Microsoft may be preparing an Xbox 360 price cut

By Sharon Fisher | Published July 1, 2008, 3:48 PM

This afternoon, Microsoft is saying very little about a report in the Hollywood Reporter last Friday that it's planning to cut Xbox 360 prices this month, other than to say, "Stay tuned."

The Reporter's...uh, report is that Microsoft plans to cut the price of the 20 GB Xbox 360 Pro by $50, to $299, before the E3 video game trade show, which runs July 15-17 in Los Angeles.

Such a move would not be without precedent; the company cut prices last August from $399 to $349 in advance of the release of Halo 3. That had been the first price reduction for the console since its introduction 21 months earlier. Microsoft also began bundling two free games, worth $90, with the machines last fall.

In comparison, Sony's 40 GB PlayStation 3 costs $399, while the Nintendo Wii costs $249.99. According to the Web site nexgenwars, the Xbox 360 has sold more than 19 million units, Sony's PlayStation 3 has sold more than 10 million units, and Nintendo's Wii has sold more than 22 million units.

Microsoft's only comment to BetaNews this afternoon, specifically, was, "We don't have an announcement at this time, but stay tuned."

Comments

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MS needs to do something more than a teeny pricedrop, and Sony needs to do something more than halfway matching features MS had in 2005. Nintendo is destroying them both, and they both seem more worried about losing money than winning the console war!

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"they both seem more worried about losing money "

What business is not worring about that? If you don't youwon't be in business very long. All three consoles are doing fine and one has to be the leader. You have to look at the fact that Nintendo geared their Wii at much more diverse audience. I bought a Wii when it came out but in all honesty hasn't been turned in I would guess almost a year. I bet there are many Wiis that are doing the same thing.

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Aus just got price cuts on the Xbox360 - $50-70 across the board, from the looks of it. Entry level one (Arcade?) is now $299. Still $649 or something crazy for the full package - which makes bugger all sense when you start comparing it to US pricing (and our near-equivalent exchange rate now).

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Just got my RROD Elite back from MS. They opted to send me a brand new replacement as opposed to a refurb, along with a letter of apology, a free black wireless controller, and a free year of XBOX Live card (12+1).

The best part was I didn't even miss it, I was in Florida for 15 of the last 18 days. Not too shabby as I still have a year and a half of warranty left.

I was pissed at first but they responded and got it back very fast.

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Were you without internet in Florida? You havnt been around for a while :) Welcome back

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Thanks Setian,

I went to Ft Lauderdale for a 5 day meeting and presentation, which I worked at every day trying to get a software demo finished to show off on the last day, which I completed.

I came home just long enough to pack our crap and get ready for our family vacation in Orlando (Universal Studios / Discovery Cove etc...) at which point I decided to leave my notebook at home for the fist time ever.

It was nice not worrying about answering emails or taking phone calls for seven days straight.

It was also nice to come home and find my 360 waiting (by the way, MS requires a sig or UPS will send it back after three attempts). I left a note on my door letting the driver know to have all packages signed for by my next door neighbor, who also happen to be my wife's grandparents.

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These stories just don't get the attention like they use to.

Good move for MS. Like Dark_Helmet said, they are loosing serious momentum and they need something to turn things around.

I heard somewhere that these are "rumored" to be refurbished only.

Sony can easily counter this move without a price drop by getting the message out there that the PS3 is still a better deal.
$299 for 20gb 360; + $99 if you want wifi; + $50 for online play.
$399 for PS3; includes wifi built in; free online play; includes bluray.

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this has been something that Sony has failed miserably at...

they really just need to start flooding the airwaves with advertisements...and not crying babies, or nonsense stuff...they need to get out there and inform people of what they are getting with the PS3...and NOT getting with the 360....built in wifi, blu-ray etc...

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I agree. Sony has some of the WORST ads I've ever seen.

They were getting better with the latest batch of commercials but they still need to make it clearer as to why paying $50 or $100 more for the PS3 is a great deal.

