EGM August08 Rumour: Xbox 360 To Receive Hefty Price Cut This Fall

damrightfresh - 551 days 16 hours ago

They have to do a price cut because Sony is whipping their a$$ world wide..How is Microsoft expect to win this year or next with no games..lol..

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eagle21 - 551 days 16 hours ago

From Neogaf:

http://www.neogaf.com/forum...

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KimboSlice - 551 days 14 hours ago

Hi everybody I'm new, I just wanted to add my two cents to this topic.

I believe that microsoft at this moment is making a profit off of the 360 hardware unlike sony. Even if sony IS selling more consoles than mocrosft at this time, sony is losing money with every sale. If this rumor proves to be true I think that MS will only lower the price enough to break even while another price cut for the ps3 will only hurt sony.

I think that MS will be happy even if ultimately the ps3 has a bigger installed base because the only thing that really matters is the bottom line. With the original xbox MS was bleeding funds this is not the case anymore.

Having a relatively better financial situation in the console division than sony, MS will then be better prepared than sony to launch a next generation console after this era is over.

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kazuma - 551 days 14 hours ago

hey kimbo shouldn't u be over at bangbus?

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mikeslemonade - 551 days 13 hours ago

Kimbo, your right about Microsoft now making money off the 360 hardware but what about the xbox 1 debt $4 billion, the rare $300 million pay out, the GTA4 $50 million pay out, securing DMC4 multiplatform, paying for the Japanese RPGs Blue Dragon and Lost odyssey etc., getting all those timed exclusives, and the $1.5 billion pay out to extend to 3 year warranty. Right now PS3 and 360 are at the same level in terms of losing money but the difference is the 360 is a year older so they should be ahead.

And last of all please remember the PS2 the most successful system to this day was not making money off the hardware in its first 2 years.

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Finch - 551 days 13 hours ago

@kazuma I believe his avatar is the old Underground Street King fighter. He does go by Kimbo Slice so you can look him up. If i remeber right he was the one that made it big on the internet by busting out another guys eye ball in a match!

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KimboSlice - 551 days 13 hours ago

mikeslemonade you make good points but I think that thanks to pressure from MS the ps3 will not produce profit for its entire lifespan, it's just a too expensive technology, with the cell and bluray (the cell is only recently being put in laptops as state of the art tech)

The point is that the PS3 will remain more expensive to manufacture proportionally compared to the 360.

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The Wood - 551 days 13 hours ago

i hear gannon the cannon is looking for you

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KingME - 551 days 12 hours ago

First off, how much of that mess you posted do you actually have factual links or access to. The warranty extension, I thought that was 1 billion not 1.5 billion (Why would you try and tweek the numbers) I'm so sick of the average joe on this site posting numbers and quoting figure that they don't have a clue about while trying to make a point. The only real point you're making is the point that you don't honestly know what the hell you're talking about.

Please correct me if I'm wrong, but by all means do it with the links to support your data. Just trying to see who talking facts and whose just talking.

@damrightfresh
"They have to do a price cut because Sony is whipping their a$$ world wide..How is Microsoft expect to win this year or next with no games..lol.."

Uh, have sony not had MULTIPLE price cuts and sku changes? Have sony not bundled brand new titles like MSG4, Heavenly Sword, Motostorm, etc. and other games (that could have sold on their own) to help sell consoles? So, why would you talk sh!t when MS does something to sell it's console. You're pathetic...lol

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The Wood - 551 days 12 hours ago

both of our beloved companies do what they can to thrive in this world whether its multiple price cuts or releasing their product early there's no best fit so to speak. All of you have made good points even if they are a little reactive.

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cja643 - 551 days 11 hours ago

I totally agree with what you are saying. The only problem is, you don't back up your own facts. You say that mike is tweaking the numbers, and that it only cost them 1 billion instead of 1.5 billion. Where is the proof?!
My point is, if you are going to demand links with proof from others, you have to give some yourself.

