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View Full Version : Microsoft Corp., the world's largest software maker, plans to cut the price of its Xb



BAMAPHIN 22
07-11-2007, 08:16 PM
Microsoft Corp., the world's largest software maker, plans to cut the price of its Xbox 360 game console to compete with Nintendo Co.'s top-selling Wii.

Microsoft needs to lower Xbox's prices, ranging from $299 to $479, to increase sales and lure customers who aren't interested in traditional combat and racing video games, Shane Kim, vice president of Microsoft Game Studios, said in an interview. He declined to say when a price cut may be announced. It won't happen at this week's E3 games conference, he said.

http://www.netscape.com/viewstory/2007/07/11/microsoft-plans-to-cut-xbox-price-to-compete-with-wii/?url=http%3A%2F%2Fwww.bloomberg.com%2Fapps%2Fnews%3Fpid%3D20601087%26sid%3DaC3HCiVlYV.o%26refer%3Dhome&frame=true

Stitches
07-11-2007, 09:05 PM
It'll happen closer to thanksgiving I bet, for the holiday season.

Although to be honest, i would wait until after Christmas to do it if I were them.

dolphan117
07-11-2007, 09:16 PM
I know it was expected but still WOOT! Please drop the elite to $399, please drop the elite to $399...... :kick:

dolphan117
07-11-2007, 09:23 PM
It'll happen closer to thanksgiving I bet, for the holiday season.

Although to be honest, i would wait until after Christmas to do it if I were them.
Not me, if I were Microsoft I would be going for the jugular right now. With the lack of must play games for the PS3 right now I would drop the price and not even give the consumer a reason to think about getting a PS3. (Yes I know some would but I'm talking about marketing approach) We all know Microsoft plays for keeps, I just don't see them setting back and watching PS3 sales go up due to the price cut without jumping in trying to do something about it.....

Which works great for the consumer, whether you want a PS3 or a 360 you are going to get it for less than you would have simply because Microsoft and Sony are going at each other. Big companies get into wars that drive down the prices on stuff I want to buy. :kick:

mor911
07-11-2007, 09:37 PM
If I were Microsoft, I'd definitely not sit back and watch Sony catch (even if it is at a snail's pace). Sony is a deadly adversary. I'd do something drastic to get a huge install base... Like what? Like make the premie the same price as a Wii and make the elite $350. At that price I think the 360 will go nuts... Not sure how much this will hurt them financially though. In the long run, it's gotta work.

Stitches
07-11-2007, 09:43 PM
If I were Microsoft, I'd definitely not sit back and watch Sony catch (even if it is at a snail's pace). Sony is a deadly adversary. I'd do something drastic to get a huge install base... Like what? Like make the premie the same price as a Wii and make the elite $350. At that price I think the 360 will go nuts... Not sure how much this will hurt them financially though. In the long run, it's gotta work.

Holy crap. A premie at $250?!?

That would indeed be a killer move, but I also imagine that would be fiscally irresponsible for them at the moment. Considering the games coming out, manufacturing costs, as well as retroactive warranty costs, dropping the premie below $300 is something I just can't imagine. Hell even dropping it to $300 seems like a move I can't imagine.

$350 is the price point I would expect.

dolphan117
07-11-2007, 09:49 PM
If I were Microsoft, I'd definitely not sit back and watch Sony catch (even if it is at a snail's pace). Sony is a deadly adversary. I'd do something drastic to get a huge install base... Like what? Like make the premie the same price as a Wii and make the elite $350. At that price I think the 360 will go nuts... Not sure how much this will hurt them financially though. In the long run, it's gotta work.
That would be awesome... I was thinking about it today how this next gen system isn't just about gaming, its also about the next gen DVD market. Whoever wins that is going to make a TON over the long run... And the more PS3's sell the more Blue Ray players are out there and the closer Sony is to wining that war.

It might be worth it to Microsoft to really lose money on the 360 if it helps them win the DVD war, which at this point I think they are losing.

dolphan117
07-11-2007, 09:55 PM
Holy crap. A premie at $250?!?

That would indeed be a killer move, but I also imagine that would be fiscally irresponsible for them at the moment. Considering the games coming out, manufacturing costs, as well as retroactive warranty costs, dropping the premie below $300 is something I just can't imagine. Hell even dropping it to $300 seems like a move I can't imagine.

$350 is the price point I would expect.
IDK man, from what Gates said before the 360 came out they are hoping to break even on the 360 when its all said and done which means they plan to lose a tone of money in the first 2 years of the system.... When you consider that Microsoft was making the 360 for far less then it cost Sony to make the PS3 and Sony is now able to drop its price by $100 just 8 months after release is it completely unthinkable that Microsoft could drop the 360 by $150 a year and a half after release? I know its a long shot but depending how much production costs have fell......

Stitches
07-11-2007, 09:57 PM
IDK man, from what Gates said before the 360 came out they are hoping to break even on the 360 when its all said and done which means they plan to lose a tone of money in the first 2 years of the system.... When you consider that Microsoft was making the 360 for far less then it cost Sony to make the PS3 and Sony is now able to drop its price by $100 just 8 months after release is it completely unthinkable that Microsoft could drop the 360 by $150 a year and a half after release? I know its a long shot but depending how much production costs have fell......

But the ps3 was far newer technology inside the box, so production costs were pretty much at their peak. I don't think the production costs for the 360 were as high, or as likely to be reduced as fast. The most i could see them doing is matching the drop. That's the MOST I could think they would do.

dolphan117
07-11-2007, 10:06 PM
But the ps3 was far newer technology inside the box, so production costs were pretty much at their peak. I don't think the production costs for the 360 were as high, or as likely to be reduced as fast. The most i could see them doing is matching the drop. That's the MOST I could think they would do.Probably right since they were were using brand new Blue Ray technology, I think I remember reading/hearing that Microsoft did expect production costs to drop to the point that they would eventually be able to make money on an actual console sale. Does anyone else remember hearing this? Its just kinda a dim memory in the back of my brain.

Phin-o-rama
07-11-2007, 10:17 PM
M$'s pockets are alot deeper than sony's.

Motion
07-11-2007, 10:22 PM
Premium for under $300 please. :D