Xbox 360 price drops by $50

[assen]

Especially considering they are missing their own sales forecasts...

On the other hand, consider that they are consistently missing their own profit forecasts, and dropping aggressively plays against them.

Microsoft definitely aren't operating according to in theonion's "we make a loss on each unit, but we'll make it up on turnover" business strategy this time.

 

[quest55720]

Sure, but MS not dropping price was seen as nearly unthinkable, going into their 3rd holiday season.

So, everyone was expecting a drop. Most people expected $50 at the bare minimum across the 3 sku's, and this drop is even less than that.

So, it's really no surprise that many people feel this drop was inadequate.

I mean, I couldn't imagine them being any more conservative than they are right now. Especially considering they are missing their own sales forecasts...

That basically sums it up for a lot of people. There were a lot of people waiting for that 100 dollar price drop. Instead the price cut was 100 over the 3 SKUs. People have been waiting 20 some months for a price drop and then it comes up way short of expections. On the other hand sony dropped the price more and earlier than most would of guessed last november. The PS3 price drop beat expectations for most people that makes them happy.

When all is said and done and 360 is a very distant 3rd place in a few years we can point to this day as when it really went bad. Unless they finish the price cut november MS blew its last chance to put the hurt on sony.

Like chefo said before come 2008 every advantage MS has will be pretty much gone. The PS3 will be cheaper and it will be pumping out the big time games. It is to bad MS is letting sony off the 599 dollar hook. Maybe if the Wii lays enough hurt on sony the PS4 won't launch at such an insane price.

 

[J_Saint]

In a spot of good timing, ARS have a rumourville article about HDMI recently posted:

Someone over at Shacknews just got a premium with HDMI...

http://picasaweb.google.com/jonathus/Xboxen

 

[quest55720]

On the other hand, consider that they are consistently missing their own profit forecasts, and dropping aggressively plays against them.

Microsoft definitely aren't operating according to in theonion's "we make a loss on each unit, but we'll make it up on turnover" business strategy this time.

Oh well they are the ones who made the shoddy harware they need to deal with it. They need to take a risk to build momentum for 2008. As stands right now they slowly losing steam and sony is slowly gaining steam. Is it better to profit a bit sooner at the price of finishing a way distant 3rd. Or take a chance build a ton of momentum and sell more units in 2008,2009 and 2010 and delay the next gen and rake in the cash at the end of the generation. With out agressive pricing this fall MS will be in the same spot they were with the xbox a dead in the water system during the most profitable years. Trying to turn a small profit in 2008 at the expense of the huge potential pay off in 2009-2012 is a major mistake imo and will end up costing them more money in the end by having to launch sooner another piece of hardware at a loss.

I am sure the price cut on the PS2 from 299 to 199 hurt but it sure in the hell paid off 10 fold the last few years of raking in major cash.

 

[Zaphod]

Someone over at Shacknews just got a premium with HDMI...

As expected by many here, but I'm surprised it happened so soon. Signs that they're standardizing the new motherboard and outputs across all SKUs and that the product is reaching the channel.

So, everyone was expecting a drop. Most people expected $50 at the bare minimum across the 3 sku's, and this drop is even less than that.

So, it's really no surprise that many people feel this drop was inadequate.

Given the above, I'm certain there is room for another cut (or some heavy MS-sponsored 'specials') come this holiday season.

 

[Rangers]

That basically sums it up for a lot of people. There were a lot of people waiting for that 100 dollar price drop. Instead the price cut was 100 over the 3 SKUs. People have been waiting 20 some months for a price drop and then it comes up way short of expections. On the other hand sony dropped the price more and earlier than most would of guessed last november. The PS3 price drop beat expectations for most people that makes them happy.

When all is said and done and 360 is a very distant 3rd place in a few years we can point to this day as when it really went bad. Unless they finish the price cut november MS blew its last chance to put the hurt on sony.

Like chefo said before come 2008 every advantage MS has will be pretty much gone. The PS3 will be cheaper and it will be pumping out the big time games. It is to bad MS is letting sony off the 599 dollar hook. Maybe if the Wii lays enough hurt on sony the PS4 won't launch at such an insane price.

You're all being a bit negative. I agree MS is being stupid (most of all with the multiple sku BS) but, Sony has not demonstrated the ability to do much of anything to take advantage.

