The Real Reason Behind the 360 Price Drop

The recent announcement of a U.S. price drop for the Xbox 360 has set off shockwaves through the tubes of the internet. Blogs and forums have been buzzing with half-cracked theories of why Microsoft decided to lower the prices of the Arcade, Pro, and Elite 360 units. Most of the wild speculation was centered on the ongoing console "war" between the 360 and the PS3. Fanboys are screaming "Microsoft is scared shitless" to "They are getting desperate!" or the succinctly put "PS3 pwns!" Before I drop a logic bomb on fanboys' heads, lets get the facts straight. Here are the numbers:

New price points
360 Arcade: $199
60GB 360 Pro:$299
120GB Elite: $399

That's right kids, the Xbox 360 has officially become the lowest priced current generation video game system effectively undercutting the Nintendo Wii by 50 bones. You say, "That doesn't matter because we all know that the 360 and the PS3 aren't competing with the Wii." Really? The fact is that these new price drops have little to do with competing with the PS3 and everything to do with taking a slice of the Wii's pie this Christmas season.

[tocrazed4you]

Shockwaves are they talking about? I think we knew about the price drops weeks prior to the announcement...

[sonarus]

The optimism for the 360 and its recent price cut is very amusing. Double sales from first week doesn't even get it anywhere near wii sales.

[HighDefinition]

The price drop is because the ARCADE unit is the best thing you can EVER buy, EVER. It makes NO differnce to game makers and LBP is just another game.

Sweet, know I feel better.

[RememberThe357]

I don't care what people say, the arcade is a rip off. You might as well get the pro, thats were the value lays.

[ReBurn]

I think that it's fair to say that the $199 model isn't really aimed at anyone who is reading this site. Parents and grandparents are who this thing is aimed at, because like the article says, when there are no Wii's this is going to be a lower-cost alternative. There are going to be lots of crumbs falling off of Nintendo's table due to their shortages, so why not capitalize on that?

To be honest I've thought of buying one of these to put on another TV in the house. Why not? It sure would relieve the traffic to my main TV to play games. I wouldn't need to store music or movies on it. That console wouldn't need to go online. It wouldn't be playing old Xbox games. So, with all of that in mind, why isn't a $199 Xbox 360 a decent deal?

I'm curious to see how the new prices do this year. I doubt we see any impact to the Elite version at $399. When you stack its features up against the PS3 I think it falls short. The $299 Pro isn't all that great of a deal for a 3 year old console, IMO. I'm not sure there's enough in the box to justify $100 difference between Arcade and Pro. You get a hard drive and an HD cable. You lose the arcade games and the memory card. That's a toss-up to me. I think a better price structure would have been $199-$279-$349.

[Why o why]

more good comments. sweet.

[AAACE5]

The shockwaves he meant were the negative comments made by sony fans. You had to have heard them on here... "MS are Desperate!", "360 is failing bad!", "Sony's killing the 360!"

Like I said a short time ago, they probably made the price cuts to cut into nintendo's market! MS and Sony aren't directly competing with Nintendo, but nintendo has been taking alot of their sales. A large majority of Wii owners are the same people who bought a Ps2 last gen, but chose to purchase the Wii for the cheaper price because they don't play many games!

So now that MS has figured it out... I hope Sony figures it out and drop the price! Yes I know the Ps3 has all the power and the price is justified, but people like to buy stuff for cheap prices.

[himdeel]

...then they better lower the 360 to $99. That's the only way I could see them seriously cutting into a slice of the Wii sales.

I don't get the Wii sales because I'm not interested in that system but they are massive. The Wii is the wooley mammoth in terms of sales. The 360 is the human that has just realized they can use sharper stones instead of smooth ones and are going after the mammoth via this price cut.

[Beast_Master]

If you are a parent then why would you buy a 360 for your kid no matter the price? It has almost no games for kids, viva pinata, lips and scene it? You could make the same case for PS3, except they at least have R&C and LBP. I am not saying that parents will not pick up the 360 because of the price point but don't think that the Wii is out selling the 360 because of its price either. The Wii is selling so well because almost all of its games are kid friendly.

[hazeblaze]

I agree with the article. However, this still comes off like desperation from Microsoft considering that they've been outsold by BOTH the Wii and PS3 all year. It does put Sony in an interesting position though... if 360 sales really double, I wonder will Sony still stick to their guns about not dropping the price this year. If they were able to knock an extra $100 off the price of their skus, it would probably kill Microsoft's momentum for the rest of this gen.

[Kleptic]

Sonarus...totally agree...MS has long faced the fact that they are only competing with Sony...not by choice...but because Nintendo is running away with it...

and there are simply too many intangibles going into that...MS doesn't have a 'family' brand image...and that is what has caused the Wii to explode...the Wii is selling to people that will buy it as a toy for wii sports or wii fit for a few months, then throw it in a closet till the grand kids come over...Sony and MS have NO chance of appealing to the same market...

people have been saying it for years...its not JUST price...the 360 can be the cheapest machine on the market, but it will never sell like a Wii...the PS3 arguably the same, although they do have a global brand image that could allow the thing to sky rocket as well (after all there hasn't been a Playstation console that hasn't done that)...like or not, MS has not built that kind of brand for the Xbox...it easily appeals to the smallest market of all 3 systems...

the wii could be $100, and I wouldn't buy one...there are plenty of people out there that would say the same thing about the 360 and PS3...

[Saint Sony]

Yes, MS is far from Wii sale numbers, but they are after at least a slice of Wii's pie. Please do read it right. Double sales for PS3 would not take them anywhere near Wii either, but I'm pretty sure Sony would love that anyhow.

Sony on the other hand is making a mistake by ignoring Wii.
People do play games. Not everyone wants their console for curing cancer, this of course is a good thing, cancer is evil and needs to be cured for good, but this is about console gaming mostly.

Nintendo has done something right with the Wii. They make loads and loads of money with a machine that is not considered next gen. Would be stupid to ignore it.

