Rumor: Xbox 360 gets $50 price cut in August
The Hollywood Reporter, er, reports that Microsoft will cut the price of the Xbox 360 by $50 in early August. THR says their source believes the price cut is because August is traditionally one of the slowest times of the year. That may be true, but our magical source from the nether dimension says it's probably got just as much to do with the megaton called Halo 3 dropping in Sept. 25.The report really has no new information to bring to the "When's Microsoft finally going to drop the price?" game. The best they've got is an unnamed source. Please, if we trotted out every tip we've gotten on an Xbox 360 price drop we could probably do a Best in Show presentation based on grammar, probability of validity, and firmness in belief. Is the price drop rumor true? Well, we think it's got to happen sometime soon ... right?
[Thanks Joel]
Reader Comments (Page 1 of 3)
elmersglue @ Jul 25th 2007 10:37AM
"An internal source, who wants to remain anonymous for obvious reasons but already gave us correct information in the past, contacted us to say we should expect a price drop for the Xbox360 on August 08th."
That's over on xbox-scene.com... so if they're two different sources saying pretty much the same thing... then i'm going to say there's a pretty good chance this is true. It's funny how each source gives a detail that the other did not mention. Joystiq is reporting a $50 price cut, and the xbox-scene news is reporting a specific date (august 8). Was hoping it would be more than $50, but lets just hope it's true.
Iann Cannon @ Jul 25th 2007 3:11PM
Actually, if you read the Hollywood Reporter article, you'll see that they also give August 8th as a date.
Phranctoast @ Jul 25th 2007 10:41AM
good news! This will probably cause another price drop for the ps3 as well. Kind of force Sonys hand. Im sure they wouldnt mind if the price drop came a little later for many reasons. I would like to see the return of the 20gig model at a 350-400 price point. Its all the HDD space you need, expecially since you could now stream a lot of stuff off your networked pc!
Wes @ Jul 28th 2007 10:58PM
I was thinking kind of the opposite. I was thinking the price cut could be potentially $100.00 but they are doing $50.00 on purpose for a small boost over the ocmpetition's sales to boost the install base a bit and secondly to not-force a ps3 price cut.
I mean, if xbox 360 did $150.00 cut, I agree that PS3 would need to desperately respond. With $100.00 price cut, the ps3 would need to respond in-a-reasonable-amount-of-time. With a $50.00 price cut, eh... not so much. They should match that price cut eventually but the sense of urgency isn't so great is it?
Oh, they lowered the price! We must too! Oh what? only 50 bucks. Hmm, thats not so much. Maybe we can 'wait' a while before matching.
Jack of No Trades @ Jul 25th 2007 10:41AM
That would be smart.
JodyAnthony @ Jul 25th 2007 10:43AM
awesome, I can pick one up sooner rather than later, then.
Matthew @ Jul 25th 2007 10:43AM
I would bet that after Sony's huge jump in sales with the $100 price drop, (please no clearance comments), Microsoft might be reconsidering their strategy.
I'm not one that believes Halo 3 will push system sales the same way that Halo did. Given the fact that Microsoft missed their fiscal target of units shipped, it wouldn't be surprising to see a drop as I believe they wouldn't take a lead loss with the new price.
Of course, right now it's all conjecture, but the writings on the wall based on prior executive comments that the price point isn't in the 'sweet spot' just yet.
Patrick @ Jul 25th 2007 11:22AM
umm Im sorry but it is a clearance, because once there run is out, sony will have one $600 sku, where as if this is true, ms will have a $250, $350, $430 sku
Nox @ Jul 25th 2007 11:35AM
Naw its not a clearance sale, cuz I guarantee you when the 60G model sells out the new 80G model will take its place at $499. Common sense business assuming Sony has some...
Matthew @ Jul 25th 2007 11:41AM
Come on Patrick...no need to bash Sony on this one. Apparently my half-hearted attempt at moderation didn't work.
I'm assuming that about the time Sony runs out of the 60GB model, they will drop the 80GB model to the 60GB price. Professionally, I think it would be the equivalent of retail suicide for them not to. (Of course this IS Sony we're talking about.) You are assuming the opposite, but neither of us really knows what their plans are. I'm just willing to give them the benefit of the doubt until I hear otherwise.
Evan @ Jul 25th 2007 11:47AM
For that matter, Microsoft's $50 price drop could be a clearance to move the systems that retailers have stockpiled before introducing a revised system (65nm? HDMI on Premium?) for the Christmas season.
brad77 @ Jul 25th 2007 2:22PM
That would be true if the new revised box was not sold at the reduced price, Evan.
