Microsoft introduces first Xbox 360 price cut

Tech News

By Stevie Smith Aug 7, 2007, 12:44 GMT

Following on from yesterday’s news that Microsoft Corp. is slashing the price of Windows Vista in China, the American software company is now also sharing its generosity of spirit with North American videogame consumers. Specifically, after much speculation, the price point of the Premium Xbox 360 videogames console is to be officially reduced by $50 USD as of Wednesday August 08.A staggered price reduction will apply to all the variable hardware models in the Xbox 360 stable, with the basic, hard drive-free Core system retailing for $279 USD (a drop of $20), the 20GB Premium system retailing for $349 USD ($50), and the new 120GB Elite edition moving down to $449 USD ($30). The reduction will also apply to the special edition Halo 3 Xbox 360, which will be priced at $399 USD when it arrives.Microsoft’s price cut confirmation arrives soon after Sony’s ‘pseudo’ PlayStation 3 price cut announcement, which was made prior to the recent E3 Media & Business Summit in Santa Monica. Sony has been chided for its $100 USD reduction of the existing 60GB PlayStation 3 ($599 USD to $499 USD) after it was revealed the 60GB model is no longer in production and the cut will only remain in effect until retail supplies are exhausted. A new 80GB PlayStation 3 will then slip into the vacated bracket and sell at the old $599 USD price slot. While Microsoft’s price drops are not overwhelming price plummets for the Xbox 360, which has been on the market since the close of 2005 and never received a price reduction, they still widen the cost gap to Sony’s machine and are likely to further attract those consumers not prepared to invest $599 USD on a Blu-ray-equipped videogames console.Furthermore, the price alteration to the Core hard drive-free Xbox 360 model also brings Microsoft’s console a little closer to the price point of Nintendo’s hot-selling Wii games machine. Presently the Wii sells for $249 USD, while the Core Xbox 360 will now be selling at a thoroughly respectable $279 USD."This has been our plan all along," commented David Hufford, director of Xbox product management concerning the price drops in relation to the actions of Microsoft’s rivals. "The first phase was capturing the core audience, which we've done successfully. Now as we enter our third holiday, we're aiming to expand [that] audience."Microsoft is perhaps hoping the hardware price cuts, which arrive some six weeks before the release of Halo 3, the final chapter in its flagship software series, will help to bolster the platform’s appeal as the holiday season approaches and a solid selection of exclusive top-tier gaming titles gradually become available.

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ShaneAug 7th, 2007 - 14:12:03

Even though the XBOX core will approach the Wii in cost, it will still be far outclassed in 'playing experience'.

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MichaelAug 7th, 2007 - 14:18:44

Whatever Shane, fanboy.

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ShaneAug 7th, 2007 - 14:30:32

Does shouting fanboy make you feel any better about buying an inferior game system?

One good thing about the price cuts is that you can now afford to buy a premium and a core system. Then when the premium system bursts into flame and has to be replaced, you will have something to play.

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JoshAug 7th, 2007 - 14:37:52

Nintendo made Microsoft finally blink too.

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Yoshi WashingtonAug 7th, 2007 - 14:39:24

Dude...I'm glad you're happy with your white Gamecube 2.0. Not really sure why you're hating on the 360 though...perhaps you were picked on as a child. Price drops are a good thing, as is freedom of choice.

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precogAug 7th, 2007 - 14:44:55

The Xbox is the superior system, the Wii is the most unique game-play experience.

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PedroAug 7th, 2007 - 15:01:47

the wii is great fun...for about an hour.
give me an xbox anyday. i held out but will finally buy one with this announcement.

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ShaneAug 7th, 2007 - 15:02:40

Sorry, spending $400 on a console to have it blow up makes one bitter. In all seriousness, I do prefer the Wii. You are right, price cuts are never a bad thing.

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DaveAug 7th, 2007 - 15:03:57

Heck one in three xboxs have the red ring of death problem, mine is currently being repaired...cheap chinese manufacturing and cost cutting in design is costing them billions. I went to my local UPS store and they said they have been getting 30-40 broken xboxs a week, and I live in a small town
(less than 15000) they said one guy came in three times with his broken box...Course M$ did the same thing to the people who bought the first generation xbox with the faulty thompson dvd drive.

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knowledge baseAug 7th, 2007 - 15:31:18

three words: Ring of Death

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