Xbox360 $50 price cut August 8 rumors

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Ben-Nice said:
The difference in price between the premium and elite is now more than it used to be. I don't see the logic unless it's a perception thing. It's strange IMO.
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I guess its was done to entice certain consumers to buy a premium now instead of waiting to buy an elite later.
 
expletive said:
Clearly another drop in Nov changes everything. Also, we still dont know the price of the Halo 3 20G/HDMI model and how that will slot in here. I cant imagine it being less than 379 though.
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I'm assuming it will be priced the same as normal premium. No reason not to be. HDMI is not a chargeable feature, but rather something MS will eventually slipstream to all models for free.

That's one thing, MS has been secretive on the price of that unit, if it's coming in late October, perhaps the alledged second cut is why.
 
Rangers said:
I'm assuming it will be priced the same as normal premium. No reason not to be. HDMI is not a chargeable feature, but rather something MS will eventually slipstream to all models for free.

That's one thing, MS has been secretive on the price of that unit, if it's coming in late October, perhaps the alledged second cut is why.
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If MS doesnt look to make an extra buck on the Halo fans, color me shocked. At 349 thats a good deal since i do put some value on an HDMI output...
 
a guy on Neogaf (correctly) posted these prices 2 days ago (before confirmation) and went on to describe the strategy...

The Core will drop to 279
The Premium will drop to 349
The Elite will drop to 449
...This will clear out the inventory of the Premium which is the most manufactured 360 and the most sold as they know Premium will sell the most until the demand for Elites pick up in 2008. Elites and Cores have relatively the same manufacturing percentage: low at the moment until FALL this year.

When the 65 nm processor falcons are introduced across all SKUs, the holiday season, a month or so after Halo 3 will see the core drop to $249, The Premium will drop to $299 and the Elite will drop to $399

The Core, Premium and Elite Falcons will have a redesigned motherboard which includes HDMI across all SKUs, a quieter DVD Drive and the falcons will STILL have an extra fan heatsink as Microsoft is not prepared to take anymore risks.

The Falcon will reduce the cost to manufacture the Xbox 360 CPU and GPU by ~40-50% but Microsoft will incure additional costs on the new fans and HDMI across all SKUs. Still at the 249,299 and 399 price, Microsoft will expect a profit from the console by early 2008 when the Q4 results are announced.
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I'm starting to think that maybe the "price drop" is not by Microsoft. It's being called a "price break" in the ads, which suggests to me that the official price hasn't dropped. Call it more of an instant rebate from select stores. With the rumor of the Core package being removed from Best Buy's inventory it suggests to me that the "price break" is just there to clear inventory and to hold off until they release new SKUs. This might be a way for them to go to a 2 SKU system. They might make the Elite the new Premium package but white instead with a pack-in and priced at $400. Then the Core would get a memory card and wireless controller for $300. Not a real price drop, but it would offer a much better value. I'm sure the Halo SKU would come in at $400 or more. I just don't see them hanging on to the black look for very much longer. Too many different SKUs and accessories to keep in stock. I've been seeing Walmart clearancing their black accessories.

Tommy McClain
 
Thanks Tapin. Strategy makes sense. A price cut again later around the "buying" time will not only make a strong buzz but also promote sales. A $299 Premium and a $399 Elite, quieter, more reliable and all with HDMI sounds like a winning formula to me.
 
Maybe they will do more MicroCenter or Amazon type of deals like they did last year.

A de facto price cut in some selected distribution channels but not a universal price cut.
 
$50 seems virtually pointless, and its a weird time of year for a cut, especially with Halo coming. Sony will be making a big cut in Europe in October most likely, which will likely steal the headlines, even if its a 'split' price-cut.
 
as ive said before, those that think ms will drop the core price $50 are dreaming
$249 core vs $249 wii will be a first round knockout to the wii,
which would be a pr disaster for ms.
theyve still gotta solve the hardware problems anyways before any major pricecuts
 
zed said:
as ive said before, those that think ms will drop the core price $50 are dreaming
$249 core vs $249 wii will be a first round knockout to the wii,
which would be a pr disaster for ms.
theyve still gotta solve the hardware problems anyways before any major pricecuts
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PR disaster? I disagree. Nobody will even notice. Hell, the Core is already only $30 more than Wii after this drop in a couple days. And if the rumored 2nd drop is true the core will be at 250 soon.

MS is in the business of selling as many systems as possible, regardless of how many Wii sells.


And people are really carrying this "well you dont want to be priced lower than the other guy or people will perceive your product as weaker" way too far these days. It's kind of a ridiculous notion. If you have a powerful system with a good games lineup a lower price is only going to help, period.

As to this pack in game, I kind of like the idea. While the game would be completely useless to me were I a potential purchaser, Moore has talked about how they felt Wii had a real advantage with perceived price with the pack in.

I think it can only help corral in a certain buyer, anyway. And just adds to some sort of "fully loaded" or value feel to purchasing the premium sku. I dont think it'll be huge but it'll help with a certain segment, at little cost to ms.

Of course I can also surmise table tennis is aimed at trying to mimic a bit of that wii sports thunder, and it was also a cheap developed game.
 
Don't tell the Wii brigade but... I've had much more fun with Table Tennis than with the entire Wii Sports (which I still find quite silly). So the pack-in is good.
 
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