AfterDawn: News

US Xbox 360 price cuts should be coming, says analyst

Just days after it was announced that Microsoft was slashing Xbox 360 prices across the board in Europe, leading simExchange analyst Jesse Divnich has reported that price cuts in the US are the "only feasible and economic option" if the 360 wants to combat the Sony PlayStation 3's ongoing momentum in the console market.

"Whether there is an Xbox 360 shortage or not, it is clear that the PS3 has gained considerable ground on its rival," he said, adding that the PS3's price cuts and the victory of Blu-ray have added strong gains for the console. "Given these past two months and the momentum that the PS3 has gained, Microsoft must react quickly as the PS3's momentum will only get stronger until Microsoft reacts."



The new price cuts in Europe have made the console war much more competitive as the Xbox 360 Arcade is now cheaper than the rival Nintendo Wii and half the price of the PS3.

"In the short-term, Microsoft's only feasible and economical option is to look at reducing its hardware price in North America to at least slow down the PS3's momentum until it can implement more long-term solutions to winning the next-generation console war," he finished.

Upon hearing the report, Microsoft VP of Interactive and Entertainment Chris Lewis added that the price cut would "open up the mass-market floodgates."

"We enjoy 42 per cent of that revenue share Right now in this generation," he detailed. "That's a key milestone for us to have met and surpassed. We're also attaching just a little bit over seven games for every console – considerably ahead of where we stand with our competition."

We will keep you updated.




Written by: Andre Yoskowitz @ 15 Mar 2008 14:09

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• 47 comments

• tripplite

  its nice to see that the prices fall quickly! maybe this means the next gen will have good price cuts too? sony should make some more price cuts.....the psp is over priced!

  15.3.2008 14:27 #1

• NexGen76

  Until Microsoft stop ignoring RROD with patches & fix this issue i don't see why a price cut on a defective console is a good deal.

  15.3.2008 15:49 #2

• esrever

  Theyre just making price cuts because their losing out on the death of HD-DVD

  15.3.2008 15:56 #3

• PantherM

  MS will have to make some price cuts. With Blu-Ray winning the format war...the 360 has been put in a bind.
  
  If you are a more casual gamer....$349 for a 20GB Premium 360 vs $399 for a 40GB PS3 that includes an optical audio out, Blu-Ray, Bluetooth, Wi-Fi, and an upgradable SATA II HDD?
  
  It is not even close right now. It isn't like the old X-box vs the PS2.
  
  A price cut for each 360 would help, but the systems are starting to develop their own niches. MS might have to come out with a new SKU to compete with the PS3, but if they do, that presents a whole other set of problems...plus a new SKU isn't really a price cut.

  15.3.2008 16:18 #4

• saltynuts

  Wow this is about a price cut not the RROD,but of course as always the sony boys come out to bash.yes the the RROD is a problem but i think that M$ is handling the problem as best they can right now if it breaks they fix it totally free for three years.besides even with that being said the 360 still sells well.now call me what you like i dont care since i dont know you.and yes the PS3 do kick some major ass.

  15.3.2008 16:23 #5

• NexGen76

  Originally posted by saltynuts: Wow this is about a price cut not the RROD,but of course as always the sony boys come out to bash.yes the the RROD is a problem but i think that M$ is handling the problem as best they can right now if it breaks they fix it totally free for three years.besides even with that being said the 360 still sells well.now call me what you like i dont care since i dont know you.and yes the PS3 do kick some major ass.First you don't know a thing about me & if you can read what i said was on topic & very true.Before i decide to buy a 360 which i was planning to i think that a console with a high failure rate is a major issue for anyone.Price point is good where its at but it don't rest to easy with me when this console been on the market for 3 year & theres no fix for RROD.So what happen after 3 years????

  15.3.2008 16:59 #6

• hughjars

  There's a 3 year XBox 360 warranty now isn't there
  (unlike anyone else's products in this arena)?
  
  I thought those old (suspiciously sourced & exaggerated?) RROD claims applied to the non-65nm CPU pre-falcon units?
  
  IIRC it's all over now and finally consigned to history as they use both a 65nm CPU & GPU for cooler and more efficient running.

  15.3.2008 17:31 #7

• fgamer

  To be quite honest Microsoft needs to take more risk and lower the 360's premium price to $299, Core to $249 and the Elite to $399 (really $349 for Elite but that wont happen), it's been on the market well long enough to suffice such a price reduction. The reason Sony is gaining so much ground on Microsoft is because they're taking risk and trying several different things to see what GRABS the consumer. I'm a strong backer of Microsoft but lately they've been dropping the ball!
  
