Microsoft Cuts Price Of Xbox 360
Aug 7th, 2007 by Lance
Most popular model, with 20-GB hard drive reduced to $349
Starting Wednesday, Microsoft will cut Xbox 360’s price by 50 bucks. The company said its most popular console, which comes with a 20-gigabyte hard drive, will cost $349.
The basic console without a hard drive or wireless controllers will sell for $279, which is $20 less than its current price, and the Xbox 360 Elite, the black version with a massive 120-gigabyte hard drive and high-definition video support, will drop to $449.
In July, the Microsoft dropped the price of its HD-DVD player add-on from $199 to $179.
Microsoft has been dodging questions about a console price cut since competitor Sony slashed the price of its 60-gigabyte PlayStation 3 from $599 to $499 in early July. Nintendo Wii, the least expensive of the supposed next-generation consoles, costs only $250.
Last week, spokespeople for Wal-Mart Stores Inc., Toys “R” Us Inc. and Microsoft all refused to say whether blurred images found online — purportedly showing weekend ad circulars reflecting the price cuts — were authentic.
Aaron Greenberg, a group product manager for Xbox 360, said in an interview Monday that the ads were real.
Greenberg also said competitors’ prices had no impact on Microsoft’s decision.
“In fact, we had this in our plans from the very beginning,” he said, and added that the timing was linked to the release of several highly anticipated video games, including “Madden NFL 08,” which hits retail shelves next Tuesday.
“There is nothing too shocking about this,” said Michael Gartenberg, an analyst at JupiterResearch. He said it’s normal for companies to cut console prices between one and two years after launch.
The analyst added that the $50 price cut will bring in a whole new group of customers who ruled it out at the higher price, and that Microsoft should enjoy increased sales immediately —even though the official holiday shopping season is still months away.
Microsoft also said Tuesday that the green and gold “Halo 3″-themed console, will go on sale in September for $400.