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kwicksandz - 551 days 11 hours ago

Ive never seen anyone suggest before that the 360 is the console with no games before ROFLMAO!

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Lifendz - 551 days 10 hours ago

I guess because you have the oportunity to accumulate more profit long term.

How silly are they going to look when they're charging for what Sony provides for free?

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scottie2521 - 551 days 9 hours ago

http://www.usatoday.com/mon...

"The charge will be $1.05 billion to $1.15 billion......"

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Some_One_Plays - 551 days 8 hours ago

I think of it the other way around because Sony is in it for the 10 year mark. Are you really ready to buy a next generation XBOX in two years from now? In the long run Sony's console will last the longest especially with the blu-ray disc technology. In my opinion this is a desperate move on Microsoft's part because their hardware won't last as long.

Like how Microsoft launch a year early without that move Sony would have dominated Microsoft. These moves made by Microsoft is just a way to keep in the race than to finish it.

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Superfragilistic - 551 days 7 hours ago

The biggest problem for Sony is not the console itself but finance...
See this: http://www.n4g.com/NewsCom-...
and this: http://www.n4g.com/industry...

Losses last financial year for Sony's gaming division were $1.2bn, but that included an estimated $1.2bn profit on the mighty PS2 & PSP, which means the PS3 division actually lost close to $2.4bn or around $260/console of the 9.24m sold last year.

Sony whilst it would like to cut the price (and I'd love them to!), has already indicated a reluctance to do so this year as a result of shareholder pressure and such large losses (hence the shareholder press about them reducing PS3 costs year on year). They've publicly stated their preference for profit over console base in the short-medium term.

Given MS is now turning a tidy profit on sales and approaching break-even on the initial 360 investment, it could cut the price significantly with the confidence that Sony would be financially unwilling to significantly respond.

PERSONALLY:

I own all consoles so it won't affect me. But from a corporate strategy perspective if MS are truly serious about this generation they should go for the full retail kill and instead of a $50 cut they should be ruthless and go for something closer to $100, safe in the knowledge that for the next 6-12months Sony won't be able to enter a price war without significant shareholder backlash.

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Silver360 - 551 days 2 hours ago

There is a thing called price elasticity. Which means people are willing to buy something at a certain price, but not all the people will at that price. And the lower the price gets the more people are willing to buy the product. MS has sold approximately 20 million units at the $329 - $479 price range over the last 2 1/2 years. they have just simply reached the limit of the audience they can reach at that price. While PS3 still has people willing to buy one at $400, that will slow down as more are sold at that price and everyone willing to spend $400 is sold to. A price now is needed for MS to reach a new market of gamers. It is not to "beat" the PS3 it a financial decision to spur sales and increase market share for long term growth. Don't ever forget the console war has business men running it and in the end it always about market share and profits.

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N2NOther - 551 days 1 hour ago

Finally a voice of reason and understanding. Bravo, Silver360.

If anything, as much as love my PS3, Sony has been screwing not only the customers but the retailers. Because of a lack of confidence in any one scu, they've discontinued models that customers bought warranties for. So now, they're forced to downgrade, or take a refurbished one because, for example, no new 60 gigs are available for replacement.

I've had to deal with some very unhappy people due to this and I completely empathize.

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SL1M DADDY - 551 days ago

lol

Sorry, but the only way to get the PS3 for 299 is through the Sony Style Store online and a few retail deals that come and go. The retail price for it though is at 399 and is still selling like crazy worldwide. If they nocked down the price to a retail of 299, it would be making a killing over the great sales it is experiencing right now.

The funny part of this all is that the most popular version of the PS3 is the 80gb model and that is still 599. Every time I see it bundled with something it is sold out.

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The Wood - 550 days 23 hours ago

in europe its cheaper than the wii. the 360 is doing fine'ish in the US, its Europe and the rest of the world that MS should be focusing on. The price cut may not spur as much growth that people think. good shout Silver360, that reminded me of business school:)

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KingME - 550 days 18 hours ago

Okay, my number for 1 billion dollars was on the lines of clarification not fact. Notice I said "I thought that was 1 billion not 1.5 billion " I never quoted a bunch of statistics whereas the other guy did. So, if you are going to try and analyze someone's comment, at least know how to read the context.

