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Xbox 360 Price Drop This Xmas

It looks like Microsoft is planning to crash Sony's PS3 launch party by dropping the price of the Xbox 360 this coming Christmas. A source close to Microsoft says consumers can expect a price drop of almost $100.

The source also revealed according to Britxbox.co.uk that the Xbox 360 hardware team are now busy redesigning the chips supplied by ATI and IBM to cut costs and allow a price drop to coincide with the release of Sony's Playstation 3.

If this holds true you will be able to buy an Xbox 360 for half the price of the PS3 this Xmas. This will certainly put Microsoft in a very lucrative position when the next-gen console war starts for real later this year.

Source: Britxbox.co.uk

Janx - contributor
Published: 1278 days 20 hours ago | News | Xbox 360

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OutLaw - 1278 days 20 hours ago

1 - Smart move

MS will do anything to make sure the 360 survive. They're a very organized company. There will be no reason why parents can't afford a 360 now for their children.

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TheMART at Xboxkings - 1278 days 18 hours ago

1.1 -

Well there are enough parents with childeren that can just get around with their money in a month. Live is expensive and in USA with less government social care it's even worse then overhere in Europe.

For many parents, even 250 Euro's, plus some games will make 400 dollar/euro's easy and that's a lot for many people. Luckely not for me and you I read here.

But there will be many reasons for many parents to buy a XBOX for 80 Euro's now here in The Netherlands instead of a 360 I bet...

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speed - 1278 days 20 hours ago

2 - I smell death

for the GayStation 3...

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BOOSTIN - 1278 days 19 hours ago

2.1 - what he said ^^^^

sony is going to be in deep poo poo. ps3 may go down like the dreamcast

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Fuzz McDeath - 1278 days 19 hours ago

3 - Hmmm...

I wonder if Britxbox.co.uk is just late gettong on this news bandwagon?

Rumors to this effect hit weeks ago when MS announced that their chip manufacturing was going from 90 to 65nm.

Also, the quote on their site from the "inside source" reads an awful lot like an financial analysis, also, it talks about '2006' in the future tense - IMO, I think this quote is about a year old (probably back when sony was still considering a Spring launch and all the analysts were chiming in)

Anyway, although redesigning/remanufacturing the chipset does reduce costs, there is no reason MS has to pass those savings along to the consumer. They'll probably put more money in their own pockets. The reason I say this is that the XBOX is already 100-200 dollars U.S. cheaper than the PS3 and MS will probably see how sales go at that price difference before they go dropping prices for no reason. They will only drop the price if sales decline because of the PS3.
That, or it is possible that this will be a Europe only price drop. Dropping the price in the EU would bring the console in line with US pricing (something EU gamers frequently complain about - higher prices in the EU result from higher tarriffs on imported consumer electronics - not because MS just wants to charge more). MS has already stated that America and EU are more important markets than Japan (becasue they are both larger and are growing, as opposed to declining like the Japanese gaming market).
Anyway, we'll see I suppose. I've already got my 360 and I'm delighted with it.

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shotty - 1278 days 18 hours ago

3.1 -

If you have seen history then you know 6 months after release microsoft dropped the price of the original xbox by $100. This time it's 1 year later. Unlike sony, microsoft doesn't really care about profits as you can see from the last generation.

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Lucidmantra - 1278 days 14 hours ago

3.2 -

They are doing this because they consider that if they sell 10 million consoles they are at about the break even point to miniturize and slash the price. MS has already said they are making the smaller chips and as such it will contribute to their ability to lower the price due to the fact they are getting a higher yield on chips due to being able to manufacture more per waffer. Sony has said they can miniturize next year also. But i doubt it will be before christmas 2007.

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Jay da 2KBalla - 1278 days 14 hours ago

3.3 - You said the price drop is just for europe

No I dont think so. They said dollars. I'm pretty sure that if it was just for the europe they would have said it euros or pounds.

