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US Xbox 360 price cuts should be coming, says analyst

15 March 2008 14:09 by Andre "DVDBack23" Yoskowitz | 47 comments

Just days after it was announced that Microsoft was slashing Xbox 360 prices across the board in Europe, leading simExchange analyst Jesse Divnich has reported that price cuts in the US are the "only feasible and economic option" if the 360 wants to combat the Sony PlayStation 3's ongoing momentum in the console market.

"Whether there is an Xbox 360 shortage or not, it is clear that the PS3 has gained considerable ground on its rival," he said, adding that the PS3's price cuts and the victory of Blu-ray have added strong gains for the console. "Given these past two months and the momentum that the PS3 has gained, Microsoft must react quickly as the PS3's momentum will only get stronger until Microsoft reacts."

The new price cuts in Europe have made the console war much more competitive as the Xbox 360 Arcade is now cheaper than the rival Nintendo Wii and half the price of the PS3.

"In the short-term, Microsoft's only feasible and economical option is to look at reducing its hardware price in North America to at least slow down the PS3's momentum until it can implement more long-term solutions to winning the next-generation console war," he finished.

Upon hearing the report, Microsoft VP of Interactive and Entertainment Chris Lewis added that the price cut would "open up the mass-market floodgates."

"We enjoy 42 per cent of that revenue share Right now in this generation," he detailed. "That's a key milestone for us to have met and surpassed. We're also attaching just a little bit over seven games for every console � considerably ahead of where we stand with our competition."

We will keep you updated.

