus on.

"I can care less about how bad the xbox 360 is doing in Iran, germany or japan... how does that affect me?"

If that is how you feel, than why the hell do you feel so emotionally attached to anything MS does and so negatively-inclined to anything Sony does? MS butt buddies like you can be so hypocritical.

[The Goulet]

The PS3 follows more of the path of European sales in Canada. IE it sells more then the 360 for the most part. Just because the 360 sells more in North America doesn't mean it's selling more then the PS3 in Canada....just to clarify.

Goulet

[juuken]

...Wow...a sad attempt at a college thesis. xD

[Solid_Snake666]

desperate price cut isnt going to make a diffrence bot and xbox was holding by a thread in US cuz any where else its extinct..the only way it will outsell ps3 is if the xbox is free and thats no guarantee win

[ElementX]

Prices come down. It's been three years since launch. I don't think it's desperate. It's like buying anything else years after release. The price goes down. Look at Bluray players. They're coming down. Is that desperate also?

[PimpDaddy]

It's only desperation in the eyes of the PS3 fanatics on this site. In the eyes of 360 owners it's justified after the 360 has been on the market for 2 1/2 years. I mean Microsoft waited 1 1/2 years to drop the price the first time.

I think Microsoft they has to drop the price because the US market is saturated. Most hardcore gamers that want a 360 have one. Now it's time to get the other 90% of consumers who are casual gamers to pay attention to the 360. There is no better way to appeal to the casual consumer than price. Cost always determines value to that demographic. They arent going to think about additional costs down the road either. Such as additional controllers, Live, games, and other accessories. That price tag is what is going to make them buy.

I don't think $50.00 is enough of a price drop though. Only time will tell...

[QueefyB]

wow did you see bladestar wrote an entire movie script up there

[NegativeCreep427]

Hey, thats what happens when you got nothing better to do then defend and mentally fornicate with some billion-dollar corporation that couldn't give two squirts of piss if you liked them or not, as long as you are throwing you're disposible income their way.

[Solid_Snake666]

a whole movie script

[cmrbe]

To compete offcourse

[Big Jim]

This price cut WILL boost sales in the US. Sony needs to take this price cut seriously because its starting to look like the 360 will be dominant in the US, and lets face it, the US is the world's biggest economy. The PS3 needs a price cut of it's own.

[karlostomy]

In the ps3's coffin.

A 360 price drop will force a ps3 pricedrop, as the sales balance will likely shift in the 360 favour once again.

Then after the pricedrop, the ps3 will continue to make losses, (probably exceeding $4 billion in total by the end of this year.)
It is already at $3.3 billion so far.
http://www.n4g.com/industry...
and is making continually catastrophic losses every minute of every day, with every console sold:
http://www.ps3fanboy.com/20...

My arguments are logical and backed by facts and links...

*How long will it take for the SDF to come crying and desperately attack me personally, just because my debate is not to their liking?*

[juuken]

...Aren't you getting tired of getting owned?

And look...you got owned again.
karl, once again if you're going to use evidence, then use it wisely.

*reads article Maverick points out*

Yep, 360 is screwed.

edit: Woooow karl, you're talking about MY posts? What about yours? Um...let's see...you fail to acknowledge that the PS3 is STILL outselling the 360 despite being a little too expensive still, and you're using links to back up your claims without acknowledging the fact that the 360 is pretty much screwed.

Unless that price drop is $100.00 dumbass, it's not going to faze either Sony or Nintendo. Microsoft is getting desperate because their sales are slowing down and the only territory they could hold on to is...*gasp* America!

Just because you're studying Finance, doesn't mean you're remotely intelligent to begin with. For a guy to insult someone he doesn't even know over the internet, I truly feel sorry for you indeed. It must make you feel like the bigger man when you insult people over the internet! Oh woooow, did that manhood grow a couple of inches? Did you get a turn on by insulting me?

Your insults don't work karl. I didn't shed a tear.

You're a f*cking jackass and a disgrace to XBox owners. While there's a few decent 360 owners out there, you are the lowest of the low.

And...I don't think I need the meds. I think you do...considering that you're glorifying a mass murderer! The Jews would be so proud of you for that!

