VGC Exclusive: Xbox 360 to Cut Arcade Prices to $199.99 on Sept. 7th

by VGChartz Staff, posted on 02 August 2008 / 58,640 Views

8/2/08

By Benjamin Schlichter (BenSchlichter@Gmail.com )

For reference, I cannot be credited with the picture, but nevertheless, I feel it's too important to just let go, as it's an amazing story to break - On VGC first!

This picture is confirmation of the earlier Ars Technica article from an informant stating that the Xbox 360 would drop it's price in September to $199.99 for the Core, $299.99 for the 60GB model, and $399.99 for the 120GB Elite model. This picture shows nearly irrefutable proof that those rumors are substantiated, and are set to happen in just over a month.

Edit: Now Confirmed Thaks to Joystiq!

Included after the jump to Joystiq is confirmation of the rumor. Radio Shack just released their newest ad with the $399, Elite, and $199 Arcade price point. The date of sale? September 7th.

This news with a picture confirms that this exclusive rumor/leak we broke almost 3 weeks ago was 100% true. We thank the brave soul that may have lost his job over the initial picture.

 

Calculating the Impact of the $199.99 Price Point

Microsoft has been no stranger to the $199.99 price point. In interviews, high brass officials from Microsoft have stated they are 'very aware' that the $199.99 is the sweet spot for console sales. Earlier this year, a weakening Xbox 360 had it's price re-vamped to the 199 Euro price point in February. According to VGChartz.com tracking information, this price drop has allowed the Xbox 360 to gain traction, and sell 100% more units in the February-July timeframe - From an estimated 750,00 to 1,750,000 units in the 6 month timeframe.

Could a similar boost happen in the United States? It is entirely possible: Such a price point will leave the Xbox 360 as the lowest priced Next-Gen console on the market ($50 below the Wii's $249.99 price point), and digging ever-closer to the Playstation 2's pricepoint of $129.99

Not only is the impact of the $199.99 going to of large importance, the scheduling of the drop is telling as well. It takes place 1 week after Square Enix's 'Infinite Undiscovery' and 2 weeks before Harmonix/EA's 'Rock Band 2' - Both exclusive to the Xbox 360 platform at the time of release and pricedrop (obviously, Rock Band 2 will ship in November for the other platforms).

Could Microsoft be making a true power-play for the Holidays? I think so. At a $199.99 price point, and Microsoft's continued dedication to steal away both Sony's hardcore user base through gobbling up former exclusives such as Tales of Vesperia, and Star Ocean , and attempting to woo casual gamers away from Nintendo with such offerings as Your In the Movies and Lips , it would seem that the price drop could act as a suitable catalyst for higher sales.

Can Microsoft Still Profit from Such a Bold Move?

Dropping the price $80 on Arcades (and price drops on the Pro and Elite models), one has to ask, can Microsoft be profitable while reducing their price by over 20% on the base model, and roghly 15% on the Premium/Pro and Elite?

Lets take a look at past statements regarding the history of the cost to build an Xbox 360:

1) At launch, the Xbox 360 costs approximately $525 in parts to make a unit - Roughly 24% over the price of a standard $399.99 USD Premium model.

2) By November 2006, that price, according to iSuppli had decreased by nearly 40% - From Approximately $525 per unit to $323.90 per unit for the Premium model, and under $280.00 for the HDD-Less Core model (which is now the Arcade).

3) Since then, Microsoft has made 2 major revisions to the Xbox 360, the 2nd heatsink , and the cost-cutting 65nm archatcture of the Falcon revision. According to DailyTech, the Falcon revision cut CPU manufacturing costs by 50%.

4) And most recently, the Jasper chipset, with the 65nm GPU archatecture began it's production run in early May. TG Daily reports later in the article that they expect the Jasper chipsets to launch this month (which interestingly enough, coencides with the 60GB model and the price drop, exactly like last year's price reduction).

Because of the steps Microsoft has taken to reduce cost on the production of the console, and maintain profitability, it is very likely that the Xbox 360 has seen major reductions in the cost to manufacture a Xbox 360 since the $280.30/$323.90 prices were used more than 18 months ago. Using Moore's Law , it is believable that the Xbox 360 has reduced it's price a further 35-50% from the November 2006 pricepoint, and could be manufactured for (after the Jasper reivsion) $140.15 to $182.19 before other cost considerations (such as cost of delivery) are applied. This would fit in perfectly with Microsoft's goal to be profitable with the Xbox 360, as costs should be lower, or just at, the price of sale to distributors and retailers.

Furthermore, it would also be in line with what Sony has done, reducing the price of the Playstaion 3 from over $700 to $400 since November 2006.

Stay tuned for more updates! Lets see how accurate this photo is. Obviously, if this does come to pass on September the 7th you have VGC to thank for the exclusive industry-altering news :)


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SlipperyMooseCakes (on 03 September 2008)

Microsoft confirmed it today for NA. Japan earlier the other day. And actually it is happening on the 5th rather than the 7th. http://majornelson.com/archive/2008/09/03/xbox-360-price-cut-now-us-199.aspx


goddog (on 26 August 2008)

more conformation http://kotaku.com/5041705/kmart-want-in-on-that-sweet-360-price-cut-action


Billy Gun (on 23 August 2008)

The question now is: Will it come with motion controller? http://www.xbox360fanboy.com/2008/08/22/rumor-new-199-360-sku-with-motion-controller/


mrstickball (on 23 August 2008)

Sweet! Everything is confirmed. All doubters were proven wrong, and we get to see how a $199 Arcade fares in the US marketplace!


MonstaMack (on 23 August 2008)

Actually if you look at the flyer it confirms the arcade is dropping $80 to. It's under neath the TV. The only console it doesn't confirm is the Pro 20 gig/60 gig but I'm sure that's to be assumed.


goddog (on 23 August 2008)

go radio shack, get those flyers out there... im always surprised that the print houses dont take a few home, and after they ship them off, send this informaion out.