Uh oh. I'm talking about a rumor (reduced price) on top of a rumor (65nm Premium w/HDMI). I'd better get out before I get into an argument that can't be settled until August/September/beyond.
Of course, that never seemed to stop anyone before.
charleytony @ Jul 25th 2007 10:46AM
Its about time ... lol ! They will have lasted almost 2 years without a price dop. To me thats quite an Achievement.
Now they have their 12 million install base nd they can shift this baby into 2nd gear, by dropping the price of the console progressively and start focussing on delivering awesome game to their customers.
This is probably true due to the fact that they will start shipping the new 65nm chips in the new consoles. Which also coincides with the fact that they found the "problem" with redrings of death systems (90nm chip make it overheat)
In the end, meybe they went a little over the top at first by clocking those 90nm chips at 3.2GHz (x3 cores) --- hey most intel core duos just go at 1.8 or 2.0 GHz ... --- but hey ,, im not complaining mine works great and M$ made a killer system !!
Matt B @ Jul 25th 2007 10:53AM
12M? Try a little over 10M. 3M are still waiting for their refurbs to come back.
Digi Smalls @ Jul 25th 2007 11:08AM
have a source Matt B, or you just fanboying again?
Matt B @ Jul 25th 2007 11:25AM
http://www.vgchartz.com/
http://www.eurogamer.net/article.php?article_id=79059
How could they have a 12M install base when they couldn't even ship 12M.
Why don't you do a little research before calling people out assbag. I don't post FUD. I'm sorry you find the truth annoying.
Digi Smalls @ Jul 25th 2007 12:30PM
vgchartz eh, yep THE fanboy source. that goes for both sides.
the number is 11.6 million, as stated by *your* second, actual industry source. that's a lot closer to 12 million than the 10 million you chose to present. why did you kick out the lower number?
and i'm still waiting for the source about the 3 million refurbs? i thought you didn't post FUD or"false information".
.
Matt B @ Jul 25th 2007 12:53PM
He said INSTALL BASE, NOT SHIPPED.
Even by their own admittance, VG Charts knows they are off, but not enough to be totally unreliable. I used VG for sold and the other link for shipped. I don't mind that you jab at me DIGI, but it was a correction not a fanboy comment.
Digi Smalls @ Jul 25th 2007 12:59PM
noted.
so what was the 3 million refurb comment?
it was either fud or a fanboy joke/comment, or what usually happens with comments like that, both.
.
JodyAnthony @ Jul 25th 2007 1:09PM
the real question is who cares how many were sold?
if they sold one hundred or one billion, who cares?
ask yourself this:
does the console have games that you want to play?
if yes, buy it
if no, dont, and shut up about it.
nobody cares if you don't like the 360, just like nobody cares if you do. just fucking grow up.
Digi Smalls @ Jul 25th 2007 3:43PM
the amount of consoles sold matters a lot JodyAnthony, if you care anything about software support.
what doesn't matter is the fractions of millions and other really unknown numbers that brandboys cling to to further their brandboy arguments.
the only thing worse than stating numbers that aren't truly knowable, or even from industry sources, is stating numbers you just made up (like 33%) as truth.
that's just irresponsible.
.
Matt B @ Jul 25th 2007 3:57PM
Ya, the 3M waiting for refurbs is the 1/3 of "supposed" failure rate. I was making that part up. :P
CJ @ Jul 25th 2007 10:51AM
Not bad. Im sure 100 wouldve been better but 50 is better than nothing and will still attract new comers
aylera @ Jul 25th 2007 10:51AM
Microsoft, taking a chance to miss out on cash ?
Their fall lineup is "so strong!" according to them, they should sell systems hand over fist not because of Halo 3, but because of their entire holiday lineup.
Honestly, I don't see Microsoft giving up on the extra cash until after the holidays.
Jake @ Jul 25th 2007 11:01AM
Don't be ignorant. All console makers are looking to make the most money possible. Reducing the price of a console can surge console sales, leading to more software sales, leading to more money. Every move you make as a business is made with the goal of making more money overall. Seriously, making comments like "MS is too greedy to drop the price" makes you look very young and very naive.
