Xbox 360 Price Cuts and New Editions Published: August 23, 2005, 3:15 PM CST By chairmansteve
Now that we know the launch prices for Xbox 360 ($299 Core, $399 Premium), we can speculate on future pricing. Having the HDD separate will really help get prices competitive and flexible.
I'm going to assume that the HDD price will stay at $99 (or drop little) but will later increase in size (40GB, 80GB, 120GB, etc.). For example, $99 may get 20GB at launch and 40-80GB in 2007. For a possible high-end option, $149-199 may get 80-120GB in 2007 and 160-320GB in 2009.
I expect the first US price drop to be around Spring 2007 or at E3 2007 (May). However, it's possible that the first price cut won't come until later in 2007. The first cut should be between $50 and $100. Thus, the Core System should drop to between $199 and $249, while the Premium System drops to between $299 and $349.
Some accessory prices should drop too. I think the 64MB Memory Unit (Flash) price will drop with the introduction of larger Memory Units (e.g. 256MB). | | | Comments | May 20, 2006, 1:42 AM by chairmansteve With the overpriced mess from Sony, it's not looking like Xbox 360 will get a price cut this year. I'll stick to my Spring 2007 prediction for the first cut. I could see a price drop announced in or around May 2007 (E3).
Will the Premium System bundle change this year? Bigger HDD? Vision Camera? Neither is likely. A free first-party DVD game (PGR3) and three months free Live Gold are possible on the software side. The HDD may upgrade to 40-80GB in 2007. | May 20, 2006, 8:40 PM by moofoo3 I don't think they will include the camera. But I do thing they will upgrade the HDD size. Possible add a 3 month gold subsciption also, that's how they could get people hooked. | May 20, 2006, 10:02 PM by Quaid to chairmansteve I think M$ may be able to steal some of PS3's thunder (hah) by making a "Hi-Def pack" system with a 40GB and HD-DVD drive, and keep the price around $500 or less.
Especially in Japan. They need to get the core system out there, and make a HD package for them, as well as bundle in some games with each package. | December 31, 2006, 5:38 PM by chairmansteve I'm going to speculate on possible future models based on what I'd like to see.
Some hardcore gamers on forums suggest that the Core System be discontinued, but I think the Pro/Premium System is more likely to be cut for two reasons. (1) There may be multiple hard disk drive sizes, and (2) mainstream gamers want lower prices. Those who want storage to download lots of content can optionally choose from a few HDD sizes, starting at $99 or maybe $79. Those who need just a small amount of storage can buy a Memory Unit (if not already included with the console). If a high-end SKU exists, it should come with the biggest available HDD.
I'm sure Microsoft will conduct some analysis to determine if (or when) it's worth including a Memory Unit or Component Video for every user. If those are not included with the console, I'd at least like to see price cuts for the two accessories.
Let's summarize.
- Memory Unit: Reduce Price and/or Include with Core System - Component Video Cable: Reduce Price and/or Include with Core System - Multiple (2 or 3) Hard Disk Drive Sizes - Pro/Premium: Discontinue (2009) or Replace with Bigger HDD Edition (2008+)
Will the Core "bundle" change this year? Will the price drop without any other change? Switching the Wired Controller to Wireless or Composite Cable to Component would require a new package. It's easier to just cut prices without changing the package. A Memory Unit or free game(s) could be included outside of the box. If MS does change the Core package with a Wireless Controller and/or Component Video, then a new SKU name may be in order.
- Core System for $199 - Core System II (Memory Unit? Free Game?) for $249
If 2007 is too early to drop the Pro System, there should be a model with a bigger Hard Disk Drive (40-100GB). There could be a 3rd SKU. We'll call it the Ultimate System, and it could be priced $100 more than the regular Pro System. With that price difference, it could come with a much larger (than 20GB) HDD and something more. Maybe WiFi or HDMI? The Ultimate System could later (2008) replace the Pro System.
