Gamestop 360 price drop?

[nintenho]

http://boards.1up.com/zd/board/message?board.id=Xbox360&message.id=202728

Got an email down @ my local Gamestop where I manage. Says, "we are looking into doing pre-orders for the May launch of the new Xbox 360 sku, depending on Microsoft quantities." Also states that the price will be $479, and the core Xbox 360 sku will see a drop in price. We got system box stickers in the other week for $479 and $229.

Wow. If the price point for the core drops to that price, that would be insane. If you look at that then, you are clearly a direct competitor to not only the PS3, but now the Wii. Honestly, @ $479, you would be hard pressed to choose the PS3 @ $599 over the Zephyr, based on what they both offer as of now. It remains to be seen how this goes down. Lemme know what you think.

Zephyr-$480
Core-$229

so it sounds like the current premium is going to be $299.

The core price is Wii territory and while I don't doubt Nintendo could drop the price to $150-$200, Microsoft is likely to win NA with that price.

I think that thet average gamer will start to consider a 360 with it's decent line-up of games and Halo 3 coming out. Wii, an already hard sell, only has maybe one or two major games.

This plus DMC and maybe more Japanese developer support could start to make Japan more interested in the 360 too (longshot but it might not be a distant third).

 

[scooby_dooby]

Well the pricedrops sound like exactly the right move, at the logical pricepoints.

Don't really get the Zephyr price though, they're charging $180 for a larger HDD and HDMI port?? That doesn't make alot of sense at all.

Why not just include HDMI on all future models, make the console available in Black or White, and release the 120GB hdd as an affordable peripheral, seems to make much more sense to me. Doesn't create confusion among consumers, and offers a better upgrade path for existing 360 owners.

Something tells me MS is going to charge around $149 for the HDD, which is sort of ridiculous when you realize the main reason people would want one is so they can buy more stuff from MS through video marketplace.

 

[nintenho]

Maybe MS wants to only make a few of the zephyr's (for videophiles who really want HDMI) and make a huge mark-up on the HDD? The core's price is PERFECT though. I imagine they'll do Halo 3 bundles with an extra controller for $300. They will win NA if they do that. Could also help in Europe but I'm not sure what kinds of games sell tons there.

 

[Tap In]

Something tells me MS is going to charge around $149 for the HDD, which is sort of ridiculous when you realize the main reason people would want one is so they can buy more stuff from MS through video marketplace.

well the rumor was 20Gb $50, 120gb $100 but we'll see. You're right it doesn't make sense unless the HDMI port is strictly for the Videophile crowd and feel they can afford it. Maybe it also includes wireless?

If true.... this seems like a brilliant move. at $299 for the premium and $229 for Core with Halo 3 and GTAIV on the horizon? WOW

Edit: or just read nintenho's post.

 

[scooby_dooby]

well the rumor was 20Gb $50, 120gb $100 but we'll see. You're right it doesn't make sense unless the HDMI port is strictly for the Videophile crowd and feel they can afford it. Maybe it also includes wireless?

Oh RLY? Where did that rumour come from? The $50 pricepoint for the HDD is what I've been saying from Day 1, the Core sales would rocket up.

The $100 price for the 120gb doesn't jive with the $479 pricepoint of Zephyr though, unless as you say they're adding Wifi. That in addition to the HDMI, and perhaps an included HDMI cable, could be a good percieved value for some people I'd imagine.

 

[Tap In]

Oh RLY? Where did that rumour come from? The $50 pricepoint for the HDD is what I've been saying from Day 1, the Core sales would rocket up.

The $100 price for the 120gb doesn't jive with the $479 pricepoint of Zephyr though, unless as you say they're adding Wifi. That in addition to the HDMI, and perhaps an included HDMI cable, could be a good percieved value for some people I'd imagine.

it was mentioned in the Zephyr thread on neogaf . well whether or not it's true, i'm guessing Ms can do the math too and will make it all jive in the end. then again, this could just be a rumor which may serve to slow sales for 360 while people expect a price drop.

I think April is too soon seeing the position they are in but ...

1) it could be seen by MS as a knock out blow to sony in NA and a necessary competitive move to try to do better in EU with the PS3 coming

2) Wii could be putting the scare into them in NA sales

3) if you're going to impact sales for a month or two I guess April May is as good a time to do it as any (June July?)?

 

[ErnstH]

Still, I would only expect them to release a new model simultaneously with the shrink to 65nm - and wasn't that only to happen in 2H07? It would seem strange for them to release a new model now, and then release another model a couple of months later on..

 

[scooby_dooby]

3) if you're going to impact sales for a month or two I guess April May is as good a time to do it as any (June July?)?

It coincides with the beginning of their long stretch of great titles, so I can see the strategy behind that timeframe.

Pricedrop end of April
May - Forza 2
June - Bioshock
July - Mass Effect / Too Human
Aug - Blue Dragon
Sep - Halo
Oct - GTA 4
Nov/Dec - Assasin's Creed / Banjo / PGR4 / Lost Odyssey

 

[Tap In]

Still, I would only expect them to release a new model simultaneously with the shrink to 65nm - and wasn't that only to happen in 2H07? It would seem strange for them to release a new model now, and then release another model a couple of months later on..

good point


also see Dave's post

 

[fearsomepirate]

I don't think Nintendo needs to worry about a price cut until they can meet demand.