  If Microsoft want's to stay in this race they will need to do some Sony moves and come out with better SKU's like Sony and OR offer "MORE", like what Sony is currently doing. Give me a break the PS3 is CLEARLY a BETTER value at an $399 price point>> Blu-Ray drive, 40GB HDD (which is easily swappable, blu-tooth technology AND wireless capabilities. To me that's an insane amount of stuff you get for a $399 price tag. As much as I hate Sony I must admit they're taking "RISK"..and I like it!! Microsoft, WAKE THE HELL UP!!!

  15.3.2008 17:36 #8

• NexGen76

  Originally posted by hughjars: I thought those old (suspiciously sourced & exaggerated?) RROD claims applied to the non-65nm CPU pre-falcon units?All 360 can get the RROD no model is safe & this is why i will hold my money until Microsoft get this issue fixed & not patched.
  
  Surprise, surprise - Halo 3 Limited Edition 65nm box can get RRoD
  
  http://www.maxconsole.net/?mode=news&newsid=21323
  
  GDC 08: Red Ring of Death at GDC
  Microsoft gets stung by its faulty hardware.
  By 1UP Staff, 02/19/2008
  
  http://www.1up.com/do/newsStory?cId=3166379

  15.3.2008 18:01 #9

• hughjars

  I don't think a handful of (unverified) reports proves anything other than no product is perfect.
  
  There are reports about failures with them all, the truth is that it would be highly unusual if there weren't.
  
  I don't recall anyone ever claiming that a 65nm XBox would be perfection itself.
  
  Nevertheless, a 3 year guarantee is the kind of backing I'd call pretty substantive.
  Pity the others can't or won't match it.

  15.3.2008 18:26 #10

• algtz1

  This one sentence sums it up for me:
  
  "I can backup my games for the 360. You can't backup your games for the the PS3"
  
  that reality finalizes the debate. END OF STORY!!!!

  15.3.2008 18:49 #11

• TBandit

  I dont think they can "fix" the rrod altogether but make it sound like they are. It seems like if they did want to fix it than they'd have to go back and change more than just a chip or whatever they did which might cost them lots of money...

  15.3.2008 19:41 #12

• snowlock

  hurry and drop the 360 price.
  then maybe sony will have a real price drop for ps3.
  
  i can buy an hdtv, waiting for that drop, and buy a ps3 after.
  1080p gaming ftw

  15.3.2008 19:51 #13

• milkyoreo

  Microsoft has to face the fact that the 360 will no longer be bought seriously by gamers. Right now the Wii is in control, and until the wii players reach the age of 11 about, the PS3 will be bought. Why the PS3, why not the 360? The truth is, the 360's exclusives are rated M basically, so theyre not gonna be buying a 360. Once they have the PS3 they wont want a 360; and then PS3 is in control.
  
  The wii will just sell used on ebay after this happens

  15.3.2008 20:07 #14

• ZeusAV

  The pathetic "shortages" excuse won't fly for much longer so they'd better do something to stop Sony in the US. Even with the EU price cuts I think Sony will continue to outsell the 360 over there. The price cuts will only slow them down a little. Price cuts in the US however, could put the 360 back above the PS3 in monthly sales until MGS4 comes out.

  15.3.2008 20:38 #15

• tripplite

  one things for sure this will slow down ps3 purchases quite a bit!

  15.3.2008 21:47 #16

• georgeluv

  the RROD problem is way worse than you would think. the defect rate is 100%, they dont know what causes it STILL, its the failure rate that they say is 16%, i wager its way higher, the simple fact that they wont tell us the official failure rate means its higher than the 30% initial or the 16% now.
  when your box breaks it totaly sucks, it takes 6 weeks to get your box back, they will only give you a one month live credit as a "sorry", and they will send you back a refurbed box that will break faster than a new one. in some countries they are required to give you a new box, but not in america. im sure you have all heard the stories about people on ther 12th box. i know several people PERSONALY that are near or past double digits.
  if you buy a box, for the love of god make sure you get a NEW REPLACEMENT WARRENTY from wherever you buy it, and dont listen to a thing the sales man tells you, read the warrenty yourself and MAKE SURE you will get a new box propmtly if yours breaks.
  
  ps. if you arent totaly addicted to halo like me then i say just get a ps3. blu ray baby.

  15.3.2008 23:11 #17

• canuckerz

  Originally posted by algtz1: This one sentence sums it up for me:
  
  "I can backup my games for the 360. You can't backup your games for the the PS3"
  
  that reality finalizes the debate. END OF STORY!!!!In my mind that's the main reason to get a ps3 over a 360, no stupid little kids can go out and just download and play any game that most normal people worked their asses off to buy.