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silent ninja - 1278 days 19 hours ago

4 - awesome

can now spend the extra $100 to buy more games IF its true of course lol

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TheMART at Xboxkings - 1278 days 19 hours ago

5 -

They won't cut the price with 100 dollars for sure.

These are rumours going round for a long time, but are totally based on no real facts.

There's no use either. It's already 200 dollars cheaper then it's main upcoming if not delayed or cancelled competition.

If they cut prices, it will be 50 Euro's I think on Premium, to get it @ 349 Euro's. The Core could be pushed to get some marketshare on the bottem of the market in Wii markets, so maybe we see there something close to 100 dollar cut just about 219 or 229 Euro's. Maybe just the 249 Also 50 dollar cut so it's head to head with the Wii.

But 100 dollar on the premium? I don't see it happen. Maybe special packs will come out also, with 2 WiFi controllers, and ofcourse special Gears of War packs, with a unique GoW front on the 360, the game and so on. Expect the same of Halo 3 to come also in 2007

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Aflac - 1278 days 19 hours ago

6 - I hope this is true...

I have a bunch of friends that r trying to save up for a 360, and have enough $$ for games, a 100$ price drop would be a big help, not only to my friends, but to millions of ppl trying to save up! by next yr, 360 will probly be outselling all other systems (except the wii, tons of ppl r getting that system alone or along with 360s, and few along with gaystation 3's).

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shotty - 1278 days 18 hours ago

6.1 -

Same my friends all want to pick it up aswell, they just need to cough up the money

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THELANDSOFSAND - 1278 days 18 hours ago

6.2 -

yep, my friends are the same.

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Marty8370 - 1278 days 19 hours ago

7 -

No way will M$ drop price of X360 by $100,they are already loosing $100+ on each console now.Gates maybe rich but he's not dumb.The only time X360 will reduce in price is 2007 when they make the switch to 65nm.

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The BS Police - 1278 days 19 hours ago

7.1 - I fogot about that...

Yeah i agree, i almost forgot that they were gonna be using "65nm" to cut manufacturing costs!

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THELANDSOFSAND - 1278 days 18 hours ago

7.2 - sorry PS3fan

cost reduction has been in effect from day one- they can cut the price.

;)

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clayton - 1278 days 18 hours ago

7.3 - Won't you look stupid

When you purchase a PS3 for $500-$600 plus games nd accessories for over a $1000, LOL. I can hear him crying already.

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TheMART at Xboxkings - 1278 days 17 hours ago

7.4 -

The big problem for competition like Sony is, they loose even more on a console, like over 200 dollars and can't cut prices real soon. So MS has the best cost/profit combination and it's console is already on the market.

It's not looking good for Sony at all

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FamoAmo - 1278 days 17 hours ago

7.5 - Your wrong PS3FAN----this is what MS will do

With MS getting a better price on the chips they will drop the price for sure!! This isn't speculation its been rumored for months now and With the 100$ price cut they will bundle the console with GOW and with the game the console might be 50$ cheaper!! MS is gonna bundle the console with either the camera or GOW!!!

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Jay da 2KBalla - 1278 days 14 hours ago

7.6 - Actually

Analysts have said Microsoft is only losing about 125 per console and sony will be about 300-400 And sony is expected to lose money in the billions by the end of this year.

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PS360WiiRocks - 1278 days 12 hours ago

7.7 -

Sorry I have to do this, GOD PS3 FAN WHY ARE YOU IN OUR FORUMS, WAHHH WAHHHH WAHHH, these are only for us, why do you have to come here, to start fights? Your just sad cause the ps3 isn't out yet and you know it sucks so you want a 360 but won't admit it, DAMN that felt good, how's it feel lmao

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thetruth - 1278 days 19 hours ago

8 - this is great

Lol, maybe i should sell my 360 now and buy a new one later in the year. Then i can have a 360 and a PS3!

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TheMART at Xboxkings - 1278 days 17 hours ago

8.1 -

So you're expecting to sell your 360 for the same price as a new one? Think again. You'll loose on that also 50 to 100 Euro's/dollars so there's no gain inthere.