[Megatron08]

I agree with Reburn's very well thought out comments. I have a friend (actually 2 of them) that is actually thinking of getting a 2nd 360 now that the price dropped. He and his wife love to play games but he never wants to let her play the 360 cause he's playing it so now he can get a 2nd one fairly cheap and they can even play together.

Well I do agree the pro is kind of high priced after 3 years but when you compare it to the ps3 I think its still a good deal. They add HDMI concention and up the HDD to 60gb and it ready to play HD games and online right out of the box (noted you a gold account after the trail expires). The ps3 you still need HD cables and a head set (but they do have free online) the hdd is only 40gb and it coast 100 dollars more. So when you compare the 2 the 360 pro suddenly looks much better imo.

[madmike]

thats why you jump on every xbox360 news you are a bunch of sad mother f.ckers the xbox 360 will be in 2nd place and will beat your ass you wont get out of third place you sad fu,kers

[rCrysis]

sony MUST price drop to compete seriously this Christmas.

[Adamalicious]

I think it would make a lot of sense for Sony to get the PS3 to $299 for this holiday.

[sonarus]

It would make a lot of sense but won't happen. The losses from the PS3 has hurt sony and sony is at a point now where they are ahead of the 360 so they aren't feeling the pressure to drop price. There will most likely be price drops next yr though but no price drop this yr. Unless offcourse PS3 sales drop drastically.

As long as the sales don't go below where they are at now, sony won't touch that price

[el_bandito]

agreed, sonarus. There's no need for a price drop especially now the PS3's picking up in terms of sales. PS3's on a roll right now. We never know when the momentum its on right now will abate or cease; and before it actually happens, Sony should've already done these cuts.

[NipGrip]

Sony has what you call a "lineup of games that are innovative" and not just rehashes with enemy grabbing abilities. Also, Bluray is a huge draw seeing it's the only HD option for movies and HDTV's will be sold en masse. No retail person would suggest the 360 over the PS3 to an intelligent consumer and the price is just right for the features you get. Consumers know this.

[Guwapo77]

I'm going to disagree w/o selecting disagree. I believe we will see another price reduction on the PS3 for either the day after Thanksgiving (50-100 one day sales) or for X-mas (50-100 permanent reduction).

[himdeel]

...offer a mail in rebate for the purchase of one of the Platinum Games or additional controller when you buy a new system or a voucher for $25 of PSN content.

The Platinum games are good games and are great spring board towards the purchase other titles. Likewise the $25 PSN voucher would encourage people to get online and see all the good things PSN has to offer like the game content and video.

[mfwahwah]

I think Sony isn't concerned with this console war at the moment. They are a company that needs to make a profit. They can go and counter everything MS and Nintendo do, every time, but that would yield them with a bankrupt gaming division.

Right now, I believe that Sony's plan is to just do their own thing, and put their competition in second on their priority list. They need a profit now. They can worry about the war later, or in the next gen.

[thewhoopimen]

Why would sony drop ps3 prices to $299? There are barely any bluray players out there that sell under $299 right now. Would make absolutely no sense.

@2.5 I doubt Sony will do a perm pricedrop. Perhaps a temporary discount or rebate for the holidays.

[silverchode]

lol they're trying to make it seem bigger than it is

[RememberThe357]

If sales doubled like they say then thats a pretty big deal. The thing that matters is if the sales stay that way.

[NipGrip]

Has only been reported by a MS email. And while it wouldn't be surprising to see that surge, it's longevity that matters, don't you 360 owners understand that word? Longevity? The ability for something to last? Slumping sales, dying systems, failed HD movie formats, lack of innovation in games and instead milking already shallow gameplay ideas.. Does anything last over there at MS? If it wasn't for hype, why.. They'd have little now wouldn't they? Hype only carries you so far and the fat lady is warming up to sing for Santa.

[RememberThe357]

Excuse me for being a gamer, and trying to enjoy each system. What you said make sense, but the way you said it made you sound like a fanboy, and your not going to get through to anyone that way. Just calm it down.

[mfwahwah]

So what, you expect him to address 360 owners by not calling them 360 owners? I'm a PS3 owner, nothing wrong or "fanboyish" about using that to call someone something.

Anyway, I agree with NipGrip. 360 doesn't seem to last very long with things, except Halo 3.

[DA_SHREDDER]

Its finally down at the price where it needed to be since launch. Ive never seen such an over priced piece in my life.

[3SeXtee]

your momma. :)

[Dyingduck]

Now...

A 200 dollars Oven fits your budget?

lol...

[TheColbertinator]

I hate the Arcade SKU.MMO makers like Blizzard and NCsoft would pay attention to the 360 if hard drives were pre-installed on the 360.Besides,that thing is a rip-off by not including a hard drive,because who plays Live nowadays without an HDD? They should just axed the Arcade SKU and replaced it with the 20GB selling at 200 dollars

[mboojigga]

MMO isn't going to sale a console. Funny how this console regardless of Wii's sales has the most software sold. Give it up about this BS with the arcade. The Wii doesn't come with a hardrive and isn't HD and is doing fine. The Arcade is a better bargin than the Wii. Give it up trying to knock the arcade when it can play every game out there with the option to "UPGRADE" which seems to be lost in some of you fanboys vocab. What is funny to me is how some of you fanboys will defend the PS3 about installs and simply say

"throw money at it and put a bigger hardrive in it"

So the intent to buy a bigger hard drive was for the sizable installs that come on games like recently announced Bioshock instead of purchasing a bigger hardrive for the benefit of DLC, games and movies?

Fuc*ing Joke.

[eagle21]

The funny thing is 360 fanbabies don't get mad over Mass Effect, NG2, etc, etc. having framerate drops and screen tearing while Ninja Gaiden Sigma runs flawless on PS3 at 1080p 60fps (not 30fps....lol)

I guess the arcade is holding YOUR games back. Plus I've heard that the issue will not improve regardless if they give you those "optional" installs...

LMAO. That's the joke. :P

[mboojigga]

The best you could come up with was Ninja Gaiden LOL WOW. I own a PS3 so stop with the you 360 fanboys.

