AfterDawn: Tech news

Microsoft confirms new model, price cut, for Xbox 360

Written by Andre Yoskowitz (Google+) @ 13 Jul 2008 13:44 User comments (42)

Microsoft confirms new model, price cut, for Xbox 360 Ending all speculation, Microsoft has finally officially confirmed that it is cutting the price on its Xbox 360 Pro model by $50 USD as well as introducing a new 60GB model that will retail for $349 USD.
Starting today the 20GB Pro model will sell for $299. The software giant says the new model will go on sale beginning in early August. Strangely though, Microsoft will continue to sell their stripped down Arcade model for $279. The Elite model will stay with its $449 pricetag.

Albert Penello, Xbox director of product management, explained the release of the new model.

No one device offers the depth and breadth of entertainment that Xbox 360 can deliver, and now you'll have three times the storage to manage all that great content,
he said.

The confirmation puts an end to a poorly kept secret. For weeks now flyers from different retailers have shown off the $50 dollar price cut, yet Microsoft refused to comment.

The price cut is seen as a way for the company to pick up lagging sales. For 2008, the console is constantly being outsold by the Wii and the PlayStation 3 and both Nintendo and Sony have said they are not planning a price cut for 2008. The Wii retails for $250 and is still hard to find on retail shelves, while the 40GB model of the PS3 sells for $400.

When asked about the new price cut, Sony's Howard Stringer said that it was simply "evidence that the Xbox 360 was falling behind in the contest for sales."

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42 user comments

113.7.2008 14:07

true, best buy already has the deal online, i was hoping that the elite dropped 50$ also(cuz of the hd), now 150 is too much of a difference, i guess they are trying to get rid of the arcade version and the premium one since there are rumors of a new board coming up later this year(jasper)

213.7.2008 14:19
blueroad
Inactive

umm im not n expert on Xbox details..whats the difference between the pro and the elite? why such a high pricetag on the elite?

313.7.2008 14:46

The Elite, the headset, and controller are black instead of the usual white, it has HDMI, which the Pro does not, comes with a 120GB HDD compared to a tiny 20GB HDD and comes with an HDMI cable.

The new 60GB is probably worth the extra $50, especially if you like to play Arcade games or download trials for games.

Dropping the Elite to $399 would be awesome and probably a real smart move from M$. However, they probably won't do that until $ony drops the PS3 price again.

413.7.2008 15:22

Price war between MS and Sony ?

513.7.2008 15:24

Originally posted by iluvendo:
Price war between MS and Sony ?
Possibly, but Sony has already said they won't cut the PS3's price in 2008.

They will probably stick to their word unless this price cut really boosts the XBox 360's foothold vs the PS3.

613.7.2008 15:59
pstamer
Inactive

What's up everybody? Does anyone know if this new 60gb model will be the "jaspar"? I believe I heard something about the "jaspar" coming out in August or September. Thanx in advance.

713.7.2008 16:13
Saber9
Inactive

4 different SKU's! Microsoft doesn't know what they are doing and just confusing consumers into buying a Wii or PS3.

813.7.2008 16:32

Originally posted by Pop_Smith:
The Elite, the headset, and controller are black instead of the usual white, it has HDMI, which the Pro does not, comes with a 120GB HDD compared to a tiny 20GB HDD and comes with an HDMI cable.

The new 60GB is probably worth the extra $50, especially if you like to play Arcade games or download trials for games.

Dropping the Elite to $399 would be awesome and probably a real smart move from M$. However, they probably won't do that until $ony drops the PS3 price again.
all of the 360s now have hdmi, even the arcade one. the only difference is the the color, and the 120 gig HD which is a waste since there isnt 120 gigs worth of stuff on the LIVE marketplace that is worth downloading.

913.7.2008 16:35

Looks like you are correct, the "Comparison" page doesn't say they all have HDMI.

But when I looked at the individual pages even the Arcade bundle has HDMI now, cool.

1013.7.2008 16:37

ya, it was about the only smart thing MS has done is put hdmi on all of them. now they just need to throw in the 2 dollar hdmi cable so people dont have to waste money on that.