Vasot (on 23 August 2008)

Wise move from Microsoft !!! Sony can put its expensive console into the a**


elnino334 (on 20 August 2008)

More evidence! wooot http://www.joystiq.com/2008/08/20/sources-xbox-360-price-cut-week-of-sept-7-60gb-299-elite-3/ It appears that two of the Xbox 360 SKUs will receive a $50 price drop by the week of Sept. 7, making the 60GB model $299 and the Elite $399 -- we've yet to hear any change on the $279 Arcade meanwhile, the Arcade will drop $80 to $199. A few of our retail contacts, some of whom have given us good intel in the past -- and who all work for separate corporations -- have sent us identical information regarding a price drop. Evidence of the Elite and Arcade price cut can be found in the gallery below featuring images sent us from the Sept. 7 Radio Shack flyer. Update: Oh mercy, it's been a long day. The Arcade is marked as $199 in the flyer as well (under the TV, to the left). Thanks, Strike Man.


MonstaMack (on 19 August 2008)

I just recently sold my old launch core unit to buy a elite anyways. Do a search for microsoft cash back and you can get a new elite with 15% back (or more) on fleabay for $300 or less. The falcons are more reliable and the 360 has more gaming choices IMHO.


obieslut (on 18 August 2008)

has any more info been leaked about this. i am going to laugh me ass off it this rumor is not true


Daddo Splat (on 18 August 2008)

I will believe it when I see it, its due but with the new sku 60 gig at $350.00 a month after its released cutting it to $299.00 sounds like apple. I would think closer to october november. to drive xmas sales.I know alot of peeps who would jump on board my daughter would love her own .


Etech7 (on 12 August 2008)

I hope there is a price cut I want the 360 to sell a lot more


FMU (on 09 August 2008)

@slimeattack: I work there.


deathgod33 (on 09 August 2008)

why are we surpirsed? the premium costs 300 now! for only 20 more bucks you'd get a 20gb hdd and a mic. ok so previously a premium was 350 and arcade was 280, thats a 70 dollar difference, now it will be an 80 dollar difference so its really just a 10 dollar pirce cut.


slimeattack (on 08 August 2008)

source?


FMU (on 08 August 2008)

For all of you that still think this is a rumor: The employee that took this screenshot was fired.


halogamer1989 (on 07 August 2008)

Have there been any more pics/rumors on this?


S.T.A.G.E. (on 07 August 2008)

My mistake then Drudaddy.


slimeattack (on 07 August 2008)

Did you get RROD?


matt247 (on 07 August 2008)

i should get another 360


slimeattack (on 07 August 2008)

@XanderZane: PS3 sales in US at 25k? Check the numbers for this week (the one that ends August 2th in case you forgot). Sales are at 41k.


drudaddy (on 07 August 2008)

@ S.T.A.G.E., I wasn't trying to sell the 360 short I was just naming a few great games, yes i can go on and on but i was trying to make it short and sweet. @slime attack, 10k boost? thanks for the good laugh I need that lmao


XanderZane (on 07 August 2008)

slimeattack says: Did the $99 Gamecube sell like hotcakes? No. Did the 199 euro Arcade kill the competition? No. Why would this be any different? Most of the consumers don't know that there is a 20 GB and 60 GB pro. For them Arcade is for those guys who hardly use Live, Pro for those who download things sometimes and Elite for maniacs. The pro is already at $299, so this won't make an extreme difference. Arcades are 10%-20% of 360 sales, and not many people will want them even if they cost $199. And there isn't a lot of demand for a 120 GB HDD console, thats much more than they need. ************************************* Dude, the Gamecube was pretty dead before it got to $99. The XBox 360 is far from dead. We all know that American consoles don't sell well in foreign countries. Name me a American made game console that sold well in Europe or Asian countries? Atari 2600, Colecovision, Vetrex Intellivision, Jaguar & 3DO? Nope.. . The XBox is actually the best selling American made console in Europe and Japan right now. People will but the $199 just to play certain games they always wanted to play. Many gamers and family who wanted to get one, but thought the $350 price was too high will definitely get the Arcade at $199. That's a $150 difference. The XBox 360 is more popular then the Gamecube ever was. The damand for 360 and PS3 are very low right now because it's summer time. That will all change come October and November, I can guarantee you that. Obviously you've never worked in the gaming market. I have and have been to about 8 E3's and 5 CES shows. The demand for the 360 probably won't grow much in Europe/Japan, but this price cut is for the U.S. where the demand for a 360 is much larger. ================================================ slimeattack says: Price isn't everything. I repeat: price isn't everything. MS needs to do MUCH more. ****************************************** Price isn't everything, but having the lowest priced console on the market is a step in the right direction. Microsoft still has work to do, but they are heading up with the announced exclusives, getting FF XIII and adding new features to their XBox Live this fall. The only thing M$ hasn't done a better job at is making in house exclusive titles. With the original XBox, M$ has a large amount of console exclusives that were made in house. Games like MechAssault, Links, Crimson Skies, Forza, Halo 1 & 2, Midtown Madness, NFL Fever, NBA Inside Drive, Blood Wake, Amped, Fuzion Frenzy, Rallisport Challenge, Brute Force, King Fu Chaos, NHL Rivals, PGR, Blinx 1 & 2, Phantom Dust, Sudeki, Conker: Live and Reloaded, Kingdom Under Fire and many other titles. Even though we did get some nice titles from MGS for the 360 like Halo 3, Crackdown, Forza 2, Blue Dragon, Lost Odyssey, Mass Effect & Ninja Gaiden 2,etc... they still seem to be lacking with "in house" titles. We need at least 30-40% more titles for 2008 and at least 15-20 MGS exclusive titles for 2010. M$ needs to get on the ball. This is the only way for them to keep up with the Wii and ahead of the PS3. ============================================== slimeattack says: @drudaddy: For a person like that it is a good deal, but there aren't many people like that. There will be a slight boost (10k) and that's it. Exactly like in others. ******************************** Are you stupid or what? The price drop to $299 caused a 50-60K 1 week surge on VGChartz.com and I'm sure those numbers were low. A $199 price drop will easily cause a 100K+ surge of console sales in one week. I can pretty much guarantee that. You strange thoughts on thinking people won't buy the Arcade and then get a $65 HDD it just out there. You have no idea how consumers think. I think you've been watching the European #'s to much. This price drop is for the U.S., which is a huge difference. PS3 sales are only at 25K in the U.S. while XBox 360 sales are in the 80K. You actually think 360 sales will only be 10K higher after a price drop to $199? LMAO!! You must have failed economics. I agree with S.T.A.G.E. You guys are selling the XBox 360 way short. You both much live in Europe. Maybe that's why you are making the comments you are. You know nothing about the American market.