[NegativeCreep427]

Well according to a recent stakeholder's article that was written in Business Weekly, Sony will only experience an equal amount of losses up until the end of the third quarter of this year, which is the end of September. The increasing sales volume the PS3 will no doubt experience this fall because of the greater software library that will debut this fall will cause further increasing sales numbers, which will start to push the PS3 into the black zone (which means Sony will start to make a return on the PS3, by the end of this year.

Corporate costs on new products are only expected to go on for about two years after the product debuted, and the PS3 has been on the market for a little more than a year and a half now, so in accordance with cost regression methods and better production/manufacturing efficiency as well as outsourcement Sony will not experience losses for as long as you think. You're argument about "the ps3 will continue to make losses" is very short-viewed.

Are you a major in Business and Accounting like me? I didn't think so. So my opinion on this is based more in the principles and rudiments that exist within the corporate frame-work.

[-Maverick-]

I'm sorry. You're dreaming.

I say read this and its current:

http://www.gamesindustry.bi...

Xbox 360 is going to lose BADLY. PS3 is just still expsensive. I LOL @ ANYONE who doubts the Playstation brand. Like it or not, it's just THAT popular...that it can still be outselling the 3fixme by 200,000 a month while be a 400/500$ console. THINK ABOUT THAT. That's EXPENSIVE. When PS3 hits 250$ and even 300$. It's going to be funny. XBox 360 won't even be remotely competitive and this website will be boring because Xbox 360 will be as dead as analysts are predicting it's going to be. PS3 is one year and a half old and as expenisve as the 3fixme was a its launch. lollolololol and winning by very healthy margins, worldwide every month.

Xbox 360 is DOOMED. Period.

[-Maverick-]

But it depends on what you think doomed means.

Will the 360 make it to 40 million... maybe. Not much farther than that thouhg. Where's the momentum????????????// Why aren't people scooping up the PS2-esque Arcade version's?? PS2 didn't have a harddrive!! That was microsft whole theroy with the 3fixme. Try to be Sony and the PS2. They FAILED. PS3 is going to be selling JUST LIKE the PS2 in not too long. Sony is just making people want the PS3 that much more becuase almost no one can buy it right now being 400$...at its cheapest.

3fixme gonna get destroyed. I LOL @ the HD DVDRRODbox.

[karlostomy]

@Juuken
... baby... are you off the meds again?
Could you try to post intelligent responses to my posts in future? It seems you are just finishing college, yet 98% of your posts are those of a little 12 year old.
What gives, princess?
Are you angry and chucking a tantrum again?
Is the Diet not working? ... Just keep at it. I believe in you Juuken, even if you don't yourself.

@ negative creep.. thanks for an intelligent reply. As a matter of fact I am studying Finance at University... so yeh accounting, statistics, mathematics, economics, econometrics etc.
I guess i am well placed to analyse business.

Nevertheless, your general comments ring true. All manufacturing operations DO cost reduce over time.
You didnt acknowledge, however, that I stated the PS3 will need to DROP its price (in time) thereby negating any cost reduction in the process.

It would seem that the losses will continue for this year at least. Then they will stabilise until the next ps3 price drop.
I see it like this for PS3:
2008: More losses
2009: Breakeven, small profit. (This is Sony's stated objective)
2010: Pricedrop. remain at breakeven, small profit
2011: medium profits
2012: larger Profits

That means, the ps3 will only start to recoup its losses by 2011/12.
Just in time for the release of the PS4?

For this year, I am predicting that we will see the "PS3 $4 billion loss headline" soon.

Will you guys send me a congratulatory PM when it happens?

If it DOESN'T happen, I will send you one. fair?

[-Maverick-]

FLOPbox 360 is so Doomed.

[cmrbe]

You seem to forget about PS2 and PSP as well as blu ray which the PS3 helped win the format war. Don't be one dimensional. Think about Bravia's that will sell because of increase Blu-ray uptake etc. PS3 is extremely important to Sony as a company.

[karlostomy]

I love the reaction I get from posting a few simple truths and facts.