1113.7.2008 16:41
blueroad
Inactive

thanks 4 the info :)

1213.7.2008 18:02

Originally posted by Pop_Smith:
They will probably stick to their word unless this price cut really boosts the XBox 360's foothold vs the PS3.
Actually its Microsoft 360 sells that are sluggish right now & PS3 getting stronger to the point PS3 has already out sold 360 in EUR.That word will last until the holidays when Sony drop the price on there systems.Sony always drop the price on there console around the holidays i would for sure look for there price cut then but coming from Sony the question is how much of a price drop?
This message has been edited since its posting. Latest edit was made on 13 Jul 2008 @ 18:04

1313.7.2008 18:26
tripplite
Inactive

Quote:
Actually its Microsoft 360 sells that are sluggish right now & PS3 getting stronger to the point PS3 has already out sold 360 in EUR.
pfft are you serious????? i dont think you are.....19 million xbox 360's have currently been sold across the world, and about 5 million in EUR

the PS3 has sold ONLY 6 million total......

look i dont want to sound like a fanboy, and neither should you nexgen, these corporation care nothing for us!!! so why go out of our way to protect their name???

Quote:
Our strategy is not to sell more quantity for PS3 but to concentrate on profitability," said Oneda. "Our plan is to not reduce the price."

This message has been edited since its posting. Latest edit was made on 13 Jul 2008 @ 18:35


1413.7.2008 18:36
varnull
Inactive

MS often have a mid season price cut in the "slow season". Many retailers also have sales at this time of year, and this probably helps them to sell more reduced price games along with the lower priced consoles.

I don't see where the comparison with sony even comes in here. It is a well known MS marketing tactic.. release a new version of a console and reduce the price of the older lines. I just fail to see why they think a multitude of different models helps their case. They should be concentrating on the manufacturing problems.

Sony have already been clear that they have no intentions to reduce the price of the PS3 this year.

Quote:
"Our strategy is not to sell more quantity for PS3 but to concentrate on profitability," said Oneda. "Our plan is to not reduce the price."

http://www.afterdawn.com/news/archive/14768.cfm

That seems pretty clear cut, they have no real interest in "winning the console war" but just want to make the maximum profit per item sold.
the only people who say they have outsold the 360 in Europe are proven sony bloggers using data from items shipped not sold over the counter. I'm waiting to see the retailers association figures for the end of the year. It is interesting that some of the local large superstores while continuing to stock the 360 and Wii have dropped the ps3. Masybe they aren't getting enough of a kickback for the static shelf space.
This message has been edited since its posting. Latest edit was made on 13 Jul 2008 @ 18:39

1513.7.2008 19:19

Quote:
Actually its Microsoft 360 sells that are sluggish right now & PS3 getting stronger to the point PS3 has already out sold 360 in EUR.
Quote:
pfft are you serious????? i dont think you are.....19 million xbox 360's have currently been sold across the world, and about 5 million in EUR

the PS3 has sold ONLY 6 million total......
look i dont want to sound like a fanboy, and neither should you nexgen, these corporation care nothing for us!!! so why go out of our way to protect their name???


You might sound like a fanboy if..... your numbers are skewed... if the following website is correct, PS3 is 13 Million world wide.

http://www.vgchartz.com/?b=6
This message has been edited since its posting. Latest edit was made on 13 Jul 2008 @ 22:10

1613.7.2008 19:28

Quote:
Quote:
Actually its Microsoft 360 sells that are sluggish right now & PS3 getting stronger to the point PS3 has already out sold 360 in EUR.
pfft are you serious????? i dont think you are.....19 million xbox 360's have currently been sold across the world, and about 5 million in EUR

the PS3 has sold ONLY 6 million total......

look i dont want to sound like a fanboy, and neither should you nexgen, these corporation care nothing for us!!! so why go out of our way to protect their name???

Quote:
Our strategy is not to sell more quantity for PS3 but to concentrate on profitability," said Oneda. "Our plan is to not reduce the price."



This tread isn't about who sold the most its about 360 price cut i said that not to be fan boyish but to point out to maybe why Microsoft gave the price cut your numbers are far off PS3 has out sold 360 in EUR about two months ago but that don't matter.

1713.7.2008 19:32
varnull
Inactive

Oh gotta love it.. still defending 3rd place for the floor sitters..

