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WilliamWatts on 09 July 2010
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Seece said:

2008 - Arcade drops to $199.
2009 - Arcade is still $199.
2010 - Arcade is still $199, despite 2 years difference and a slim reducing costs.

The only reason MS won't drop the price of the arcade this holiday, is if they bundle Kinect with every single one, even then, a $50 price drop will be a factor of the finalised Kinect Arcade bundle price.

I swear some people just ignore all logic. Sony, whose gaming divison hasn't seen profits in how many years? Can drop the price of the PS3 $100 in 2009, and then a supposed further $50/$100 in 2011?

(Certain people's views)

PS3 from $399 to $199 in 24 months.

Yet 360 can't do this
360 from $199 to $149 in 24 months?? ............. despite MS's entertainment division profiting 3 years on the trot, heck they're going to post $1 billion profits for this fiscal year, something the Playstation division has never managed in it's lifespan.

Well said sir!

The Arcade has only come down what? 33% in 4.5 years? The thing which was probably holding the 360 back from the price cuts was legacy RROD costs. I think the $1B writedown only applied to the original consoles sold, I suspect that every 360 had to have $20-30 set aside for its eventual repair beyond the normal 1 year warranty. This makes me think that the revision is more of a cost saving than you'd otherwise expect given the fact that the 360 hasn't followed a normal cost/price cut curve.

So now the Xbox 360 can be made significantly cheaper because it doesn't have that 3 year RROD warranty hanging over it and given the fact that the actual production costs are going to be lower. Also it can get back on that normal cost reduction curve that it skipped off with the RROD disaster.