What exactly will happen Sept. 7^th (or whenever) the Xbox 360 Arcade drops to $199. Goggle something like “business report $199 Xbox and you’ll have a week’s worth of reading which is all over the map. I’m not linking them, they’re just too many, but here is a summary of what you’ll find.

MORE OR LESS NEUTRAL GAME SITES: The price will put real pressure of Sony who won’t be able to respond and may cut slightly into the Wii market. It will at least temporarily put Microsoft sales above Sony.

Xbox FANBOY SITES (MOTION CONTROL): The $199 Xbox Arcade will come bundled with a motion controller and a set of mini-games designed by Rare. It will wipe the Wii off the map by taking away its one advantage and adding HD and it will kill Sony by price.

SOME EXPERT GAMING SITES: The $199 Arcade is being sold at a loss ($239 to build) because it is going to be discontinued in response from game designers who don’t like being limited with the lack of a hard drive and a higher rate of customer dissatisfaction.

BUSINESS ORIENTED SITES:

Version 1. This will put Microsoft in the driver’s seat having both a performance and price advantage over the Wii and a significant price differential with the PS3. MS plans to be on top this generation and this is their ticket.

Version 2. This will hurt Sony significantly, especially at Christmas, when Mom sees the same games (mostly) on a less expensive console and has never even heard of or cares about Blu-Ray. It might cut into the Wii, especially if supplies are short but Nintendo can match or beat the price and still make a good profit.

Version 3. This is a desperation ploy by Microsoft who sees their HD market going more to the PS3, the Wii disappearing over the horizon and nothing to show restless stockholders but a disappearing cash reserve. If this doesn’t make a huge leap, MS will be out of the game for good.

THE GUNFIGHT AT THE OK CORRAL: Several sites see this as the final showdown between motion control and the “casual market” vs. the traditional model of hardcore/analog control. The hardcore have said from the beginning that price was the ONLY reason the Wii was selling so well. Wii fans claim that it’s all about the control and they wouldn’t take an HD console as a gift.

If the Xbox at $199 doesn’t take off like a rocket and sustain momentum to catch up and pass the Wii with HD and its game library to help, then it’s NOT about price and motion control is the future of gaming.

I’m pretty much a final showdown type myself. What’s your take?

The hardcore said that price was the only factor Wii was selling so well over the Ps3... Sorry but 360 has other issues than just price (especially since it was cheaper than the ps3 and selling less anyways). It would make more of a difference with Wii vs HD if this were the Ps3 going head to head with the wii than the 360.

I think this will be a defining point in this generation because, much like the release of Grand Theft Auto 4, people have huge expectations about this move and it will be (mostly) meaningless in the long run.

It's the middle.

yeah, i honestly think it's some sort of last gasp to pick up sales. it's nothing they planned to do in my opinion. i think the price drop was to react to poor sales. the simple fact that they have to sell cheaper than the wii to compete with the ps3 worries me.

like some people have already said; if sales don't pick up after this, then bye bye 360.

off topic: has anyone noticed that the 60gb 360 is 134th in the amazon charts?

I agree w/ the biz and expert group, Grampy. Long time no see. Good read.

Seems like a desperate gambit to me... they want to win over the market while losing money, in preparation for their 3rd gen console... this is no longer about winning this gen, but a preparation for the next one.

-This may steal some of Sony's sales, but not much and not for long.

-If by making making the Arcade so cheap they are trying to compete with the Wii they are dumb - the Wii is too hyped, popular, and liked to even take a dent.

Its the arcade, doubt it'll effect much at all. But thats just me.

Why?

I hope it could be more cheaper.