Then you want to bring up about the "optional" installs which is exactly what they are. Okay guess I should be mad because MS is offering it as an option. Thank god I bought the 80 gig a year ago. I would have gotten even the backwards compatibility and hardware features I won't get with the new versions coming out today. Thanks for pointing out about options.

[TheColbertinator]

I don't give a damn about sales or pie charts or any of that business crap.I want a 360 optomized MMO.It would help many fans of the genre come to the 360 if the HDD was readily available.

As for 360 vs. PS3 fanboys,I honestly dont give a damn.I just want my 360 and others peoples 360s to stay strong.An HDD would help.

[meepmoopmeep]

the 360 has been outsold for over a year. MS knows this.
this price cut will help increase the sales.

[sonarus]

lol wow you are smart. Maybe you should be an analyst.

People seem to forget that 360 is the cheapest next gen console in EU and its still selling in last place. When 360 price dropped then everyone was like oh crap. Ps3 owned. They are going to get the casuals, wii better watch their back bla bla. 360 goes for PS3 throat. They got their nice bump and fell back to where they are now. I expect something similar in NA

[meepmoopmeep]

move over Patcher :P

[mboojigga]

Stop with the BS Europe angle. $199 is the mark for US customers to feel comfortable to spend on a system. Learn your history on the console sales. Who gives a da*n about EU.

[sonarus]

Oh ok. $199 is the comfortable mark right lol. Who told you that Msoft? If you ask Nintendo they will tell you $249 is the mark. They are outselling 360 and PS3 together at that price point.

LOL people who fall for that garbage 199 is the magic price point line just make me laugh. So 250 was too much but now that its 200 the price is magical and i want it more. Common use your common sense.

Don't get yourself too excited and start thinking 360 is going to start selling like the wii cus that won't happen. What 360 needs right now is to regenerate consumer interest into their console. There is no magic price point for anything. Consumers will judge what they buy based on the value they expect to get from it. 360 has to make themselves look more valuable.

[RememberThe357]

I do wonder where this 199 number came from. Maybe its history, but this is not last generation at all. I think you right, MS has to make the Xbox more valuable. Sales seem to have been falling all year, and I think this price drop will only slightly raise sales through the holidays. But I guess we'll see soon enough.

[ReBurn]

The $199 magic price is based on history. $199 is when the PlayStation and PS2 really took off because in the past the market research showed that parents weren't willing to pay more than $200 for something that they considered a toy.

If nothing else this generation has showed us that what we believed to be true about console gaming could easily go out of the window. Who would have thought that consoles would sell relatively well at $399, $499 and even $599? That's what crippled Sega Saturn and killed upstarts like 3DO. There is a mass-market price where adoption will take off. I just don't think we understand what it is yet.

[Megatron08]

Reburn makes another good point and if you look at the history of even just sega you can see how the price points effect sales. The Saturn was released at a price point of 399 and while there were other factors involved it was a huge failure. The Dreamcast came in at 199 and was doing insanely well given what it was up against and how well the Saturn sold.In fact Sega confirmed that it made US $98.4 million on combined hardware and software sales with Dreamcast with its launch thats a hell of launch. The dreamcast was actually doin better in sells then the ps1 in the US for a while, it also manage to sell 10.5 million before sega pulled the plug on 2 years after it was released.

[donalbane]

Going back a bit further, the PS3 was being outsold for over a year. It dropped its price to remain competetive. Now it's a ahead of the 360. So when the 360 drops it's price to follow suit, it's just more of the same, and no more indicitive of failure than any of the other price drops that have occured in the history of console sales.

And might I add that the 360 didn't have to trim any features to allow for its reduced price.

Bottom line: Price drops = more gamers. And that's a good thing, regardless of which console you might prefer.

[thewhoopimen]

I would certainly give a damn, if I see the US economy is toileting like it is. I would certainly look toward Europe and Asia for my future market. Right now Europe and Asia combined is > US. Why wouldn't I care?

@4.8 That is exactly I don't think Sony will follow immediate suit. Getting lumped into that price war / statistic is the last thing I would want my company's product associated with.

[Adamalicious]

Sales were waning, they cut the price to stimulate sales. It's not rocket science.

[mboojigga]

Kinda like what Sony has done in the first 2 years of the PS3 and by doing so, taking features away for the price to drop. Like memory card, usb, and backwards compatibility right? 360 is on the 3rd year. Still sells more games than the PS3 and Wii and the spin is the 360 is desperate. LOL

I remember when the PS3 was supposed to do what the Wii is doing today. 2 years later and it is still in 3rd.

Actually it doesn't make me a winner at all. I am not MS or Sony or Nintendo. They are the winners making the money. Which is the whole point. You or anyone can try and argue for them but some of you have yet to understand they don't need you to argue for them. Let the game systems and them do all that work.

[Le-mo]

Software sales don't make you the winner, hardware sales does. The fact that the PS3 has been outselling the 360 for basically this whole year despite the one year head start must have Microsoft really worried. They obviously can't win in Japan and now they've lost Europe, if they lose North America then it's game over for them from here on out.

[meepmoopmeep]

Sony sure did, and look what happened? the PS3 started outselling the 360.
Adamalicious is correct, it's to stimulate more sales.

and who gives a damn about EU and JPN right? lol.

EDIT: yeah, i forgot, the US makes up the entire world.
what the hell are you blabbing on about 1st place, 2nd place, 3rd place?
we're talking about price reductions, noone is going off topic but you.

[mboojigga]

Actually it doesn't make me a winner at all. I am not MS or Sony or Nintendo. They are the winners making the money. Which is the whole point. You or anyone can try and argue for them but some of you have yet to understand they don't need you to argue for them. Let the game systems and them do all that work. Oh by the way regardless that it is outsold the 360 the majority of the year. The PS3 is still 3rd so what is your point. You are only repeating the same thing that has been said since 05.