Guys, in the end the PS3 WILL lose $4 billion dollars for SONY by dec 2008. None of your desperation will change SOny's woeful predicament

Get those congratulatory PM's ready

[kazuma]

so, even though the ps3 has been outselling the 360 while being more expensive, that many losses u say? cause you see, sony has a lot more exclusives by the end of the year than microsoft does.

[Spydr07]

Yup, I'm sure it's out of desperation. I'm sure the bigwigs at MS were like, "OMG! We need to make a move fast or else we'll go bankrupt! We HAVE to reduce the price in order to compete." They are doing it to sell more consoles. I'm sure they have nicely paid people who track their figures and the economy in order to make these decisions. Call me crazy, but I'd guess their number one goal is to make a hefty profit off their system...everything else is just a plus.

Off-topic, I downloaded FW 2.41 and my console froze exiting a chat room. What did Sony fix with this again?

[cmrbe]

compareing this price drop to Sony's. Remember that its not the same situation. Sony dropped the price of the PS3 because it was 200 dollars more than the nearest competitior which saw their sales lackig behind competition. MS on the other hand already has a price advantage but they are dropping the price to be able to compete with the PS3 because they have been selling less and less for the last couple of months compare to competition. MS needs this price drop to stimulate their console sales. For their sake i hope it works out better than the Europe drop which saw minimum impact there.

If this price drop dosen't push the x360 hardware pass the PS3 for the months ahead then its safe to assume that the x360 is done with in this console race and MS needs to come out with their new console soon. MS strategy from now on is to appeal to the casual/mainstream crowd with the newton controller and casual friendly price tag. Only time will tell if their gamble will pay off. If it does MS will be in a good position for the next round. If not they will limp into next gen in very bad shape.

[Says you]

So technically that wasn't desperation they were doing what the people wanted them to do that unless a lot of people forgot about that?.

[Bzone24]

lol. That is some funny stuff. I really hope you are joking.

[Bzone24]

After the pm from you I guess you weren't joking. Pretty sad. That is the lamest explaination I've ever read in my life. Would've been so much better if you were joking.

[Silent]

Ill buy it when it hits $249/$199 at the end of the year. Yes I said it 1st.

[tojfs7931]

PM
Track
Ignore1.3 -
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.

You actually still played Lost Odyssey after the first disc?

[ApocalypseShadow]

they already lost it to nintendo.some might say"nintendo is beating sony too."

but the point is nintendo has caught and beat microsoft in half the time.that's just shameful.when microsoft now has to talk about other useless numbers to feel better about the 360 brand,that's just sad.

what's the attachment rates hardcore fans?do we care?NOPE.

second,sony outsold microsoft with all their big guns:mass effect,bioshock,forza2 and the overhyped,more money spent on advertising than making the game halo3 in 2007.and we can see worldwide that 360 is losing steam now that ps3 is on the market.

but we told you 360 fans before ps3 launch that 360 was going to get passed up.you guys knew it.you just didn't want to accept it.

no one wanted the gimped,been on the market for 3 years core system at $299.and still don't.no casual gamer sees 360 as a system they want over wii.and casuals think ps3 with bluray is a better buy because it's all built in.360 is pretty much the middle child that's ignored by parents.

microsoft has no choice but to be desperate.they still haven't outsold the original xbox yet.but it's supposed to be a better system than xbox with more third party support.it should have outsold the first a long time ago.......wait!i forgot.......RROD.

oh well.unless microsoft pulls more desperate moves besides dropping the price and catching the mass market's eye,360 will end up just like hd-dvd did......

something you add to the pile of old electronics that COULD have been a hit.

apocalypse..........

[Citizen Cook]

To prepare the way for the 360 Slimline!

In stores this christmas!

[hazardman]

who the hell cares about what system is selling more...what i want to know..is the price cut for the Pro model only or all skus??..can someone please let me know..thanx..

[FPS nut]

What gets me about this site is, if it were Sony cutting price "it's a good thing" but when it's Microsoft "it's desperation". Two price drops in three years vs two price drops in one. I tell you what is desperation, fans that are in denial that this isn't a serious threat to their console. Come Sunday the 360 will have the most appealing price to new shoppers. When people here in the US get their Sunday paper, they will see in big bold letters "PRICE DROP FOR THE 360" and it's time to go shopping.

