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Microsoft to cut Xbox 360 price tag

Tom Magrino, GameSpot | July 11, 2008 5:27 AM PDT

Summary

After weeks of rumors and leaked retailer adverts, it now appears as if official confirmation has arrived for a price cut to Microsoft's Xbox 360 Pro.
After weeks of rumors and leaked retailer adverts, it now appears as if official confirmation has arrived for a $50 price cut to Microsoft's Xbox 360 Pro.

Citing "people familiar with the matter," The Wall Street Journal reports that Microsoft will lower the price of its 20GB Pro unit from $349 to $299 as early as Sunday, July 13. It could also be announced as part of Microsoft's presentation at the E3 Media & Business Summit on the morning of Monday, July 14.

The timing of Microsoft's announcement comes as Xbox 360 is lagging behind in the console race. Whereas the console thumped the PlayStation 3 in terms of sales in 2007, Microsoft has lost ground to Sony in 2008. Besides the launch of high-profile PS3 exclusive Metal Gear Solid 4, Sony's console has also benefited from Blu-ray Disc's victory in the high-definition video format war following the collapse of the Microsoft-supported HD-DVD. Another major factor is last fall's introduction of the $399 40GB PS3, which put the console in the same ball park as Microsoft's 20GB then-$349 Xbox 360 Pro.

Currently, the Pro--which comes equipped with a 20GB hard drive, wireless controller, and wired headset--carries a suggested retail price of $349, $70 more than the bare-bones Arcade unit and $100 less than the HDMI-equipped 120GB Elite model. This most recent price cut will be the second time Microsoft has reduced the price on its flagship console since it first hit retail shelves a full year ahead of its competition in 2005.

Following a similar deluge of leaks in August 2007, Microsoft slashed $30 from the Elite, $50 from the Pro (then Premium), and $20 from the discontinued Core model.

The WSJ did not indicate whether Microsoft has similar price reduction plans for the Arcade and Elite models, nor did it address the issue of the console's hard drive. Last week, a leaked memo allegedly sent to GameStop and Blockbuster employees indicated Microsoft would begin phasing out the 20GB hard drive. In its place, the company would start including a 60GB device with new Xbox 360 Pros later this month and in October offering a stand-alone 60GB accessory for $99. The memo also indicated that Microsoft would drop the current price of the stand-alone 120GB hard drive to $150 in September.

Talkback Most Recent of 20 Talkback(s)

  • Get your facts right, please
    "...and $100 less than the HDMI-equipped 120GB Elite model."

    Just to point out that the Pro version also comes equipped with an HDMI port.

    Anyway, about HD disc formats: don't forget that the 360 is almost a year older than the PS3. It was a big risk for Sony to use Blu-Ray in the PS3, so imagine how big of a risk it would have been for Microsoft to use HD DVD almost a year before that!

    Also, sales don't prove anything. I've already got a 360, so I'm hardly likely to go out and buy another one. I'm more likely to buy a PS3, though. What does this mean? This means that the sales of 360s have gone down, because the number of 'potential buyers' has decreased. Logic, really.
    ZDNet Gravatar
    CreepinJesus
    11th Jul 2008
  • Blu-Ray 360?
    They going to do one or not?
    ZDNet Gravatar
    itanalyst2@...
    11th Jul 2008
  • Rumor squashed...
    Well it was rumored that Microsft was going to announce a Blu-ray 360 at WWDC which happened a month ago but no such announcement was made and the Blu-ray 360 rumor is squashed for the moment....
    ZDNet Gravatar
    Core2uu
    11th Jul 2008
  • Probably will never make one
    By the time Blu-Ray is main-stream (assuming it stays 'alive'), we will probably be in the next console generation anyway.
    ZDNet Gravatar
    CreepinJesus
    11th Jul 2008
  • XBox HD
    There is no chance MS will "update" XBox 360 to include a Blu-Ray player.

    Business etiquette will tell you that coming out with a new version and a new name would make more money.

    The 360 is just collecting dust at the stores. MS needs to dump the loosing system in favor of a more profitable product.
    ZDNet Gravatar
    wackoae
    13th Jul 2008
  • Not happening
    If you want Blu-Ray get a PS3.

    If anything, MS would come out with a lame add-on drive, like their lame HD-DVD drive. But i don't really see that happening either.

    They're sticking wit their guns of delivering movies through XBox Live. Stupid move IMP, but it's what they're doing. If they had been committed to delivering a truly integrated high def DVD console they wouldn't have done the half a$$ job they did with the HD-DVD add on.
    ZDNet Gravatar
    tikigawd
    14th Jul 2008
  • RE: Microsoft to cut Xbox 360 price tag
    Blue ray doesn't at all conform with Microsoft's media strategy with the XBOX 360. Microsoft puts their focus(and smartly so) on downloadable HD content from XBOX live, and streaming media files from the owners PC's to their TV. With the growing predominance of Comcast OnDemand, Apple TV, and XBox live marketplace, I see little room in the future for Blue-Ray, and I guess so does Microsoft.
    ZDNet Gravatar
    gtg781w
    12th Jul 2008
  • The Xbox 360 is collecting dust at the local stores
    People don't belive me when I tell them that the XBox is NOT SELLING. I tell them that all they need to do is walk into the local Best Buy / Circute City / etc. and look at all the XBox boxes that (nobody is buying or looking at) collecting dust on the floor. That is the reality, xbox fanatics refuse to see.