The thing is some of you love to get off topic and talk about Japan. Guess what Sony isn't anywhere near #1 in the HOMELAND. YOUR ARGUING ABOUT BEING #2 IN THE US AT SOMEPOINT IN TIME IN THE FUTURE. Give it a rest. Who the hell cares about #2 when they are both getting beat by a console that has no hardrive and is only Enhanced Defintion in comparison to both consoles. Some of the stuff you all like to argue about has so laughable in comparision. The Wii is beating both 360 and PS3 yet some of you get on hear daily to argue about what the 360 and PS3 do better against each other and it is all for the #2 position.

What a joke.

[meepmoopmeep]

what does the PS3 being third have to do with anything?
did the price cut on the PS3 stimulate sales? YES.

do you see our point yet?

so... why are YOU arguing for them then?

[Le-mo]

You must be confused, when I said "you" I don't mean you, I meant Nintendo/Microsoft/Sony.

You said it yourself: "You or anyone can try and argue for them but some of you have yet to understand they don't need you to argue for them. Let the game systems and them do all that work."

Why are you trying to defend Microsoft?

[Why o why]

OWNED

3rd place. is that the best you can do in terms of banter. Try this. The 360 will finish last this gen. Look at the WORLDWIDE trend not some fake leaked email, lol. Price cuts increase sales but the 360 has always been cheaper than its direct competitor so was does that say huh? Oh yeah, that direct copetitor has been outselling it for quite a while now.

[ReBurn]

What makes a company a winner is if they come out profitable at the end of the generation, not whether they've sold the most hardware units. What good is it to sell more if you're losing money on them? That's why software sales are so important, because that's the gravy on top. If it weren't important then attach rate wouldn't be tracked.

Typically the profits made on hardware at the end of a generation barely offset the investment made at the beginning of the generation when there's significant loss on every unit sold. Once that economy of scale starts to take effect we see prices drop. Sony made moves to get to a configuration where they could achieve scale faster, that's why we saw so many hardware revisions and price cuts so early. Microsoft was a bit more stubborn, and they were hampered by design issues. I'm just glad to see things start to level out so that gamers can start to take advantage.

[FreedomReign]

Except year over year 360 sales are actually up...
Yes PS3 sales are way higher than last year, but 360 is up, marginally so, but still up.

I won't bore you with the numbers, but check them yourselves. Waining, means to drop, I haven't seen a drop for 360 this year, just slower growth.

[Allowen]

What the article said is that since the Xbox360 is almost "out of ammo" to fight mano a mano with high end graphics against the Ps3 then MS resolved to fight on the other front(Nintendo).
This way by selling more consoles but with a cheaper price can garantee a better cash return by the end of the xbox360 life time instead to JUST keep trying to catch up Sony's video game and have a chance to loose much more.

[SL1M DADDY]

So the article basically states what I have been thinking all along. The PS3 is a console all to itself. Sure the games are similar on the Xbox 360 and PS3 but in feature sets, the PS3 is far more than the 360. In the end, it is what folks want when it comes to watching movies, playing games and making their entertainment center the focal point for all sorts of media entertainment.

The 360 is good for games but int he end, it is what the Wii is, a gaming console and that is pretty much it.

I still say it's best to own them all. That way you don't miss out on any of the great games despite what system they come out for.

[jmare]

Wow. Yet another "state the obvious" article. I will give them credit for pointing out the slightly less obvious, at least as far as fanboys are concerned ( who think it's either PS3 or 360, never the Wii). However, this article is pointless as it relays no usefull information that anyone with a brain couldn't figure out on their own. And yet sadly, the flame wars prove that articles like this are not without use. Epic fail.

[rebirthofcaos]

I am going to give you a vaild reason RROD360 sux plain and simple.

Microshaft know where are they going( a LONNNNNGGGG THIRD PLACE ON THE CONSOLE WARS) where they belong.

[mboojigga]

HMMM and it is year 3 so how long have you been saying that? Not much else to say really. Who gives a da*mn if it was third place? Doesn't affect my enjoyment from my PS3 or 360. The 360 is most played system between my PS3, 360 and PC. Oh snap it is now third in the console War

OOOOHHHHH NOOOOOOOSSSSSS.

[Stickguy259]

Disagree and - bubbles for anyone who uses the word "sux", types in all caps for an extended time, or makes horrible puns (i.e. Microshaft, Painstation 3, RROD360, ect.). Sorry rebirthofchaos, but you lost the argument before it was even begun.

[meepmoopmeep]

this article sounds more like a defensive fanboy rant than a logic bomb.

[ReBurn]

I disagree. That article doesn't rant. I think it pretty clearly explains what the $199 Arcade is really about. We're all fooling ourselves if we think that the Arcade is aimed at the PS3. They want the market that the Nintendo can't satisfy due to the shortages.

[Allowen]

Oh! And Sony does not need to price drop their VG this fiscal year yet before seeing for thenselves what games like R2 and KZ2 can do.
Both Nintendo and Microsoft since they are more time on the market on this gen they are more capable to lower their prices and still win a lot greenies.

I got a PS3 but better graphic games does not make me like it more then I love my Wii and if along a price drop MS makes more great games then I will consider buying a "Box" for me as well.
All that matters is fun game play and good replay and Ps3 still disapoints me on that area.The 12 games I got so far only one I consider real uber game and the rest including MGS4 are just ok to rasoable good games to me nothing special.

[DA_SHREDDER]

Your dvd9 will be obsolete here after the holidays. Also,, Microsoft is gonna have a blast trying to find a format for their next xbox soon because Sony wont let them use blueray in the new machine after Microsoft talked all their crap and tried to take Sony off the market. Its really crazy how Microsoft has no first party studios yet they claim to be the best and most innovative gaming company in the market. I think that Microsoft actually believes what they say. They lie so much that the really do think that they are right.

Also,, I dont think the stock holders are gonna let microsoft continue on this crazy spending spree. I mean, how much more money are they gonna blow on hardware repairs and third party multiplat dlc and timed exclusives? Its not like they are making any money off of this strategy. Oh well, just keep on blowing your money Microsoft. Pretty soon your shareholders are gonna be down your throats demanding some kinda profit, and when you cant, I cant wait to hear about it here on this website.

