Rumor: Xbox 360 dropping to $299.99

by Alexander Sliwinski { Jun 26th 2008 at 6:30PM }

Joystiq has been in contact with the person who uploaded images (to HighDefDigest.com) showing a "new low price" of $299 advertised for the Xbox 360 in a Kmart flyer, beginning the week of July 6. He snapped the images quite quickly and they've slowly begun spreading across the internet.

We're currently attempting to confirm this information with some of our other retail contact, while our source is attempting to get a full page scan of the Kmart flyer. There is still no word on how this $50 price reduction on the Premium model will affect the Arcade or Elite Xbox 360 consoles, currently priced $280 and $450, respectively. More images can be found after the break. We'll update as soon as we learn more.

Update: Full-page ad pictured here.

[Thanks to everyone who sent this in; with special thanks to that "Anonymous" someone!]

Tags: breakingnews, microsoft, price-cut, price-drop

Reader Comments (Page 1 of 2)

LaughingTarget @ Jun 26th 2008 6:34PM

Just another $100 to go before hitting that sweet spot.

Hashbrown Hunter @ Jun 26th 2008 6:47PM

Uh...thats a little too cheap, considering the Wii is $250 and the PSP is $200.

LaughingTarget @ Jun 26th 2008 6:51PM

That'll make them go lower. Plus, the PSP is way too expensive for a portable.

Hashbrown Hunter @ Jun 26th 2008 6:55PM

Yet for some reason I can't believe they'd do it. It seems a little too affordable to be believable.

Then again if this is their way of making up for the god-awful-looking Avatars then I'd gladly believe it.

Hashbrown Hunter @ Jun 26th 2008 7:01PM

Whoops. Ignore that comment.

JerJerBinks @ Jun 26th 2008 7:12PM

I couldn't agree more. I would buy a 360 at $199, and just maybe in the $229/249, but not at $299.

Also, I am not sure where you are buying your PSPs. The base model sells for $169.99 in the US.

pkpk523 @ Jun 26th 2008 7:21PM

yeah, $199 would be great, but you're dreaming....at least for another year.
Here's the thing though: people are always talking about how PS3 is a great blu-ray player, but not so much a great gaming system. That's slowly starting to change. So you have to look at who is catering to what market. 360 was at one point catering to a more hard-core gaming audience. HD DVD, great graphics, great games=ultimate gaming system for those serious about their entertainment and willing to spend money as such.
But with the death of HD-DVD, a strong increase in PS3 game library, microsoft is going to have a harder time selling to those "casual" gamers who have money to spend on high tech gadgets. i would say PS3 has that market at this point. However, if 360 can sell more to gamers with less money but are looking for a great game system, a price drop is the way to go. You can only control what you can control. HD DVD is dead, PS3 is getting better gaming wise all the time. Dropping the price is going to appeal to a wider market to compensate for the loss of some of the higher end market. My 2 cents.

4MyFriends @ Jun 26th 2008 9:48PM

pkpk523, casuals didn't give a damn about the HD-DVD Blu-ray war anyway, using that as a pro/con is stupid.

why not the LS2LS7? @ Jun 26th 2008 10:05PM

Right. BluRay is so insignificant that there are WEEKLY rumors that the 360 will get it. Including this week (look in the "3rd party 360s" thread).

If there's enough interest for these rumors to pop up constantly, someone must be interested in it.

LaughingTarget @ Jun 26th 2008 10:43PM

Rumors are usually started by the hardcore market. BluRay is still lacking mass market appeal and the las time I looked at numbers, the PS3 is still the dominant BluRay player on the market. The PS2 never had a major slice of the DVD market and certainly didn't make up the majority of players at any point. If a video game player is your primary movie viewing platform, the format isn't doing so hot. Reference UMD (though differring circumstances).

why not the LS2LS7? @ Jun 27th 2008 1:35AM

UMD's not the same, it was never open to 3rd parties.

BluRay may not be mainstream yet, but it's doing quite well for how long it has been out.

http://www.videobusiness.com/article/CA6572676.html

pkpk523 @ Jun 27th 2008 1:49PM

@4myfriends.

well, i personally think blu ray is a huge deal. But you're kind of missing my point. i was refering to those who are more casual about their gaming overall, but willing to pay more for top of the line entertainment tech in general. For them, getting a blu-ray plus gaming system is huge. That's why a price drop would help to curb the loss of those customers by getting a more wide-array of consumers in general.

