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Microsoft Drops Xbox 360 Pricing 169

Kawahee was one of several readers to tip news of a price cut for the Xbox 360. This comes after Sony dropped PS3 prices and unveiled the Slim model last week. The 360 Elite will now retail for $299, but will no longer ship with HD cables. The 360 Pro has been reduced to $249, but Microsoft is phasing it out. Analysts don't expect this new price point to be a huge boon for sales because the Elite doesn't match the PS3's hardware capabilities and is still more expensive than the Wii. Microsoft has "no plans" for a smaller version of the 360.
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Microsoft Drops Xbox 360 Pricing

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  • by Nerdfest ( 867930 ) on Thursday August 27, 2009 @03:14PM (#29221057)
    Low-end HDMI Cables are about $3 on, etc. Not a big loss, but a bit inconvenient if you don't have a couple lying around. I hope this doesn't boost sales of Monster cables.
  • by alvinrod ( 889928 ) on Thursday August 27, 2009 @03:22PM (#29221173)
    I think that they're going to stick with the Xbox 360 for a while longer.

    First of all, they have previously stated that they wanted to be profitable this go around. Even though Windows and Word are still a large cash cow for Microsoft, they can't afford to continue to bleed money in other divisions. They probably would reach profitability on this current generation and have started making up for the losses of the original Xbox if they hadn't run into the red ring problems. That probably set them back a year or so at least.

    They're also in no real danger of being one-upped by Sony either. The PS3 may have technical superiority, but it's not by a large enough margin to cause people to move away from the Xbox 360. Sony also has a lot of costs to recoup as well and it doesn't appear as though they're in a hurry to release a new console any time soon.

    It also seems as though Nintendo has begun to hit market saturation with the Wii at its current price. The sales have been down over the last few months and there's still no word of a price cut. I'm expecting one around Christmas, but they may be running out of steam. If anyone needs to come out with a new piece of hardware it's Nintendo.

    If they announce a new system in the near future, sales of their current generation will probably tank. At that point Sony will be able to catch them in sales and they'll end up as the also ran of the current generation. It's likely that they're discussing hardware options for a future console at this point and possibly sharing some of that information with third parties that they'd like to keep close. It's also unlikely that they'll rush in attempt to be the first out of the door as it cost them a lot this time around.

    They're also between a rock and a hard place in terms of making a decision of whether they'll move heavily towards digital distribution. They probably don't want to put a Blu-ray drive in their next machine as it increases the cost and justifies Sony's position. A DVD drive likely won't cut it for the next generation of games and the hard drives being included in consoles aren't there in terms of size yet. They'll need at least 500 GB drives if they want to move towards digital distribution and given the drives consoles are currently shipping with it will probably be another 2 years before 500 GB drives come standard. I don't foresee Microsoft using a PPC chip in their next console either which will probably kill backwards compatibility or add to the cost of the machine if they decide to support it.

    They likely have plans, but I don't expect them to make any moves until either Sony or Nintendo does something first. My bet is on Nintendo just because they're flush with cash and really lagging behind in terms of hardware, especially with both Sony and Microsoft releasing motion control features in the near future.
  • by Anonymous Coward on Thursday August 27, 2009 @03:35PM (#29221383)

    Xbox 360 doesn't transmit the audio over HDMI

    That's not right, check you cable or connections. Many of us are HDMI only with the 360.

  • by Lectoid ( 891115 ) on Thursday August 27, 2009 @04:38PM (#29222563)
    Do what I did for me and two people I know, hack a cheap 120 GB WD hard drive to work. []
  • by clarkn0va ( 807617 ) <> on Thursday August 27, 2009 @05:24PM (#29223335) Homepage
    Get yourself an inexpensive ASUS WL520gu router [] and install the latest tomato firmware. [] Blammo! Instant wireless bridge for 4 ethernet devices, no client drivers required. You're welcome.
  • by Anonymous Coward on Thursday August 27, 2009 @07:26PM (#29224847)

    Nope, it's true. Not only does the 360 not have wireless built in, but the wireless adapter has a list price of $99.99 [].

    Despite this recent price drop, I'd say that for most people the PS3 is cheaper. The 360 base console console is cheaper, but when you factor in wifi, xbox live, ridiculously overpriced hard drives, etc....

I came, I saw, I deleted all your files.