Rumor: Microsoft gets more competitive next month

by David Hinkle on Aug 1st 2008 6:29PM

Let's face it: each console does something pretty well. The Xbox 360 has Xbox Live, which is a pretty good online service. The PS3 has a very comfortable controller and can do some sweet media stuff. The Wii has an innovative control scheme and No More Heroes. Each console is great in their own way and this current generation's console war has been fun to watch. Now that consoles are getting older, prices are falling and we're anxious to see how the rest of this struggle for market dominance will play out. If this rumor turns out to be true, the Xbox 360 will be the cheapest console on the market, besting the Wii by $50.

Both the Xbox 360 "Arcade" bundle and the "Pro" bundle are supposedly getting their prices slashed. The "Arcade" is apparently dropping from $279 down to $199, while the "Pro" will drop from $349 down to $299. This might come as good news to the Xbox camp, but, should this happen, we wonder how this could affect the sales moving forward.

Could this drive Nintendo to cut the price of the Wii? We doubt it. With the console doing so well, we don't think Nintendo is looking to their competition to determine when they should slash their own console's price. But, if this price drop does spur a big increase in Xbox 360 sales and people start buying less Wiis, we wouldn't be surprised if Nintendo announced a price drop on our around the holidays later this year. What do you all think?

[Via GamePro]

Source

Tags: business, microsoft, price-cut, price-cuts, sales, salesfigures, xbox, xbox-360

Reader Comments (40)

As a Nintendo Fanboy, I may be enticed to purchase one. They have some great online features that can keep me in touch with friends. I just wish Nintendo would get up to speed with their online.

Gah, I might get one too, especially now that Final Fantasy XII is coming.

When the competition comes out a full year after your console, and is already outselling it by 8+ million worldwide, you'd drop the price below theirs too, wouldn't ya?

It's only out selling it by +3 million worldwide

http://www.nexgenwars.com/

They're only outselling by 3 units.

Hah, see what I did? I can pull numbers out of my ass, too. Ever think where they get those numbers from, Spanspehn?

I don't think it will make a big difference. I might buy a second 360 just for netflix if it does drop down to 200.

Didn't MS announce a price drop around E3, which ended up not actually being a price drop, but just a clearance on their old SKUs before they released new ones?

Probably boost 360 sales, since of course, this is the age of multiplatformism

I think the wii will drop down in price. then nintendo will unveil the wii2!!!! XP

I think it will compel them to drop price sooner than they would have wanted too, but not immediately

If true, it could prompt a price drop after this holiday season to boost post-season sales, but the Wii train isn't about to be upset before that point

This would be awesome! But i'm not getting my hopes up until Microsoft offically announces this.
I'll be waiting impatiently until I get the $300 to get a Pro.

Find a 20GB Pro. They are on nation-wide clearance sale by MS for $299 now. The 60GB model is replacing it at the $349 price point.

I'm 15, so I can't get a job 'til next year. I would love to be able to get one now so I could get one cheap(er) and with enough memory, but sadly I have to wait.

i honestly believe that many people do think that the 360 controller > ps3's controller in terms of comfortability:)

i don't think this will make the wii sales drop, might make the 360's rise a lil bit though:)

Really? Well then the 360 is getting close to a price where I will buy it. I don't think Nintendo should be affected too much, sure you COULD get a 360 cheaper but a lot of people would want the better bundles.

I really don't see this affecting the Wii much, at least not in the short-term of things.

If it does anything, the Wii may lose some sales over its lifespan, but at the current rate that Ninty's outselling Microsoft, a price drop would make little business sense.

Of course, things could happen either way. Nintendo can definitely afford a price drop, I'm sure--when the Wii first came out, weren't they boasting a $40 profit on each Wii sold? I'm sure that number (whether it's $40 or not) has gone up as time's gone by.

The Wii will continue to sell out regardless of the 360's price. Nintendo probably won't drop the price until after this holiday season.

That's what i thought, but only in light of this possible development

Otherwise, i think it could've sat at $250 for the foreseeable future (meaning before Q3 2009)

i haven't completely made my mind on which secondary console i should get. I was going for the PS3, but this rumored price cut is stopping me.

still, i think I'll go for the PS3

Unless you are a big BluRay watcher or really, really love MGS4, buy the 360. My PS3 has really only been used for those two things. The 360 was a much better buy.

@ vidguy

I'll probably be picking up a PS3 for BluRay / Media Center

Truth be told I WOULD pick up an Xbox if it had an add-on BluRay drive. But the PS3 with it's swappable HD, media center capabilities, and BluRay is much more tempting than an Xbox.

I game on my Wii, and most of the big releases on the 360 I just play on my computer...

The Arcade models are a waste of money, which is why they're phasing them out at a low price. I can see some people picking it up because it's cheap (especially as a 2nd system) but a stripped down 360 isn't really competition for a normal Wii.

Already got myself an Elite... but a price drop will definitely allow me to get a cheap Xbox 360 for my gf.
... Tenchu Z sounds fun on system link.

But I don't think Nintendo's completely out of the game yet, though... let's HOPE they get their game on and say "BRING IT".

:P Nothing like good ol' healthy competition (if Microsoft will ever decide to play fair).

Still love my Wii over all my other systems. :D

A Burning Man photo on a Nintendo blog? Something just jumped the shark, but I'm not quite sure what...

