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Game Forum / PlayStation / PlayStation / July 2006strong rumor of Xbox 360 HDD $100 U.S. price drop
Microsoft rumored to cut Xbox 360 price by US $100 Yen-ting Chen and David Tzeng, Taipei; Adam Hwang, DigiTimes.com [Wednesday 26 July 2006] Microsoft is planning to cut the retail price of its Xbox 360 Pro System from US$399 currently to US$299 in an attempt to compete with the PlayStation 3 (PS3), which will be launched by Sony in November of this year, according to Taiwan-based OEM component makers. Microsoft Taiwan denied the report, asserting that it is misinformation. Microsoft, to prepare for the price cut, has negotiated reduced production costs for the Xbox 360 with Taiwan-based manufacturing partners, stated the sources. The manufacturers estimate that the total production cost can be reduced by 15-20% due to diminishing costs for most components along with increasing production scales and decreasing defect rates, the sources pointed out. Considering Sony will sell a 20GB HDD (hard disk drive) and 60GB HDD PS3, each with a built-in blue-laser Blu-ray Disc drive, for US $499 and US $599, respectively, Microsoft plans to maximize the price competitiveness of its Xbox 360 Pro System by dropping prices so that the model can be equipped with an external HD-DVD drive in the future for under US$399, the sources indicated. http://www.digitimes.com/systems/a20060726A1001.html > Microsoft Taiwan denied the report, asserting that it is > misinformation. seems like you answered your own question. sales should pick up once they drop the price to $99...a fair price for the product....till then' i am enjoying the other many forms of entertainment avail...and keeping the old x box runnin....... > > Microsoft Taiwan denied the report, asserting that it is > > misinformation. > > > seems like you answered your own question. >sales should pick up once they drop the price to >$99...a fair price for the product....till then' i am >enjoying the other many forms of entertainment >avail...and keeping the old x box runnin....... well ain't you just tighter than a 90 year old nun?  Signaturegamertag: Chrisflynnuk http://live.xbox.com/member/Chrisflynnuk i wouldn't know Chris...why don't you enlighten us all.... > >sales should pick up once they drop the price to > >$99...a fair price for the product....till then' i am [quoted text clipped - 6 lines] > gamertag: Chrisflynnuk > http://live.xbox.com/member/Chrisflynnuk >i wouldn't know Chris...why don't you >enlighten us all.... you should know, i was asking a question reagrding your spending habits. i can't answer it for you! Signaturegamertag: Chrisflynnuk http://live.xbox.com/member/Chrisflynnuk > well ain't you just tighter than a 90 year old nun? I believe the joke is "20/30 year old nun". I don't think you'd find many body parts on a 90 year old, nun or otherwise, that could be described as 'tight'. i can't say i am an expert on nun's, like chris f is... sorry...can't help ya there... but, i do know the 360 is only worth, around $99... as a form of entertainment...cheers....richard / colorado... > > well ain't you just tighter than a 90 year old nun? > > I believe the joke is "20/30 year old nun". I don't think you'd find many > body parts on a 90 year old, nun or otherwise, that could be described as > 'tight'. > sales should pick up once they drop the price to > $99...a fair price for the product....till then' i am > enjoying the other many forms of entertainment > avail...and keeping the old x box runnin....... You're not going to have the option of waiting until the 360 is $99 if you want to keep playing new games. Microsoft has stated that they will continue to sell XBox until the end of 2007 (according to some articles they've already stopped production.) According to rampant, supposedly informed, rumors, they will not only stop selling new XBox consoles but end support of the console entirely. Without Microsoft supporting the console, even if 3rd party developers can legally still release games for it, there's no way they will because their development dollars will be tied up into the 360/PS3/Wii/DS/PSP. Because Microsoft has the shortages fixed, unless Sony somehow screws up and has shortages for a year, there's little financial reason for 3rd party developers to keep supporting both last generation consoles when they've got so much money poured into the PS3/360/Wii. Something will have to give, and I'll bet it will be games with versions for the PS2/Xbox beyond November/December 2007. There's probably no way Microsoft lowers the price of the 360 to $99 until the year XBox 3 comes out and they try to just move their stock, and that'll be 4-5 years from now. Unless blu-ray drives drop significantly in price over the next five years, there's no way the PS3 will be $99 ever, especially if Crazy Ken is still in charge, he wants you to work longer hours to afford the PS3. > > sales should pick up once they drop the price to > > $99...a fair price for the product....till then' i am [quoted text clipped - 22 lines] > especially if Crazy Ken is still in charge, he wants you to work longer > hours to afford the PS3. Xbox 360 (with harddrive) will probably never go lower than $149. the harddrive has a fixed cost, so. anyway, as for Xbox 3, from what I understand, it's currently in the phase of development where they just brainstorm, toss ideas around. actual development will probably begin end of this year or early 07 at the latest. that gives them 3 years of development assuming a fall 2010 release. which would give the hardware developers somewhat more time than they