BrotherSimon @ Jun 26th 2008 6:36PM

Whats the price right now?

How big of a drop is it?

why not the LS2LS7? @ Jun 26th 2008 6:37PM

$349->$299.

BrotherSimon @ Jun 26th 2008 6:43PM

Not bad. :)

Draco @ Jun 26th 2008 8:36PM

is it possible Microsoft took a page out of Sony's book? they are releasing a new Pro are they not? with a Bigger Hard Drive? so they drop all their stock and prepare for the new model which will go back to regular price.

why not the LS2LS7? @ Jun 26th 2008 6:36PM

Wouldn't be surprised. If they don't do this, they'll be outsold by PS3 for the foreseeable future. That'd put them in 3rd place month-to-month, which isn't a great place to be.

I don't expect the 20GB to last out the summer, at least as the Premium SKU.

Hashbrown Hunter @ Jun 26th 2008 6:52PM

juan @ Jun 26th 2008 6:37PM

hopefully the elite drops to $400.
ive been wating to buy a 360 for the last 2 months, but i wanna wait for E3.

XLM @ Jun 26th 2008 7:16PM

My guess is you'll see the elite drop to $375

This is basing it off of the GTA4 promo where most shops offered a $50 card if you bought the Premium or Core and GTA4 (and $75 off the elite).

FOXHOUND @ Jun 27th 2008 7:14AM

I'm still waiting on this end to hear a GEARS OF WAR2 elite bundle... if there's no confirmation on this by August 15th, I'll just get the elite and call it a day. Hopefully I'll be able to remember my old XBL password & account... :\

doc j @ Jun 26th 2008 6:43PM

Makes sense to do this, I think (then again, to consumers it always makes sense lower the price). This should put pressure on Sony right as they are re-focusing on profitability. I would assume this still covers production cost+ so that MS is still turning a profit - does anyone know for sure?

Although, I guess I also wouldn't be surprised to see MS lowering their price just to hurt Sony even if they hurt themselves in the process. They seem to be willing to burn cash to cut in on the market share.

Anyway, I still won't be buying one. If it hits $199 in a year or so I might consider picking one up to play the couple of exclusives they have (and I want) that PS3 doesn't

Mr.ESC @ Jun 26th 2008 6:45PM

You can buy a Ps3 but you can't afford a Xbox 360?

When I stepped in the twilight zone?

Benny @ Jun 26th 2008 7:08PM

I think he's thinking of the 360 as a second console.

doc j @ Jun 26th 2008 7:09PM

When making my decision I factored in more than price. There were games I wanted for both systems and features I liked for both systems, but when it came down to it I decided I would get more value out of my PS3 than I would out of a comparably equipped 360 at $399. I just wanted more games that would be exclusive to the PS3. So, while I was willing to put down $500 on my first system of this generation, I don't think spending $299 on an additional system upon which I would play a few games (none of which are even released yet: Fable 2, Too Human, maybe Alan Wake? I would say Bioshock but it's coming to PS3. I have no interest in more Halo. And I already beat Gears of War co-op with a friend, not really interested in Gears of War 2, either)

For $199, I could maybe justify a purchase. Maybe.

You're trying to make an issue where there isn't one.

ExMcCloud @ Jun 26th 2008 10:17PM

The 360 has been profitable since the release of Halo 3 so they're making bank right now....If the 360 gets to the $250 price point I could see a lot of people investing in a 360

Mr.ESC @ Jun 26th 2008 6:44PM

Yeah but there is a catch, the games included are Civilization Revolution and Prizefighter.

The Forza 2 and Marvel Ultimate Alliance pack is still the best.

Joe @ Jun 26th 2008 6:55PM

That's just showing new games for release that week.

in b4 "prizefighter's already out lulz"

Vcize @ Jun 26th 2008 6:49PM

Call me crazy, but I really don't see this boosting sales all that much. How big of an effect did their last $50 price drop have? It seems like $100 is the price drop mark that makes people think "sweet, I should buy this on an impulse".