Until the day comes when you walk in to a store and there are Wii's sitting on the shelf I don't think you have to worry about a drop in price. I remember when the original price was announced a lot of people were crying that it was $50 too much. Lets see, $50 times 10 million sold... That's a whole lot of money that would have been left sitting on the table.

Ain't going to happen anytime soon...

Already commented on this on Joystiq, but I'll do it again. If this turns out to be true, I'm getting one to accompany my Wii in my living room. It will be great to be able to play some of the other games out there too. GTA anyone? Woot. And what the hell, if the PS3 drops to a manageable price range, I'll probably snag one of those too. Gaming trifecta!

"The Xbox 360 has Xbox Live, which is a pretty good online service. The PS3 has a very comfortable controller and can do some sweet media stuff. The Wii has an innovative control scheme."

XBox Live has crowds of obnoxious people. The Sixaxis/DualShock3's L2 and R2 are by far the most awkward shoulder triggers I've ever used. The Wii's control scheme doesn't always work very well. Yea, I'm a real optimist ;)

@PS3 comment: Yeah, I thought it was awkward too... But after several rounds of MGS, I got used to it.
... I get used to awkward controls really quickly.

In my opinion though, my favorite thing about the PS3 is PSN... not as great as Xbox Live, but has less obnoxious people. And to me, that's A++++.

...though, mention anything Xbox to them, and they won't stop their obnoxious bashings... they get REALLY immature.

wow!! thats some pretty good news for me! but i'll probably end up getting the PS3 instead (if they drop the price a bit) because even though the 360 will be very cheap it still doesn't change the fact that your STILL going to have to buy the additional accessories like the wireless adapter to connect to your router, a self powered cooler to keep it cool, and many other things. but over all if nintendo starts churining out more hardcore games then this price drop DEFINITELY won't hurt nintendo. and in case your wondering if i'm a nintendo fanboy then the answers yes. BIG "N" FOR EVER!! :D

Well, if your 360 is near your wireless router, you just hook it into that. Pretty easy.

...and you don't need a fan, at least in my opinion.
As long as it's on a normally-cool hard-surface (like wood or glass-ish) it SHOULDN'T overheat.

In fact, the Wii has more accessories to purchase... TONS of accessories. (Though I love them accessories)
And besides, many games on the Xbox 360 can still be played local. And still just as fun. (Especially without the annoying people online)

well, firs off i dont have a 360. why? because i'm having trouble deciding on which system to get. the PS3? or the 360? for many reasons (like oh, say, the red ring of death) i'm looking in the PS3's direction. and if you have a 360 on a cool surface it probably won't stop it from it from over heating. i usually play for about 5 hrs or more (especially when i'm hooked to a game). now don't get me wrong the 360 has a TON of games i WISH PS3 was getting! as a matter of fact thats the reason i'm stuck choosing which system to get. but over all it looks like i'll be getting a PS3 since my big brother's female friend is asking her husband to bring to my bro. how? cuz her husband works for the people that ship PS3's and 360's. plus he's getting a 80GB PS3 for 300$. so hat saves me a ton of cash (cuz he's putting in half).

The reason why the Xbox has slowed down is not due to it being first on the market, or it being blown away by the unwarranted Wii hype-train, it's because Microsoft have carefully crafted a console catered to yesterday's games.

Why pay more money for games so similar to the last generation? Have you seen the A-class content on that console? Halo 3 is the same as Halo 2, but with superior graphics; Call of Duty 4 is a incremental update to COD2, but with superior graphics; GTA 4 is inferior to San Andreas, but it has superior graphics. Do you get the trend? It's an archaic console being sold for silly money. For the amount it's currently being sold at you could probably buy a Dreamcast and 20-30 games on ebay, or a PS2 with a dozen high calibre games. Online is a raucus, antisocial mess, and the marketplace is well to busy. All in all, it's a console of so much promise failed by a lack of compelling content and its poor community.

Though, the Wii isn't that much better.

So... is Fable 2 similar to Fable 1 or TLC? I guess that's one exception to the rule.

It's not been released yet, but I loved Fable on the Xbox, I really did. Fable 2 even has a dog that accompanies you! I wish you can interact with it as much as Nintendogs, but I'm not holding my breath.

Huh, the Xbox arcade bundle has already dropped to £150, at least in Tesco. However, my dad and I still got the Wii, because I heard that the arcade bundle had hardly any value compared to the full priced versions, and there was only one Wii anyway.
(And PlayStations ALWAYS have comfortable controllers. It's a fact of life, I guess. Although, I have yet to hold a PSP to deem if that's comfortable or not. Oh well, at least it's only until Christmas.)
So... I don't think Nintendo should worry too much. Just cut the price by $50/£30 (from the respective prices), there; back on top, hurray! In fact, a price cut now wouldn't kill them, the speed and amount they're selling the Wii and DS at.

MS drops the price of the 360 b/c they know there selling defective systems. RROD ftw!

The 360 is already cheaper than the Wii in Europe and it didn't do anything for Microsoft. I think the 360 will see a permanent monthly increase in unit sales - nestled snuggly above the PS3 and below the Wii. This price drop will NOT disturb the status quo of Wii supremacy.

I'd love to get a 360 for 200 dollars. If that's true anyway.

Ps3 definitely, scrapped my 360 after it blew out the 2nd time "that warranty offer expired last month". I really don't miss playing halo with a bunch of drunk marine screaming "here comes the rape train" and "where'd you get that whip son!!!!"

Rumor: Microsoft gets more competitive next month

Reader Comments (40)

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