[hazardman]

what MS needs to do is discontinue the arcade sku..bring the Pro model down to $279 and the elite to $349..that to me makes more sense..what do ya'll think..

[Grim]

Anyone that thinks it's desperate clearly doesn't understand any form of business at all! Obviously MS has lost momentum with 360 sales lately, so dropping the price is the right business decision to make, simple! Way too many kiddies on N4G!!!

[Grown Folks Talk]

Microsoft is the 1st to ever do it because they are scared. Cracks me up that people still don't realize that the goal was to decrease Sony's marketshare this gen, not take it over completely. Too much name recognition & brand loyalty to overcome. Close the gap, & then use their next console to try (key word try) to possibly take the forefront.

[FPS nut]

No, others just drop it twice in it's first year.

[Grim]

Why do you say that no other system has ever had periodic price drops? All consoles from as far back as the NES have come down in price over their life cycle. I really can't believe you don't remember this!? Remember when PS1 and Saturn price fought? or PS2 and XBOX? Periodic pirce drop is nothing new in the games industry.

[FPS nut]

"the goal was decrease Sony's marketshare"

120 million install base last round, so far only 13 this round. I think it's safe to assume they have "decreased Sony's marketshare"

[Grown Folks Talk]

The only people who don't know that are 12 years old. "Hey Johnny, what's an Atari?" "That's that company who made that crappy Driver game." "Didn't they have a system out before?" "No, they're a pretty new company. Only been around about 3 years."

[Grim]

Sorry, I misread your post as a serious one. I'm certainly not 12 years old I just got the wrong impression from your comment. There is so much cr@p posted on N4g sometimes people say the craziest things and believe it!

[Grown Folks Talk]

only 12 year olds don't know there are periodic price cuts, not that my post was sarcasm. I wasn't trying to insult you.

[AngryTypingGuy]

The 360 has been at its current price point for awhile. It's naturally time to cut the price. It has sold well at every price point. When sales start to stagnate, it's time to cut the price. What better time than E3 time to cut the price (other than the Christmas season)?

[B-Rein]

M$ is still making money
reason 1 - the parts in the 360 are so cheaply made
reason 2 - They'll be makin alt of monay by makin the users buy expensive accsosories, i had to buy a power brick it cost me £45 abnd had to buy wireless adaptor for £75 (ow cmon ms u are drinin our money) and cus i had harcade i had to buy the hdd for £70. and those parts dont cost that much to produce they are wayyyyyyyy over priced
Reason 3 - XBL, nearly all owners of xbox 360 go online, m$ gets £££££ £

Now my xbox 360 has RROD :( cant do any thin.... i opned it to do coin trick but failed soo after

i think ps3 is worth the price, it has really good hardware inside, bluray built in dont have to buy xtra part all built in and very good features and soo soo musch other thing u can do on it ans online is free (i can go on for a long time XD)

[MIAMIFROST]

Yeah thats a great idea, get rid of the fan , LOL !!!!

"At some point, these improvements will give Microsoft the ability to get rid of a fan or reduce the size of the unsightly power brick..."

[DFresh]

It's to compete with the PS3.
MS knows now they can't beat the PS3 now when it comes to making exclusive games so they are competing the only way they know how by lowering the price.
It's all about the games in the end and from here on out Sony's PS3 has the best ones.
If they lower the Arcade by $50 that would make me want to buy that game.
Arcade: $280-$50 = $230
Pro: $300-$50 = $250
Premium: $350-$50 = $300
Elite: $450-$50 = $400

Compared to if the PS3 we're to drop the price on the PS3.
40GB: $400-$50= $350
80GB: $500-$50 = $450

[PSWe60]

Crappy game line up, crappy hardware and idiot fanboys, this price cut could help the 3rd60 cement it's position in 3rd place.

Congrats PUTO Bots, when your 3rd60 bricks AGAIN, you can get another sh!tty 3rd60 for even cheaper!

JUMP OUT, M$' penis up my a$$ doesn't hurt

[CAPT IRISH]

why not?

