Microsoft contemplates a 360 price cut
by Dustin Burg 
{ Jun 8th 2007 at 10:45AM }
In an interview with Bloomberg, Peter Moore and others discuss the Xbox 360 demographic, how they want to target moms and their kids, and hint at a possible 360 price cut. "If we don't make that move, make it early and expand our demographic, we will wind up in the same place as with Xbox 1" Moore says, and what better way to move more consoles than with a price cut. Director of Xbox product management David Hufford reinforces this thinking by stating that "we (Microsoft) are well aware that the sweet spot of the market is really 199 bucks" and that "when mom walks into the store and sees she can get a console with a game for $250, she sees it as a $300 value". It really sounds like Microsoft gets it.But will we be seeing a Xbox 360 price drop this year or just a game bundle? We can't be sure, but we know Microsoft is cut throat about gaining ground in the console wars this generation and a price drop would help significantly. They just have to make sure their pocketbooks can handle more losses, but we're sure Bill would be willing to co-sign.
[Via CVG]
Reader Comments (Page 1 of 1)
Viridium @ Jun 8th 2007 10:53AM
A price cut is long overdue. Microsoft should stop contEmplating and start doing!
TJ @ Jun 8th 2007 10:56AM
lol, i would also like to point out that u spelled contemplating wrong
dunnypop @ Jun 8th 2007 11:05AM
I think M$ will do a price cut when Sony does theirs...
but M$ should do a price cut with Halo 3... then Square Soft can really re-think their position on not porting Final Fantasy (not like I care about the series, but I know that game sells systems).
ben w @ Jun 8th 2007 1:10PM
well atm in uk they have amazing prices if u look around - 279.99 premium, 279.99 with Crackdown + GoW premium and a week or so ago at amazon they had
a 299.99 bundle with GoW, Crackdown ,PGR3 , xbox live arcade , an extra wireless contoller and a top game of ur choice like GRAW2
so we dont rly need 1 but hey - sum peeps dont want games
Kicks @ Jun 8th 2007 11:16AM
A pricecut would help move consoles, but they're already bundling games at some retailers. It's either the under-appreciated Viva or the sloppy Fuzion Frenzy 2.if they moved all sku's down $50 they would see a lot more movement and tie that to their whenever they finally use them cpu die size reduction and they'll still remain profitable :)
Only time will tell. I still think MS's biggest mistake was going without the mandatory hard drive. The Xbox did really well with that before because it allowed developers to make use of it for caching and now they have to rely on system memory.
That is probably the one thing Sony got right this round
Frankie P @ Jun 8th 2007 11:20AM
Does that mean the ELITES will get a price cut too, well in that case then damn I traded up for one when I could've just kept it and bought the ELITE at a cheaper price, butI bought the ELITE for the HDMI connection so I could display at 1080p which is the only connection my TV allows for the best resolution as far as the black console and 120G HDD go I din't care for those as much, but I will say black matches my set up better than white and the 120 GB storage can save a lot of videos and game demos since the new update to download with your console off makes it a better experienc than it was when I turn my box back on. The amazing thing is that the console hasnt crashed yet either (knock on wood)
Larry H @ Jun 8th 2007 11:26AM
Hmmm. Too bad they don't have a time frame. I'm going to be picking up a console for my cousin soon, and It would be just my luck if they drop the price the day after I buy it! Freakin' M$...
Wii360dsPC @ Jun 8th 2007 11:40AM
Realistic Bundles:
$279
20GB Hard Drive
Wired Controller
Project Gotham Racing 3
$349
HDMI
20GB Hard Drive
Wireless Controller
Wired Headset
$399
HDMI
120GB Hard Drive
Wireless Controller
Wired Headset
Chat Pad
thebigfatj @ Jun 8th 2007 12:06PM
Part of Microsoft's problem is that purchasing a 360 isn't as simple as it should be. Believe it or not, a huge section of the market wants to play games in some free time, but doesn't care about the details. They don't want to have to know the difference between the HD version and otherwise or the HDMI version and otherwise. Just make it work with everything. These are reasonable prices:
$199 for Flash-based save system (no card necessary)
$299 for 120GB HD system
HDMI on both.
The reliability issue will probably reach mass media soon if things continue as they are. Why can't Microsoft nip their quality issues in the bud and fix that issue?
DjDATZ @ Jun 8th 2007 12:19PM
"Does that mean the ELITES will get a price cut too, well in that case then damn I traded up for one when I could've just kept it and bought the ELITE at a cheaper price, butI bought the ELITE for the HDMI connection so I could display at 1080p which is the only connection my TV allows for the best resolution as far as the black console and 120G HDD go I din't care for those as much, but I will say black matches my set up better than white and the 120 GB storage can save a lot of videos and game demos since the new update to download with your console off makes it a better experienc than it was when I turn my box back on. The amazing thing is that the console hasnt crashed yet either (knock on wood)"
3 commas and 1 period: can you spell run-on sentence? Go back to school and retake Grade 5.