Game Consoles

Microsoft Xbox 360 Arcade

Microsoft Xbox 360 Elite

Sony PlayStation 3 60GB

Nintendo Wii

Microsoft Xbox 360 Premium

Permalink to this article | Topic: Consoles

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ZippyDSM (AfterDawn Addict) 16 March 2008 13:09
I don't really care anymore unless they drop the premiums to 200 NexGen76 if its sub 200 for a premium it is :P [ + quote]
Sazaziel (Junior Member) 16 March 2008 14:24
A true gamer will play games on all systems no matter what. The media center on all of these consoles is just an extra next gen bonus. If you are a true gamer then there really is no war between consoles because each console has its own game published exclusives. Which means that if you want to play exclusive games that bad...well as a consumer you will pretty much buy it. A lot of people complain about the RROD but don't even have a 360 and that says a whole lot about those people. I guess that's about as bad as no one complaining about all the old school consoles when the froze during a game like the NES. Yet as much heat that is produced with the considerable lack of case space for all of these consoles...well they will all have some kind of failure depending on the power produces. Had my 360 since the beginning and bought another just to have in another room. They still work flawless provided that I keep them cool and I limit my game play time so I don't have to deal with heating issues. Same way with PS3. Anyways ...in my opinion I figure anyone who plays all freakin day really doesn't have a life. As for the price cuts...these consoles are hitting the 2 and 3 year marks. I'd say its time to drop the prices all together. [ + quote]
vinny13 (Member) 16 March 2008 14:27
*Originally posted by Sazaziel:* in my opinion I figure anyone who plays all freakin day really doesn't have a life. You should meat my friend ^^ [ + quote]
vinny13 (Member) 16 March 2008 14:27
Ahh! [ + quote] This message has been edited since posting. Last time this message was edited on 16 March 2008 14:29
TBandit (Member) 16 March 2008 16:24
*Quote:* *Originally posted by algtz1:* In my mind that's the main reason to get a ps3 over a 360, no stupid little kids can go out and just download and play any game that most normal people worked their asses off to buy. LOL I still find it hard to believe you guys dont have the best weapon against those damn annoying people online: MUTE BUTTON. Seriously sometimes its not just kids but other people who wont shut up. [ + quote] This message has been edited since posting. Last time this message was edited on 16 March 2008 16:24
emugamer (Junior Member) 16 March 2008 21:47
*Originally posted by algtz1:* This one sentence sums it up for me: "I can backup my games for the 360. You can't backup your games for the the PS3" that reality finalizes the debate. END OF STORY!!!! Wow, whoever that quote is from seriously thinks everyone here is an idiot. I don't believe that anyone flashes their drive so that they can play backups. That's probably the biggest joke I've heard. Someone flashes his drive and then while searching warez and torrent trackers and browsing through the entire 360 collection that is available with the click of a button, picks and chooses to download only the games he's purchased. And stays off XBL so that the console doesn't get banned. And craps bricks when playing over an hour, praying not to get the RRoD and have to buy a new console because he voided the warranty. Great way to spend money. I like playing games they way they're supposed to be played. Without a pit in my stomach that I've tossed a few hundred down the crapper. Well, a price cut from MS may drive Sony to give better incentives to buy their system instead. They probably can't afford to cut the price with all the losses they've taken. I'm not surprised that MS has the money. After all, XBL is the biggest gold digging gimmick around. [ + quote]
Gnawnivek (Newbie) 17 March 2008 12:00
*Originally posted by algtz1:* This one sentence sums it up for me: "I can backup my games for the 360. You can't backup your games for the the PS3" that reality finalizes the debate. END OF STORY!!!! End of what story? So what, i can do that too, but i refused, why? To do that, i have to give up the warranty. Do i want to take that risk? Hell no! [ + quote]
Gnawnivek (Newbie) 17 March 2008 12:21
As i have said before... Any price cuts are good as long as not dead end products. The problem with the X360 is that it got this obnoxious RRoD reputation. Why do you think people itch about it even though they don't own one? Isn't it to MS's advantage that people don't itch about it? Yes, it's market share, all about market share, all about diving into the game with upper edges. The X360 enjoyed it's success, now, it has to face the consequences of the management's "rush" release. The RRoD's problem is never really handled properly. The extended warranty was setup to avoid the lawsuits (yeah, you really think they did it to resolve the RRoD problem). MS probably thinking one stone two birds for the three years red ring warranty, which is fair. But again, there will be consequences... Lower price is good, the Wii probably opened the door for more gamers (i.e. people never played games in their lives, now they know how to press the A or B buttons). And who do you think that will help? [ + quote]
emugamer (Junior Member) 17 March 2008 12:29
*Originally posted by Gnawnivek:* The X360 enjoyed it's success, now, it has to face the consequences of the management's "rush" release. The RRoD's problem is never really handled properly. The extended warranty was setup to avoid the lawsuits (yeah, you really think they did it to resolve the RRoD problem). That would have been one messy class action lawsuit. Three years is a good number. It gives people that false sense of security. There will probably be a new console in 2 years, and they will abandon the 360 just like they did the XBOX 1. Thank goodness for XBMC. It's the only reason I still have a use for it. [ + quote]
donpugz44 (Newbie) 17 March 2008 15:22
Cant wait till price cut going to get one? Dont really care for 360 but almost the best games come out for it so i guess ima get one [ + quote]
snowlock (Junior Member) 17 March 2008 20:52
*Originally posted by donpugz44:* Cant wait till price cut going to get one? Dont really care for 360 but almost the best games come out for it so i guess ima get one most of those games come out for ps3 as well. also, many come out for the pc, if you have a good one. unless you're talking about halo 3, in which case, have fun. just remember your console is the only one with fees charged for online play. nintendo:sony::ford:chevy [ + quote]
vinny13 (Member) 17 March 2008 21:57