Furthermore, with 100 dollar/euro you just get one controller for the PSZero, that's like a drop of water on a hot plate. Console PSZero+ extra controller+some games easily get you up to 1.000 dollars/euro's

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Moostache - 1278 days 18 hours ago

9 -

I have heard these rumors for a long time and I guarantee in the next 24-48 hours you will find an article or news story here from a MS exec. denying this report.

That doesn't mean it won't happen, but it certainly won't be announced now! That would be suicide for sales numbers the rest of the summer as people would simply decide to wait until the announced price drop took effect.

Now, I believe whole heartedly that what is going to happen is this:

HD-DVD add-on announced at $175 in order to remain price-competitive with the PS3. The only way for MS to avoid getting hammered is for the HD-DVD to come to market at $100 (thus staying at the same price point as the tard-pack PS3), and I can't see that happening. The HD-DVD option is nice to have available, but I think ti will ultimately be a failure due to a likely high price tag and low adoption rate - in reality, I bought a 360 to game on, not watch movies on anyway.

Price drop in 2007 (late-summer, early-fall) from $399 to $349 (premium), announcement that Core models will stop production in summer 2007

Price drop in 2008 (late-summer, early-fall again) from $349 to $299, announcement that HD-DVD add-on will also drop from $199 to $149.

Final price drop in 2010 (as the newly announced follow-up console is beginning to gear up hype) from $299 to $199.

We'll see in the future, but I would be stunned to see a price drop on the 360 now....

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Xtrm L1481L1TY - 1278 days 18 hours ago

9.1 - Good analysis.

That sounds realistic. I would agree with something on that level. MS has to make a buck as well.

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Wotbot - 1278 days 18 hours ago

9.2 - Kind of agree

I think they will drop the price for the 360 towards the end of this year but not by $100, but maybe $50. They are purchasing more chips at one time and as a result they are getting them at a cheaper price break. It would make sense the more they manufacture the cheaper it becomes. Not only that, the technologies they use becomes cheaper as well.

MS should cut the cost for the consumers and not because of the launch of PS3.

The ps3 at the moment will not offer any better graphical games, and that is what most causal gamers will look at. It will have all the good 3rd party games. So if you look at this, there are no real reasons to cut costs. But it will be nice if they do for all the gamers who don't have full time jobs.

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Xtrm L1481L1TY - 1278 days 18 hours ago

10 - Wii60 anybody?

This would put the premium 360 just a tiny bit above the Wii in pricing with the core possibly below the Wii price point. I'm expecting the Wii at $299 if the guesstimated specs hold true.

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The Real Deal - 1278 days 18 hours ago

11 - Bad News for SONY

Wow...I believe its true. Microsoft always has tricks up its sleve. This is a big one. Sony Fanboys got to be sick to their stomache if it pans out like I beieve it will. 299 for an xbox 360 premium. 200 dollars less than the core ps3 and half the price of ps3's premium. That hurts..lol....Microsoft is smart. They just want to beat SONY. Whether they can overtake them or not isn't important this gen. But Microsoft will definately cut into a big chunk of sony fans that will not go from spending 130 for a ps2/novelty item and a 600 dollar plus ps3 when they can get next gen gaming for half the price. 90 % of consumers will ALWAYS buy the cheaper option. I can't wait for the ps3 launch. I'm curious if they can launch on time with games only at 30 % completion a few months before launch. And at the ps3 launch the 360 will have many many top rated games and a bigger hard drive ad on...80 gig and 120 gig. Seagate bought out Maxter hard drive makers so the drive for the 360 will be cheaper to the consumer as well. 360 will also have the hd dvd drive available and the x vision camera available. Its going to be FUN to watch unfold.

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THELANDSOFSAND - 1278 days 18 hours ago

12 -

take that Sony!

a $200 core unit! nicely in line with the wii's $199. should make PS3 look [more] ridiculous.