  16.3.2008 03:11 #18

• xaznboitx

  I hope the price drop is coming soon. I'm stuck with PS3 or xbox 360. Not sure which one to choose. 3 years of warranty means that the console break down fast then.

  16.3.2008 06:20 #19

• PantherM

  Originally posted by xaznboitx: I hope the price drop is coming soon. I'm stuck with PS3 or xbox 360. Not sure which one to choose. 3 years of warranty means that the console break down fast then.I had the same choice last summer. I guess it comes down to how much gaming you do. When people ask me...I tell them the truth (or what I think it the truth).
  
  As far as graphics and processing power goes....I don't think one "system" is better than the other.
  
  However:
  
  The X-Box is a better "pure gaming" sytstem right now. It has a bigger library of games and less "ported" games because it is (or was) easier to write code for the MS based 360. If you are a hardcore gamer only, go with the 360.
  
  The PS3 is a better "next gen" system. It does not have the library of games that the 360 does, but it has a lot of other features that make it a FAR better "media" center....including PlayTV (in the UK). Once this hits the US(if Hollywood allows it)...WATCH OUT! You already know the other items that the PS3 comes with....so it just a matter of what fits your needs.
  http://www.engadget.com/2007/08/22/sonys...plus-voip-on-p/
  
  The two systems are going in different directions, so the choice is getting easier. Since I'm a casual gamer that only wanted to buy one system, I went with the system that was more next-gen.
  
  *edit* Hughjars is going to love this one: http://www.gamesindustry.biz/content_page.php?aid=33505
  Yup, no copywrite protection. That is why there may be problems getting this to the US.
  
  If this ever does hit the US, this is going to give MS a serious run on the XBL front. The fact that you can stream live TV, or programs on your PS3 HDD to your PSP via Wi-Fi is about as next get as you can get.

  16.3.2008 10:27 #20

• vinny13

  I think Sony is waiting for a price cut from Micro$oft so when it does come they'll make a price drop too and steal all the attention with advertising...
  
  I think that could work.

  16.3.2008 11:13 #21

• ZippyDSM

  I don't really care anymore unless they drop the premiums to 200
  
  NexGen76
  if its sub 200 for a premium it is :P

  16.3.2008 13:09 #22

• Sazaziel

  A true gamer will play games on all systems no matter what. The media center on all of these consoles is just an extra next gen bonus. If you are a true gamer then there really is no war between consoles because each console has its own game published exclusives. Which means that if you want to play exclusive games that bad...well as a consumer you will pretty much buy it. A lot of people complain about the RROD but don't even have a 360 and that says a whole lot about those people. I guess that's about as bad as no one complaining about all the old school consoles when the froze during a game like the NES. Yet as much heat that is produced with the considerable lack of case space for all of these consoles...well they will all have some kind of failure depending on the power produces. Had my 360 since the beginning and bought another just to have in another room. They still work flawless provided that I keep them cool and I limit my game play time so I don't have to deal with heating issues. Same way with PS3. Anyways ...in my opinion I figure anyone who plays all freakin day really doesn't have a life. As for the price cuts...these consoles are hitting the 2 and 3 year marks. I'd say its time to drop the prices all together.

  16.3.2008 14:24 #23

• vinny13

  Originally posted by Sazaziel: in my opinion I figure anyone who plays all freakin day really doesn't have a life.You should meat my friend ^^

  16.3.2008 14:27 #24

• vinny13

  Ahh!

  16.3.2008 14:27 #25

• TBandit

  Quote:Originally posted by algtz1: In my mind that's the main reason to get a ps3 over a 360, no stupid little kids can go out and just download and play any game that most normal people worked their asses off to buy.
  
  
  
  LOL I still find it hard to believe you guys dont have the best weapon against those damn annoying people online: MUTE BUTTON. Seriously sometimes its not just kids but other people who wont shut up.

  16.3.2008 16:24 #26

• emugamer

  Originally posted by algtz1: This one sentence sums it up for me:
  
  "I can backup my games for the 360. You can't backup your games for the the PS3"
  
  that reality finalizes the debate. END OF STORY!!!!Wow, whoever that quote is from seriously thinks everyone here is an idiot. I don't believe that anyone flashes their drive so that they can play backups. That's probably the biggest joke I've heard. Someone flashes his drive and then while searching warez and torrent trackers and browsing through the entire 360 collection that is available with the click of a button, picks and chooses to download only the games he's purchased. And stays off XBL so that the console doesn't get banned. And craps bricks when playing over an hour, praying not to get the RRoD and have to buy a new console because he voided the warranty. Great way to spend money. I like playing games they way they're supposed to be played. Without a pit in my stomach that I've tossed a few hundred down the crapper.
  