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great point! I didnt know the controllers had "wii-like" capabilities?!

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well if by "wii-like" you mean motion sensing then yes, yes it does...its not implemented in many games...but its cool when it is...

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There are rumors of the HDD going up to 60GB. Also you can get a wireless bridge for under $30 nowadays. Personally I just used wired. The online play is worth the $50. Also Sony is still not up with the 360 on games.

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They don't. They have a poorly integrated motion sensing in their controller that just makes the game feel awkward when you turn it on.

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This 2.4 update should close the gap on the online play. [OUT JULY 2nd, tomorrow] and its still free.

Yes the 360 does have the edge on games but that too is not as big as it once was. Good times mate!

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i play wired on my PS3 too, but its nice to have the built in option...

and the games are catching up....Metal Gear Solid 4 is probably one of the best console games in just about every way ever...

the key to the whole thing is Blu-ray....MS has NOTHING to offer to match that...especially considering the $100 price difference

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You got that right.

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Dang, I can't believe your talking about this crap again.

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I'd still rather pay less for more, higher rated games and better online over Blu-ray and Wifi. I like eithernet better anyway... guaranteed not to cut out. It's faster anyway (54 vs 100).

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If you want a console to play games you do not need a blu ray player.

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i don't think that matters.

what will the average consumer likely go for- a next-gen system that is, in terms of visuals better than the wii, has lower (but not significantly) performance capabilities than the ps3 but is still $100 cheaper or a system that still has not lowered its price for this particular model in, what 2, 3 years and is pretty much priced higher because of sony's insistance of including its blu-ray hddvd system?

you could call me being this close to being a sony fanboy, but this price drop has gotten me to consider buying an x-box over a playstation even though i think that the playstation is a better system. but when choosing between fairly similar consoles, price matters especially when companies make the same games for both systems, with exceptions.

if sony were as smart as most people here think, they should have not considered, but executed a price drop at least a year and a half ago. i am on record as saying that i'm not even thinking of buying a ps3 until that price comes down.

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ya, they work great.. lot of fun, actually 80% of the games have the option.

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MGS4 is way overhyped and FAR from the best game ever. It is still not up there with the likes of COD4 and Gears of War.

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NOOOO.. i just bought my elite 3 months ago!!! why me?!?!?

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hahahahaha lmao tell me about it

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Probably a good move on MS' part...sales have been down(not bad, but down from where they were last year)...the Wii is still dominating...and they need something to try and jumpstart their sales outside of the US...the PS3 has started picking up steam and MS should really try something to slow it down...

and christ BetaNews... nexgenwars?? lets be serious...Sony sold more than 10million PS3's in the first calendar year! lol...i mean VGChartz is no more accurate but they have at least given the PS3 credit for more than 3 million more consoles sold than nexgenwars...

from an article on gamepro.com posted 06/27/2008

"To date, Nintendo has sold an estimated 28 million Wiis worldwide in just 18 months, followed by Microsoft with 19 million Xbox 360s in 30 months, and Sony with 14 million PlayStation 3s in 18 months."

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This is soooooooooooooooooooooooooo 3 days ago!

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Sources also say that they are going to discontinue the 20 GB in order to launch a 60 GB SKU:

"A leaked scan of an upcoming K-mart ad that shows the 20GB 360 Pro model selling for $299.99 has led many to believe that the system will see a price drop at E3. I have since received an e-mail with a copy of a communication from a usually trustworthy source that claims that the price drop is not only pending, but a 60GB Xbox 360 is coming as well.

'At E3 Microsoft will make an official announcement that we are dropping the 20GB pro console to $299... As we launch the 60GB SKU throughout July, the 20GB SKU will DISCONTINUE. You will see the new SKU on your 7/1 price list,' the communication reads."

- xbox-scene.com

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Radio Shack also shows a price drop in their upcoming ad, source was same website xbox-scene.com

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