Daddo Splat (on 07 August 2008)

Ps3 with all it has include bluray wifi free online. at $400 is a better deal then a $199.00 360 with wifi $100.00 hd $120.00 and paying for online $50.00 Still Moms and Dads with kids wanting COD4 and gears2 look at it as a cheaper fix and Ms has a better games line up for the holidays. core system gears 2 and Cod4 halo3 an extra controller thats a kids dream christmas.thats about $450.00 U.S. out the door the price of a PS3 and a controller $470.00 with out a game ouch. just like the 360 is the lesser value at face point for $200.00 less PSn is the lesser value for free then live for $50.00 a year U.S. Free isnt always better it comes back to you get what you pay for. I would gladly fork $50.00 a year aover to sony for better software integration while gaming and a better online experience. party system on cod4 from 360 to ps3 is apples to oranges. Yet these people who claim free is better fork out more for a console??? I do have both and enjoy both but this will only help the 360.


S.T.A.G.E. (on 07 August 2008)

Responding to Slimeattack: Really?...well your logic is terrible. Price breaks the market, whom are waiting for a price drop. Once you drop your price below 300 dollars, you open yourself to the largest market of all. 60-70% of the 360's income will come from this and the same can be said for the other systems. @ Druddady: Those are just the front running games. There are far more. You also forget Halo Wars, Too Human, Banjo-Kazooie: Nuts and Bolts, Ninja Gaiden 2, Splinter Cell, Kameo, Perfect Dark, PGR 3, Forza 2 and more. You're selling the 360 short.


slimeattack (on 07 August 2008)

@drudaddy: For a person like that it is a good deal, but there aren't many people like that. There will be a slight boost (10k) and that's it. Exactly like in others.


drudaddy (on 07 August 2008)

200 dollar next-gen console, for someone looking to play a few microsoft exclusives, like halo3, gears1,2, fable, Mass effect. and not really caring about the rest of the experience, I say this is a great deal.


slimeattack (on 07 August 2008)

Price isn't everything. I repeat: price isn't everything. MS needs to do MUCH more.


efestione (on 07 August 2008)

microploff fails this time too........


Vasot (on 07 August 2008)

Great move from Microsoft And the Xbox360 exclusive games are fantastic As about sells the Xbox360 sells rised from 20.1 to 20.15 in 1 week and is still the second best selling console So PS3 fanboys please keep your ignorant thoughts to yourself Thanks


S.T.A.G.E. (on 07 August 2008)

Response @ Libellule: " "I never said Sony won E3. MS won E3. I just said, during the MS conference, the only important point was FFXIII. They beaten Sony by stealing FFXIII = copy them." ---My, my, my...I sense an undercurrent of fanboyism. If you look up your gaming history, you'll find that Sony acquired the Final Fantasy main series from Nintendo, whom have recieved the short end of the stick. Microsoft isn't doing a thing that Sony hasn't done. Square Enix saw dollar signs when they saw Microsoft's installed base and they knew that Sony's fanbase alone couldn't sustain the JRPG's to come. Nintendo has managed to hold onto side stories of Final Fantasy, while the main ones were on Sony exclusively. Save the stealing story, for someone who is dumb..and will follow such madness until a war breaks out. "About price : I never said Sony will follow or Xbox360 price drop will bomb. I just said : PS3 400$ is selling very well despite the price and will continue to sell very well." ----I've never doubted Sony's price. I'll enjoy the price when I get my PS3 in October. No doubt, it must be hurting them. It's a good thing and a bad thing at the same time. They've had to drop the price $200 (In less than 2 years) to save themselves from damnation. Not to mention they've lost hundreds more from uncovered parts and labor. They cannot drop the price anymore than this. As i've said...if they do, Microsoft will see blood and I maintain it. "About HD DVD on Xbox360 : It would not have killed the console but I believe it would have hurt the console and helped the PS3. We will never know indeed. Not important." ----It would've helped either brand. The people would've responded negatively to both. It's no longer important...yes...i'll grant you that. "Xbox360 and games : They are not securing something that would not exist. These games were also supposed to be found on PC whatever the existence of the Xbox360 or MS gaming division : Bioshock PC ME PC Gears of War PC Alan Wake PC Red Alert 3 PC The same for 80% of the Xbox360 exclusive. Outside some internal IP (Forza/Halo/Fable/BanjoK), they are not "creating" anything. Just securing a console exclusivty which is quite different." ----Please...those are powerful numbers for first party if you ask me. Last gen what were the most popular games on the PS2? 3rd party games. The only best selling first party title on the PS2 that could match the 3rd parties was Gran Turismo. As i've said before...console exclusivity is key and you can keep using the PC as a crutch. Microsoft is a software company and they also make money from PC merchendise, which is another thing from console. I'll stress it again...Console exclusivity is only expressed upon warring with other consoles. (To all of the Microsoft haters...you can talk all you want about exclusives being on PC, because if you buy it on PC you're getting a different running version unlike the console and you're still supporting Microsoft in the end.) It's all sad really. "About multiplateform games PS3 vs Xbox360 : You want to understand my point ? You claim that, one day, Xbox360 will have all the exclusive because of the install base ?? This day exists : it is past indeed. It was last year when PS3 was not selling very well. Right now, PS3 userbase is just too significative to not be considered. It is why most games are going multiplateform Xbox360 AND PS3. It is a draw that was allowed by MS when they didn"'t dropped the price further last year...when they were "poking and prodding"." ----(Heh)...Your mind serves your sanity only so long. We'll see how this price drop effects consumers and in turn, devs. Microsoft is still "poking and prodding", if your eyes are open...perhaps you might catch it. They are playing cat and mouse. You're correct that the PS3's numbers have risen and I never doubted it, if you've read my posts before in this same news story, but i'll say it again, that it hurts Sony per system at the same time. "Right now, with the price they are using nuclear weapon but, the war is not the same : BR is living du to PS3, HD DVD is dead, greatly increasing the value of the PS3, PS3 has good games. They are trying to hurt the PS3, but PS3 is undercover this year." ---If only that were true, and Sony's wounds would heal so fast.