Gronk @ Jun 26th 2008 6:54PM

I doubt it will make a huge impact, but if the arcade sku gets a similar cut it'll be cheaper than a Wii.

Vince UK @ Jun 26th 2008 6:49PM

"More images can be found after the break..."

I would love a slightly wider shot, maybe tilted to the left a bit.

Master X @ Jun 26th 2008 6:55PM

Ill get more pics on saturday :) and a full page scan

Hashbrown Hunter @ Jun 26th 2008 7:04PM

@ Vince UK

That's what she said :)

Mr.ESC @ Jun 26th 2008 7:15PM

@ Hashbrown Hunter

So the photo session didn't turn out well?

Eric Strunk @ Jun 27th 2008 12:07PM

@ Hashbrown . . . hilarious.

kurisuchanrin @ Jun 26th 2008 6:53PM

Awesome! Hope rumor becomes reality. Me and wife has been wanting a 360 a while now.

Go go price drop!

rdj75 @ Jun 26th 2008 6:54PM

The 360 is just losing to much momentum, they should put the arcade at $199 and the premium at $249 and the elite at $299. MS needs momentum, its been almost 3 years since the 360 came out and its only had a $50 price drop? Come on they can do better than that to build some serious momentum going to the holidays and putting some massive pressure on sony.

theturtle363 @ Jun 26th 2008 7:06PM

wow it's hard to believe it's been three years. Seems like Xbox 720 is just around the bend

Chris @ Jun 26th 2008 7:10PM

I thinik rdj75 is dead on. The 360 seems to have been stuck in a sales rut, and been pegged as a machine just for hardcore gamers. Even though it has a far healthier library than the PS3, there just isn't the momentum there to really put sales on a trajectory of dominance like the PS2 enjoyed. A $50 cut might pique some people that were sitting on the fence, but it's just not enough. For some reason, even if it hit 199/249/299 I'm not entirely convinced it would be enough to propel the 360 to a dominant position...the nightmare of the RRoDs plus a perception (however misplaced) that it's just a box for FPS doesn't help.

Sean @ Jun 26th 2008 7:27PM

I think with a 50 dollar price drop the 360 will still make small profit for MS.
I doubt they are willing to subsidize the cost for consumers anymore. Besides, it leaves them room for another price drop or rebate for the holidays when the sales really pick up for everything.

Hashbrown Hunter @ Jun 26th 2008 7:03PM

Uh...what's the point of sending out a special thanks to 'Anonymous' if she/he's.....anonymous?

Mr.ESC @ Jun 26th 2008 7:16PM

Because in that case Anon would be pissed and Anon doesn't forgets or forgives.

carg0 @ Jun 26th 2008 7:03PM

dropping the console in price isn't enough.

games are still way too expensive at $60, the stand-alone 20gig HDD is a ridiculous $99 (god help you if you want the 120gig), wireless controllers are $50, battery packs are $12, that stupid charger for the packs is $30, the console itself can't even upscale DVD's for shit *you'll have to find one of their discontinued HD add-on's AND buy their overpriced VGA cables for that*

it's not the price of the console itelf that's keeping consumers from buying one, it's everything else. too damn expensive...

Hashbrown Hunter @ Jun 26th 2008 7:09PM

Life in general is expensive.

But look on the bright side, America's dollar is weakening! Which means you're getting a better deal than that snooty European buying overpriced goods!

God Bless America, and all of its issues.

Marty @ Jun 26th 2008 7:09PM

By comparison the games aren't too expensive though. If the games for system X and system Y run and review for about the same, and both cost $60, why would you spend $200 more for system Y?

Spartacus @ Jun 26th 2008 7:18PM

Uh, you could say that about EVERY system this gen, including the Wii.

carg0 @ Jun 26th 2008 8:05PM

@Spartacus: please pay attention when reading. i wasn't saying the 360's games & accessories cost more or less than their competitors.

@Marty: again i repeat, i wasn't comparing systems. this article and my comments weren't about discerning a better deal between consoles "x" and "y". i was underlining the fact that MS shouldn't just focus on lowering the price of the console, they should focus on lowering the prices of everything else.

@hashbrown: Life simply "is", my friend. if it's "expensive" than it's because you've allowed and conditioned yourself to believe so.