News 360 price cuts are one rumour closer to reality

http://www.bit-tech.net/news/2006/09/27/360_price_cuts_one_rumour_closer_to_reality/

 

"Pro system" shouldn't that read "Premium pack" ?

 

Edited to Premium

 

lol yes. Sorry, was reading something else whilst writing. Thanks for the edit, rich.

 

I'll be massively surprised if MS doesn't cut prices to coincide with Sony's launching PS3. I'll be looking seriously at getting a 360 in the New Year if prices do drop.

 

Still has a pro in it, "being able to purchase the Pro system" Still, there are no games on the 360 that are not on the PC that I really want.

-- Fixed, thanks. - Da Dego

 

dont suppose we'll be getting free games this time round lol

 

I forgot to put in my original post;

If the prices do drop it would be another one of the growing reasons to actually get off my behind and go purchase one. I guess all we can do is wait and hope that it happens

 

Sounds damn good...creates a problem if it does happen though as the Wii's not too much cheaper anymore. If only I could get both...

<A88>

 

Noooooo, its toooooo late for me, i spent the full wack last November, on day of release though , if it becomes reality.

Sam

 

I seriously doubt that the price of the 360 will drop this holiday season. As I've said before, Microsoft is losing a nice chunk of change with every console sold. They're trying to drop the production costs so they can come closer to actually making a profit off of the consoles. Profit margin is the reason why there are two different SKUs of the 360 now (the Premium and the Core). This comes down to the fact that while the Premium systems will be harder to turn a profit on (the cost of manufacturing the HDD decreases only a slight percentage) Microsoft will actually be able to turn a profit on the Core system in a short amount of time. There's not two different SKUs so that people can "choose what they want" like Microsoft has said before...it's all about the benjamins. This is why the XBOX got scrapped so quickly as well since Microsoft has still yet to turn a profit on it.

 

The console market is, and always has been, about shifting as many units of a loss leading piece of hardware as possible to garner market share, then recouping losses on game royalties. Rest assured that MS will do everything in its power to minimise the slice of the next gen gaming market lost to Sony on release of the PS3. They will be undertaking serious analysis at the moment to identify the pricing sweetspot that shifts most units while minimising their losses per unit.

A price reduction timed to coincide with the PS3 launch in each market would (1) serve to emphasise the serious price premium for PS3, and (2) steal some of Sony's limelight at a time when they (Sony) really need as many headlines as possible. I say again I should be surprised if there is no price drop (though in Europe it may not be until March, when PS3 finally trundles out). It may not be $100, as suggested, but a drop to $349 would not be beyond belief.

 

You're forgetting though that the Premium 360 is still cheaper then the "retard" version of the PS3. Microsoft has no need what-so-ever to make a price drop in the price of the console itself. Take a look at the original XBOX and you'll see that it was actually a massive black hole in Microsoft's wallet. The recoup on game licensing just wasn't enough to pull the XBOX out of the whole, but Microsoft saw what they did wrong (bundle a HDD with the console) and is trying to rectify the situation with the 360. The only "price drop" (yes, I put the parentheses there on purpose) that I forsee is that a 360 + HD-DVD drive will be bundled together for less then the $600 it would cost to buy them together (official HD-DVD price is out and it's $199 in the US).

Ninja edit: BTW, Microsoft is doing a press blitz right now to help garner alot of market share away from Sony. It's called X06 and it's today where tons of new information was released.

 

Just curious...what does make the 360 "Premium" and the PS3 "Retard"? Both SKUs are equivalent from a hardware point of view. The 360 has WiFi, the budget PS3 has Blu-Ray. Are you aware that the budget PS3 sports HDMI, right? With it, it is much better value than the 600$ PS3.

Now, if with "retard" version you are refering to the 600$ PS3, I can see a point in that...

Btw...I can say for sure that, right now, a X360 price drop would be a deal maker for me (although I don't expect any drops here in Europe until March, at least). I'm still torn between the budget PS3 and Premium X360, with a nod to the X360, but I want to see the reviews on the PS3 first. Still, at 299€ for a Premium 360, the PS3 can to to hell and beyond...

 

I agree completely with mrclean007. Bloodcar, you miss the point entirely. While being cheaper is important, thats not what a price cut would be all about. Stealing some press from sony at their launch would have a significant impact. Same goes with Nintendo.

The real question is who will move more systems this holiday season. Microsoft wants to hit 10 million units by year end (I believe FY, not calendar year). Sony isnt a horrible concern right now as they will have limited quantities this christmas, but Nintendo is a bit of a concern. Even though they are untested and untried, theres no doubt they will move a lot of consoles. A price cut on the 360 will cause people to think twice, and bring a lot of attention to a console that launched a year ago.. exactly what Microsoft would need.

I also could see why a price cut wouldnt happen. But I certainly see why it could. We can only wait and see.

 

and yet again the urge to buy a xbox360 is taking its hold on me.....must...resist....the wii...is...coming...hold on...

 

The Playstation fanboys over at the official Playstation forums coined that term, not me.

I'm sorry, but I believe you've missed the point completely. A price cut for the 360 in terms of selling them is not needed at all to move the amount of consoles that Microsoft wants to move. The sticker shock of the PS3, for the average consumer, is going to drive more sales behind the Wii and the 360 then any press blitz is. The name of the game is "Return a profit on everything as quickly as possible." With the PS3 sitting at $500 and $600 SKUs, Microsoft has no reason at all to drop the price of the 360. Like I said before, don't expect a price drop for the Premium or Core SKUs but you can more then likely expect to find either SKUs bundled with the HD-DVD drive for less then the cost of buying them seperately.

 

I think we can clearly say that the 360 is king of this generation. due to the fact that its got a headstart on the competition and not only that the HD-DVD drive will bite into sony's donkey that is blu-ray. Even tho "joe public" aint too bright its safe to say that price cuts will sway during xmas time. seriously what parent want to spend $600+ on a ps3 whilst at $400 you pretty much get the same thing with the 360?

people are spending huge ammounts of money suring xmas, parents will get whatevers the cheapest.

Personlally i like the 360 but its cost is allways a factor due to being in ROB but im hoping this xmas i can find some extra cash for either Wii or 360 premium.

 

i'm sure im pretty safe in saying it doesnt matter if the official price isnt cut, as the high street retailers will be bundling everything and the kitchen sink in packs with the wii and xbox this christmas so no one's really going to lose out. shops sell more, and customers get more.

 

Didn't Digitimes also say the next gen 360 would have a HD-DVD drive built in? Like I said before, they just want hits on thier website... and again it's working.




-CollinstheClown