[mboojigga]

What the Hell are you talking about the stock holders. They obviously allowed them to do the price drop idiot. You don't have a clue what you are talking about.

[cereal_killa]

@mbo

Shareholders are allowing the price to drop because the sale of the 360 is slowing down maybe not in NA but everywhere else just look at Japan for last week 840 units that's pathetic no matter what way you look at it. People who have stock in MS are most likely fuming at what the hell they are doing and why cant they do anything right. RROD was money taken out of shareholders pockets $1.5 billion is allot of money, I know what your going to say why keep bringing it up (RROD) because people unlike you do not forget about that why do you think Japan doesn't sell well it because they don't want unreliable pieces of junk the PS3 isn't selling well either because of price and possibly the amount of games in the library don't appeal to a certain number and they are just waiting for the right game i.e LBP or maybe when FF13 drops and i can tell you that will defiantly sell allot of units in Japan and around the world.

[Gantrfaxx]

It's still to much money for a RROD

[MRMagoo123]

Why oh why do ppl think america is the only place that matters if that where true why bother releasing consoles in other countries.They only did a price drop to spark more sales for there failed system simple as that,you see it all the time supermarkets do it with products that dont sell so they can get rid of it.

[cmrbe]

its grip in NA to Sony, the only place they are doing well. This price cut is MS last ditch effort to stop the PS3's momentum in NA.

[P4KY B]

PS1 market share was massive.
PS2 market share was even bigger.

Yes PS3 sales are increasing but MS has done what it set out to do. It has established itself in the market and taken a very large slice of the cake.
MS is now considered a contender rather than an also ran.

When 360 and PS3 are cheap enough all proper gamers will have both.

[MAGNUM-RAM]

yep. M$ doesn't have money for its gaming division anymore.
xbox360 has had a terrible dry summer. Vista was a failure. M$ is closing the pc
market after halo wars. Rrod, warranty & a whole lot of used traded xboxes at gamestop.
how much do you think a used arcade xbox is? Much cheaper & more reasonable for the garbage.

Shareholders see this & put it together & you can add microsoft into the struggling American economy.
Video gaming is like the only industry not affected by the recession but m$ has found a way to screw it up.
thanks to all its fanboys when I hear xbox live I think $50 dollar a year cross game voice chat & instant messaging.

We all knew it was gonna be like this after mgs4 judgement day. It was that damm good!
Theres only 2 things xbots can do: nothing & like it.

In the end I will be glad the console war is fiscally over. Then you xbots can grow up to be succesful spin doctors for
corporate conglomerates. Just remember to buy out at the peak & don't start believing your own lies.

Ps3 is a product. I stand by it. Nobody knows me no more than they know the chairman of general mills.
keep the name the same.
playstation3 magic

[juuken]

Microsoft is losing to Sony so now they're trying to scramble to first place.

Man, this is really golden.

Microsoft really thinks they're going to beat Nintendo? The Wii isn't a popular system because of price. It's because of the fact Nintendo focused on their own games and won over the casual audience.

Sony doesn't need to drop prices unless Microsoft *really* threatens with that pricecut.

[Sanzee]

Man, where do you read your facts? Even before the price drop happened, the 360 was over five million consoles ahead of the PS3. Your console was gaining momentum, no doubts there. But to say that the PS3 was winning, or ever had been winning in this console war, is a lie.

The PS3 isn't invincible. Neither is the 360 - nor is the Wii. But this is rediculous. You act like lowering a console's price has NEVER been done before in a console war.

Sony, along with EVERYONE else, has lowered their console's prices in past generations. Prices always contribute to a console's sucess. Blu-Ray may be nice, and may be expensive, but America will always go after the best deal.

"Did you know that companies will lower product prices in order to compete with their rivals?"

Apparantly they have been doing this since the Dark Ages. Wow. Who knew?

[juuken]

"Man, where do you read your facts? Even before the price drop happened, the 360 was over five million consoles ahead of the PS3. Your console was gaining momentum, no doubts there. But to say that the PS3 was winning, or ever had been winning in this console war, is a lie."

Where did you get *your* facts? The 360 was *not* over five million consoles ahead of the PS3. It had a five million lead. Sales for the 360 and the PS3 stands at 20.3 million and 15.5 million if I'm not mistaken.

Microsoft *is* losing to Sony because the NPD shows. That is the most important thing for the console war-the NPD. As far as I can tell, the PS3 has been pretty successful as of late.

"The PS3 isn't invincible. Neither is the 360 - nor is the Wii. But this is rediculous. You act like lowering a console's price has NEVER been done before in a console war."

There's nothing wrong with pricecuts. I never implied that so don't even stoop that low. You're sure making the 360 sound immortal because you're saying that Sony fans are desperate. I'm just pointing out the obvious-Microsoft *is* desperate. They're being outsold by the competition! When it comes to sales, the 360 is in *last* place. Does that mean anything to you at all? You have to wonder why Microsoft cut the price twice, because I see a bit of backpedaling there.

"Sony, along with EVERYONE else, has lowered their console's prices in past generations. Prices always contribute to a console's sucess. Blu-Ray may be nice, and may be expensive, but America will always go after the best deal."

Yeah, but they didn't do it so quickly. It took time for the PS2's price to come down, not to mention other consoles as well.

Man, what do you know about Americans? Americans may go for the best deal but they also go for the product that appeases them more. A smart consumer would do research first before they buy a next-gen console. They're not going to just pick up a 360 unless they know what they're getting out of the console. I sure as hell did my research before I bought a next-gen console. And for you to *even* assume the PS3 is a mere bluray player is nothing but FUD once again. The PS3 is an all in one system. It can play games, movies, and you can go online for free. I like consoles like that because it saves me money. If I had gotten a 360 first, I would have regretted that purchase because you have to buy accessories to get the most out of your 360.

"Apparantly they have been doing this since the Dark Ages. Wow. Who knew?"

Yes, but if you know you're selling well enough over your competitors, then why drop the price?

Seriously...you're making my brain hurt.