Davinche @ Jul 25th 2007 10:53AM
I thought the point of having Halo 3 in September was that the game would push as much systems as it could at the $400 price point till about late November and early December, then, when everybody who could get a 360 at the current price would have one, which would allow them to drop the price by 100 dollars and then be the great christmast gift deal.
If they dropped the price in august, people who were going to pick up a 360 for halo 3 anyways would now get a better deal, when MS could of charged them full price and got away with it. Furthermore if they price drop in august what great advantage will it be to people, if they still have to wait for the games they really wanted anyways?
If its true I think its a dumb decision from MS. Wait till after halo 3, or tie it in WITH halo 3 so that you make 360 seem really appealing and have a lot of hype, why in the middle of the worst (typically) month of videogames sales? they should maximize the potential of a price drop and effect on consumers.
x876543 @ Jul 25th 2007 11:37AM
To combat the PS3 price drop. I'm still on the fence about which of the two to get, Xbox360 or PS3. These price drops keep me going, "Oooo! Clearance sale!" and "Oooo! Discount!"
But the hardware issues and lack of games for the Xbox360 and PS3 respectively have me still waiting to see what's next to happen before I buy.
Evan @ Jul 25th 2007 12:00PM
The point of having Halo 3 in September may be so stores have time to replenish their stock in time for Christmas. Casual Christmas shoppers buying a system for their kids might buy a competing console if their first choice is out of stock.
Joshua @ Jul 25th 2007 10:53AM
I still find it odd to lower the price before Halo 3 comes out. I know that it would 'help' move units but I would think they would use the game to drive sales at the old price point and lower the system about 30 - 60 days later.
I do hope this rumor ends up being true since I know some people really wanting to get a 360. It's great they could save some money.
aylera @ Jul 25th 2007 10:55AM
"This is probably true due to the fact that they will start shipping the new 65nm chips in the new consoles. Which also coincides with the fact that they found the "problem" with redrings of death systems (90nm chip make it overheat)"
Making a CPU wafer 30nm smaller doesn't equal saving $50.
It'll probably cost the same, but run more efficient. What cuts the cost down are the yields of cpu and other chipsets, that increase as production goes along. Which honestly, at this point, probably have already happened. But Microsoft already put in cheap parts to begin with, which is why they haven't adjusted the price any.
Digi Smalls @ Jul 25th 2007 11:11AM
making a chip smaller means many more chips per wafer ie. lots more yield = cheaper.
Joshua @ Jul 25th 2007 11:13AM
...but it's wafer thin! Sorry had to go there.
GodisaMyth @ Jul 25th 2007 11:22AM
just one leetil mint sir.....
Iann Cannon @ Jul 25th 2007 3:37PM
@GodisaMyth
Exactly what I was thinking.
Negativecool @ Jul 25th 2007 10:56AM
If anything they should RAISE the price $50 because the 360 rocks the party that rocks the party.
Mortensen @ Jul 25th 2007 10:58AM
A price cut and the line up of titles this fall will mark certain doom for another unnamed....(PS3).... console. Ha Ha. =) Let the wars begin!!
erac3rx @ Jul 25th 2007 11:01AM
Anyone else notice that they're doing what Sony's doing? $50 cut on the existing units to clear them out for the 65nm units that will actually cost them less to make which will be arriving in time for x-mas.
Seems like $50 cut across the board now, then when the cores run out they're gone... and for the holidays they can do $300-350 premium, $400 elite?
All I have to say is I'm still not buying my 2nd 360 until the new cpu arrives, Microsoft does not have me convinced they've properly addressed the RROD problem and the DVD drives are still insanely loud. We were all hoping for that in the Elite but didn't get it...
B. Gates @ Jul 25th 2007 1:30PM
Soon you fahk heads will buy my newest system:
THE ULTRA ELITE PREMIUM 360...
Features:
New 65nm CPU's
HDMI
Quiet DVD
GUARANTEED NO RROD
FREE XBL ONE YEAR
PRICE: $499.
NOW HAND OVER YOUR CREDIT CARD, FOOLS!
charleytony @ Jul 25th 2007 11:02AM
Imagine,, no price cuts now... a lot of people get a 360 anyway to play halo3 and everything else then after christmas they drop it a full 100$ ,, all those people would be a little pissed !!!
