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Jul 28 / Ozymandias

Xbox 360 Price Drop Rumors?

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Been a few rumors on the web about a potential Xbox 360 price drop. John Porcaro over at Gamerscoreblog did a short post to debunk those rumors. Even if I didn’t have immediate faith in the accuracy of what John’s saying (which I do), common sense tells me the same thing. It’s just too early for a price cut, especially in world where console manufacturers lose money on hardware. (Can you point to any other successful console launch where the price was cut less than a year after launch?) I suspect most of you know this, but the console business is a razor and razor blades model where companies take a loss on the cost of the hardware and make it up on software royalties and other revenue streams. I sure hope we’ll drop the price one day, but I’d take John’s lead on this right now and not hold your breath for this holiday.


P.S. – Please don’t point to that accursed Acts of Gord link again. It’s wrong. Period. Although I’ll admit it’s always intrigued me to see how quickly a random website can become a source of “definitive proof”. That said, I appreciate that they’ve finally added a comment at the bottom of the article:


“Edit – 12/17/01 – Nick Maragos over at “Gaming Intelligence Agency”  sent me this link http://www.thegia.com/news/0108/n23r.html that has this in it:

In more general matters, Mr. Main admitted that the GameCube’s pricing would not initially follow Nintendo’s rule of turning a profit on every console sold. “We expect to incur a small loss on the GameCube hardware initially, and you’re right that it hasn’t been our habit in the past but we expect it to turn okay early next year.”

So it appears that now Nintendo has joined the ranks of console manufacturers that outsource their machine production and takes losses.”


Indeed. Smile

Related posts:

  1. PS3 Price Drop? Not Really….
  2. SCEA: PS3 price won’t drop for two years…
  3. PS3 Price Drop
  4. Unreleased Penny Arcade Xbox 2 Rumors Strip
  5. [Edit] PS3 Price Cut Redux (Drinking The Kool-Aid)

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  • WiNG

    "(Can you point to any other successful console launch where the price was cut less than a year after launch?)"

    Xbox on my country with a 33% price drop after 1 month and 14 days (and I guess the same scenario for rest of Europe)

    Anyway, it was also rumoured that there was possibility of the price not dropping but that packages were going to have some extras bundled, such as a game or an extra controller on the same price… not going to happen either?

  • Monolith

    I really hope that they come out with a 360 platinum hits by x-mas. PGR 3 and Condemened for twenty sounds sweet!

  • Thelandofsand

    you guys need to do something amazing to negate the PS3 launch… new hardware bundles instead of a price cut?

  • sublime78

    I know its not a standardized price drop, but the local FYE is selling 360s for 360 bucks.  Then again I’m sure there is a catch or something.  

  • Ozymandias

    Re: "Xbox on my country with a 33% price drop after 1 month and 14 days (and I guess the same scenario for rest of Europe)"

    Yep, fair point. I’d totally forgotten that. Touche!

    Re: "I know its not a standardized price drop, but the local FYE is selling 360s for 360 bucks.  Then again I’m sure there is a catch or something."

    I have to admit I like how that rolls off the tongue – "360 for 360". :)

  • Ozymandias

    Oops – missed a question: "Anyway, it was also rumoured that there was possibility of the price not dropping but that packages were going to have some extras bundled, such as a game or an extra controller on the same price… not going to happen either?"

    I’m afraid I don’t know – packaging/bundling/retail stuff is well outside of what I work on. (And I’m afraid I couldn’t share if I did know. Sorry!)

  • devilscallmedad

    A bundle seems much more likely than a price drop at this time, even though the price drop would really turn the heat on for sony and even nintendo. I think the best thing MS can do without dropping the price is increase the harddrive of premium to 50GB and core to 20GB and give 3 month Live gold.

  • http://coasters.toddloewen.com Pokesomi

    I wish i had an xbox 360.  Then i could get in on some of this gaming goodness

  • Ozymandias

    Re: "you guys need to do something amazing to negate the PS3 launch… new hardware bundles instead of a price cut?"

    So… I’m truly curious what you guys see as being cool and compelling about the PS3 at launch. Why are you going to buy it? Is there a game you must have? Blu-ray is the best thing since sliced bread? The gyroscopic controller?

    Not being argumentative. I believe I’ll get a PS3 at some point, and may even get one at launch because I’ll be interested in what they try to do with their online service. But if that weren’t the case, I’d personally struggle to pick out a game or feature that somehow "tips" the PS3 over the 360 or Wii.

    Thoughts?

