Desperation sets in-Xbox lowers their price again
 

http://tech.msn.com/products/article...3777&gt1=40000


Xbox 360 to be Lowest-Priced Next-Gen Video Game Console
By Daniel Terdiman, CNET News.com
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One of the biggest selling points of Nintendo's Wii video game console since its launch nearly two years ago has been that it was the lowest-priced of the trio of next-generation machines, which also includes Microsoft's Xbox 360 and Sony's PlayStation 3.
(© CNET)

To date, the Wii costs $249, while the lowest-priced Xbox, the so-called "Arcade," retails currently for $279. An 80GB PS3 sells for $400.

But Microsoft said Wednesday that it will drop the price of the Arcade on Friday to $199, breaking through what some have said is the all-important psychological price level of $200. At that price, industry observers say, the market opens up to mass levels of consumers.

Microsoft will also drop the price of its 60GB Xbox to $299 and its "Xbox Elite," which has a 120GB hard drive, to $399.

"The fact that the Xbox 360 is now cheaper than the Wii is definitely a big shift in the market," said Aaron Greenberg, director of product management for Xbox 360.

"I'm not at a point where I can say we're going to beat Nintendo," Mattrick told BusinessWeek. "We will sell more consoles this generation than Sony."

Of course, some have said that the appeal of the Xbox, despite being the first to hit 10 million units sold in North America, is still limited and that over the next few years, the PS3 will eventually catch up to and surpass the Xbox.

Until now, Nintendo has shown little interest in lowering the price of the Wii, and thus its profit margin. And while Sony has effectively lowered the price of the PS3 by offering only an 80GB version for the same price as what was previously a less-powerful version, it has little room to maneuver on price given that it is still subsidizing the PS3 at its current level.

By comparison, because the Xbox has been out a full year longer than both the Wii and the PS3, it has already achieved efficiencies of scale that have allowed it to slowly lower the Xbox's price.

To date, the 60GB Xbox has done about 60 percent of total Xbox 360 sales, said Greenberg, with the Arcade and Elite models each accounting for about 20 percent.

But with the Arcade's price dropping below $200, Greenberg said he thinks that model is "now picking up steam."

"Over 75 percent of all console sales historically were sold below $200," Greenberg said. "We know that there's tens of millions of PS2 owners who bought their systems when (the PS2) hit $199."

In other words, Microsoft is hoping that at $199, the Arcade can become the next PS2 and sell well over 100 million units.

Lot of good it'l do them.

Its been out alot longer then the PS3 and the PS3 has dropped a few times already i believe. MS should have dropped the price when GTAIV came out. 199 is a damned good price. I am thinking of getting me a bigger hard drive. I may end up buying my nephew a xbox arcade giving him my hard drive and me getting a new one.

Has the PS3 dropped?? Adding another SKU doesn't count.

same difference cutting out some features to be cheaper for the consumer

This really hurt Sony with the PS2 when they dropped the price below $200 three years after release.

Unmitigated disaster, that.

Isn't the Arcade version gutted so much that it doesn't even have a hard drive? So essentially the 360 for practical use is $300?

This thread header reads like some damn political news headline. Something big but then you read the actual article and realize there is nothing really to see here.

I think it comes with the console, a game, a controller, and a memory card rather than a hard drive.

Which sucks. You really need a HD with these next gen consoles.

I wonder if you have to have the Xbox HD or if you can use an external USB HD. Anyone know?

I've honestly never looked....can you purchase just the Xbox HD?

It's a 100 bucks, a 360 stand alone hard drive buy is 100 bucks.

Of course I paid that for my online wireless adapter so they're making their money.

Does anyone know if they are coming out with a blue ray adapter?

Has to be the official xbox hdd :(

Keep in mind though that the PS3 is already sudsidizing their cost on the machine. I'm not sure if Xbox is or not, but it's clear that Sony has a higher quality console. The RRoD issues aside, it just costs a lot more to make. I don't understand how anyone could think it's not a superior system. That said, at 199 I'll probably be picking up an Xbox now so I can play the exclusive games I've been missing out on.

Lulz, I guess I could've left out the opinionated first half of the header. Otherwise, it pretty much was self explanatory before reading it.

there is no need to buy the higher end versions of the PS3 because of the hard drive space. the hard drive is easy to upgrade - it's just a notebook PC hard drive. you can upgrade it and get all the storage you ever needed for $100 or less.

On paper ps3 is superior no doubt, but i still put in alot more hours on my xbox. I havent even turned my ps3 on in like 3 weeks now. God of War 3 please.

Superior hardware means next to nothing - just look at the Xbox vs PS2. The PS3 may have superior hardware, but is definitely not the superior system at this point in time...

Can you add an external HD on the XBox or PS3, via USB?

I have neither console just curious if they even have USB connections I remember my old PS2 did.

You can add an external HDD to the PS3 via USB.

You can also add an internal 2.5" SATA HDD to the PS3 because Sony decided against using a Proprietary HDD.

I have a question about the 360.

Here are my minimum requirements, please tell me if they make a 360 that can support this, and how much is it?

I need it to Have an HDMI slot for Video, and an Optical slot for Audio (my receiver only supports HDMI pass through), and at minimum 40 GB of HDD space.

Thanks in advance.

If you're simply trolling, then ignore this. If you're serious:

Cable here: http://www.amazon.com/o/ASIN/B000UOD...AQ2F6SVD97BE02

360 hard drive can be modded too: http://www.engadget.com/2007/04/23/m...-hdd-save-100/

Not Trolling, I definitely want to add a 360 to my Home Theater setup.

So, you cant just use a normal HDMI cable with the 360? I'd rather buy a $4 cable at www.monoprice.com than pay $50.

Also, I dont really get that hack, but if I were to really buy a 360 then I would consider it.

Right, might be cheaper on Ebay: http://cgi.ebay.com/New-Official-Mic...ayphotohosting You asked what it would cost. Factor it into the price. Also there is an external USB hard drive mod for the 360 too. Google it. Personally, I haven't run out of space with the 20 gigger and I've downloaded a bunch of Rock Band tracks. If you're going to be downloading HD video on it in, you definitely need a bigger drive.

You just need the harddrive if you want live and downloadable content..

Because outside of the bluray movies it is not superior..

IGN, gamespot all broke this down before on why the 360 was superior to the ps3 techwise outside of bluray..

Not a knock on PS3, but the only reason it does well because it is still the best bluray player made..

Doesn't really matter either way.

Yeah, but Blu-Ray discs are far superior than DVDs. If Xbox started using Blu-Ray's then I think developers would start creating much bigger games, so that they could profit off of both systems.

The larger storage space of the Bluray simply isn't all that big of a deal outside of a few games. The slow speed and seek times of PS3's bluray drive is a bigger issue, its the main reason why installations are necessary to achieve the same performance of the 360. But Sony didn't put a blu-ray drive in the PS3 for games, it was a trojan horse to win the format war.

The PS3 may have slightly more raw power, but its cell processor is also very difficult to develop for. There is a reason that nearly all multi-platform games perform slightly better on the 360.

Proprietary. There is probably a hack around it, but it would require flashing the entire OS onto the new HDD and probably using an adapter cable to fit into their proprietary SATA port.

This is the price drop that I've been waiting for. I'll make my move this Christmas. :)