slimeattack (on 06 August 2008)

Did the $99 Gamecube sell like hotcakes? No. Did the 199 euro Arcade kill the competition? No. Why would this be any different? Most of the consumers don't know that there is a 20 GB and 60 GB pro. For them Arcade is for those guys who hardly use Live, Pro for those who download things sometimes and Elite for maniacs. The pro is already at $299, so this won't make an extreme difference. Arcades are 10%-20% of 360 sales, and not many people will want them even if they cost $199. And there isn't a lot of demand for a 120 GB HDD console, thats much more than they need.


XanderZane (on 06 August 2008)

DMeisterJ says: A whole news story dedicated to a rumor. Hrm... **************************************** Funny thing is the same person who started the $350 price drop rumor, is the person starting this rumor. So the chances are very good that this is true. All we need to wait for is the K-Mart ads. lol!! ==================================== naznatips says: Great for sales, but this is going to slaughter MS's financials for the next 2 years. You will never see a loss of less than $100 million for a quarter, and probably closer to $200 million. ***************************************** @naznatips: Go and read the article again. Especially the part about the $140.15 to $182.19 price for the Arcade and Pro 360's. Microsoft is making very good profits on all their consoles now. Much more then Sony is making. =========================================== montrealsoon says: libellule says: >>I m curious to see if Arcade can compete with Wii I can't see it unless the 360 came with a 360-mote and all Wii's were sold out. Most of the public don't see any value in the 360 at any price. ******************************************** Obviously you don't know what you're talking about. The Wii may still outsell the XBox 360, but there's a good chance the 360 will outsell the PS3 at this price point, unless Sony' drops their price as well. There's no doubt the 360 will outsell the PS3 in America, but probably not in Europe or Japan. Most gamers still want a 360, more so then a PS3. Definitely in the U.S. At this price point, there will be no reason for gamers not to get one. Have you seen the sales of the PS3 in the U.S. lately? ======================================== slimeattack says: Lets wait and laugh our asses off at MS financial reports. ********************************************* Their last financial reports was very good. They are in the black now. Read the whole article before you make embarrassing comments. The only one who will be laughing is M$. @outlawauron and @mrstickball. Read the article again. M$ isn't losing any money. ===================================== Shanobi says: Prediction: 1 slight bump in the first two weeks of sales, and then back go stagnation. The hardcore are NOT going to buy this, and the casuals are not going to suddenly decide that this is the system they want, just because it has pacman on the package. I question why they even bother with this sku. And extra 50 or 60 dollars, i.e. 1 game, is going to have zero effect on their momentum. ************************************** @Shanobi:: Yeah ok. Wait until the holidays and then we'll see what you have to say. If you don't think gamers will buy a $200 game console with some of the best quality titles on it, you're nuts. Even those Arcade 360's are going to sell this X-Mas. You think people are going to be paying $400 for the 80GB PS3 over a $200 360? Sony has no plans for a price drop yet. Then might get the 80GB to $350, but I think they will be losing money if they do that. I'll be surprises if the PS3 outsell the 360 in hardware sales in the U.S. In Japan and maybe Europe they will. Depends on if M$ does another price drop in Europe & Japan as well. American consoles have never sold well in foreign countries though, so it's not surprising that the PS3 is catching the 360 in Europe. That was pretty much a given. It's too bad the Wii is destroying the PS3 and 360 in all 3 regions. ================================ @lanod says: M$ is affraid, so price drop. *************************** Sony dropped their price after just 8 months on the market and then dropped it again just a few months later. So was Sony paranoid and scared? It took Microsoft more then 18 months to drop the price of the 360 for the 1st time. A billion company line Microsoft has no reason to be afraid of anything. They could purchase Sony, what would they be afraid?


heruamon (on 06 August 2008)

M$ will surely be desperate as the 360 sales pile-up this holiday seson..lol, and they have to keep up with supply demands.


MaximumUnderDrive (on 06 August 2008)

it's just logical. think about it -for the price of a ps3 you can have both a wii and an xbox 360 in your house. the market speaks, and it says 'no game console is worth $600, are you kidding, it's a toy for chrisakes' look for sony to a: maximize profits on other products (the same way MS has been able to subsidize Xbox with windows) b: minimize costs (continued investment in memory and blu ray development will reduce costs through 09) c: play this for the long run (this is where they have been too slow to act -the playstation store should have been bursting with content and activity by now, but basically it is a ghost town) So in conclusion, the market is working as it should -nobody is forcing a $600 toy down anybody's throat, and people are paying for what they want.