    Why the PS3 is hard to find (but not impossible) and the Wii is down right impossible to find, the XBox is available like grass weed full of dust.
    ZDNet Gravatar
    wackoae
    13th Jul 2008
  • Other way round in Europe
    Or at least Switzerland...

    It took 2 months until people started buying the originally overpriced PS3. But, at the moment, there're hardly any Xbox 360s. There are loads of Wiis (everyone's already got one now).
    ZDNet Gravatar
    CreepinJesus
    14th Jul 2008
  • RE: Microsoft to cut Xbox 360 price tag
    That's because, for a pleasant change, Nintendo is supplying the EU market in preference over the US. Normally it's the other way around, but with a dollar worth less than a Kleenex these days, EU sales are much more profitable

    Microsoft's failure to reflect that exchange rate in it's EU pricing of the X-Box might not be helping their sales either, certainly I am never going to pay the equivalent of $450-$500 for a $250 product.
    ZDNet Gravatar
    alec.wood@...
    14th Jul 2008
  • RE: Microsoft to cut Xbox 360 price tag
    The last I heard, the 360 still out sells the PS3 on a month to month basis in the U.S. and Europe, except for themonth that MGS 4 was released (which was expected). Admittedly the 360 barely beats the PS3 in month to month sales, but it does. Only in Japan does the PS3 outsells the 360. In fact the Blue-Ray format is trouble from what I have read. Movie sales are lack luster, as cutomers prefer to buy DVDs (at half the cost) and play them on upconverting DVD players (at 90% of the quality of Blue-Ray). In fact stand alone Blue-Ray players (not the PS3) cannot be upgraded (firmware), and therefore cannot take advantage of the never ending updates pushed out by Sony and are being phased out (perhaps a new stand alone player will replace them, but that screws all those who already bought one). The future is digital dwnload, even Sony sees that, although not for another 3 to 5 years.
    ZDNet Gravatar
    wthilo@...
    14th Jul 2008
  • Firmware can be upgraded
    You are not very up on blu-ray i see. The first gen sony blu-ray players require the insertion of a disc to update firmware, where as the 2nd + gens will update via the network port. I had a first gen blu-ray and updated it several times (i think it is at 1.2.x now) via a downloadable firmware patch.

    Quality wise even upconverted dvd's can't even compare to the quality of a blu-ray it just isn't possible when you are stretching and dithering pixels. The sound quality is also much higher if you have a decent surround sound system connected.
    ZDNet Gravatar
    robt@...
    7th Aug 2008
  • RE: HD Download
    For me the future isn't HD Download.

    How much do you spend on your Xbox Live subscription? How much does it cost to download a movie to your Xbox? What happens to your movies if your HD fries?

    I'd much rather walk the two blocks to my local Block Buster, rent the blu-ray disc, and not have to worry about paying a subscription fee, worrying about tying up my DSL while the movie downloads, or worry about what would happen to the couple of blu-ray discs I do own if my PS3's hard drive were to fail.

    The PS3 costs more out of the gate, but I'll probably save the difference over the course of a year or two just by the virtue of not needing to pay for Xbox Live.
    ZDNet Gravatar
    TeamDrunkenPanda
    14th Jul 2008
  • What happens if your HD fries?
    All your purchases are saved to your account, so if you pay for something you can download it as many times as you like. With the movies you pay a small fee and have access to it for a time period, so within that time period you can download it as many times as you like. I guess your HD could fry and if you don't get a new one right away you'd have to pay for the movie again even though you never got to watch it, but that'd sorta be the same boat as if your Blu-Ray player got fried and you were renting a movie... if you didn't replace it soon enough you'd have to pay late fees.
    ZDNet Gravatar
    Tashimojo
    14th Jul 2008
  • Big difference
    Between renting and being forced to pay a stupid fee for a pseudo-purchase. If I want to rent something, I'll rent it. if the unit fries, who cares.

    If I want to BUY a movie I'll go BUY it at a store, not pay some fee and have someone hold me by the balls as to where I can watch that movie. If I buy something I don't have to worry about the player/console frying and also taking my movies with it.

    Same stupid model as Apple with their iTunes. If people are dumb enough to buy locked crap that HAS to be seen/heard through a specific piece of hardware they they better not complain if that hardware fries.
    ZDNet Gravatar
    tikigawd
    14th Jul 2008

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