Microsoft to cut prices on X360.

[AI_Franchise]

http://www.mcvuk.com/Microsoft-readies-360-price-cut

Microsoft readies 360 price cut
10:00, Nov 27th by Neil Long
Microsoft's Robbie Bach has revealed that the firm’s priority is bringing the Xbox 360’s hardware costs down – and believes that Sony won’t be able to compete when it cuts the console's retail price.
In a report by Next-gen.biz, president of entertainment and devices at Microsoft Robbie Bach states: "Right now we are thinking about how to cost reduce the Xbox 360. That seems to be the first order of business."

And he goes on to say that because Microsoft beat Sony to market by some distance, Xbox 360 will be streets ahead when it comes to adopting an even lower price going forward.

"You have look at the economics. You have to ask the question, over the life cycle, who has the cost advantage? Who can price most effectively? Who can reach the price points quicker? That has a huge impact on what gets driven."

"Because we were out there first, we have a bigger installed base of consoles," he adds. "We can drive down the manufacturing curve sooner and faster. And because we designed a box that was fundamentally easier to manage on costs, we’re going to have that advantage."

The latest round of tough talking from Microsoft comes as UK retail steps up its efforts to claim vital extra sales on the sought-after hardware by offering super-competitive pricing on 360 bundles. Play.com is currently leading the way with its Gears of War premium bundle at an unprecedented £269.99, while online rival Amazon has an Xbox 360 PES 6 bundle on offer at £279.99. Full details of the current pricing slugfest are in the current edition of MCV.


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Surely prices in England will reflect those of the States.

[Jimplication]

Re: Microsoft to cut prices on X360.

I'd be most interested in a date (pre-holiday or post?) as well as what the reduction in price will be.

If I can get a Xbox 360 and game for $360ish, then I would consider that reasonable, as that is about what I payed for PS2 when I bought one years ago.

Generally, I'm will to put $300 down for a system, and another $50-$60 for a game. Anything more than that, and I feel I should be buying a new PC instead.

[bkfount]

Re: Microsoft to cut prices on X360.

it sounds like they are interested in making it cheaper to produce first, then saying how they could cut the retail costs first. I don't see them cutting the price until maybe the summer or something. It's pretty much too late to do it now.

A price drop when halo 3 comes out would be gold.

[SoMiss2000]

Re: Microsoft to cut prices on X360.

I'd be most interested in a date (pre-holiday or post?) as well as what the reduction in price will be.

If I can get a Xbox 360 and game for $360ish, then I would consider that reasonable, as that is about what I payed for PS2 when I bought one years ago.

Generally, I'm will to put $300 down for a system, and another $50-$60 for a game. Anything more than that, and I feel I should be buying a new PC instead.

well don't get too excited. If I had to guess, the first price cut would probably only be $50. They need to eliminate the core system altogether.

[CM1847]

Re: Microsoft to cut prices on X360.

Unless they can afford to sell the premium for under $300, they can't afford to cut out the core system. I don't think anything will happen until spring or summer, but it is still welcome news. I could see them doing around the time that the PS3 and Wii are starting to become easily available, especially the PS3 which should be early spring.

[Rodster]

Re: Microsoft to cut prices on X360.

I forget where I read this but it was either Microsoft or Sony who said that for every $50 price cut is a sales gain into the millions. IOW don't think for a minute a $50 price cut is not significant because it is.

Also cutting the price too low and too fast is not good either because it takes away the leverage for future price cuts. Also it gives the appearance of desperation.

[rudyjuly2]

Re: Microsoft to cut prices on X360.

well don't get too excited. If I had to guess, the first price cut would probably only be $50. They need to eliminate the core system altogether.

Cut the price to $299 for the premium and dumping the core would be a good idea. If they do that by the summer, I might pick one up around my birthday.

[pk500]

Re: Microsoft to cut prices on X360.

http://www.mcvuk.com/Microsoft-readies-360-price-cut



Surely prices in England will reflect those of the States.

You do realize that 269 pounds equals US $524 and 279 pounds equals US $543. I doubt the prices are going to drop to US $269 and US $279.

Take care,
PK

[pk500]

Re: Microsoft to cut prices on X360.

it sounds like they are interested in making it cheaper to produce first, then saying how they could cut the retail costs first. I don't see them cutting the price until maybe the summer or something. It's pretty much too late to do it now.

There's no reason for MS to drop prices now. The Xbox 360 is the only next-gen console readily available at retail this holiday season, so MS will take its $75 profit on every 360 sold and stuff that money in the bank.

The price cut won't come until Sony solves its production problems and shortage of parts for Blu-Ray, making the PS3 readily available at retail.

Take care,
PK

[ComfortablyLomb]

Re: Microsoft to cut prices on X360.

There's no reason for MS to drop prices now. The Xbox 360 is the only next-gen console readily available at retail this holiday season, so MS will take its $75 profit on every 360 sold and stuff that money in the bank.

The price cut won't come until Sony solves its production problems and shortage of parts for Blu-Ray, making the PS3 readily available at retail.

Take care,
PK

Bingo, sort of. I would expect the cut right after Christmas though since I would guess MS would rather cut into Sony's market share more than they want to pocket a few extra dollars per console for as long as possible. If the 360 is $350 (speculation) and there are a growing batch of games out there that can be had for less than $60 it makes the console even more attractive when it's $250-300 more for a PS3 and a game.

[CaptainZombie]

Re: Microsoft to cut prices on X360.

I see a price cut coming in the Spring or Summer, if one even comes.

[ExtremeGamer]

Re: Microsoft to cut prices on X360.

It'll be the week of E3. That's when price cuts normally seem to occur.

[CaptainZombie]

Re: Microsoft to cut prices on X360.

It'll be the week of E3. That's when price cuts normally seem to occur.

I guess we might be seeing it in July.

[pk500]

Re: Microsoft to cut prices on X360.

It'll be the week of E3. That's when price cuts normally seem to occur.

Is E3 in May in 2007? I thought E3 was radically decreasing in size in 2007 since it has been overrun by gamers and the general public in the last few years, eliminating its original intent as a trade show.

Take care,
PK

[ExtremeGamer]

Re: Microsoft to cut prices on X360.

Is E3 in May in 2007? I thought E3 was radically decreasing in size in 2007 since it has been overrun by gamers and the general public in the last few years, eliminating its original intent as a trade show.

Take care,
PK

Yeah, it's still E3, just smaller scale, it's just developers now.