Tigawoods (on 06 August 2008)

@kjj4t9rdad 2 price drops in 3 years = desperate confirmed. Some ppl like to have options on what they purchase. Not everyone wants a Blue Ray player nor does everyone need built in WiFi. My PS3 can do a lot but I don't need a lot that it can do. If calling the price drop for the arcade is desperate than what was the 200$ price drop on my PS3? In the end they are both good business decisions. Consumers can and will decide if they want to buy the arcade with or without the addons...unless you are implying that ppl are too stupid to decide for themselves.


kjj4t9rdad (on 06 August 2008)

you all are missing the point here. This is a desperation move on microsofts part. The arcade version is a step above worthless. You can't update, play on line or save game progress with out buying extra accessories. They only dropped the Arcade price because they know you have to buy a bunch of extras. Even with the "Clearance sale" it is still way more expensive to get a 360 to do what the ps3 does off the shelf. That doesn't include the money wasted on the overhypped xbox live. Sony will continue to outsell the 360 like it has all year.


Daddo Splat (on 06 August 2008)

I hope its true cause my son and I both have 360's and were looking to get another PS3 I should have picked up a 40 gig with the discount at best buy or walmart. Still I'll wait if this is true Sony will have to respond and maybe Ican et a new 80 gig bc for $400.00 or even the new 80 gig not bc for $300.00. Or at these prices I'll get my daughter a 360 and live so she can play online with me and my son. then she'll want a ps3 if he gets one. crap what will I do. I'll be right back gotta go rob a few more banks.


quimicomortal (on 06 August 2008)

Honestly, if this whole story is just based in one picture, how do you back up that picture?


libellule (on 06 August 2008)

@S.T.A.G.E. says: Why do you go so far in so many direction lol ??? Let's try to answer : About E3 : I never said Sony won E3. MS wan E3. I just said, during the MS conference, the only important point was FFXIII. They beaten Sony by stealing FFXIII = copy them. About price : I never said Sony will follow or Xbox360 price drop will bomb. I just said : PS3 400$ is selling very well despite the price and will continue to sell very well. About HD DVD on Xbox360 : It would not have killed the console but I believe it would have hurt the console and helped the PS3. We will never know indeed. Not important. Xbox360 and games : They are not securing something that would not exist. These games were also supposed to be found on PC whatever the existence of the Xbox360 or MS gaming division : Bioshock PC ME PC Gears of War PC Alan Wake PC Red Alert 3 PC The same for 80% of the Xbox360 exclusive. Outside some internal IP (Forza/Halo/Fable/BanjoK), they are not "creating" anything. Just securing a console exclusivty which is quite different. About multiplateform games PS3 vs Xbox360 : You want to understand my point ? You claim that, one day, Xbox360 will have all the exclusive because of the install base ?? This day exists : it is past indeed. It was last year when PS3 was not selling very well. Right now, PS3 userbase is just too significative to not be considered. It is why most games are going multiplateform Xbox360 AND PS3. It is a draw that was allowed by MS when they didn"'t dropped the price further last year...when they were "poking and prodding". Right now, with the price they are using nuclear weapon but, the war is not the same : BR is living du to PS3, HD DVD is dead, greatly increasing the value of the PS3, PS3 has good games. They are trying to hurt the PS3, but PS3 is undercover this year. We will see ...


FMU (on 06 August 2008)

OK everyone, here's the scoop on this screenshot. It sure looks legit. It is definitely Fred Meyer. This is what we call "MAGIC"; short for Merchandise Analysis Growth Inventory Control. I use this countless times every day. MAGIC tells us our on hands (how many are in stock) when we are (supposedly) getting the next shipment in, though I've learned not to trust it, amoung thousands of other details. Now, it says "Next promo price" and not next perm (permanant) price. Why? Because it'll be in the Ad for the week of September 7. From what this screenshot shows, 199.99 is NOT a permanant price. It doesn't mean that it can't become the permanant price, it just means it isn't at this time. Closer to the ad set date, on the ad set date, or after the ad set date this may change. Something else to look at: in the left column, there are a few other juicy details. List Cost + Load and Avg Weighted Cost. In this case they're the same, however, for many items it's off by 1-2%. I don't remember what the difference is between the two, but I know one of them is what Fred Meyer pays INCLUDING transportation. They might buy the Arcades for 269.99, and Microsoft charges them 1.51 for shipping (usually via a freight company such as Yellow, Bullet, etc. but occasionally UPS is used). There are a few other details in there that only are of interest if you're working for this store and/or are one of the video game buyers. However, THE most interesting part of this: Whoever posted this did a good job of blacking out the most important details that could identify them. Their username, session number, store number, and a couple of nonessentials were blocked out. But they missed the manifest date, which shows the last date the store was billed for the item. Guess what! You can go the other way--look at when this item last left the warehouse; and narrow it down by day. Turns out this person's store was the only one that was billed that day. So for the commenters above remarking that this person wasn't risking their job: guess what. This person no longer has their job.


sgtchief (on 06 August 2008)

i dont know why pepole are paying just attention to the arcade they are also going to drop the price of the elite and 60 gb pro model and that will make it even more likely for pepole to buy over a playstation 3


Cueil (on 05 August 2008)

why are people even upset over this... it's a f'n price cut be happy for your fellow gamers... this could pull more Wii owners over to the hard core


S.T.A.G.E. (on 05 August 2008)