[WitWolfy]

You guys are so stupid why are you assuming that MS is losing theyre fanbase, the problem here lays that most of the people who wanted a X360 console got one. dumbasses, its not to say, yeah all of the Current X360 owners have magically dissapeared with out a trace. Get my drift and its the end of MS as we know it, everyhbody who has a X360 is playing the crap out of it, like it wasnt meant to be.

The fan base is full now MS is just trying to see if they can still convince the outsiders , or non gamers to join the bandwagon.

[WIIIS1]

I foresee a lot of people on this forum eating their words or coming up with sorry excuses in the near future.

[Sanzee]

Holy shiyza, of course PS3 fans are going to say that Microsoft is "scared" and is "getting desperate".

My friends, you gotta realize that the PS3 has been doing awful until this year. Sony fans couldn't say anything before '08. Before this year, the PS3 had poor sales, few games, and a depressed fanbase. But now their console is selling well - They're going to milk it til' the tit runs dry. They somehow forgot that the 360 was still Five million consoles ahead of them before the drop.

Almost all Sony Fans said "big deal" when the 360 Price Drop news was first announced. They said it wouldn't matter, and that the PS3 would dominate. Come on, Sony fans. Microsoft pulls off a smart marketing move and you're calling them scared?

I mean, did you really think that Microsoft would just sit by and watch as the PS3 gains momentum? Do you think that ANY company would just sit by and watch their rival gain momentum? It's called business man! Topped off with a little bit of COMMON SENSE.

With these fans, there's an excuse for everything. I mean, hell, Sony fans have GOT to be running out of excuses by now.

[juuken]

...What?

Lmfao, the PS3 has been outselling the 360 for nearly an entire year. What the hell are you talking about? Do you have anything to back up those claims? Or are you another 360 fanboy talking from his ass again?

Everytime the NPD numbers came in for this year, it showed the PS3 in the lead. The only way to combat Sony was to drop the price either way. Microsoft is trying to scramble to the top of the mountain because they know Sony's not too far behind.

Who in the blue hell are you kidding?

Microsoft dropped the price and Sony still outsold them.

What makes you think it won't be any different?

Stop spreading FUD.

[kalel333]

omg this article opened my mind ! :o ........ Please we knew that already lol , but probably nintendo is gonna stick with their price unless they see the 360 really affecting their sales.

[Sanzee]

Your right! Sony has been selling out the 360 for the last year, maybe even longer. But see, I was talking about overall consoles sold. Next time I'll put them in 2 paragraphs for you ok bud. I just figured that you would have figured that out.

It's 20 Million vs. 15 Million.

OVERALL CONSOLES SOLD.

What else can I do to help you understand?

[juuken]

...That still doesn't change the fact that Sony is five million behind. That gap is closing fast.
Congrats, you win at teh internetz!
Have a cookie!

[beavis4play]

sony is 5 mil behind but 360 has a YEAR HEAD START! throw that out and look at the numbers.

[jif86]

It's an overpriced peice of sh*t that cant even make toast right! (it burns it lol Red Ring of Death 68%)

Sanzee, go and tell your mum she still owes my dog some f*ck-money.

[GameDev]

I actually regret coming up with the word fanboy.

yes folks I originated it over ten years ago on a now defunct boxing forum.

ANYWAY

it seems like every idiot all of a sudden is the "anti-fanboy", they all know better they all drop "logic bombs" (sounds like something a 10 yr old would say) and they are all original gaming gods who look down on the rest of us.

STFU is what I say.

[Sanzee]

Wow, bad idea going over to the open zone! It's a warzone over there. It's like you have to make sure you spell check all your comments because one rival-fan will take your comment and put it out of context. Now I remember why I joined N4G.

Cause the GamerZone is for the Gamers.

Word!

And keep it going Microsoft. Hells yeah!

[Fat Onion]

It cost like $50.00 to manufacture a Wii. Nintendo can drop the price when they see fit. Right now the demand still seems high...no need to drop price.

If there does come a time where demands gets low for Wii, they can lower the price and come out with shinny new color-full HD Wii's and Nintendo fans will flock to upgrade.

[clintos59]

What can they do if not only nintendo is outselling everything but also the higher priced ps3 is outselling them. They had to do something or this trend will just get way out of hand when the ps3 really starts picking up momentum.

Its good for gamers because if MS begins to outsell the ps3 by alot it will force sony to cut prices or come up with something because if they dont, this holiday season may be one they will wish they shouldve done something about it.

[Droid]

ROFL. owned.

and now that the 360 is below the price of the PiiPii, looks like the console war is over.

Poor non-hardcore-gamers (droids and wiitards)

[juuken]

The console war isn't over until the numbers add up at the end of the year.

Idiot.

[kesvalk]

from what cave did you came from?

[RumbleFish]

...is still buying a Wii?

non of my friends who have bought it are using it. It only collects dust!

[kesvalk]

i think it's better to wait until after x-mas sales to start to argue about what this price cut has done...

[edhe]

Simple analogy folks:

The 360 and ps3 have been running on 'hardcore' fuel, going at a certain rate doing their thing with only a limited amount.

Wii's been running on Casual fuel with a hardcore mix, which is plentiful and makes it go dayyamn fast. With this pricecut the 360 will tap into the hardcore & casual fuels. This added *potential* *should* completely outstrip the ps3's potential sales as it's still mainly on 'hardcore' fuel.

Ah man, what a load of cobblers.

[sonyfanonly]

PEOPLE ARE SO STUPID JUST BECAUSE MS LOWERED THEIR SYSTEM THEY THINK THEY ARE GOING TO WIN YEAH LOWERING IT WILL HELP SALES BUT NOT BY MUCH AND DOES PEOPLE THINK MS IS THE ONLY COMPANY THAT CAN LOWER THEIR SYSTEM WHAT IF NINTENDO LOWERS THEIRS BY 100 BUCKS OR 50 BUCKS AND LETS NOT FORGET SONY THEY CAN LOWER THEIRS BY 100 BUCKS AS WELL BEFORE THE HOLIDAY SEASON AND THEY HAVE THE BEST HOLIDAY LINEUP

1- RESISTANCE 2
2- MOTORSTORM 2
3- LITTLE BIG PLANET
4- FINAL FANTASY VERSUS 13
5- VALKRY CHRONICLES

AND LOOK IN EARLY 09

1- KILLZONE 2
2- THE BIG ONE GOD OF WAR 3 NOW WHOS TO ARGUE OVER THAT

[ROCCOZILLA]

how fast do you think it will take a 199 dollor xbox to catch on fire,scary to think about it.PLAY B3YOND!!!