  Well, a price cut from MS may drive Sony to give better incentives to buy their system instead. They probably can't afford to cut the price with all the losses they've taken. I'm not surprised that MS has the money. After all, XBL is the biggest gold digging gimmick around.

  16.3.2008 21:47 #27

• Gnawnivek

  Originally posted by algtz1: This one sentence sums it up for me:
  
  "I can backup my games for the 360. You can't backup your games for the the PS3"
  
  that reality finalizes the debate. END OF STORY!!!!End of what story? So what, i can do that too, but i refused, why? To do that, i have to give up the warranty. Do i want to take that risk? Hell no!

  17.3.2008 12:00 #28

• Gnawnivek

  As i have said before... Any price cuts are good as long as not dead end products. The problem with the X360 is that it got this obnoxious RRoD reputation. Why do you think people *itch about it even though they don't own one? Isn't it to MS's advantage that people don't *itch about it?
  
  Yes, it's market share, all about market share, all about diving into the game with upper edges. The X360 enjoyed it's success, now, it has to face the consequences of the management's "rush" release. The RRoD's problem is never really handled properly. The extended warranty was setup to avoid the lawsuits (yeah, you really think they did it to resolve the RRoD problem). MS probably thinking one stone two birds for the three years red ring warranty, which is fair. But again, there will be consequences...
  
  Lower price is good, the Wii probably opened the door for more gamers (i.e. people never played games in their lives, now they know how to press the A or B buttons). And who do you think that will help?

  17.3.2008 12:21 #29

• emugamer

  Originally posted by Gnawnivek: The X360 enjoyed it's success, now, it has to face the consequences of the management's "rush" release. The RRoD's problem is never really handled properly. The extended warranty was setup to avoid the lawsuits (yeah, you really think they did it to resolve the RRoD problem).That would have been one messy class action lawsuit. Three years is a good number. It gives people that false sense of security. There will probably be a new console in 2 years, and they will abandon the 360 just like they did the XBOX 1. Thank goodness for XBMC. It's the only reason I still have a use for it.

  17.3.2008 12:29 #30

• donpugz44

  Cant wait till price cut going to get one? Dont really care for 360
  but almost the best games come out for it so i guess ima get one

  17.3.2008 15:22 #31

• snowlock

  Originally posted by donpugz44: Cant wait till price cut going to get one? Dont really care for 360
  but almost the best games come out for it so i guess ima get onemost of those games come out for ps3 as well.
  also, many come out for the pc, if you have a good one.
  unless you're talking about halo 3, in which case, have fun.
  just remember your console is the only one with fees charged for online play.
  

  nintendo:sony::ford:chevy

  17.3.2008 20:52 #32

• vinny13

  Dude if it's for Halo 3 don't even waste your time. Just get the first Halo for your computer and you won't be let down :)
  
  H:CE is definitely the best Halo there is. Plenty of people still play the online too :P
  

  (+[PSP]%) = 3.52M33-4
  
  "I get no respect, I tell ya!"

  17.3.2008 21:57 #33

• tripplite

  Quote:This one sentence sums it up for me:
  
  "I can backup my games for the 360. You can't backup your games for the the PS3"
  
  that reality finalizes the debate. END OF STORY!!!!
  thats the dumbest statement ive ever heard....dam ppl's brains are just shutting down these days...
  
  -tripplite
  

  
  

  18.3.2008 00:05 #34

• vinny13

  Yeppers... Totally agree with that one..
  

  (+[PSP]%) = 3.80M33-5
  
  "I get no respect, I tell ya!"

  18.3.2008 00:07 #35

• algtz1

  Now that I have given you all a few days to talk sh*t which most of you have without giving any intelligent rebuttle like this dumb *ss:
  
  "thats the dumbest statement ive ever heard....dam ppl's brains are just shutting down these days...
  
  -tripplite"
  
  Hey idiot, you made your statement but where is your rebuttle? (dam ppl's brains are just shutting down these days...) Wow that is so profound! You should run for office because you have such great insight in the art of debate. Please do us a favor and turn off your pc and don't bother turning it back on.
  