- Pro System (20GB) for $299 - Ultimate System (80-100GB) for $399
SKU Summary: After Price Cuts - Core System for $199 - Pro System for $299 - Ultimate System for $399
SKU Summary: Before Price Cuts - Core System for $299 - Pro System for $399 - Ultimate System for $499
Finally, there is the small chance of a Toshiba System. It would be priced higher, but it would come with extras that most gamers don't care about. It could have large internal HDD, internal HD-DVD, HDMI, WiFi, Media Remote, etc. Since HD-DVD is more important to Toshiba than Microsoft, this edition may be built by Toshiba and look like a normal HD-DVD player. 2008 or 2009 is possible for the Toshiba System. | January 2, 2007, 7:47 PM by Zucas I just hope they drop the price of the 360 soon so I can buy me one. Tired of having to play off my bro's haha. I need to get it for a few games haha namely to play Condemned at launch which I've still yet to get. Best 360 game for me still. But then I need to look into Mass Effect, Too Human, and Alan Wake. So come on MS your rich j ust make a price drop so poor people like me can get one haha. | February 21, 2007, 2:25 PM by ali_f I expected the 360 to get cheaper when the PS3 came out. I honestly believe that if microsoft did this, they would fully outclass sony. Good to hear about the price cut.....if microsoft could only do this before PS3 releases in Europe. | March 5, 2007, 3:10 PM by chairmansteve 64MB Memory Unit for $30 (Previously $40) 512MB Memory Unit for $50
The larger memory unit and price drop for the 64MB version were as expected. We may see another similar move in 2009. The older products receive price cuts, while a new product (2GB or 4GB Memory Unit) may launch.
Will other accessory prices drop soon? We may see $10 shaved from controllers. | March 20, 2007, 10:26 AM by chairmansteve Something may be cooking. Rumor has it that the Black 120GB Edition will be revealed next week (March 27-30) and release in late April or May at $479, and the 120GB HDD will be available separately also for $179. Based on those prices, the most likely scenario seems to be no price drop until later in the year (H2 2007). The 20GB System may be phased out with the price drop, leaving just the Core and 120GB.
April/May: Launch 120GB System, No Price Drop (i.e. $299, $399, $479) H2 2007: Price Drop All Models (e.g. $199, $299, $399) | March 27, 2007, 3:35 AM by too_cool_craig Chairman,
With the introduction of the "Elite" at $479 do you expect a price drop on the Premium and Core at all. or will that come later in Summer or the Fall? if they have the Elite in late April and price drops:
Elite - $479 Premium - $349 Core - $249
They will get a sale boost from hardcore fans upgrading to elite, the gamers waiting for a price drop on the Premium, and the more casual market investing in the now cheap Core unit. this will be ideal for the summer slump even though they have a fantastic lineup of games.
they could possibly afford a $100 price drop, but i would expect one with Elite and 1 $50 in Fall with Halo 3 or early 08.
Edit - with the 120g HD being $150, a price drop should be assured, they cant sell the premium for $400. The difference between the core is $100 or the price of the 20g HD, excluding the other features like wireless etc. This i think will be the difference between Premium and Elite $150 or the cost of upgrading th HD, excluding the other features like HDMI/Black
Elite $479 Premium - $329 Core - $229 or $249 (20g HD will be dropped to $70) | March 27, 2007, 3:31 PM by chairmansteve to too_cool_craig I expect the price drop later (Q3). Aggressive pricing for Fall 2007 could be $199 Core, $299 Pro, and $399 Elite. Conservative pricing (i.e. minimize losses) may be $249 Core, $329-349 Pro, and $399 Elite. If MS wants just two models, the middle SKU (Pro) may be discontinued. The difference between Core and Elite should be at least $150 or at most $200. | April 19, 2007, 7:01 PM by chairmansteve July 10, 2007 (E3 2007) August 14, 2007 (Madden NFL 08) August 23, 2007 (Leipzig Games Convention) August 28, 2007 (Blue Dragon, a.k.a. kiddy first party game)
Looking at the game release schedule, Elite launch date, E3 2007, and monthly sales, those would be my picks for days to have a price drop on or around. Anyhow, I expect the drop after July 10 and before GTA/Halo (whichever game comes first).
E3 2007 would be my first guess. A week before Madden would be my second guess. Leipzig GC would be my first guess for Europe. | April 19, 2007, 8:42 PM by PirateGuy Given the recent number for March, MS REALLY needs a price drop. | April 19, 2007, 9:29 PM by chairmansteve to PirateGuy Have some patience. :) Xbox 360 is still outselling PS3 each month, and Xbox 360 Elite is coming soon. Give the Elite some time on the market, then a price drop may come. That's why I don't expect a price cut at least until E3. Also, Microsoft may prefer to let Sony (PS3) make the first price cut. | June 15, 2007, 6:43 PM by too_cool_craig The only way they can afford to drop the price later than july is have their second biggest exclusive out then "Mass Effect" which wont happen, a lower price will also increase the effect Halo 3 and GTA 4 will have. | June 21, 2007, 12:19 PM by sgross2006 So I'm looking at purchasing a 360 very soon. I know that it has to be time for a price drop soon. I'm assuming that there is no news about price drops yet, but I've heard lots of rumors. Does anyone think that the price drop will come by the end of the summer? Or more towards Christmas time? | |
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