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Why is MS Increasing the Price of Xbox 360 in UK?

Xboxist.com explains exactly why Microsoft is increasing the price of the Xbox 360 in the UK:

"Has Microsoft just taken a page from Bobby Kotick's book and gone completely insane? No, as it turns out. This substantial increase in price is due to differences in the exchange rate between the British Pound (which has weakened in recent months) and the Euro/dollar which have remained strong. That means that in order to organize shipping, advertising, and retail distribution in the UK, Microsoft needs to charge more in pounds in order to recoup the difference in Euros. Does that make sense? Think of it this way: if you were getting paid in British Pounds for a job in the UK, you would want to get paid more if the currency suddenly dropped compared to your home country, right?"

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clinker3768d ago

Despite the sound economic reasoning, it still sucks for people in the UK, who always pay more for games anyway. Also, does this mean that Sony and Nintendo will do the same thing?

PirateThom3768d ago

Nintendo already did, but they passed the cost onto retailers, not the consumer.

whoelse3768d ago (Edited 3768d ago )

Sony will feel less inclined to drop the price in UK by so much (or at all) now which is a shame.

Also, it is unlikely that the Elite will now drop to the now extinct Pro price in the UK, otherwise it would only be an extra £20!

mastiffchild3768d ago

Nintendo consoles, as Thom sai, aren't going up at retail and Sony's PSP and PS3 prices have been lower, if anything, of late with a few places offering 80gigs for around £250 both online and off.

The 360 has been rising for a good while now too. I've got an elite that I bought with an extra controller, wireless charger and two games for £170, which even in January was a good deal, but now at the same place I got it the same, or slightly less costly to the retailer, deal is £230.

I'm unsure of the economics of the article as it isn't really the same as working in a foreign country as a few other influences go into fugyring this stuff out and their model was very simplified and also many US and EU citizens continue to be "retail tourists" in the UK because of the exchange rate hiving more poinds for the Euro and dollar than normal. This shows that despite Kotick, Activision and apparently EA most companies don't feel in any position to lower their UK prices. Think about it most UK citizens haven't the same expendable income they did a year or two back, the average wage has fallen and those on benefits has risen by over a million-just who's going to be able to afford more expensive goods in the UK apart from those who don't work here?

IMO most luxuries I buy have fallen in price here over the past year or they wouldnm't sell and the ONLY reason MS would really put the price up(and it seems there's fewer deals available than before certainly) is if they're selling well enough to justify the raise and l;ess to do with what the article suggests-as I say most everything bar essentials have been getting cheaper either in real terms or relatively.

It's complicated but honestly, and I haven't seen the figures for the UK alone, I can only think that MS would do this if they had the demand to be able to. The fact Ninty made the retailers suck up the raise(or they felt, retailers that is, that they wouldn't sell at a higer price)rather thn push it onto the gamer shows that most luxuries cannot afford a hih street raise sop, imo, it looks pretty good for MS if they can afford a rise! If Sony do cut the PS3, though, I'd predict a few good deals for those with the money in the UK.

FarEastOrient3768d ago

It is bad when wanting to buy a new Xbox 360 especially when they are region locked to that market.

For PS3 owners, Sony has already decided to take the blow from currency exchange rates at the beginning of the year. For UK customers, just import a PS3 from the United States and it'll be cheaper and region free along with region 1 coding for BDs.

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Cherchez La Ghost3768d ago

"This substantial increase in price is due to differences in the exchange rate between the British Pound (which has weakened in recent months) and the Euro/dollar which have remained strong".

Is this why Activision raised the price of Modern Warefare 2?

Trevorthenerd3768d ago

no its just activison being greedy :)

Milky Joe3768d ago

So what about the difference between the dollar (which is weaker than the pound by a fair amount) and the pound? Why do we still have to pay more than the US?

I think that's a daft excuse tbh.

Jdaco63768d ago

Maybe the Arcade SKU will now include a 60gb Hard Drive and will remain the same price as the old Arcade in the rest of the world but in the UK it is the perfect timing to put up the price to even out the exchange rate difference that now exists.

Who knows what will happen with the Elite in the UK because if the Arcade is £159 the price of the elite can really only be dropped to £199 otherwise the prices would be too close to one another.

Raoh3768d ago

whats funny is when you think of the playstation 3 hate

sure the ps3 is higher priced.. but since launch sony has been willing to take a deeper cut in their profit. nintendo and microsoft are making a profit off each console and they felt the need to increase the price..

Masamori Sumimura3768d ago

why'd you bring Sony into this? It has nothing to do with sony.

v1c1ous3768d ago

arcade is still at a better introductory price than ps3 with this price hike.

still wanna discuss it?

Cyrus3653768d ago

I think with the drop on elite coming, this is Msoft way gently nudging consumers to the elite, as they likely make a bigger profit margin on that (Even with a price drop), than the Arcade.

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