Additionally if you need a supporting document here is your link:
http://www.xbox.com/en-US/s...

Mike punched out a bunch of numbers from all kinds of directions without one single link for support his fact. Also, if a person is going to start initially making quotes on company's finances, they are the ones that need to support their comments, not those that object to them.

If I say I can fly, and you object to it. You don't have to prove that I can't fly it's up to me to prove that I can.

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fenderputty - 551 days 16 hours ago

although I'm sure they would like to not lower the price for a little while longer.

Someone at Gaf forum has said that this rumor includes a PS3 price cut as well.

It's about damn time. I can't wait until both of these consoles get to levels that people can afford.

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Amanosenpai - 551 days 16 hours ago

Sony really needs a price cut... Sony is sinking...

The XBox is cheaper and BETTER BY FAR in many ways...

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fishd - 551 days 15 hours ago

What's wrong with you?you are a 360fan and have a avatar of snake standing on x360 from SDF.com!lol

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strotee - 551 days 15 hours ago

Well, you got the "cheapest" part right.

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y0haN - 551 days 14 hours ago

Zing!

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fenderputty - 551 days 16 hours ago

Software is where these guys make their money. Their willing to loose money on hardware just so they can push the expensive software.

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deeznuts - 551 days 14 hours ago

I've been resisting. But a huge price drop will make me buy one over an updated video card for sure! Then I'll have all 3 (and four because I probably will still buy a damn video card)

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damrightfresh - 551 days 16 hours ago

The only way ill purchase the 360,if they fixed all the flaws withing the system..

Im talking about the 3 red lights of death and etc..

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Willio - 551 days 10 hours ago

all i gotta say is we have the same icon, and by default you are awesome.

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ChrisGTR1 - 551 days ago

pricecut=little kids that cant afford anything win = we lose cause we have put up with them on live.

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RememberThe357 - 551 days 10 hours ago

Good point. Profitability wise, if Sony wants to stay in the game I'd expect maybe a $50 price cut but thats about it. I would be surprised if they didn't cut the price a all here in the states for the exact reason you stated. They need to start making money, and that starts by pushing software that moves units. The console will sell if people think the software is worth it.

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pumpkinpunker - 551 days 3 hours ago

Or haven't you read? They're gaming division is still losing money up until this very moment. They cannot afford a price cut and right now instead of worrying about winning the console war, Sony's gaming division has to focus on surviving. Thusly, they have to find the niche market for their high priced console that plays blu-ray movies and accept a 3rd place finish once Microsoft starts dropping their prices.

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Action Bastard - 551 days 15 hours ago

I think they'll drop the price another $100 split across all 3 skus (just like last time). My guess? $50 off the Elite = $399, $20 off the Pro = $329 and $30 off the Arcade $249.

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TheMART at Xboxkings - 551 days 15 hours ago

Ah I forgot, the last pricedrop was only in Europe right?

Arcade - 199 Euro
Premium - 269 Euro
Elite 349 Euro

Maybe the USA gets it now? Or maybe Europe will get one again also. Anyway, great move to get the mass market/casual gamers

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TheMART at Xboxkings - 551 days 16 hours ago

Nah, hefty is what they did to the PS3 in 2007. From 600 to 400 bucks overnight!

360 went from 400 to 270 bucks (Premium) in 2.5 years now. So it won't be strange to cut it another time close to its 3rd year this fall/winter

EDIT

@ Pooface below

Wrong. In Europe it is like this:

Arcade 199 Euro
Premium 269 Euro
Elite 349 bucks

USA didn't get the price cut yet we got here some months ago.

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GiantEnemyCrab - 551 days 15 hours ago

No, it's called being competitive. Did you say those same things when $ony dropped the price of the POS3 in the first year?