You never see any tendo fanboys do you? Look at the Wii and DS figures..

DS has sold more than twice the units of the psp according to that site which is

Quote:
dedicated to providing point-of-sale retail estimates of worldwide videogame buying trends

(estimates again.. not REAL figures) with the Wii having the same kind of lead over the ps3..

I think I should be a tendo fanboy ;).. have a defensible position of #1 by a huge margin overall... hahaha
This message has been edited since its posting. Latest edit was made on 13 Jul 2008 @ 19:33

1813.7.2008 19:37

Quote:
Oh gotta love it.. still defending 3rd place for the floor sitters..

You never see any tendo fanboys do you? Look at the Wii and DS figures..

DS has sold more than twice the units of the psp according to that site which is
Quote:
dedicated to providing point-of-sale retail estimates of worldwide videogame buying trends

(estimates again.. not REAL figures) with the Wii having the same kind of lead over the ps3..

I think I should be a tendo fanboy ;).. have a defensible position of #1 by a huge margin overall... hahaha


Only Fan Boys & Hater care about numbers i don't give a damm who sold the most.I own a PS3 because thats what cater to me.

1913.7.2008 19:43

Quote:
Only Fan Boys & Hater care about numbers i don't give a damm who sold the most.I own a PS3 because thats what cater to me.
Exactly. I own a PS3 for the same reason, it's what i want.

I think this may have gotten a wee bit off topic.

M$ is cutting the price for the midseason to fight against a lag in sales because people are going to the beach, or playing baseball, and not spending as much on consoles.

Sony is not.

Ta-Dah!


2013.7.2008 22:24

the Pro model is 80$ more than it should be.....

2114.7.2008 1:27

Originally posted by Pop_Smith:
The Elite, the headset, and controller are black instead of the usual white, it has HDMI, which the Pro does not, comes with a 120GB HDD compared to a tiny 20GB HDD and comes with an HDMI cable.

The new 60GB is probably worth the extra $50, especially if you like to play Arcade games or download trials for games.

Dropping the Elite to $399 would be awesome and probably a real smart move from M$. However, they probably won't do that until $ony drops the PS3 price again.
They all have HDMI unless you buy an old refurbish that i see a local store selling! The product page dosent show it but if you look & the boxes in store they all have it! they did last xmas! The arcade has no hdd & a wired controller,m pro has wireless & 20gb halo has wireless & battery & 20gb, elite has wireless & 120 gb!

2214.7.2008 1:56

$20 diff between the arcade and 20gb pro? wow you'd be an fool if u went for the arcade version and not go for the 20gb pro. So pretty much this new 60gb is the same as the 20gb just higher HDD and kept at the previous 20gb pro price. Were't there sum xbox fanboys saying how stupid Sony was for just increasing HDD only to keep the same selling price? well they can take back their words. Depending on how ppl want to look at this, but more SKU = more options...yet also more confusing indeed. This is more rediculous then the different amount of SKU Sony put out. Sony has/had 2 at max..maybe 3 at one time but only because they were discontinuing the 60gb while 80gb were being brought in. But MS is planning to keep 4 different SKU? do you kno how hard thatll be for retailers? they wont have alot space to put 4 different amounts out. Worst of all is if costumers come and ask for a certain SKU but its all gone cuz they needed fit in stock for the other different SKUs so they have limited amound of each. I'd think itd be best if MS had only the 60gb Pro for $299 and the elite for 399$(no old gen technology should be worth more than newer) Well xbox is far from dead so hopefuly this mite help MS.

2314.7.2008 2:03

.

This message has been edited since its posting. Latest edit was made on 14 Jul 2008 @ 2:17

2414.7.2008 9:19

And people wonder why Nintendo sells so well! They only have one SKU! When kids ask for the Wii for Christmas, the parents don't have to twiddle their thumbs and scratch their head while the sales associate explains that this one "has HDMI, larger HDD, etc."

The same goes for the DS and even the PSP. The only major difference in SKUs are bundle packages or the color of the system. It's choice without all of the techno-babble hassle.

Back to the article. I do think that MS is going to kill off one of their SKUs. They desperately need to. The Elite was a waste to introduce. The Arcade should've disappeared when the Elite came out and the Pro should've been $300 back then.