VGchartz newest weekly sales just came out and they once again show PS3 and 360 nearly neck and neck (PS3 had been winning since it's drop). That's the week before the price drop for 360. That's not good news for PS3 that 360 is caught up again right BEFORE it's drop.

Interesting also, currently Amazon shows the Premium #11 and the Elite #12. So the Elite again is showing signs of selling as well as the premium. Once again bad news for MS in my opinion.

 

[quest55720]

As expected by many here, but I'm surprised it happened so soon. Signs that they're standardizing the new motherboard and outputs across all SKUs and that the product is reaching the channel.
Given the above, I'm certain there is room for another cut (or some heavy MS-sponsored 'specials') come this holiday season.

Personally I never want to see the holiday specials again. Only I think it was target and who offered a 50 dollar gift card and micro center with the 100 dollar rebate the rest it was the retailer putting in a older game and pocketing the cash.

 

[Rangers]

Someone over at Shacknews just got a premium with HDMI...

http://picasaweb.google.com/jonathus/Xboxen

Interesting, now I'm wondering, does this have 65nm CPU then?

http://forum.beyond3d.com/showpost.php?p=1045856&postcount=44

This post seems right as the manufacture date on the guy's system is 07/04/07

 

[quest55720]

You're all being a bit negative. I agree MS is being stupid (most of all with the multiple sku BS) but, Sony has not demonstrated the ability to do much of anything to take advantage.

VGchartz newest weekly sales just came out and they once again show PS3 and 360 nearly neck and neck (PS3 had been winning since it's drop). That's the week before the price drop for 360. That's not good news for PS3 that 360 is caught up again right BEFORE it's drop.

Interesting also, currently Amazon shows the Premium #11 and the Elite #12. So the Elite again is showing signs of selling as well as the premium. Once again bad news for MS in my opinion.

I would say 11 and 12 at amazon is a complete disaster for MS. It just shows the price cut was not enough. If they did a real cut they would of been in the top 3. The PS3 is still out selling it on amazon. Considering how few elites are out there the premium sales are very poor at #11. I at least expected the 360 to have 1 day in the top 3. Maybe things will pick up come halo 3 time but right now wow the price cut has not done much.

 

[assen]

Like chefo said before come 2008 every advantage MS has will be pretty much gone. The PS3 will be cheaper and it will be pumping out the big time games.

This is delusional. The PS3 will never be cheaper, not in 2008, not in 2009, not when the generation wraps up.

Come 2008, all the advantages MS has will be firmly in place. They will have a considerably larger installed base, they will have a considerably cheaper console, they will have the better versions of multiplatform games, they will have a considerably larger catalog. What they won't have 2008 is what they don't have now: Blu-ray as a way to make the perceived price lower, and Sony's first party studios.

About Amazon: people who have watched closely say it took PS3 three or four days after the initial press release about the cut to reach #1 on Amazon. Wait a couple of days more.

 

[Todd33]

Considering how few elites are out there the premium sales are very poor at #11.

I don't think Elites are rare, my Fry's had a pallet full of them mid day Sat., despite it being in the ad for two days, but that was at $479.

 

[dobwal]

I would say 11 and 12 at amazon is a complete disaster for MS. It just shows the price cut was not enough. If they did a real cut they would of been in the top 3. The PS3 is still out selling it on amazon. Considering how few elites are out there the premium sales are very poor at #11. I at least expected the 360 to have 1 day in the top 3. Maybe things will pick up come halo 3 time but right now wow the price cut has not done much.

Unless you know the sales volume at 11 and 12th place, you can't say its a disaster. Who knows what place the 360 would be in if amazon combined the sales of all three skus.

 

[Carl B]

This is delusional. The PS3 will never be cheaper, not in 2008, not in 2009, not when the generation wraps up.

I think Quest meant cheaper relative to its price now, not to 360. That should have been fairly apparent...

 

[quest55720]

This is delusional. The PS3 will never be cheaper, not in 2008, not in 2009, not when the generation wraps up.

Come 2008, all the advantages MS has will be firmly in place. They will have a considerably larger installed base, they will have a considerably cheaper console, they will have the better versions of multiplatform games, they will have a considerably larger catalog. What they won't have 2008 is what they don't have now: Blu-ray as a way to make the perceived price lower, and Sony's first party studios.