 

[Carl B]

If true, it's equal parts brilliant and bizarre (a $180 spread for an HDD and HDMI?)... but it certainly wouldn't surprise me. Fact is that there will always be a class of people that gravitate towards the "best" in any given product line, and I know I'd have to go with black over what I consider to be hideous white. So they could honestly expect good sales out of that new SKU I think (probably to existing users), may in fact make a profit off of it to begin with (making console repurchase pleasurable rather than painful for them), and at the same time offer up quite the bargain for those drawn soley to the games but with a limited budget for entry.

I don't even want to discuss Microsoft's HDD pricing, so let's not.

Firstly I guess, I want to know if this new pricing is true, and if so "when" it is true for. But that aside, I think MS is playing this gen very intelligently. To me, it's all about strategy, and watching the 'war' play out is like watching a real war save without all the violence; and I enjoy strategy on that scale.

The early launch was obviously crucial - without it MS wouldn't have room to play with. Coupled with Sony's own (unfortunate) delays, the room gets a litle roomier. PS3 launching at a high price (again misfortune on Sony's part of component costs) gives MS more room still, and the idea that they might take that room to truly put Sony to the grindstone rather than licking their own expense wounds I think is the way they should play it.

I don't think there is any way of 'defeating' Sony this gen (as in no PS4), but MS might succeed in potentially crippling longterm their primary opposition in the NA market. I also wonder if they believe they think they can psychologically get to Stringer, whom they may perceive as weak in will and at odds with the division anyway. Probably not a part of their formal strategy, but if I were them, I'd say that here is the head of the snake, let's rattle the hell out of him with some flash and some strong Western media reaction.

All of this said, I of course remain loyal to my PS3 in terms of my own choice for this gen - KK, you and me buddy, we share the same vision for what a console should be... even if we're the only two on Earth.

 

[bobthebub]

Something doesn't add up here, $479 Zephyr as various people have pointed out is a large premium for HDMI and a bigger disk, what's the chances this box has an integrated HD-DVD drive?

 

[RobertR1]

Something doesn't add up here, $479 Zephyr as various people have pointed out is a large premium for HDMI and a bigger disk, what's the chances this box has an integrated HD-DVD drive?

That'd be one hell of a suprise. A welcomed one but still, a great one.

I do expect wireless integrated though and a quiet(er) DVD drive.

 

[Carl B]

Something doesn't add up here, $479 Zephyr as various people have pointed out is a large premium for HDMI and a bigger disk, what's the chances this box has an integrated HD-DVD drive?

Well the chances of that I'd put at zero. Microsoft has already gone on the record as 'never' on the integrated HD drive question.

 

[Tap In]

Well the chances of that I'd put at zero. Microsoft has already gone on the record as 'never' on the integrated HD drive question.

I agree

that will never happen... you can book it.

As I mentioned in other thread, I'd expect wireless network to offset the additional costs

 

[Shifty Geezer]

Well the chances of that I'd put at zero. Microsoft has already gone on the record as 'never' on the integrated HD drive question.

Though I rate chances at nil, the fact a company has flatly refuted an idea it isn't proof of anything in my experiences! 'Never' one day, released product the next...

 

[Natoma]

http://boards.1up.com/zd/board/message?board.id=Xbox360&message.id=202728

Zephyr-$480
Core-$229

so it sounds like the current premium is going to be $299.

The core price is Wii territory and while I don't doubt Nintendo could drop the price to $150-$200, Microsoft is likely to win NA with that price.

I think that thet average gamer will start to consider a 360 with it's decent line-up of games and Halo 3 coming out. Wii, an already hard sell, only has maybe one or two major games.

This plus DMC and maybe more Japanese developer support could start to make Japan more interested in the 360 too (longshot but it might not be a distant third).

Pencil me in for a 360 at that price (along with a Wii, if I can find one goddamnit!) once I get my HDTV this year.

 

[bobthebub]

I agree

that will never happen... you can book it.

As I mentioned in other thread, I'd expect wireless network to offset the additional costs

Core $229

Add HDMI (OK needs a new version of the scaler but that could actually be on a new process and cheaper) any more than $20 dollars and I'd be gobsmacked.

Add 120Gb 2.5 Sata Drive currently about $80 retail, much less to MS but lets call it $80 anyway

Add Wireless, probably about $5 but lets call it $20

I make that $349, they charge $479, that's rip-off territory (for a console) unless there is something else in there and it would make the SKU very vulnerable to a PS3 price cut which will probably come this year.

I say it again, something does not add up.

 

[Carl B]

Though I rate chances at nil, the fact a company has flatly refuted an idea it isn't proof of anything in my experiences! 'Never' one day, released product the next...

True. But of course I agree that the chances remain nil.

Pencil me in for a 360 at that price (along with a Wii, if I can find one goddamnit!) once I get my HDTV this year.

Waaaaiiit a minute Natoma - *you* don't have a Wii yet?

@Bobthebub: You're overthinking it. They charge $100 for a 20GB drive currently - they have to rip off the customer somewhere if they're going to be generous with the lesser offerings afterall. Besides, I assure you people will purchase this thing at that price. It may not be a lot of volume, but it doesn't really need to be with the price cuts elsewhere.

 

[Shifty Geezer]

Waaaaiiit a minute Natoma - *you* don't have a Wii yet?

He can't fight off all the OAPs buying them up