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Microsoft might be slashing the price of the XBOX 360:MSNBC.com
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They are on the 13th. We've already seen the Kmart ad and Radioshack ads. http://www.joystiq.com/2008/06/30/re...360-price-cut/
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even though i own an elite and love it maybe its my cheap side coming out but the more i look at it the overall 360 hardware is not worth 300 its almost 3 year old technology i cant see how this machine could not cost MS more then 200 to make
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129 Posts
i am sure they made all that back in royalties that they charge game companies i remember reading on nextgen that 90% of all last gen sales came when the price point was below 200 and maybe thats around the break even point for ms
i am sure they made all that back in royalties that they charge game companies i remember reading on nextgen that 90% of all last gen sales came when the price point was below 200 and maybe thats around the break even point for ms
MS game division had an operating loss of approximately $4 Billion in 2007 due to selling hardware below what it costs them to produce as well as extending the warranty for RROD for 3 years.
Obviously MS is dabbling in games to try and be profitable at some point and while their other revenue pays for this venture there is no need for additional write downs if the console is still selling well at current price points. From a business standpoint there is no real incentive to drop prices even further. Now on the flip side of that coin if Sony drops the price of the PS3 $50, MS will probably mirror that with their own $75 savings. Until all 3 major systems start slashing their prices no 1 company is going to be the stand out and agressively reduce the price of their system...imo
MS game division had an operating loss of approximately $4 Billion in 2007 due to selling hardware below what it costs them to produce as well as extending the warranty for RROD for 3 years.
Obviously MS is dabbling in games to try and be profitable at some point and while their other revenue pays for this venture there is no need for additional write downs if the console is still selling well at current price points. From a business standpoint there is no real incentive to drop prices even further. Now on the flip side of that coin if Sony drops the price of the PS3 $50, MS will probably mirror that with their own $75 savings. Until all 3 major systems start slashing their prices no 1 company is going to be the stand out and agressively reduce the price of their system...imo
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6,710 Posts
NOT GOOD ENOUGH.
They really needed an $80 drop, cause they really need the Arcade unit to be the magical price of $199.99. The only way the Arcade makes any sense, is to get a Sku to the magical price of $199.99 as quick as possible, that was the whole idea behind the core/arcade. Yet they keep pussyfooting around with these insignificant price drops. The only thing a 50 buck price drop does, is basically pay the tax, and maybe one cheap accessory. It's not like that's going to get a ton of people to jump on the 360.
They really needed an $80 drop, cause they really need the Arcade unit to be the magical price of $199.99. The only way the Arcade makes any sense, is to get a Sku to the magical price of $199.99 as quick as possible, that was the whole idea behind the core/arcade. Yet they keep pussyfooting around with these insignificant price drops. The only thing a 50 buck price drop does, is basically pay the tax, and maybe one cheap accessory. It's not like that's going to get a ton of people to jump on the 360.
well part of the rumor is ms will be pulling a sony.... announcing a "price drop" on the 20 gig units to clear stock and come in with the "upgraded" 60 gig unit at the original 349 price. if that happens it will be as lame as when sony tried it. i think it would work well though if ms used the pro to replace the core and brought in the 60 gig at the current pro price.
that way they can remove that no hard drive thing in games.
that way they can remove that no hard drive thing in games.
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2,771 Posts
you are 1 of 2 people, that i know of, that actually uses that word... LMAO!
you are 1 of 2 people, that i know of, that actually uses that word... LMAO!
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2,402 Posts
I have a 20 gig drive laying around from when I upgraded to the 120 GB. I'd love to see a sub-$200 arcade version that I can slap that drive into.
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I have a 20 gig drive laying around from when I upgraded to the 120 GB. I'd love to see a sub-$200 arcade version that I can slap that drive into.
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6,710 Posts
Never gonna happen. MS made their bed when they launched the 360 with 2 skus, one sans hard drive. Now they have to lie in it. Eliminating the Arcade (Core) now, doesn't make any sense, because you already have a segmented user base. So it isn't like they can all of a sudden say, "ok, now a hard drive is required to play all new 360 games." That isn't going to work.
The most puzzling thing about the Arcade (Core), isn't the fact that they haven't gotten rid of it, it's the fact that they haven't really taken advantage of it's existence in the first place. The whole idea behind the Core is that it gives them the ability to have a low cost sku that they can use to lure Johnny Sixpack, and his little son Jimmy. The whole idea was to get to $199 as quick as possible, and if they never had the Core, it would take a long, long, long time to get to $199. The Core was the ticket to $199. Yet, here we are almost 3 years later, and the Core still isn't $199. Makes no sense whatsoever.
Never gonna happen. MS made their bed when they launched the 360 with 2 skus, one sans hard drive. Now they have to lie in it. Eliminating the Arcade (Core) now, doesn't make any sense, because you already have a segmented user base. So it isn't like they can all of a sudden say, "ok, now a hard drive is required to play all new 360 games." That isn't going to work.
The most puzzling thing about the Arcade (Core), isn't the fact that they haven't gotten rid of it, it's the fact that they haven't really taken advantage of it's existence in the first place. The whole idea behind the Core is that it gives them the ability to have a low cost sku that they can use to lure Johnny Sixpack, and his little son Jimmy. The whole idea was to get to $199 as quick as possible, and if they never had the Core, it would take a long, long, long time to get to $199. The Core was the ticket to $199. Yet, here we are almost 3 years later, and the Core still isn't $199. Makes no sense whatsoever.
there are a multitude of ways they can fix the issue.... do some sort of tradeup program (similar to that hard drive upgrade cable) where you send in your info and get a hard drive in return. 20 gig drives really do not cost that much anymore. There cant be that many arcades/core units out there because most consumers were not that stupid.
Or they could potentially flat out ignore the arcade sku.
http://www.xbox.com/en-US/games/s/soulcalibur4/
it still may get removed but right now according to xbox.com to play that game it says "hard drive required". What are core users gonna do with that?
there are a multitude of ways they can fix the issue.... do some sort of tradeup program (similar to that hard drive upgrade cable) where you send in your info and get a hard drive in return. 20 gig drives really do not cost that much anymore. There cant be that many arcades/core units out there because most consumers were not that stupid.
Or they could potentially flat out ignore the arcade sku.
http://www.xbox.com/en-US/games/s/soulcalibur4/
it still may get removed but right now according to xbox.com to play that game it says "hard drive required". What are core users gonna do with that?
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804 Posts
Me too. I've been waiting to buy a second unit until after a price drop or preferably when a 60gb unit becomes available. Hopefully we'll know something for sure after E3.
Me too. I've been waiting to buy a second unit until after a price drop or preferably when a 60gb unit becomes available. Hopefully we'll know something for sure after E3.
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