@ Libellule "yes, they are. but, outside FFXIII, their E3 was pretty average. Basically, FFXIII became their best system seller and it is only supposed to be released on 2010 AND it is also on PS3. Avatar is a mix between Home and Mii. Xbox360 exclusive are all on PS3 or on PC. MS is not differenciating in a special product, MS is just trying to spread on everyside of the market to maximize their sales." ---All of the E3's were average. Microsoft stood out because it shocked people. Sony showed a video of GOW3 (not a demo or gameplay vid, which didn't impress most), Infamous and M.A.G. (What an awesome name) were the only things they showed that made some sort of sense besides GTTV. Infamous was awesome, and M.A.G. lol...I don't feel sorry for 360 games shooters, because M.A.G. might just be the destruction of the next Socom game.MS saved the good news from Bungie for later. They unveiled that Bungie is making a new Halo game, but unlike Sony they felt that without a package it wasn't worth unveiling. Microsoft won that conference battle at E3. Remember...the War hasn't even begun. The war will be for the larger installed base whom cannot afford a system over $300. "there was 1 price drop ... Also, it seems many hardcore are buying the PS3 too. I know they dropped the price but it was 8 months ago !!!!" ---(lol) Somehow I knew you were going to bring Sony in there. This is the way it goes for all brands with half a brain, but Microsoft is the only system whom is on it's 3rd year (Correct me if i'm wrong). Microsoft has reserved the right to introduce an affordable price to the people beyond the hardcore and the wealthy. These are the people whom shall be the bulk of the installed base. Those who cannot afford a system for more than $300. If Sony tries to follow, they'll be losing far more by parts and labor than Microsoft ever will and even you can admit that. Thats when Microsoft will see blood, because all they've been doing is poking and prodding at Sony all year. It's basically a dare by Microsoft for Sony to try and follow...and guess what?...I bet ya $20..they wont in September nor October. They are coming off of Multi-billion dollar losses and MGS4 as well as the first price drop clear out in the stores of dropped models of the PS3 helped, but the price drop still hurt them simultaneously. "I agree PS3 saved BR but a HD DVD built in the Xbox360 may have risen the price, killing the Xbox360 console." ----That wouldn't have killed the 360 system, it actually would've caused it to start off near to the PS3 launch price.....which was incredibly stupid. The internal costs would've been much larger and they wouldn't have been able to drop the price as low as it is today. $199 is a great price for the arcade and theres alot of deal on hard drives on Ebay. "well, MS is also giving cash to get these games (GT4 DLC) BUT I agree, games are going multiplateform more and more and more. Even if the price drop fails (it will not), the Xbox360 will get multiplateform games ("20M hardcore gamers") You just have forgotten 1 point : 80% of the Sony exclusive left are ... 1st party meaning THEY WILL NEVER GO Xbox360. At the opposite, 80% of the Xbox360 exclusive are 3rd party that, sooner or later, may go PC (Gears of War) or PS3 (Bioshock)" ---Business is business man, Microsoft is just securing something that never would've existed otherwise and made their sales justified. Microsoft doesn't need 80% of the Sony exclusives of yesteryear, they just need the strongest third parties to take away Sony's validity. Sony's biggest flagship game is a third party game which they aren't even publishing in MGS4. Microsoft is publishing Gears of War and correct me if i'm wrong that they own the rights to Gears. People were trying to argue Halo wasn't 1st party as well on this site, but it was a stupid argument to tell the truth, because of the fact that Microsoft owns the rights to the Halo brand. This is why Halo Wars is 1st party as well...they just acquired a developer in which they owned to make it. Bungie is making another Halo for them because they were so inspired by how good they think the Halo Wars was from overseeing it. It matters not how many 3rd parties Xbox 360 has in the end, they are finally getting better at the game and even you can admit that. I was sick of the first Xbox. It had few good games and I was only playing the PS2 and GC (which had few games itself). The Sony fanboy argument is getting old about people who will NEVER go to the Xbox 360. This is how it goes, if developers see that Microsoft gets alot more installed base by the end of the year I predict they jump the multiplat ship as well. Sony's sales isn't enough to support the big games that have huge developmental costs with them. Some will stay out of loyalty and thats just fine with me. You also forget that Xbox 360 games that go to 360 and are on PC are STILL exclusive, because PC is not a console (You can look this up if you would like, correct me if i'm wrong.). They don't run the same way, and makes for very different feeling gameplay. Nice debating with you. Lets see what you've got next.


JayGee (on 05 August 2008)

@Leetgeek Dude, that's exactly what it is.


lanod (on 05 August 2008)

PS3 have something M$ will never have, good studios with good creators. The best? Team ICO.


Passenger57 (on 05 August 2008)

I love how good 360 news brings the worst in a lot of people here. It tells me that I made the right choice when I brought my 360.


Leetgeek (on 05 August 2008)

And not cheap as in inexpensive I mean deadware cheap.


Leetgeek (on 05 August 2008)

If the price goes too low it could make the box look cheap.


squeeky (on 05 August 2008)

Its about time they cut the price on this TURD. MS should never have released this crippled piece of garbage in the first place. Think how much better some of the games could have been if all 360s had an HDD to begin with.


libellule (on 05 August 2008)