  • sublime78

    I see nothing what so ever appealing about the PS3.  Blue Ray might be if there wasn’t a planned HD-DVD add on for the 360 coming out.  Plus I’m not a Metal Gear fan boy and I still hate sony for helping kill sega as a hardware developer.  Then again the PSP is a sweet piece of machinary and even I’ll admit that.

    I love my 360, so don’t take this the wrong way, but it would be REALLY nice if game producers would stop releasing games with CRAPPY FRAMERATE problems.  Battle for Middle Earth 2 is almost killed by just such a thing.  Is it too much to ask that the super powerfull console known as the 360 run games smoothly above all else?  And oddly enough games designed FOR the 360 all seem smooth and fine (Lost Planet, Dead Rising) but the ports of PC games (Prey, BFME2) can look like ass at times.  I mean, what’s the point of super high defanition gaming if the picture is all jumpy from frame problems? Also V-sync on more games would be nice.

    I’m not bitching though, well a little bit, but trust me I want you guys to come out tops this time around.  With the amount of power in the 360 crappy framerates are inexcusable.  If they have to tone the game down graphically to get a smooth rate, that’s not too much to ask is it?

  • sublime78

    One other thing is, it would be really nice if The Movies game came over to the 360.  Peter M. and Microsoft are best buds now so I don’t see why not.  Seems like a perfect match for the system anyway since most 360s sit compfortably inside of home theaters and it is a game about making movies.  If the Live team doesn’t want certain kinds of user created content available on Live I understand that, but if that’s the case than just make it an offline game. Either way its a shame.  I do thank the lord for F.E.A.R. coming over though.  Hellgate would be nice too.  I know these things are less up to Microsoft and more up to the developers though.

  • devilscallmedad

    i still think even with this price and nothing added, the 360 is a much better choice than PS3 because of all the game available and some amazing games coming this holiday season and secondly because of the Live experince i seriuolsy doubt ps3 can get a service even close to that. And lastly buying a ps3 because of blu ray would be the most stupid thing to do how can one player have a manufacturing cost of S1000 and the other $200? it will be gimped version and won’t last long

  • Ozymandias

    Re: "I see nothing what so ever appealing about the PS3.  Blue Ray might be if there wasn’t a planned HD-DVD add on for the 360 coming out.  Plus I’m not a Metal Gear fan boy and I still hate sony for helping kill sega as a hardware developer.  Then again the PSP is a sweet piece of machinary and even I’ll admit that."

    The PSP is a pretty sweet piece of kit (to use the British term for it). The thing that’s frustrating to me, though, is there just don’t seem to be as many games to play on it as on the DS. Am I the only one who feels like this?

    I’ll put it this way – a friend of mine asked to borrow my PSP with Lumines and I don’t even think twice. But the DS? Not going to happen. :)

  • Tephlon

    I don’t really think I’ll get a PS3 either (but in all fairness, I am biased.)

    I can’t forgive Sony for taking Final Fantasy away from me.  I had a perfect time with FFVII and FFVIII on the PC, but then they had to pull it.  hrrmmpphh!  

    Now, I know this argument can go both ways, since Microsoft did take what Halo would’ve been on the PC and moldeded it into a smash hit, console selling powerhouse on the xbox… but hell, atleast they’re commited to giving me the game on the pc after some sort of time frame.  Did I see FFIX or FFX on the PC?  NO.  That makes Hulk go smash.

    Plus, I’ve just kinda warded off Sony products in general nowadays.  They just don’t tripp my tigger like they used too.  Overpriced, underperforming junk.

    Sorry, don’t mean to change the subject or start any fanboy bashing session.

    yeah, a xbox360 bundle would be cool this christmas.  Maybe then more friends would buy them so they can stop using mine.

    -Teph

  • Str8shooter

      Perhaps I’m no expert, but it seems like a $100 (or eve a $50) price drop on the xbox 360 would absolutely kill the PS3, if not the "Wii" also. I mean, half the kids out there these days just want a console they can shoot aliens on. And with Xbox 360 supposedly going to release a 3rd Halo (if not for a few years yet)… that’s what gets kids excited, the combonation of games like Halo 3 and Xbow live on a hot new Xbox 360 that thier friends don’t have yet (and more importantly at a price their parents can approve of). What I’m trying to say is, if MS dropped the price of the 360 at the same time the PS3 came out, they would sell enough consoles to live comfortably off the capital of games and accesories. PS3 would only sell only to the sony freaks and the folks who like PlayStation games. And, at six hundered dollars for the PS3 with the large hard drive, the 360 has the potential to come out of the holiday season as top dog. Of course, it’s probably less of the comparison between $600-PS3 and $350-XB360, and more like: $450-500 vs. $350-XB360. I just wish you could get XB360 for $300; I’d have to pick less weeds at my grandma’s house.

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