Im sure evey Halo fan will get the 3rd game but they real battle between PS3 and X360 lies, to me, in which console people get to play GTA4 (since both console a pretty cool exclusives)... If M$ gets people to go 75%/25% split on respectively x360 and PS3 then It ll be over... They'll keep the lead for a really long time even if Sony does SOME catching up eventually... by then,, the WII-2 will almost be on the shelves !!! LOL
Martez @ Jul 25th 2007 11:48AM
I agree. If they did a price cut right after all these huge games launch, it'd be bad for their image and they would hear from an increasingly vocal group of gamers. And by "they" I of course mean Major Nelson will get angry comments on his blog.
They're on a pretty good roll right now with the extended warranties and relative transparency about the issue, a great lineup of games coming in the next few months, and a little price drop would be a nice cherry on top.
AP @ Jul 25th 2007 11:03AM
This price drop doesn't make any sense... First off why would MS drop the price before Halo 3... They are going to sell the same amount of consoles with or without a price drop... Actually they could jack up the price of the consoles by $50 and they will still sell the same amount... Secondly, the holiday season is wide open to all of the game companies (no console has an edge)... Having the price cut just before the holiday rush could give them an edge in sales... Thirdly why August?... They have an incredible lineup coming a month or 2 after... Thats hardly a lul time... If they drop the price its to make a statement for Sony's price drop (i refuse to call it a bait and switch... theres more to it than people thing), which is stupid marketing...
What they should do is get to work mass producing the "fixed" units... Advertise that point and make a public apologie for the red ring debacle (which they wont for legal purposes but one can dream)... Then come November (after Halo 3) drop it to whatever they want... I'm all for price drops as much as the next guy... But doing it now makes sense from an investors standpoint...
Martez @ Jul 25th 2007 11:45AM
I think they already said they're making 'fixed' units, or that the problem has been identified and corrected, or whatever double-speak they use instead of "We fucked up. Sorry!"
GamerG @ Jul 25th 2007 11:09AM
They will want to drop the price to maximise the impact of all the games coming out, it wont be worth lowering the price so much in Feb/March etc when people are not on the look out for consoles. They will also be able to recoup more of the cut by selling more games this christmas.
One of the problems MS has is that everyone is expecting a price cut hence there are many out there waiting for one, once the cut is made those people will jump in much like many did on PS3.
Plus I'm sure all the developers and puplishers are piling on the pressure for a price cut seeings as sales are slowing for the 360.
Konny @ Jul 25th 2007 11:11AM
The Wii is the obvious choice for casual gamers this generation (PS2 is still selling well) due to its price and more importantly its marketing appeal.
If MS dropped the price of the Core to $250, there would be price parity, but, how would they market it? Would it be directed at casual gamers (where are causal friendly games) or gamers looking for a cheap entry point?
I suspect that casual gamers will still be buying Wiis even if 360 Core was at $250 and gamers aren't interested in the bare bones SKU (see sales of Core and 20gb PS3)... so, little to no advantage to MS there.
charleytony @ Jul 25th 2007 11:16AM
dont forget that a hardcore gamer will get the system he is a "fan" of and then all the other people bying game systems are basically ,,, Moms !!! lol
samfish @ Jul 25th 2007 11:48AM
DAMN, Konny. Not only did you make a post where you mentioned Nintendo and didn't take a cheap shot at them, but you also made a good point.
Good job! You get a plus!
Martez @ Jul 25th 2007 11:49AM
No, a hardcore gamer will get all three.
Jake @ Jul 25th 2007 11:13AM
I think Sony has forced MS to do this. MS wanted to wait for this killer fall lineup to push full price systems. But, Sony will likely sell out the 60Gb stock, then drop the 80Gb model to $500. MS can't wait another 4-8 months for a price drop. They simply have to counter right now. On the plus side, the drop will sell more systems into a season where many games are available for purchase.
With the price drop, sick fall lineup, and supposedly fixed 360's that also run more efficiently all coming this fall, it could be a very strong month for 360 sales. Hang on.
rdj75 @ Jul 25th 2007 11:14AM
I have been saying this for so long, MS best option is to drop the price before halo 3, its not about just selling consoles at $400 its about increasing market share and what is the best way other than halo3 and a price drop?
JonnyBoy2U @ Jul 25th 2007 11:21AM
If this rumor is true then so be it.
However I don't think MS really needs this price drop.
Plus sales of the ps3 are STILL low despite this "price drop" of theirs.
So why exactly are the sony trolls cheering? Halo 3 alone is enough to make people buy a 360 at the current price. Whether its the Core, Premium, or Elite version.
BUT if a price drop does occur then its definitely going to hurt sony even more...lol. SWEET!