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Forums - Microsoft Discussion - Mole attack: 360 price cuts on all hardware in September

For anyone that read Bumidan's post on Microsofts 4Q of last fiscal year, they had several expenses that were uncharacteristically high for the 3 month period. I almost wonder if they put some significant expenses in the last quarter to give them an opportunity at a profitable 1-2Q 2009. If these pricecuts do turn out to be true, it will be very interesting to see if MS has already planned their marketing through the end of the year and "paid" for it in the financials....



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Systems I currently own:  360, PS3, Wii, DS Lite (2)
Systems I've owned: PS2, PS1, Dreamcast, Saturn, 3DO, Genesis, Gamecube, N64, SNES, NES, GBA, GB, C64, Amiga, Atari 2600 and 5200, Sega Game Gear, Vectrex, Intellivision, Pong.  Yes, Pong.

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DMeisterJ said:
So I guess Microsoft doesn't plan on making profit for some time?

Price cuts of this magnitude would need to be backed up by some serious software moving in order to stay in the black.

That's 80 off the arcade, fifty off the pro, and fifty off of the elite.

That would not be good for profit margins, but I thought they were aiming moreso for profit, rather than Marketshare?

 

If this proves to be true, then it should coincide with the move to the new GPU/motherboard, i.e. - read "cheaper".   Smaller process dies and re-engineered motherboards almost always result in lowered costs.



kn said:
For anyone that read Bumidan's post on Microsofts 4Q of last fiscal year, they had several expenses that were uncharacteristically high for the 3 month period. I almost wonder if they put some significant expenses in the last quarter to give them an opportunity at a profitable 1-2Q 2009. If these pricecuts do turn out to be true, it will be very interesting to see if MS has already planned their marketing through the end of the year and "paid" for it in the financials....

Marketing cost pre-pays are likely as well as production-line changeover costs to use the new motherboards.  If this is true, then MS might very well be getting aggressive again.

 



It hasn't even been seen what effect (if any) the sixty gig would have on sales. Wouldn't MS want to focus on that first, and if it's well received, they could save a few million dollars by not dropping the price.

@ stickball.

I'm sure the new boards come out, but are they going to save, on average, 50 dollars on each 360 sold by the smaller chipset?

If not, then some loss would have to be accepted with a price drop, especially on the Arcade.

I'll put this into the "probably rumor" pile right now.



DMeisterJ said:
It hasn't even been seen what effect (if any) the sixty gig would have on sales. Wouldn't MS want to focus on that first, and if it's well received, they could save a few million dollars by not dropping the price.

@ stickball.

I'm sure the new boards come out, but are they going to save, on average, 50 dollars on each 360 sold by the smaller chipset?

If not, then some loss would have to be accepted with a price drop, especially on the Arcade.

I'll put this into the "probably rumor" pile right now.

 

It's big savings. Of course the GPU will be cheaper to make (cpu already at 65nm) but it'll also reduce motherboard complexity (savings), power brick will also be simpler (savings) and they might get some extra savings on logistics since the whole package is lighter.

Anyways, MS will not subsidize the console anymore so you can be pretty sure the numbers work out at the end.





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).

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Mabey this rumor is true, I dunno, but if these rumors keep up over August, and we start hearing from other sources.....then I'd say that its as good as final.



X360 Arcade is 200$ right now in my country !

arcade= 200$
pro = 420$
Elite = 500$



From this article:

http://www.tgdaily.com/content/view/37376/135/

The move from 90 to 65nm technology should yield abut a 35% increase for GPUs. In other words, either they get 35% more GPUs to put in 360s or it costs them less for the same quantity -- i.e. run less total wafers. Either way die shrinks are a big savings. Apparently the CPU already underwent this shrink in the last revision...

The new cost reductions may just pay for the cuts and still leave them in the black.



I hate trolls.

Systems I currently own:  360, PS3, Wii, DS Lite (2)
Systems I've owned: PS2, PS1, Dreamcast, Saturn, 3DO, Genesis, Gamecube, N64, SNES, NES, GBA, GB, C64, Amiga, Atari 2600 and 5200, Sega Game Gear, Vectrex, Intellivision, Pong.  Yes, Pong.

Interesting. Wonder how this will affect sales.



I would think the Arcade would also only get a $50 price cut to $229. I don't see where the additional $30 of savings could possibly come from as compared to the pro and elite.

It adds flash memory and removes a HDD. Then I guess there is savings considering it only comes with a wired remote vs wireless and headset...I guess that may make sense. idk.

Either way that would be some good pricing for this holiday. Pretty much what I expected, well I figured $229 for Arcade, but still what I basically had in mind.

I still think Sony may cut up to $50 max of their now sole sku pre-October as well.