There are too many gaps in price with little benefit in the actual pacakge with these skus. Besides, if you don't want to buy the Elite in the first place, because of the price tag, but knowing you will need to buy a bunch of accessories if you pick up the Arcade, I think you just avoid buying an Xbox altogether.

Add in Xbox Live, and like I've said before, it's a "Sega" inspired fleecing!

2514.7.2008 9:30
varnull
Inactive

True.. they have completely lost me with all these differences. After all.. they all do basically the same thing.. have laser failures and the ring of death after 12-16 months ;) hehehe.. Now where did I put my megaman cart for my master system ?

2614.7.2008 11:42

Well, this just in: Elite model on sale at Amazon... $50 off!

http://www.amazon.com/gp/product/B000OYM...ASIN=B000OYMSL6

2714.7.2008 12:19

Are there any other hardware differences between the 2 PS3 models besides HDD size, 2 USB ports and extra media ports on the front panel? That's why I saved $100 on my 40GB PS3. The decision seemed simpler than choosing a 360. I found myself spending too much time trying to think about all the different features and options I could and couldn't do without, and whether it was even worth it. And then having to deal with XBL. It's no wonder why parents are getting Wii's for their kids and older gamers are moving toward the PS3. The hardware issues of old (and of recent? I haven't been keeping up with that anymore) are probably still haunting MS too. That was another reason I had made up my mind to just not get a 360.

Seems like MS is slipping in competing with Sony, and now they are fighting a war on 2 fronts. I see it stretching them too thin. Looks like they are in some sort of gaming Limbo, trying hard to appeal to everyone now - is it a gaming system or a media delivery system? Looks like the sales are showing that the PS3 and Wii are grabbing a firm hold on their respective demographic. What will be left for the 360? How long can they nibble off the plates of these 2 contenders?

2814.7.2008 12:26

Originally posted by emugamer:
Are there any other hardware differences between the 2 PS3 models besides HDD size, 2 USB ports and extra media ports on the front panel? That's why I saved $100 on my 40GB PS3. The decision seemed simpler than choosing a 360. I found myself spending too much time trying to think about all the different features and options I could and couldn't do without, and whether it was even worth it. And then having to deal with XBL. It's no wonder why parents are getting Wii's for their kids and older gamers are moving toward the PS3. The hardware issues of old (and of recent? I haven't been keeping up with that anymore) are probably still haunting MS too. That was another reason I had made up my mind to just not get a 360.

Seems like MS is slipping in competing with Sony, and now they are fighting a war on 2 fronts. I see it stretching them too thin. Looks like they are in some sort of gaming Limbo, trying hard to appeal to everyone now - is it a gaming system or a media delivery system? Looks like the sales are showing that the PS3 and Wii are grabbing a firm hold on their respective demographic. What will be left for the 360? How long can they nibble off the plates of these 2 contenders?
Just wait, there's a rumor floating around about a motion capable controller (ie. Wiimote) and that the new Banjo Kazooie game is being developed for it.

2914.7.2008 13:11

for what is costs 360 is fine and if it didnt had the RROD issue i think that would have sell more and MS wouuldent have to do all this price cuts , but i will repeat my self, in short period a game will cost more than a console.

Just to highlight what an a$$...$ are and i dont mean just MS i mean all 3 of them.
Now that the price drop is 50$ that equals to 31euros this price cut will come to europe as 30 euros.
There wont be an 1:1 $:E like they do with anything else when it is about to sell.

According to this topic US prices
Wii is at $250 = 157 euros(same price that a PSP S&L costs in eu)
PS3 $400 = 251 euros

Eu prices
PS3 440euros = 700$
Wii 240 = 382$

we are in another planet or what?

3014.7.2008 14:59

Originally posted by SDF_GR:
for what is costs 360 is fine and if it didnt had the RROD issue i think that would have sell more and MS wouuldent have to do all this price cuts , but i will repeat my self, in short period a game will cost more than a console.

Just to highlight what an a$$...$ are and i dont mean just MS i mean all 3 of them.
Now that the price drop is 50$ that equals to 31euros this price cut will come to europe as 30 euros.
There wont be an 1:1 $:E like they do with anything else when it is about to sell.