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dfb1977 - 1278 days 18 hours ago

13 - Probably a lot to this

True MS probably do lose $100 per unit sold but then the real money is not in the 360 itself but in the accessories, games and Live. Trust me, per unit they make back that $100 probably 3 times over, and continue to make profit every year you subscribe to Live make the odd theme, Arcade purchase etc. Initial 1st year outlay for a 360 is probably around $600-$700 once you factor all this in plus ongoing 'extras' purchases. They will probably reduce the price by $50 - $70 to get market share and watch the money roll in from periphal and live sales. This is a very clever strategy that will make MS alot of money.

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TheMART at Xboxkings - 1278 days 17 hours ago

13.1 -

You forget all those extra's also have cost prices, it's not all net profit.

A controller cost 45 Euro's (WiFi) and will be around 5 to 10 Euro to make. But then distribution, packiging, gross salers, retailers. Net profit will be somewhere around 15 Euro's per controller.

A game about 10 Euro's for MS.

Let's say everybody buys one controller and 4 games the first year. That makes 65 Euro net profit extra which will not make the loss on the 360 console dissapear

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Jay da 2KBalla - 1278 days 14 hours ago

13.2 - True

And remember microsoft points, 50 dollar subscription,3 accesories attach rate per console, 4.5 games attach rate per console.

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TheMART at Xboxkings - 1278 days 13 hours ago

13.3 -

Well that could be a real average, but let's say what I see is not like that. I have one extra controller as my friends also have 2 now. That's about it with extra hardware.

Then XBOX Live. Anyone who pays 60 dollars is not smart enough. Get yourself an XBOX 1 special offer. I had for example Ralli Sport Challenge 2 + 12 month Live/year + a xbox 1 headset voor 29,95 Euro's. Or Splinter Cell newest one + 3 month live +headset xbox 1 for 13,99 Euro's. So I'll have Live on my old xbox and my new 360.

Have to score some special offers again they stay usable a loooonnggg time

But still, the retail price of things is not all profit for MS. So let's say each piece they sell on software or hardware generally give them 10 to 20 Euro's of profit. The expensive version of the webcam maybe more. But still. It needs a lot of time before getting real good profit

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Wotbot - 1278 days 17 hours ago

14 - 360 for £320

I was in Game today, and while in there some chap aged around 40-45(looked like a causal gamer) was buying a 360. He commented on how expensive the system was, but he thought is was a good time to buy a next gen console because he wanted to play Ghost Recon and PGR3.

I can only imagine what casual gamers are going to think when they find out the cost for a PS3 and 1 game.

£320 for a 360 prem pack and 2 games is a price I believe to be the limit for causal gamers. And maybe some parents.

£475 for a ps3 and 1 game is too much for causal gamers if you ask me. The hardcore gamer of course will buy.

So while the 360 price is still a lot, it is at a good level when compared to the ps3.

If MS do drop the price it will make purchasing the 360 a little easier.

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Marriot VP - 1278 days 17 hours ago

15 -

wow, this is great but it does have its drawbacks. Like too many people waiting till CHRISTmas to buy a 360 will lead to shortages. Instead of people buying steadily.

I'd say a 50 dollar drop is reasonable. A 100 dollar drop is monumental.

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FamoAmo - 1278 days 17 hours ago

15.1 - A 50$ DROP AND A CAMERA OR GAME

I can see MS dropping the price 50$ and bundleing the console with the camera or GOW!! Now with MS bundleing the console and dropping the price $50 would be killer!! IF this happens MS will kill the Sony around the holiday's!!! Not the launch b/c they will sell out but after that MS will kill!

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RBlaze - 1278 days 17 hours ago

16 - I just hope....

...that they sort out some of the problems with the 360. I recently recieved the 'three lights of doom', and though they are repairing/replacing the console free of charge, i didnt enjoy the hassle. Being a BIG 360 fan its nulled out some gaming time!!

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TMoney - 1278 days 17 hours ago

17 - What reason?

