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Forums - Microsoft - Breaking: Xbox 360 Price Cut incoming

Xzbeat on 09 July 2007

http://digg.com/xbox_360/Xbox_360_price_cut_to_match_Sony



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RedToof on 09 July 2007

My guess is that if the Elite price drop is true, it's less to do with bad sales and more as a response to the PS3 price drop announced today.

I have 3 friends currently trying to find Elites and you just can't right now. Everyplace is sold out... at least in the North East. I'm not sure the Elite sales are that bad.



My 360 can blog!

Gamers have 3 choices this generation: The Exercise Machine, the Movie Machine, or the Game Machine.  What kind of gamer are you?

ckmlb on 09 July 2007
RedToof said:
My guess is that if the Elite price drop is true, it's less to do with bad sales and more as a response to the PS3 price drop announced today.

I have 3 friends currently trying to find Elites and you just can't right now. Everyplace is sold out... at least in the North East. I'm not sure the Elite sales are that bad.

 Low shipments = hard to find. If they were selling so well the 360 would be getting a boost in sales which it isn't.



Thanks to Blacksaber for the sig!

KruzeS on 09 July 2007

Remember that they managed to ascribe those repair costs to the fiscal year that ended June. If they do solve the issues going forward, they may drop the price and still make a profit this year (they just won't recover those costs as easily, if at all).



Reality has a Nintendo bias.
NightStalker on 09 July 2007

I have a feeling that Sony could win this price war. I think they still have the ability to lower the price of the PS3 to $400 and MS really cannot lower the 360 anymore as they have lost so much money.

even with the Elite at $400, the Premium at $350 , and Core at $250, a $400 PS3 will be something to be reckoned with.



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misterd on 09 July 2007

Gee. I'm shocked.

Actually I think this is an error, either in the report, or on MS's behalf. The Core sold like shit because it was a bad deal. Now, a Premium, just $50 less than the Elite, also looks like a bad deal. They need to cut at least another $20 on the lower tier models.



Bodhesatva on 09 July 2007
ckmlb said:

Analyst Micheal Pachter said on Monday that Microsoft will, in fact, reduce the price of the Xbox 360 tomorrow at the start of the company's E3 press briefing. He believes the $299 Core will drop to $249; the $399 Premium to drop to $349; and the newly released $479 Elite to drop to $399 in response to lower-than-expected sales of all three systems.

 


 Wow, extended warranty, price drop -- nice job, MS. You were losing momentum before, but now....

 


 



http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">

misterd on 09 July 2007
NightStalker said:
I have a feeling that Sony could win this price war. I think they still have the ability to lower the price of the PS3 to $400 and MS really cannot lower the 360 anymore as they have lost so much money.

even with the Elite at $400, the Premium at $350 , and Core at $250, a $400 PS3 will be something to be reckoned with.

 

How does Sony, which is likely now back to losing $200 per console, able to afford yet another cut, but not Microsoft?

ckmlb on 09 July 2007
misterd said:
NightStalker said:

How does Sony, which is likely now back to losing $200 per console, able to afford yet another cut, but not Microsoft?

MS only gets a larger install base for its games, while for Sony a PS3 sold means a larger install base both for Blu Ray movies and for games. I think they are willing to lose more money per console because they expect profits from both games and movies to make up for it.

 

Also, Sony's gaming division isn't coming off of losses from last gen and they still have the great profits from the PS2 sales and some profits from the PSP. They have a lot more profit coming their way in the games race than MS does.



Thanks to Blacksaber for the sig!

Lingyis on 09 July 2007
ckmlb said:
People were talking about the billion dollars in repair costs being insignificant to MS, but really it's like 1/5 of MS' total yearly net income or 1/12 of their revenue down the drain. I mean they can take it but it's definitely not insignificant.

ahem, 1 billion is 1/5 of MS income last QUARTER. they make about $14 billion a year. probably $17-$18 billion this fiscal year with vista.

EDIT: 1 billion is significant no matter how you look at it.  even if a company makes $100 bln profit 1 bln is still 1 bln.  in 2007 anyway. 



the Wii is an epidemic.