According to this topic US prices
Wii is at $250 = 157 euros(same price that a PSP S&L costs in eu)
PS3 $400 = 251 euros

Eu prices
PS3 440euros = 700$
Wii 240 = 382$

we are in another planet or what?
thats what you get for having a strong EU and weak dollar :P

3115.7.2008 2:14

I hear alot of negativity for the different versions of the xbox 360.
But is it really a terrable thing for a system to have multiple versions?? Some people cant afford the top, and dot really save that much "junk" on their hard drives. Some people bought the gaming system to.........well game. not download movies and all that other stuff out there.
Anyway back to topic, when the 360 came out there was what 3 versions?
Ok Sony had 2
Wii 1
DS now has 2 DS and DS Lite
PSP now has 2 PSP and PSP slim, and soon to add anouther
Granted the 360 has since come out with what 6 versions now, but I'm sure we'll see more versions of each system before the next console battle.
As to the price drop.....
Well, ya of course it's due to lack of sales. Duuuu
I think if the sales of the 360 go up, that irregardless of what sony may have said, they will lower the price. I can see it now.........
Some dude at sony Nov 15th "Well due to the economy and the rising cost of living, we here at sony want to pass on a saving to the consumers. We are going to lower the price by $50.00. We know that everybody wants a PS3 and we wanna help in any way we can to bring smiles to everybodies face on Christmas morning. And we hope to do this by giving you our beloved custumers a $50.00 discount."
Ok maybe a little dramatic, but hay.
Anyway it's business. Lower the price, make it more appealing to the purchaser.

3215.7.2008 5:54

Originally posted by lawndog:
IWe know that everybody wants a PS3 and we wanna help in any way we can to bring smiles to everybodies face on Christmas morning. And we hope to do this by giving you our beloved custumers a $50.00 discount."
.....I am touched, i think i am gonna cry, he is my hero...lol
Did he really think that anyone will believe that $h17?

3315.7.2008 7:34

Originally posted by lawndog:
Anyway it's business. Lower the price, make it more appealing to the purchaser.
That doesn't really help the person who doesn't want to settle for a stripped down version. And price cuts are great, but a new model??? Arghhhhh!

Why don't they just send out 360 Kiosks to retailers and let people check off the options they want and have one custom made. Let people know what they are really paying for. The attempt to justify prices by hiding behind 50 different options is really transparent. IMO, $100 off a PS3 for half the HDD space and couple less media ports was reasonable and to the point. Didn't require me to sit down and plan my next 2 years of entertainment - the pros and cons of getting certain features and whether the price was justified.
/pops tylenol

3415.7.2008 11:17

Originally posted by lawndog:
I can see it now.........
Some dude at sony Nov 15th "Well due to the economy and the rising cost of living, we here at sony want to pass on a saving to the consumers. We are going to lower the price by $50.00. We know that everybody wants a PS3 and we wanna help in any way we can to bring smiles to everybodies face on Christmas morning. And we hope to do this by giving you our beloved custumers a $50.00 discount."
Ok maybe a little dramatic, but hay.
Anyway it's business. Lower the price, make it more appealing to the purchaser.
NO NO NO that was my vivid imagination, not an actual quote

3516.7.2008 12:32

if ms is not care full there going to end up lung shot and therefore there 360 will be swallowed up by the wii and ps3 just like the germans in ww2 but if they want to hold ''fortress europe'' they will have to get more devs on there side get a game to top halo 3 out there that will bost there sales

i want to see ms and sony do equaly well because then then will be strong compitition wich will lead to price drops on both sides if one console dominates the market it will turn into a monopoly and they will rape us with the prices of consoles and games this is the only way forward COMPETITION=HAPPY CONSUMERS WHO IS WITH ME ON THIS ?????!!!!!!!

MPO TAG ADAM505

3616.7.2008 12:43

also ms should introduce hd dvd drives accross the board and use dual layer hd dvd's wich is 30gigs two of those babys is sixty gb witch is ten gb higher than blue ray
they should have put the hd dvd tray in it from the start the 360 would have been future prof like the ps3 is at the moment
hd dvd games = savage graphic and insane surround sound like mgs4 has

3716.7.2008 13:56

I posted this else where


Drive costs are deeper than that first off they have these drives made for their console, on top of that MS uses enterprise level HDDs to improve life span.