@S.T.A.G.E. said, ""Libellule...so what you're telling me is that the only way MS can perform positively is to make their 360 like the PS3? Nah...I think differences are a good thing. "" ==> yes, they are. but, outside FFXIII, their E3 was pretty average. Basically, FFXIII became their best system seller and it is only supposed to be released on 2010 AND it is also on PS3. Avatar is a mix between Home and Mii. Xbox360 exclusive are all on PS3 or on PC. MS is not differenciating in a special product, MS is just trying to spread on everyside of the market to maximize their sales. "Let me let you in on something, the first three years of life before price drop are to draw in the hardcore/wealthy gamers." ==> there was 1 price drop ... Also, it seems many hardcore are buying the PS3 too. I know they dropped the price but it was 8 months ago !!!! ""The Xbox 360 needs to drop price and acquire a new crowd of people who need a next gen HD system for a great price."" ==> Y. ""Secondly, if you think MS is going to turn their system into a glorified Blu Ray DVD player, you're wrong. The only reason MS didn't couldn't save HD-DVD, is because they didn't have it built into the system and use it as a platform to save HD-DVDs sales over Blu Ray, which is a whole OTHER market."" ==> I agree PS3 saved BR but a HD DVD built in the Xbox360 may have risen the price, killing the Xbox360 console. You see...Microsoft thought of gaming FIRST, while Sony thought of gaming SECOND. Sony even admitted it in the conference when they stated that they were focused on the games now. ==> well, games were pretty average during the first year of the Xbox360. It is a draw for me. But you are right : MS have not focused on HD movie. They prefer V.O.D... ""Get this straight...those games were only loyal third party for Sony because of the fact that Sony had always had a strong installed base except for this gen. This is why Enix jumped the multiplat ship, just like Capcom and Rockstar (Again). If MS sells well after the price drop, you will be seeing alot more games go multiplat as well. This...I assure you...you can take to the bank."" ==> well, MS is also giving cash to get these games (GT4 DLC) BUT I agree, games are going multiplateform more and more and more. Even if the price drop fails (it will not), the Xbox360 will get multiplateform games ("20M hardcore gamers") You just have forgotten 1 point : 80% of the Sony exclusive left are ... 1st party meaning THEY WILL NEVER GO Xbox360. At the opposite, 80% of the Xbox360 exclusive are 3rd party that, sooner or later, may go PC (Gears of War) or PS3 (Bioshock)


slimeattack (on 05 August 2008)

Sony better restock the $499 80 GB the week this comes out.


kakarotto (on 05 August 2008)

http://www.gamespot.com/news/show_blog_entry.php?topic_id=26525321&sid=6195416&action=convert&om_clk=latestnews&tag=latestnews;title;0


quimicomortal (on 05 August 2008)

FIRST OF ALL, where did that picture come from? and how do we know it is real?


elnino334 (on 05 August 2008)

http://img186.imageshack.us/my.php?image=xboxpricedroppd4.jpg Courtesy of http://www.xbox-scene.com/


lanod (on 05 August 2008)

One day M$ will offer a Xbox360 with a game paid :D


Impulsivity (on 05 August 2008)

The amazing 199 price cut of the 360 arcade has allowed it to consistantly sit in next to last place (and sometimes last place) in Europe. Yes, many weeks the PS2 STILL beats the Xbox (and the PS3 pretty much always does). I would be amazed if the 199 360 made much of a difference in the US. I think consumers are smarter then many give them credit for, which is why the cheaper arcade has never sold well. That the 199 box requires 50 dollars a year for online (with a 99 dollar wireless adaptor most likely if you have a wifi network, which almost everyone does), 120+ dollars for a tiny 1st party hard drive (the same money would get you a 320GB 3rd party PS3 replacement hard drive) and even more if you want a wireless controller with a battery pack isn't lost on most people. That's right, a 199 arcade+online for a year+wifi+hard drive+wireless controller=over 100 dollars more then the PS3. It's just a really really bad deal, even priced at a seemingly winning price point.


S.T.A.G.E. (on 05 August 2008)

...I can't wait.


libellule (on 05 August 2008)

S.T.A.G.E., I will answer u later when I will have more time.


lanod (on 05 August 2008)

PS3 will reach 30 millions in the worl before 360.


S.T.A.G.E. (on 05 August 2008)

Libellule...so what you're telling me is that the only way MS can perform positively is to make their 360 like the PS3? Nah...I think differences are a good thing. Let me let you in on something, the first three years of life before price drop are to draw in the hardcore/wealthy gamers. The Xbox 360 needs to drop price and acquire a new crowd of people who need a next gen HD system for a great price. Secondly, if you think MS is going to turn their system into a glorified Blu Ray DVD player, you're wrong. The only reason MS didn't couldn't save HD-DVD, is because they didn't have it built into the system and use it as a platform to save HD-DVDs sales over Blu Ray, which is a whole OTHER market. You see...Microsoft thought of gaming FIRST, while Sony thought of gaming SECOND. Sony even admitted it in the conference when they stated that they were focused on the games now. Get this straight...those games were only loyal third party for Sony because of the fact that Sony had always had a strong installed base except for this gen. This is why Enix jumped the multiplat ship, just like Capcom and Rockstar (Again). If MS sells well after the price drop, you will be seeing alot more games go multiplat as well. This...I assure you...you can take to the bank.


heruamon (on 05 August 2008)

The arcade priced at $199 will squarely hit the Ps2 and Wii owners, and while nintendo will probably not lower the price of the Wii until they see data to make them reconsider, Sony's might look at dropping the PS2 to $99, further eroding the margins of that dated console. As the current price cut has illustrated, the dropping of prices for all the consoles will have a significant effect on the buying patterns in NA...can't say for the rest of the world, but I think it bodes will for 360 sales heading into a "cautious" holiday season.


libellule (on 05 August 2008)

"""S.T.A.G.E. says: A true but wasted argument Jeffrey9999. Microsoft is only focusing on Sony. They just want Sony. They are happy for Nintendo right now""" ==> just NO ! If they are reducing by 80$ the arcade and only 50$ the 2 others it is because THEY WANT TO CATCH NINTY ! When u target hardcore, price is not a so big problems particularly when u have games or big value inside (BR player like the PS3) The only thing they can do versus Sony is getting more and more hardcore "playstation" games for their console (like FFXIII) and maybe get a BR player add-on. To catch Ninty, they need to appeal to casual = 199$ ARCADE And as jeffrey9999 said, I wondering how many casual will buy the hardcore Xbox360 versus the Wii.


heruamon (on 04 August 2008)

BTW, perception is always key, so what watch what happens when 360 sale explode, and Sony is pressed to make some desperate attempts to recover in NA...then the Sfanboys will be screaming how it's not desperation but some grand part of Sony's scheme...The biggest game on Sony's plate produce a 1 week sales jump..yeah...I don't think M$ is the desperate one. There were almost as many PS3 as 360 comparable to Halo/MSG4...Halo sold more in one week then MSG4 has to-date...WHAT THE F$#k competition are we talking about?


heruamon (on 04 August 2008)

When 360 is challenging Wii for sales in the US this holiday season, M$ will be the one laugh at some of the clowns who done have a freaking clue!!