[DFresh]

Microsoft knows Sony is gonna win this console war.
Microsoft is seeing some of their advantage being taken away.
ex.)
-Online= That's supposedly the 360's bread and butter for selling consoles. Now that Sony also has those features, has expanded them, and is gonna release Home this Fall it's a done deal PS3 is gonna become the greatest online console this gen.

-Easier hardware to use.
Devs can make games a lot easier and faster on a 360 then a PS3.
Now things are changing.
Devs are learning and they're discovering new things about the PS3 and as a result make better games in the process.

-Graphics:
At one time 360 had the best graphics for multiplatform games cuz they didn't understand the PS3 at the time.
Now they've figured it out and now games look better on the PS3 then the 360.
Look at the exclusives PS3 has it's a done deal.

Now the only advantage the 360 has against the PS3 is price.
Even if you count the price drop.
I'm not gonna count the Arcade but PS3 is only $100 more then the Pro and the same price as the Elite.

I'm just saying the demand is changing people are starting to open their eyes more about the PS3 and the consumers are following this trend as well.
PS3 has sold more worldwide in 2007 outselling the 360 for that year by 1.5 million.
PS3 2008 is still killing the 360 w/ some exclusives.
PS3 2009 it's a done deal Sony officially kills the 360.

[Grimhammer00]

While MS wants to be #1, they realize this won't happen over night...it's been said before - this race is a marathon, sprinters need not apply. If you look at what the first Xbox accomplished...and then compare that to the 360...it's reasonable to assume (never a good buisness doctrine), that next generation of gaming...Xbox720 or whatever will absolutely come to market first, starting this dance all over again...only this time it'll be even bigger deal as Sony will still be digging itself out of debt. They burrowed a lot of money from Japan (yes the government) and investors to weather the blue diode issue when mass producing the CELL chips. And of course their silly initial price points didn't help. Anyhow, keep in mind that while Sony may "win" second place - they will ultimately lose to MS pockets....another generation like this one will be all it takes to force Sony into Bankruptcy...one which they will likely not find further help to be bailed out of....unless they accept a controlling portion to be sold to...you guessed it MS.
And in case you think i'm talking crazy - as certainly this is all conjecture...wiki Sony...you'll see how many times they almost died, and you'll see how they were saved time and time again from their PS3 hardware division. But this current gen was the first where they lost money hand over fist for so long. PS2 lost money...so did most competitors when they start (nintendo has always been the exception), but they recoup within a year...not possible with PS3. I'm not so interested in the now as I am about the future...and for the record...I am not looking forward to a one console future. We need competition to raise standards of expectations and keep costs lower for the consumer. I do not want to see Sony disappear from the gaming market!

[Morgue]

Add the $50.00 back onto the price drop because you still need Gold if you want too play online.

[pain777pas]

What good are free downloadable demos with no HD to store them. Ridiculous!!!!!!!!!!! LOL

[slugg]

Come with a memory card, doesn't it?

[Mutley416]

Unless someone drops a 149$ XBox HD in my lap for less then 50$ I could`nt buy the Arcade...No HDMI...ewww.

The real reason is pure Numbers... Sell more Boxes=Sell more games/Sell more Live/Sell more accessories= more money.

I`m gonna break down and buy one...

[badkolo]

who says the arcade doesnt have hdmi. are you nuts

it might not come with the 5 dollar hdmi cable you can get at monoprice but it does have a hdmi port

[badkolo]

The real reason is...........

becuase it is freakin 3 years later and it was time.

these stories need to die.

But i fully agree more and more, paying to play online is stupid now at best.
Yes the live service is better but we are only paying to play online, all these services are free on the ps3.

while the ps3 has the blueray advatage you would figure that live would be free.

[PopEmUp]

Like more xbot kids on the horizon

[DevastationEve]

You're going to run into them, trolling and all like how you're doing now:P

[UnwanteDreamz]

I am a fan of Sony when it comes to game consoles but I am not so fanatic as to say Sony will kill the 360. You know who will kill the 360? MS will kill the 360, just as soon as their next gen system rolls out. Why fight about it? When the 360 dies the PS3 will still be selling consoles just like the PS2. Who cares.

[DaCandyman]

For the Holiday Season they will probably have a package deal. 3 Game packaged with a PS3. Resistence:FOM (Greatest Hits) with Resistence 2 and LBP at a steal of a deal (one old, one new for the adult, one new for the family.) A Shooter package: R:FOM, R2, with SOCOM: Confrontaion A Family Package: LBP, Buzz Quiz TV, a greatest hits title maybe R&C. This may be the package year deal for the PS3 for the Holidays. Other plans for marketing without a price drop.

[rawd]

What's going to happen this Christmas when Nintendo and Sony drop their prices aswell to compete for Holiday sales, dumbass

THAT'S RIGHT KIDS
AWESOME ARTICLE ROCK ON \oOo/ \oOo/

[PSWe60]

Sony will probably drop the price of the PS3 by Thanksgiving. They're being smart by not admitting a damned thing. If they even entertain the idea of the possibility of a price drop for the PS3 too soon, potential buyers will hold off on a purchase.

[Iceberg032]

that is pretty cheap, we will see if this boost their sales which Iam guessing it will.

[cliffbo]

at last, the 360 gets a price that reflects it's worth

if you want quality, then you'll have to pay a price that reflects that

[DevastationEve]

You assume that it's worth less than a wii? Then, why doesn't wii have HDMI? Or next gen graphics? Or an HDD, optional or not?