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Isaac - 551 days 15 hours ago

The 60GB PS3 went from 599 to 499, then it was replaced by the 80GB PS3. The 20GB PS3 was 499 and then it was replaced with a 40GB one with WiFi that cost 399. So it went from the 599-499 range to the 499-399. Later, the 80GB appeared to be phased out but then it came out again at 699 with Metal Gear Solid. PS3, despite its $100 drop, is still the most expensive console and it is outselling Xbox 360.

Furthermore, it is normal for Xbox 360 to have lasted so much time with the price so high. After all, it came out first (just like the PS2 last a lot with a 299 price tag), and it was also a lot cheaper ($299-$399), a $200 dollar difference which game Microsoft a lot of room to breathe.

Get your facts straight next time, idiots.

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Rageanitus - 551 days 15 hours ago

Difference is 360 will not go extinct but all they are doing is attempting to adapt to market conditions.

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Max Power - 551 days 15 hours ago

i am sure you mean that the 80 gig MGS bundle is 499 since returning, it maintained that pricepoint not increased it. (usd)

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Rageanitus - 551 days 15 hours ago

were you not one of those who kept bring up the idea that Sony did not do a real price drop.... LOL

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Pain - 551 days 14 hours ago

Time to Flush out the crap in time for Xbox 3 in 09!!!

lolM$supporters

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TheMART at Xboxkings - 551 days 15 hours ago

So again, how about the desperation when Sony cut the PS3 price in its first half year in Europe from 600 to 400 Euro? Damn thats real freaking desperation!

Hardware gets cheaper over time. A price cut is a healthy thing after a couple of years. The 360 gets its main stream price more and more, while the PS3 won't move to the mass public/general gamers soonish with its 400 Euro/Dollar pricetag.

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Snukadaman - 551 days 15 hours ago

You mean like when the ps3 gets its price cut also...I myself question microsoft as to why they didn't put this price cut in effect when gta4 was released...face it..sony is in a hell of a pickle...do they drop the price of the ps3 and undermine stand alone blu-ray players to also drop in price or do they just sit back and squirm. either way I get a ps3 or i end up laughing my azz off.

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GiantEnemyCrab - 551 days 15 hours ago

Nasim/Lenhart: This is the first REAL price cut the 360 has seem in almost 3 years for NA. Desperate? Not even close.

Again, the 360 is the underdog in the console race and MS needs to be aggressive. I'm surprised they've been as reserved as they have so far this gen. I expected a price cut last Holiday.

Desperate is cutting your price in the first year ala $ony.

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Rageanitus - 551 days 15 hours ago

Was a bit more desparate last year because they were trying to penetrate the market when they had opposition from all fronts wii, xbox, and ps2...

But now they dont have to be as desparate as MS

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Isaac - 551 days 14 hours ago

They were selling a product with a way more expensive price point. They were definitely at a disadvantage, so they were hardly desperate. Desperate had they launched cheaper than 360, desperate had they tied prices with 360, but no, they are still selling a more expensive product. Hardly desperate.

If Microsoft is gonna make a huge price drop, then they are definitely desperate, as they are selling a product which is much cheaper than PS3 and much more technologically advanced than Wii (but don't get your hopes up, Xbots, it's still inferior).

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LuHawk - 551 days 12 hours ago

Wrong dumb ass the ps3 is inferior

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ThanatosDMC - 551 days 11 hours ago

You can technically get the PS3 40gig version for $299 all ready. Just go to walmart.

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caffman - 551 days 7 hours ago

on the launch night in the UK, they were giving away a bravia TV with the PS3!

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ThatCanadianguy420 - 550 days 18 hours ago

Arent they constantly giving away 360's for free?
everytime i watch tv it's always some new "give-away contest"
like just this morning i seen a simpson's 360 contest

...LOL! giving them away..now THAT'S desperate,there trying to hook and reel in every last gamer out there.

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