had for Xbox360 which was around ~2 years (2002-2004). however if Microsoft decides that Xbox360 will have a 6 year lifecycle instead of 5 years, that gives the hardware guys even more time to come up with a design that's a very large leap over Xbox360. (speculating) maybe closer to the leap we saw from PS1 to PS2. in terms of GPU/graphics, the Xbox360 is not a massive leap over Xbox (3-5 times the raw performance) although a larger leap in shader performance. in terms of CPU/processor, Xbox360 is a pretty damn large leap from Xbox (76 times the raw FP performance: 1.5 GFLOPs ====> 115 GFLOPs) back on topic: Microsoft does not want to ultimately take a loss on Xbox360, so, we'll never see it sell for less than $149, and even that price is years away. I expect Microsoft to drop the price from $399 to $299 sometime between near PS3's release (the soonest) to around the time Halo 3 comes out in fall 07 ( the latest). This won't happen. There is no need for a price drop, esp with the expensive PS3 coming out and PS3 shortages. There will be a 360, PGR3, 3 months XBL, and M$ Points bundle for $399.99 starting in august, if the rumor is true. I expect 360 price to drop around E3 next year. > Microsoft rumored to cut Xbox 360 price by US $100 > [quoted text clipped - 24 lines] > > http://www.digitimes.com/systems/a20060726A1001.html > This won't happen. There is no need for a price drop, esp with the > expensive PS3 coming out and PS3 shortages. There will be a 360, PGR3, > 3 months XBL, and M$ Points bundle for $399.99 starting in august, if > the rumor is true. I expect 360 price to drop around E3 next year. I agree. Why drop the price now on a system which appears to be selling well, especially if the competition costs $200 more and its success is not yet a given? Next Spring, however, I expect to see MS take some action. The Xbox 360 will have been out for ~18 months, and we will have seen how many $600 PS3's Sony is/was able to sell. Halo 3 is the game everyone seems to be waiting for...if it is released in Spring or Summer of 2007, watch for MS to drop the price of the 360 at the same time (or produce a bundle package). Sony will be up a creek then, having no choice but to follow suit...unless they expect a $600 console with few AAA titles to compete with a $300 Xbox 360 with Halo 3. > > Microsoft rumored to cut Xbox 360 price by US $100 > > [quoted text clipped - 24 lines] > > > > http://www.digitimes.com/systems/a20060726A1001.html > > This won't happen. There is no need for a price drop, esp with the > > expensive PS3 coming out and PS3 shortages. There will be a 360, PGR3, [quoted text clipped - 4 lines] > well, especially if the competition costs $200 more and its success is not > yet a given? Selling well? http://videogamecharts.com/page3.html This site has the NPD monthly console sales data. In the 8 months since launch, the Xbox 360 has only sold about 2 million units in the US. That's worse than the original Xbox, the PS2, and only barely better than the Gamecube. > > > This won't happen. There is no need for a price drop, esp with the > > > expensive PS3 coming out and PS3 shortages. There will be a 360, PGR3, [quoted text clipped - 13 lines] > That's worse than the original Xbox, the PS2, and only barely better > than the Gamecube. Thanks for the data. Do you know the breakdown of $300 vs. $400 Xbox 360 units? I was just curious to know how much price might be a factor in Xbox 360 sales. Interestingly, GameCube launched at $100 lower than either PS2 or Xbox and the link you provided shows how poorly it fared. Perhaps people are overestimating how much of an effect the lower price of the Wii will have on its potential success. >> > This won't happen. There is no need for a price drop, esp with the >> > expensive PS3 coming out and PS3 shortages. There will be a 360, PGR3, [quoted text clipped - 14 lines] > That's worse than the original Xbox, the PS2, and only barely better > than the Gamecube. But the site doesn't reflect the economic factors of the past 3 years in that scale. People are not as likely to spend money when energy prices (as one example) are through the roof, and many kids get their Xboxes from their parents, not from their own earnings; buying power isn't very strong right now. Also, the first 4 months of that data is based on the fact that there were manufacturing woes MS had with getting these boxes delivered for sales, that they may have had then and continues to reflect that for some time in the near future. Real data for this may be more critically viewed, probably two years from now when the PS3 will have been out a while and the numbers can be crunched more realistically. > Microsoft rumored to cut Xbox 360 price by US $100 > [quoted text clipped - 3 lines] > Microsoft is planning to cut the retail price of its Xbox 360 Pro > System from US$399 If a Xbox 360 Pro system existed (in North America anyway) then Microsoft could indeed cut its price. Since it doesnt exist however... > Microsoft, to prepare for the price cut, has negotiated reduced > production costs for the Xbox 360 with Taiwan-based manufacturing > partners, stated the sources. The manufacturers estimate that the total > production cost can be reduced by 15-20% due to diminishing costs for > most components along with increasing production scales and decreasing > defect rates, the sources pointed out. I think it's more likely that the component price cut is designed to reduce Microsoft's per unit loss than it is to reduce the retail price. The PS3 is so expensive that no price cut is really necessary. - Jordan |
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