S.T.A.G.E. (on 04 August 2008)

Retrasado...Just remember...Parts and labor. :)


Retrasado (on 04 August 2008)

hrm... now this will be very interesting if it happens. I wonder what Sony will do? And what CAN they do? We still don't know how much they are losing do we?


S.T.A.G.E. (on 04 August 2008)

A true but wasted argument Jeffrey9999. Microsoft is only focusing on Sony. They just want Sony. They are happy for Nintendo right now, and they know it'll take an extremely long shot to beat Nintendo this gen. If they were even to get close to Nintendo it would take 2+ years. They are obviously focused on getting second place this gen. The thing with Microsoft is that the more they learn the movements of the market, the more dangerous they become as competition.


Burgles (on 04 August 2008)

I think this news is a load of tosh and has been made up to reduce the sales boost of the cut in price of the 20GB pro SKU in the US.


jeffrey9999 (on 04 August 2008)

I think the 360 will compete with the wii kinda but I think the 360 will lose week by week and it's not going to hurt the wii bad but it could increase the 360 to I'd say 30-40 thousand sales a week and half that would be people who were going to buy wii and the other half any other console but I think the wii will still beat it by atleast 100k a week but I could be wrong but there is one thing I know the 360 isn't as popular as the wii and it can't beat the wii at 199.99................


S.T.A.G.E. (on 04 August 2008)

Exactly Renar!!


Renar (on 04 August 2008)

mrstickball says: 'To me, those arguing Microsoft losing money over this, are forgetting the negative impact to Microsoft's finances if they didn't drop the price.' Exactly again. True, MS is giving up a bit of $ on the console sales that would have been sold at the higher prices. But eventually that pool of customers will dry up, and if they waited until that happened, it would be too late to lower the price.


perpride (on 04 August 2008)

I RROD'd my first 360 so I might actually buy the Arcade console once this drop takes place to replace the last one. Big-ups on the exclusive. I think it is technically considered a rumour until confirmed by Microsoft though (which it will undoubtedly be by what I have read here).


StanGable (on 04 August 2008)

laughed at all of you that claim this isn't news and that it shouldn't be posted in the news sections because its a rumor. The point that its not a confirmed back does not make it "not news." Hell, if everything that was a rumor wasn't considering news a shit load of magazines, TV news, online newsites, etc would be out of business. This is news whether you like it or not, just stop crying b/c it wasn't PS3 related. Good job Mrstickball, if this becomes true the Enquirer might come hire you!


EaglesEye379 (on 04 August 2008)

This news article is hitting so many other gaming sites: Gamesindustry.biz, Xbox 360 Fanboy, Planet Xbox 360 to name a few. Well done!


selnor (on 04 August 2008)

Those saying M$ pricecut shows they are scared of PS3 is laughable. This will be the second permanant drop in 3 years. Thats really good. I cant remember another console only dropping twice in 3 years.


dolemit3 (on 04 August 2008)

I don't understand what Camp Sony is afraid off. Neither the 360 nor the PS3 will never come close to the Wii's numbers -- both will end up just like the Cube/Xbox withing 10-20% from each other. And lower prices from MSFT means more perks from Sony which is good for the masses.


DMeisterJ (on 04 August 2008)

@ Godbless I know! lolx.


Goddbless (on 04 August 2008)

There are a lot of people that don't want this to be true. The majority of them happen to be in the Sony camp too!


slimeattack (on 04 August 2008)

@all those you say that people will stop buying wii's/ps3's: Look what happened after the EU price drop. The 360 began selling 20-30% better, but it didn't outsell the PS3 or the Wii. People will still buy the PS3 for blu-ray, mgs4 and upcoming exclusives and the Wii for the wiimote and all the games. The weak US economy won't help since the entertainment industry is immune to recessions.


mrstickball (on 04 August 2008)

Renar - To me, those arguing Microsoft losing money over this, are forgetting the negative impact to Microsoft's finances if they didn't drop the price. Having the $199 pricepoint has been huge in Europe. Microsoft has sold an extra 1 million consoles there due to the new price. Most likely, Microsoft's strategy is to upsell owners of the Arcade new products that they make huge profits on: 1) Sell the Arcade at a bare profit after retail markup & shipping costs 2) Sell the Premium at a good profit (Pro/Prem costs around $50 more to make, but retail for $100 more) 3) Sell Elite at an evern higher profit (Elite costs maybe $75-80 more to make vs. Arcade, but retails $200 higher). 4) Upsell HDDs and accessories to Arcade owners. In which, MS makes said $50-$125 markup 5) Use lower price point to move more consoles, and therefore, more software. If MS moves 6 software titles per new Arcade sold, at the $199 pricepoint...Microsoft has recouped no less than $30 in software sales ($5 licensing fee). If it's a 1st party game...Increase profits by $5-20 more per title. So you see where I'm getting at - if Microsoft was going to suffer a negative financial impact from a price drop, why do it? In fact, why did Sony? Why would anyone drop the price on their console, if it didn't benefit them in some way? Saying that dropping the price will hurt a company shows your lack of business knowledge. Companies adjust prices to make more money, not less.


S.T.A.G.E. (on 04 August 2008)

I'm starting to believe that Sony fanboys have the worst arguments. What is MS afraid of? If they were afraid, they wouldn't have made another Xbox. Most people hate Microsoft (So do I), but in terms of business this is a smart venture to keep the market open. Sony was out to control the whole gaming industry and Microsoft has hurt them terribly. Sonys only real big market compared to the videogame is their movie making brands, since they purchased Columbia pictures from Coca Cola. Their electronics has heavy competition. Technology is technology. Those loyal to a brand name, are mental slaves.