  Now, I don't think you guys are idiots. I know that a huge percentage of the people who flash their 360s are stealing games off the Internet. And if and when the PS3 can play backups, there will be a million mofos stealing games for that system as well. I'm upset because you think that every fool out there is stealing. Well let me tell you something, I am a grown ass man and I work hard for my money. Hell, I don't even play video games and if I did it would be PC gaming. I have a 360 for my kids and they play the sh*t out of Halo 3, Rock Band and Guitar Hero. And I'll be damned if I am going to pay $60 evertime the disc gets scratched or damaged. I paid the $60 once and shouldn't ever have to pay that sh*t again. That is why I back these games up. And if the PS3 could do the same, then that would have been the console I would have bought my kids. Now this really is "End of Story"

  18.3.2008 12:21 #36

• vinny13

  Uh no because Blu-Ray discs have like a semi scratch-proof layer or w/e... They are much more resistant then DVD-9s...
  
  I read that somewhere, and I've had all of my games for at least 3 months and sometimes I'll just leave them lying around when I think I'm gonna put them away later, no scratches...
  
  Oh and I would think stealing is the way to go unless you really want to blow your hard earned cash on $60+ video games that you might not even like ;)
  
  Most of these MoFos have better things to save up for, and Piracy sells consoles which pay for more games. Look at the PSP! The Xbox too. It only lasted longer then it did because it was like a 100% functional Homebrew Media Center... I'm gonna buy one pretty soon just for that.
  

  (+[PSP]%) = 3.80M33-5
  
  "I get no respect, I tell ya!"

  18.3.2008 22:13 #37

• voyager

  About the 3rrd ,i don't care.I will stick forever with my XB360;Jasper,Opus and Valhalla are coming soon to kill the 3rrd forever.

  25.3.2008 21:21 #38

• CaLiMaCk

  Originally posted by voyager: About the 3rrd ,i don't care.I will stick forever with my XB360;Jasper,Opus and Valhalla are coming soon to kill the 3rrd forever.havent we heard that promise before, multiple times?
  
  yea...
  

  psn id: calimackin101
  
  

  25.3.2008 21:56 #39

• emugamer

  Originally posted by algtz1: Well let me tell you something, I am a grown ass man Trying to figure out which two words the hyphen should bridge :-P
  
  Just playing.....you have a good point. I am also a grown-ass man and can't see myself paying $60 for a PS3 game. All these young peeps and their new games. I have to wait a year before I feel it's worth it to get one at half price :-(

  25.3.2008 22:30 #40

• Sabius

  Stealing games from greedy multi-million dollar companies is no sin. Robin Hood's a legend for essentially the same reason!

  26.3.2008 02:03 #41

• core2kid

  Originally posted by vinny13: Uh no because Blu-Ray discs have like a semi scratch-proof layer or w/e... They are much more resistant then DVD-9s...
  
  They may have that but they are prone to fingerprints. I found that out on my friends PS3.

  26.3.2008 07:59 #42

• vinny13

  Lol fingerprints won't destroy a disc :P

  26.3.2008 08:02 #43

• core2kid

  True but it gave us a frustrating time to try and clean it and to get the PS3 to read the disc again. Im not against any console, just saying...
  KEEP YOUR DISCS SAFE!
  xD

  26.3.2008 08:08 #44

• Gnawnivek

  Originally posted by core2kid: True but it gave us a frustrating time to try and clean it and to get the PS3 to read the disc again. Im not against any console, just saying...
  KEEP YOUR DISCS SAFE!
  xDWhat that have to do with anything? All discs are prone to scratches and finger prints. Of course you should keep your discs safe. I guess that's the reason why people want to backup the discs in the first place.

  26.3.2008 09:32 #45

• Gnawnivek

  Originally posted by Sabius: Stealing games from greedy multi-million dollar companies is no sin. Robin Hood's a legend for essentially the same reason!While comparing to Robin Hood is a noble thing, but no matter how you look at it, it's still stealing.

  26.3.2008 09:38 #46

• emugamer

  Originally posted by Sabius: Stealing games from greedy multi-million dollar companies is no sin. Robin Hood's a legend for essentially the same reason!Didn't Robin Hood steal from the King, who was heavily taxing the poor, abusing them and living in excess? He wanted the people to be able to buy food and clothing and enjoy a pint of ale once in a while. You don't have to play video games to survive (or do you?), therefore no one is forcing you to buy them. So stealing from a video game corporation is really nothing like Robin Hood. It's stealing from an entity that created a product and would like to make a profit by hoping that a customer will find their product as valuable as they think it is. I'm not judging anyone. Just couldn't get over how silly the Robin Hood analogy was. Who exactly are you helping but yourself? :P

  26.3.2008 11:50 #47