Xion @ Jun 8th 2007 12:26PM
when moore said "If we don't make that move, make it early and expand our demographic, we will wind up in the same place as with Xbox 1" he was talking in regards to having more kid friendly games on 360, not a pricecut......the rest of the article is correct tho. just pointing that out.
DjDATZ @ Jun 8th 2007 12:32PM
And yes, I do think that a price cut is exactly what the 360 needs to get even more ahead in the market.
Wiis are still selling out, and the PS3s are still sitting on shelves collecting dust. A price cut would put the Core closer to the Wii, the premium at a healthy price and the Elite at a very affordable price.
Resonable prices:
$250 for the Core with a game (Down $50 from $300)
$300 for the Premium with 2 games (Down $100 from $400)
and $400 for the Elite. (Down $80 from $480)
And once they start putting the 65nm chips, these sytems will become profitable.
mike @ Jun 8th 2007 12:43PM
Here in Canada, a Premium costs $499 Cad. This is really stupid seeing as the dollar is doing so well that $399 USD should only be $425. So if the US gets a $50 USD price cut, they need to drop the Canadian price by $125 to make it even.
The1 @ Jun 8th 2007 12:47PM
Again, Sony is not beating MS, it is Nintendo who is kicking azzzzzzz and taking names. A $199.00 price for the Core is needed now to compete with the Wii. The Wii has no HDD or HD, so Sony is not in the picture. BTW, this move would put Sony on the offensive.
sirbill69 @ Jun 8th 2007 1:06PM
This is long overdue, if MS doesn't cut the price soon the Wii will catch up by the end of summer. I still have friends waiting for them to cut the price. I would guess that MS will cut the price within the next couple of weeks. A $50 price cut would not do much good. I believe they will present the following: $199 Core, $299 Premium, and $399 Elite. Now is the time for price cuts since the console is selling so slow because a lot of retailers have a 30-day price match guarantee.
PeteL @ Jun 8th 2007 1:48PM
They expect Halo3 to move some consoles, so I don't think there will be any price cut until the 2 yr anniversary in November. By then any bump from Halo3 will be over and its right before holiday shopping season.
AirShot @ Jun 8th 2007 3:01PM
I think the price cut has to happen way before Christmas. I expect it this summer for the following reasons:
1 - they need a larger installed base before the great titles come in (starting in September).
2 - they need to introduce the 65nm design to start saving money on the hardware and customer support. In order to introduce 65nm, they need to sell their current stock - who will want a 90nm when the cooler-running, more reliable 65nm is available?
3 - if they want to get to 90 millions users, they need to make a move asap. Time is critical, as a mom that buys a Wii now is less likely to buy any console at any price in the coming 3 years
AirShot @ Jun 8th 2007 3:04PM
I think the price cut has to happen way before Christmas. I expect it this summer for the following reasons:
1 - they need a larger installed base before the great titles come in (starting in September).
2 - they need to introduce the 65nm design to start saving money on the hardware and customer support. In order to introduce 65nm, they need to sell their current stock - who will want a 90nm when the cooler-running, more reliable 65nm is available?
3 - if they want to get to 90 millions users, they need to make a move asap. Time is critical, as a mom that buys a Wii now is less likely to buy any console at any price in the coming 3 years
DeadPlasmaCell @ Jun 8th 2007 3:08PM
Not sure if it's been said already, but I think they should make the price cut before Halo 3 & GTA:IV arrive.. Halo 3 & GTA:IV will move systems regardless, but a price cut move a ton more.
DeadPlasmaCell @ Jun 8th 2007 3:12PM
Also they need to do it before the Wii's become readily available.. I've yet to walk into a BestBuy, Target, Walmart, GameStop, etc and see Wii's stacked & ready for sale.
Triforceowner @ Jun 8th 2007 5:41PM
They need one SKU, something like:
All-In-One Cable (Composite, Component, HDMI)
Wireless Controller
Wired Headset
70GB Hard Drive
White Color
Ethernet Cable
Than they need it to be $299.99. That would be perfect for a late Q3 2007 price drop and SKU reduction.
I don't know how they would get stores to stock this, though. It would be difficult to sell off remaining other SKU's.
Tom @ Jun 8th 2007 7:23PM
Step 1) Wait for Halo 3 sales to slow down.
Step 2) Redesign the console using the new manufacturing process.
Step 3) Determine if new manufacturing process costs significantly less than old process and, if it does, lower the price by as little as possible that still allows for the same profit margin.