Dude if it's for Halo 3 don't even waste your time. Just get the first Halo for your computer and you won't be let down :) H:CE is definitely the best Halo there is. Plenty of people still play the online too :P (+[PSP]%) = 3.52M33-4 "I get no respect, I tell ya!" [ + quote]
tripplite (Inactive) 18 March 2008 0:05
*Quote:* This one sentence sums it up for me: "I can backup my games for the 360. You can't backup your games for the the PS3" that reality finalizes the debate. END OF STORY!!!! thats the dumbest statement ive ever heard....dam ppl's brains are just shutting down these days... -tripplite [ + quote]
vinny13 (Member) 18 March 2008 0:07
Yeppers... Totally agree with that one.. (+[PSP]%) = 3.80M33-5 "I get no respect, I tell ya!" [ + quote]
algtz1 (Member) 18 March 2008 12:21
Now that I have given you all a few days to talk sht which most of you have without giving any intelligent rebuttle like this dumb ss: "thats the dumbest statement ive ever heard....dam ppl's brains are just shutting down these days... -tripplite" Hey idiot, you made your statement but where is your rebuttle? (dam ppl's brains are just shutting down these days...) Wow that is so profound! You should run for office because you have such great insight in the art of debate. Please do us a favor and turn off your pc and don't bother turning it back on. Now, I don't think you guys are idiots. I know that a huge percentage of the people who flash their 360s are stealing games off the Internet. And if and when the PS3 can play backups, there will be a million mofos stealing games for that system as well. I'm upset because you think that every fool out there is stealing. Well let me tell you something, I am a grown ass man and I work hard for my money. Hell, I don't even play video games and if I did it would be PC gaming. I have a 360 for my kids and they play the sht out of Halo 3, Rock Band and Guitar Hero. And I'll be damned if I am going to pay $60 evertime the disc gets scratched or damaged. I paid the $60 once and shouldn't ever have to pay that sht again. That is why I back these games up. And if the PS3 could do the same, then that would have been the console I would have bought my kids. Now this really is "End of Story" [ + quote]
vinny13 (Member) 18 March 2008 22:13
Uh no because Blu-Ray discs have like a semi scratch-proof layer or w/e... They are much more resistant then DVD-9s... I read that somewhere, and I've had all of my games for at least 3 months and sometimes I'll just leave them lying around when I think I'm gonna put them away later, no scratches... Oh and I would think stealing is the way to go unless you really want to blow your hard earned cash on $60+ video games that you might not even like ;) Most of these MoFos have better things to save up for, and Piracy sells consoles which pay for more games. Look at the PSP! The Xbox too. It only lasted longer then it did because it was like a 100% functional Homebrew Media Center... I'm gonna buy one pretty soon just for that. (+[PSP]%) = 3.80M33-5 "I get no respect, I tell ya!" [ + quote] This message has been edited since posting. Last time this message was edited on 18 March 2008 22:21
voyager (Junior Member) 25 March 2008 21:21
About the 3rrd ,i don't care.I will stick forever with my XB360;Jasper,Opus and Valhalla are coming soon to kill the 3rrd forever. [ + quote]
CaLiMaCk (Junior Member) 25 March 2008 21:56
*Originally posted by voyager:* About the 3rrd ,i don't care.I will stick forever with my XB360;Jasper,Opus and Valhalla are coming soon to kill the 3rrd forever. havent we heard that promise before, multiple times? yea... psn id: calimackin101 [ + quote]
emugamer (Junior Member) 25 March 2008 22:30
*Originally posted by algtz1:* Well let me tell you something, I am a grown ass man Trying to figure out which two words the hyphen should bridge :-P Just playing.....you have a good point. I am also a grown-ass man and can't see myself paying $60 for a PS3 game. All these young peeps and their new games. I have to wait a year before I feel it's worth it to get one at half price :-( [ + quote]
Sabius (Newbie) 26 March 2008 2:03
Stealing games from greedy multi-million dollar companies is no sin. Robin Hood's a legend for essentially the same reason! [ + quote]
core2kid (Senior Member) 26 March 2008 7:59
*Originally posted by vinny13:* Uh no because Blu-Ray discs have like a semi scratch-proof layer or w/e... They are much more resistant then DVD-9s... They may have that but they are prone to fingerprints. I found that out on my friends PS3. [ + quote]
vinny13 (Member) 26 March 2008 8:02
Lol fingerprints won't destroy a disc :P [ + quote]
core2kid (Senior Member) 26 March 2008 8:08
True but it gave us a frustrating time to try and clean it and to get the PS3 to read the disc again. Im not against any console, just saying... KEEP YOUR DISCS SAFE! xD [ + quote]
Gnawnivek (Newbie) 26 March 2008 9:32
*Originally posted by core2kid:* True but it gave us a frustrating time to try and clean it and to get the PS3 to read the disc again. Im not against any console, just saying... KEEP YOUR DISCS SAFE! xD What that have to do with anything? All discs are prone to scratches and finger prints. Of course you should keep your discs safe. I guess that's the reason why people want to backup the discs in the first place. [ + quote]
Gnawnivek (Newbie) 26 March 2008 9:38
*Originally posted by Sabius:* Stealing games from greedy multi-million dollar companies is no sin. Robin Hood's a legend for essentially the same reason! While comparing to Robin Hood is a noble thing, but no matter how you look at it, it's still stealing. [ + quote] This message has been edited since posting. Last time this message was edited on 26 March 2008 9:38
emugamer (Junior Member) 26 March 2008 11:50
*Originally posted by Sabius:* Stealing games from greedy multi-million dollar companies is no sin. Robin Hood's a legend for essentially the same reason! Didn't Robin Hood steal from the King, who was heavily taxing the poor, abusing them and living in excess? He wanted the people to be able to buy food and clothing and enjoy a pint of ale once in a while. You don't have to play video games to survive (or do you?), therefore no one is forcing you to buy them. So stealing from a video game corporation is really nothing like Robin Hood. It's stealing from an entity that created a product and would like to make a profit by hoping that a customer will find their product as valuable as they think it is. I'm not judging anyone. Just couldn't get over how silly the Robin Hood analogy was. Who exactly are you helping but yourself? :P [ + quote] This message has been edited since posting. Last time this message was edited on 26 March 2008 11:59