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August 7, 2007

Microsoft cuts Xbox 360 prices

Posted by David Hunter at 12:02 PM ET.

Following Sony’s PS3 price cut by a month, Microsoft today announced cuts in the suggested US retail prices of all the Xbox 360 models starting August 8. The biggest cut was $50 on the primary 20 GB version with $20 off the Core system and $30 off the Elite. The full lineup now looks like:

At a new ERP of $349.99 (U.S.), Xbox 360 offers an unsurpassed experience right out of the box with a 20GB hard drive, wireless controller, Xbox 360 headset, and more. For those looking for the ultimate value and the freedom to customize their console as they see fit, Xbox 360 Core System now has an ERP of $279.99 (U.S.). Xbox 360 Core System provides everything needed to start gaming while giving consumers the ability to add new features and accessories they want. Dressed in black and equipped with a 120GB hard drive, Xbox 360 Elite will be priced at an ERP of $449.99 (U.S.) for those who want the premium games and entertainment experience. In anticipation of this year’s largest blockbuster game launch, the Xbox 360 Halo® 3 Special Edition Console will hit store shelves in September with an ERP of $399.99 (U.S.).

Sony had claimed greatly improved PS3 sales after their price cut, so presumably Xbox management felt the urge to get in on the action regardless of what it might do to their plan to make the Xbox 360 profitable in FY2008. There’s no word of cost-reduced Xbox 360 versions hitting the shelves to ease the profit pain, but presumably those are coming. Meanwhile, it doesn’t seem likely that these price cuts by the behemoths will slow down Nintendo’s Wii which is lapping the field.

Filed under Coopetition, Microsoft, Nintendo, Sony, Xbox

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One Response to “Microsoft cuts Xbox 360 prices”

  1. Cost reduced Xbox 360 coming this month? -- Microsoft News Tracker Says:

    [...] Rumors of a new technology release of the Xbox have been around for a while (e.g. Project Falcon, Zephyr), but whatever new features can be worked in, the big prize is cost reduction on the money-losing game console (and expensive faults eliminated), particularly in view of the recent price cut. Ben Kuchera reports at Ars Technica that a source tells him that the Xbox 360 midlife kicker is on the way perhaps as soon as this month. [...]

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