I think (minus the HDD) at $199 you can't go wrong with the Arcade. I believe it comes with a 256MB Memory Unit, so you'll have space for you saves and profile, maybe a few themes and gamer pics as well. And just 1 or 2 Arcade games.

But still, even with just that to start with I'd be a happy little boy come this Xmas. I'm sure most of here are adults (I'm not trying to start an argument over THAT) and have forgotten that even the little beginnings of starting with just a console and a couple things is more than enough to put a smile on any kids face.

x360 would be like exactly what kids would be aiming for, since it gets you into the REAL next gen, while not limiting you to wii selected software. Add to that the fact that while wii has sold well since its introduction, it's not going to be around much longer. If Nintendo's track record has shown us something, it's that they aren't much for console lifespan. At the peak of their glory, sure they offered us SNES which lived on quite a while. But I see the wii cashing in at 4 (maybe 5) years.

BTW, nice avatar. My favorite movie to date, still unrivaled.

[BrotherNick]

In the end we're the winners because of cheap consoles and fun for everyone.

[tk]

Because when you look at the stats - the PS3 is gaining momentum, the XB360 is losing momentum. Price drops helps to turn a bit of the momentum.

What I think played quite a role is that at the rate the PS2 was selling vs the XB360 - the XB360 was about to be overtaken by the PS2! Now that would be a marketing disaster no matter how the FUD is being made up or how hard you try to put a spin on the story. The one thing that would stop the PS2 from selling more than the XB360 was to lower the price. Just look at the sales graphs - the PS2 just will not die - and with every new title coming out for the PS2 as well - it is still in the running against the XB360.

So yeah - look at how people play the stock market - all about stats. Same here. If the PS3 is being outsold for three months by the XB360 - expect a PS3 price drop. As the ultra slimline PS2 is getting into retail - maybe look for a price drop there as well - which will drive up PS2 sales - and when it catches up with the XB360 - just before it overtakes - expect a XB360 price drop - and so the loop continues.

[slugg]

That the 360 has been on the market for a YEAR longer than the PS3 and the Wii. Price cuts are a natural evolution, so what better time than going into the lucrative holiday season?

[DevastationEve]

You've proven nothing. Arguments over superior hardware/graphics capabilities or even features DON'T get you anywhere. The truth always lies in the sales. Consistency, consumer interest, competitive edge. The edge may have always been that 360 SKUs come at significantly lower MSRP. And there has been a consistent flow of quality software ever since 360 launched, and I see a bright future in 2009. Also, being able to get former PlayStation exclusives to go multiplatform fuels consumer interest as well as increase software attach rate.

Of course, these are previous generation franchises. Most of them are getting tired and old. Sony's one REMAINING edge is that they have that "lucky roll". You can always count on Sony attracting the next big IP. Which they will always be smart enough to lock down as an exclusive title.

[Wii60Fan]

Can the 360 go? they cant just GIVE away the systems for free???

[slugg]

Remember that the PS2 and original xbox sold the most at $149.00 or less....

[LeonSKennedy4Life]

I could see Nintendo lowering the price of the Wii to 199 also...

Sony needs to lower at LEAST one SKU to 299 and QUICK!

[air1]

SINCE WHEN WAS THE 360 IN 3RD JUUKEN? I GUESS THE SONY FANATICS HAVE BEEN TELLING THEM SELF THIS FOR SO LONG THAT THEY NOW BELIVE THEIR OWN LIE.

HOW IS IT SHORTNING THAT 5 MILLION SALES GAP QUICK? YEAR TO DATE THE PS3 HAS OUT SOLD THE 360 BY 300,000 IN NA. THATS QUICK TO YOU? QUICK IS WHAT THE WII DID THATS QUICK.

IF YOU PPL WANA CALL THIS PRICE CUT DESPERATE FINE, THE REST OF THE PPL WILL JUST SEE IT AS A DAMN GOOD PRICE. IF YOU ARE SO DAMN INTERSTED IN LIVE GET THE DAMN PRO SKU, IF YOU FIND YOUR SELF COMPLAINING ABOUT AN HDD ITS NOT MEANT FOR YOU ITS MEANT FOR THE MILLIONS THAT BAUGHT A WII AND HAD NO PROBLEM WITH IT NOT HAVING A HDD OR HD.

THIS IS WHY NINTENDO LEFT OUR MARKET YOU SONY FANATICS ACT LIKE A BUNCH OF PRE MADANAS. "OH I CANT RUN A WIRE I NEED WIFI BUILT IN" STFU ALL I WANT IS GAMES THATS WHAT ITS ALL ABOUT THATS HOW THE PS2 WON LAST GEN EVEN THOUGH THE FRIKIN CUBE HAD MORE POWER.

AT THE END OF THE DAY IF YOU GET AN ARCADE WITH A GAME YOU WILL STILL BE ABLE TO PLAY IT OUT THE BOX IN HD. YOU CANT GET YOUR PS3 TO RUN 1080P OUT THE BOX MATTER A FACT YOU CANT EVEN GET HD OUT THE BOX.

[DanB91]

calm down

no need for caps... this is N4G after, that is, the breeding ground for trolls.

[KILLERAPP]

I think Sony should not lower the price they should play it smart they have a lot of stuff coming out and they should not lowered the price until next year by then the 360 will be forgotten about the price drop and God Of War is coming so lower the price and bundle that game and is pretty much over for MS on 09.

[Mutley416]

Really arcade has HDMI ports...hmmm

[Breakfast]

l

[cyclindk]

It's funny when fanboys respond to fanboys under the guise of objectivity...anyway, from now until March 2009 it's gonna be sweet to be a PS3 owner, pretty good to be a 360 owner, I don't know what Wii has (I guess Conduit). Have fun everybody!!!

[redsnake]

the arcade is likea paperweight imo but the price cut should help sales because of the shortage of wiis i think ps3 will still sell moer the the 360 only because people over 13 are gonna get a ps3 unless there really cheap and most responsible parents research a console first and buying a console thats has 33% chance of breaking is cruel. also the increase in blu ray popularity