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Microsoft confirms 360 price cuts, at least for Australia

Written by Andre Yoskowitz (Google+) @ 02 Jul 2008 15:18 User comments (11)

Microsoft confirms 360 price cuts, at least for Australia Officials from Microsoft have now confirmed that their Xbox 360 console line will be seeing a price cut, at least in Australia and New Zealand.
The Elite and Premium models will drop AU$80 to AU$579 and $AU649 respectively, while the Arcade will drop to AU$349, making it cheaper than the Nintendo Wii in the region.

Last week, KMart fliers showed that a $50 USD price cut was coming for the Premium model in the US, but Microsoft has still not confirmed the cut, or what the price drop would be for the Elite and Arcade models.

Data figures have shown that the 360 is currently being outsold by the Wii by a 4:1 margin and that the PlayStation 3 is also outselling the 360, although it is by a smaller margin. The PS3 sells for AU$699 in Australia and the Wii is priced at AU$399.

Jeremy Hinton, Australian Xbox group product marketing manager added, “We've got a track record showing that whenever possible we want to pass on savings to the consumer. We thought this was a great time to do that."

When asked if Microsoft was disappointed by the 360's performance so far in the region, Hilton said, “If you look at the dollars going through the till over the past 12 months you'll see consumers are buying more Xbox 360 products than any other platform - the entire package of console, software and accessories. So we're very pleased with how it's tracking.”

Of course, Hilton neglected to add that the prices for the console in Australia are still much higher than it is in North America and even Europe especially considering that the Australian dollar is now almost equal to the US dollar.

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11 user comments

12.7.2008 16:01

Did they mention the failure rate as well, as far as how much money they are losing by fixing faulty consoles? Guess not.

22.7.2008 16:07

A little bit offtopic.
Has anyone ever though to cut the game prices?
The way it goes it will be cheaper to buy a console than a game.

Instead of getting games as a gift with a console purchase , we will get consoles with games purchase.

32.7.2008 16:33

Quote:
Jeremy Hinton, Australian Xbox group product marketing manager added, “We've got a track record showing that whenever possible we want to pass on savings to the consumer. We thought this was a great time to do that."
Hasnt Microsoft been making a profit on the Xbox360 console for a while?
I'm sure I herd ages ago that the 360's production costs were far lower than the selling price?

42.7.2008 17:59

Quote:
Quote:
Jeremy Hinton, Australian Xbox group product marketing manager added, “We've got a track record showing that whenever possible we want to pass on savings to the consumer. We thought this was a great time to do that."
Hasnt Microsoft been making a profit on the Xbox360 console for a while?
I'm sure I herd ages ago that the 360's production costs were far lower than the selling price?
Sure, but they have to make up all the money they lost due to RROD. Correct me if I am wrong, but wasn't the 360 losing money for each sale when it is was released? If so, they have to recover some of that money to.

Not to mention, that if people are willing to pay a certain price for a product, why drop the price? It a smart business move to wait until demand start to lower to start price dropping.

Quote:
A little bit offtopic.
Has anyone ever though to cut the game prices?
The way it goes it will be cheaper to buy a console than a game.

Instead of getting games as a gift with a console purchase , we will get consoles with games purchase.
Lol. Honestly, with the prices games now, unless I really really want the game, I buy used or borrow from a friend. If fact, a friend and I never buy the same game unless we want to play online together. Once I have finished a game, I give it to him to play and vice versa. Saves us a little money, especially if the game wasn't as great as we thought it was going to be.

I am finding it hard to pay $60 for a game. The "next-next" gen games better not go up another $10.

53.7.2008 5:35

^ 60$ in US and here in EU is 70euros! we are talking about a big difference.

Price cuts are always good tho,if MS will move to price cuts globally i think it will drag sony and nintedo to price cuts too.

63.7.2008 10:08
susieqbbb
Inactive

lame this is still to expensive for other regions or doesn't microsoft know this.

73.7.2008 12:10

So the Elite 360 was $AU29 more expensive than the PS3? And now it will be $AU50 cheaper? It would be interesting to see what this doees for their sales. Especially if the Arcade version will be cheaper than the Wii. If both consoles still outsell the 360, then it might be time to offer more than just a price cut. Or maybe it's an indication that the 360 has reached it's peak already, as some have mentioned in various threads, while the PS3 still has lots of potential for growth. And maybe there is no way to break into the demographic that the Wii appeals to. The 360 may have climaxed too early and is now stuck in limbo and maybe it's not be able to really close the gap between either console. I'll be looking forward to seeing more on the effect this price cut has.

83.7.2008 15:12

Originally posted by SDF_GR:
^ 60$ in US and here in EU is 70euros! we are talking about a big difference.

Price cuts are always good tho,if MS will move to price cuts globally i think it will drag sony and nintedo to price cuts too.
WHAT!!!! That means you are paying about $100 for a game. Ouch. I guess my complaint is null and void. Now your previous comment about getting a console with a game purchase makes a lot more sense. No wonder companies regionalize their releases. They are making a killing in Europe.

93.7.2008 19:59

yeah is a rip off for sure and all companies do that.
Last time i checked the disc's here in EU arent gold or anything.

Except DMC4, i havent bought any other game at release day ,and it is not all about the money, is for the f*** of it too, cause after 2 months the price goes down to 30euros.

If any company really wants to boost their sales, i think games is where they should start.

103.7.2008 20:58

This is good, maybe this will encourage a price drop on the PS3

115.7.2008 2:24
joeb969
Inactive

We tend to pay between A$110 and A$120 for a new game here in Oz.

Given the difference in the value of the dollar (A$ to US$) I think its outrageous.

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