[Bill Gates]

Fear makes BABOONS do crazy things.....AHAHAHHAHAHAHA

[Bill Gates]

Fear makes the BABOONS do crazy things.......AHAHHAHAHHAHA

In a Homer Simpson voice *Douhh!

[kewlkat007]

didn't it take to longest for them to even give the price-cut looking at console history? they beat the PS2 by a couple of months or something.

I think with the way the

Economy
Gas Prices
Housing Mortgage Debaucle
Sky rocketing rent
Price of Food
Deep Recession looming

are, I think it's good time to take a look at that price. Plus plenty got those Economy Stimulus checks and still have not used them. This holiday season will be very important for the US Economy. It will need all the help it can get.

I hope nobody is complaining about price-cuts..Only Nintendo is safe for like 5 years with their price.

[Nevers]

They're marking the 360 with 20gig HDD's down cuz they're gonna be wanting to re-stock the shelves with the rumoured (and appropriate) 60gig HDD SKU... the 20gig HDD was inadequate once you really started using XBL even moderately...

[heroman711]

so no arcade price drop?

[Hoggy1983]

A completely basic understanding of price points would bring with it the realisation that the 360 has fulfilled its potential at the current price and wants to now make it more accessible to other bands of disposable income. The PS3 is still attracting those willing pay a higher fee but will soon adopt a similar strategy. As has every games console since the dawn of time!! Hardly desperation :)

[jlemdon]

Some of those guys sound stupid to say they don't need an HDMI port that's like saying I'm good with my 480P CRT instead of an 1080P LCD!!!!!

[HueyNewton2008]

RROD=Price drop, its that simple. Ask gamestop what they will give you for a used 360 lol. 120.00 lol ahhhh but its 400.00 brand new. Thats due to sh!tty hardware and RROD PERIOD.

[MIAMIFROST]

I had a freind go into gamestop the other day and they only offered him $60 to trade in his XBOX360.

[Monty_The_Great]

that this price drop will spur sales with the 360. But I predict that when it gets close to the release of GeOW2, that MSFT will drop the price by $50. Because that will cause another big spike in sales to, plus I figure that Sony will be dropping the price of the PS3 around that time also.

[Grown Folks Talk]

phase the arcade out completely. Put the 20gig at $250. The ones that don't want all of the frills will still pick it up at the Wii price point. Bring the 60gig in at the current $350 price point. Drop the 20gig hd to $40, the 120gig hd to $130, & the Elite to $400.

[NanoGeekTech]

Everyone wins...MS cuts there price..Sony cuts their price and release a barrage of AAA titles....and then there is the Wii..

So anyone that was on the fence to jump into the next generation of gaming.. its gets easier every month to own both if not all three systems..

I paid full price for my 360 and I paid a little premium for my PS3 would not bother with a Wii... yet waiting for that to drop in price it's not worth $250.00 plus tax, plus extra controller, plus game or two.

[power of_RED]

More ppl to get the red ring of death!

[Funky Town_TX]

I hope Sony will do the same. This should be great news for those wanting a PS3 like me. Competiion is for the good of the consumer.

[air1]

lmfao.. so you're saying that since the ps3 was 200 dollars more it wasnt a desperate move to cut the price twice in the same year? that didn't seem desperate to you? when it couldnt break 100,000 in sales. sony knew how much the 360 was going for before the ps3 came out it wasnt a suprise to sony.. i guess sony and micro should drop out the race since they cant keep up with the wii then. man, you ppl are to quick to call out r.i.p.

you sony fanatics seem to forget that here in the u.s you are the minority and it's gana take allot more then 20 or 30 thousand more units sold then micro month to month to change that. if micro was selling like sony was when it came out in the u.s then micro would have a problem but its not it's still keeping up with the super crazy powerfull ps3.

a price drop is only gana make it that much harder for the ps3 in the u.s. i think micro is gana win the u.s market not world sales but micro is chopping away at the sony giant. lets not forget micro is still the new kid on the block and it's doing a good job at fighting sony that has had 3 consoles in the market.

[Avto]

They are cutting the price out of kindness of heart.