HDD prices are like ramm rices artificially adjusted to the market needs you can buy a new 20GB HDD it will just cost you (50$ (USD)), while they can have them made for about 38( i think) a pop, MS also has extra levels of protection and a sealed HDD box that attaches to the 360 theres another 10$(USD), while the 160GB should be about 80-90$ because they are forcing a vendor to make them while they can get them cheaper in volume they require the whole protection line or enough of it to to add to what you can pick up of the street then add another 25$ for the case,protection and transfer kit its about 30-45 under their retail price, sadly MS is trying to force a profit on to many thigns IMO.

One of the main reasons I said fck off to the 360 was BWC and locked hard drive,if MS wants to of set profits rise the cost of the 360..and the 30% fail rate dose not help me wanting to get a fail60.....
-----------------------
MS sneaking in "upgrades"

I gota say thats the best way to go sadly since they didn't put enough foresight into the 360.

They should focus on running it against the ps3 for at least 5 more years move as much as the base as you can to the BR version, let the devs make their own minds over BR/DVD if they want a profit they will make DVD games for awhile with the new ram tell them they can't use it unless they make a BR game thus they can can easily move the brand to a new platform without really damaging the brand.

Hell give me the option to buy a fixed 360 with BR and a 160GB HDD and I will spend 400-500(USD) on it.

3816.7.2008 14:03

Originally posted by fergus100:
also ms should introduce hd dvd drives accross the board and use dual layer hd dvd's wich is 30gigs two of those babys is sixty gb witch is ten gb higher than blue ray
they should have put the hd dvd tray in it from the start the 360 would have been future prof like the ps3 is at the moment
hd dvd games = savage graphic and insane surround sound like mgs4 has
in order to stay a coherent media machine they need BR, even if HDVD has goten to the 51GB level.

3916.7.2008 15:33

i bet you ms is hurrying on the "720" project to meet the demands of the developers who need more space on the optical discs to produce higher standard of games HEY EVERYONE PUT IN YOUR COMMENT THE SUM OF A GREAT CONSOLE eg..........
xboxlive+ps3xmb+sixaxis+blueray+halo4-redringofdeath=one hell of console
they can ignore the fact that they need a larger optical drive to support the future of high def games if the dont adress this problem it will lead to its downfall

.... what does anyone think of this talk of games being relised in episodes or chapters of digital media download it might be a solution to the 360's problem have some of the game on the physical disc and then have the rest of the game as a phased digital media download but not everyone is on xbox live tho .... its a hard one they would have to sacrafice some of there non xbox live customer base but for that to happen hard disc drive sise on the 360 will have to increase a hell of alot to house this data

irish since god knows when a nation since 1922 god loves a tryer god loves ireland

This message has been edited since its posting. Latest edit was made on 16 Jul 2008 @ 18:16

4019.7.2008 16:49

Quote:
Oh gotta love it.. still defending 3rd place for the floor sitters..

You never see any tendo fanboys do you? Look at the Wii and DS figures..

DS has sold more than twice the units of the psp according to that site which is
Quote:
dedicated to providing point-of-sale retail estimates of worldwide videogame buying trends

(estimates again.. not REAL figures) with the Wii having the same kind of lead over the ps3..

I think I should be a tendo fanboy ;).. have a defensible position of #1 by a huge margin overall... hahaha
Sorry I couldn't let that go. ALL sales tracking places use estimates. NPD doesn't even track the 4 largest retailers in the US (Walmart, Best Buy, Target, and Amazon). Also the two tracking firms that track Japanese sales, these guys are actually paid by the game publishers, differ by up to 40% from time to time. So to write off vgchartz as "just estimates" is kind of stupid. And you can't even trust the shipment numbers from the companies themselves because Sony and Microsoft and Nintendo all have different definitions of what Europe is. They usually count Cananda, US, and Mexico as one and depending on company they count just Japan, or other places like China, Taiwan, or Korea.

4131.7.2008 14:38

i think the new models r great.but y hight prices for the same xbox thats jus a different color?O_o?

4231.7.2008 14:38

i think the new models r great.but y hight prices for the same xbox thats jus a different color?O_o?

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