Let's think about this for a minute. A price drop during this year's holidays to coincide with the PS3 launch? WHY? A price drop of any amount during the launch of the PS3 makes absolutely no sense.
Most consumers that plan to buy a PS3 at $600+ this holiday are early adopters/avid gaming fans. The price of the PS3 matters little to these consumers. And the price of the 360 (no matter how low) will not deter those consumers from buying a PS3.
A price drop for the 360 is inevitable, however, it will be for a good reason. I predict the 360 price will be lowered during the holiday's of 2007 when the general consumer is looking to add a next gen console into their homes. At that point, the price of the console will make a big difference in the decision.

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RBlaze - 1278 days 17 hours ago

17.1 -

You gotta think bout the parents though. I remember back in the launch of the Sega Saturn, when every kid wanted one, even though it cost absolutely loads!(here in the UK anyway). Their parents had to say no!. Now though, we know loadsa kids own PS1/PS2, and theyl want the 3rd, but the parents (again), cant pay out, and will look for the cheaper option (ie Wii or 360).

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FamoAmo - 1278 days 16 hours ago

17.2 - dropping the price around PS3 launch is GREAT IDEA

Duh!! Tmoney- Why doesn't it make sense b/c you want a ps3 or you are a Sony fanboy? A price drop ever is great and a price drop before or around the ps3 launch is huge and might make more people want the 360!!!

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Marriot VP - 1278 days 16 hours ago

17.3 -

TMoney, I get what your saying and I partially agree. MS will do this to just seal the deal. They certainely didn't have to, but it's a way to better define themselves against the Wii low price and high PS3 price.

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TMoney - 1278 days 15 hours ago

17.4 - Don't let wishful thinking interfere with good business strategy.

To "FAMOAMO": I get accused of being a Sony fanboy or having some kind of agenda just because I make an observation/opinion about a 360 price drop rumor that may not be agreeable to some? Grow up. Don't confuse wishful thinking with good business strategy.
It's about the timing. A price drop by MS during the PS3 launch is counter intuitive to smart business strategy. The 360 is already $200 cheaper than the upcoming PS3. The 360 already wins the price battle at the Sony launch. The initial PS3 units sold during holiday 2006 will be made from avid fans/early adopters, therefore a 360 price drop will have little consequence.
From a consumer's perspective, it always seems like a great idea with a price drop. However, from the manufacturer's perspective, a price drop should only be used as a competitive weapon when it would do the most good. And a price drop in 2006 is too early.

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Jay da 2KBalla - 1278 days 13 hours ago

17.5 - I agree Tmoney

It doesnt matter how low the 360 is because people will buy the ps3 anyway. However, you have to consider the normal ps3 fans that wont be able to get one as wel. If they saw a 349.00 dollar next gen console after being pissed by shortages you never know. Also this isnt to not only counter sony but simply to sell consoles anyway. Like some people already said, there are people saving up for one and a price drop would help. And lets be real no matter what the business move good or bad, a price drop is always good for consumers.

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TMoney - 1278 days 13 hours ago

17.6 - Stating the obvious

Of course, a price drop is good for consumers. But lets also be honest that a price drop this early in the product life cycle of the 360 would be idiotic. Talk about shooting your load too early! MS dropping the price this early would be like a general commanding his entire army to charge headlong into battle without maintaining any reserves. If I were a marketing exec at MS making a such a suggestion without a tangible strategy other than, "it would be great for consumers" or "it would sell more 360's", I would be handed my pink slip by the end of the day.

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USMChardcharger - 1278 days 17 hours ago

18 -

you guys think this is true?
i don't see why they would need to do this. the 360 is already so much cheaper.

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haloalldaylo - 1278 days 16 hours ago

19 - GREAT!!

Hopefully my poor ass friends and cousins can get one!

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kingboy - 1278 days 15 hours ago

20 -

ps2 will still beat it on every battle lol! no need.

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clayton - 1278 days 15 hours ago

20.1 - Yeah right

If it does it is because sony fanboyz can't afford a hdtv.

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Lucidmantra - 1278 days 14 hours ago

20.2 -

LMFAO ..

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Jay da 2KBalla - 1278 days 13 hours ago

20.3 -

lol

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