About Amazon: people who have watched closely say it took PS3 three or four days after the initial press release about the cut to reach #1 on Amazon. Wait a couple of days more.

I ment cheaper than it is now like 399 or even 299 if sony is desperate enough. A 100 dollar PS3 price cut around the time MGS4 and GTA 4 hit. Then maybe another 50-100 dollar pice drop fall 2008 to go with that huge holiday line up. As sony showed with the PS2 they are not shy about dropping the price to hurt a rival.

 

[Archgamer]

The 360 will always have the price advantage. All Sony can do is market their system through a value price point. It didn't work at 600. 500 is still a steep hill but it's better. The PS3 needs growth right now and if Sony can drop 100 dollars more sometime next year and price the system at 400 then I believe they can capture an extra 8-10 million consumers. The 360 went nearly 2 years with 11 million install base and most people bought it at 400.

 

[patsu]

This is delusional. The PS3 will never be cheaper, not in 2008, not in 2009, not when the generation wraps up.

Come 2008, all the advantages MS has will be firmly in place. They will have a considerably larger installed base, they will have a considerably cheaper console, they will have the better versions of multiplatform games, they will have a considerably larger catalog. What they won't have 2008 is what they don't have now: Blu-ray as a way to make the perceived price lower, and Sony's first party studios.

Too early to tell
Not all the cards are out yet.

About Amazon: people who have watched closely say it took PS3 three or four days after the initial press release about the cut to reach #1 on Amazon. Wait a couple of days more.

Hmm... PS3 became top seller in Amazon on the second day. People were commenting it won't last.

 

[Rangers]

I would say 11 and 12 at amazon is a complete disaster for MS. It just shows the price cut was not enough. If they did a real cut they would of been in the top 3. The PS3 is still out selling it on amazon. Considering how few elites are out there the premium sales are very poor at #11. I at least expected the 360 to have 1 day in the top 3. Maybe things will pick up come halo 3 time but right now wow the price cut has not done much.

Currently it's Premium 5th and Elite 9th. It's been rising all day although, I think the premium just slipped one spot it was 4th. Besides, I have no idea when to expect the full price cut sales momentum to kick in. On another forum they were saying it wont be until this weekend that people really notice it. But if you combine 5th and 9th it could easily be above PS3 which I think is 3rd. Anyways I do not think Amazon is all that relative a sales indicator although it's a lot of fun to look at for instant analysis. I was noticing some awfully weird stuff in the top ten earlier such as Risk 2 PC game for 9.99...I dont think in the real world Risk 2 PC is lighting up any sales charts. Also Forza 2 has been #1 all day even over the Wii products and I have no idea why that is, new system sales buyers picking it up maybe but I dont see how that could make it #1.

I don't think Elites are rare, my Fry's had a pallet full of them mid day Sat., despite it being in the ad for two days, but that was at $479.

They have been rare. It seems in the last few days ms has been shipping a lot though. This is the first time they've stayed in stock at Amazon that I've seen.

 

[patsu]

Also Forza 2 has been #1 all day even over the Wii products and I have no idea why that is, new system sales buyers picking it up maybe but I dont see how that could make it #1.

Forza 2 was not #1 all day. I checked this morning and also noon. It was #4 (The Wii controller, Wii and PS3 occupied top 3) at one point. The ranking will change every now and then, but Amazon is not a good indicator of overall sales.

e.g., According to Nielson, Premonition was the #1 Blu-ray movie the week before, but it didn't even show up on Amazon top 10 list.

 

[Dave Baumann]

I was down at my local game sote on Monday and saw they had two Elites behind the counter. Evidently they had only just come in, as, I was told, MS have only just started shipping them again very recently.

 

[Rangers]

Forza 2 was not #1 all day. I checked this morning and also noon. It was #4 (The Wii controller, Wii and PS3 occupied top 3) at one point. The ranking will change every now and then, but Amazon is not a good indicator of overall sales.

e.g., According to Nielson, Premonition was the #1 Blu-ray movie the week before, but it didn't even show up on Amazon top 10 list.

I already noted in my comment amazon is not a good indicator of sales, so we agree there.

And Forza 2 has been #1 every time today that I've checked. How's that? It's #1 right now (11:27 PM) http://www.amazon.com/gp/bestsellers/videogames/ref=pd_ts_pg_1/104-6604574-6816756?ie=UTF8&pg=1