Microsoft to Introduce New SKU and Announce Price Cut for Xbox 360 at E3?
So the rumor mill would have you believe...
Softpedia is reporting that EEDAR analyst Jesse Divinch seems to be of the opinion that Microsoft will introduce a new SKU (60GB hard drive, from what I've heard), and also cut prices across the range of already-existing Xbox 360 SKUs. Why? Simply because Microsoft is losing ground to Sony and Nintendo.
Quote:
"This [the spike in PS3 sales, plus the drop-off in Xbox 360 sales] is likely due to the exclusivity factor as exclusive releases on Sony's platforms have historically shown to be a better hardware driver than that of multi-platform releases. On average, PS3 exclusive games sell 45% more, throughout their lifetime, than multi-platform titles available on the PS3. Exclusive titles for the other two systems, the Wii and Xbox 360, only boast a small increase in lifetime sales over multi-platform titles."
The same analyst thinks that, as a response to the rise of the PS3 and to the continued dominance of the Nintendo Wii, which managed to sell more consoles than its two rivals combined in North America in May, Microsoft is getting ready to unveil a new Xbox 360 model and also to cut prices across the board for its consoles. The ESA-backed E3 expo, which is coming up in a few weeks, might be the perfect venue for Microsoft to make an announcement.
It's becoming increasingly clear to me that Microsoft is losing ground, and has been for some time. They need a price cut at the very least to stay competitive. The new SKU? If it replaces the current 'Pro' model and the price remains the same, then I can see the logic behind it.
This definitely falls in line with what I've been seeing. The PS3 is rapidly catching up to the 360 while the 360's sales remain rather stagnant. A much-needed price cut should drive a lot of sales. It's been long coming, and is way overdue.
The 360 has only been behind the PS3 in hardware sales in the US for around 2-3 months. I don't think this is a huge deal (especially since the more profitable software side is doing quite well) but if they want to continue their momentum they really should release a price cut. I think even a $50 price drop across the board would be compelling.
$220 for an Arcade (less than a Wii at that point)
$300 for a premium
$400 for the Elite
It would interesting to see how many Arcade owners would upgrade if they started selling the 20GB for really cheap.
For it to matter, the new SKU would have to replace the Pro and be priced lower.
Yeah, they don't need a FOURTH Xbox model. That's just stupid. Put in a 60GB harddrive (it shouldn't be that much more expensive than the 20GB), and drop the price of the Pro to Wii price of $250. That is how you move systems.
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I love my 360, and I've been really grateful for a closer race between the consoles this gen. Competition can only benefit your average gamer. MS has been strangely resistant to increased competition lately however, making the benefits of that competition less than they should have been. They've seemed to hold on to the early lead like a talisman to carry them through the rest of this generation of consoles. I hope for MS sake they don't wait till it's too late to become competitive again. It seems to me that momentum is very important in this business.
Outside of a bump that may last a two or three months, I don't see MS' position improving in the long run with a price cut. Although I don't see the MGS4 bump lasting that long either.
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Are there still a lot of people sitting on the fence about these systems? Haven't those people already "bit the bullet" and purchased their system or systems of choice?
Since it looks like I'm about to send my 4th 360 in for repair since last September, I'd say giving me some hardware that isn't going to break 10 minutes out of the box would be a step in the right direction.
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Originally Posted by TheFlyingOrc
That's probably the first time sodomy has made me smile.
Are there still a lot of people sitting on the fence about these systems? Haven't those people already "bit the bullet" and purchased their system or systems of choice?
I havent bought a next gen gaming system.
I'm still considering it, but having a beefy computer means I'm not in dire need of new gaming hardware.
Anyway, point being that there are probably others like me out there, who are waiting for price drops or better deals, or simply available cash with which to buy one.
Or a specialized tool for collecting one - an oblong piece of masonry with high density, that is not malleable and can be launched as a projectile from a suitable limb. A brick if you will.
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Originally Posted by Oxonian
The last time someone went around being tolerant of everyone around him, we nailed him to a fucking cross for being a preachy asshole.
Since it looks like I'm about to send my 4th 360 in for repair since last September, I'd say giving me some hardware that isn't going to break 10 minutes out of the box would be a step in the right direction.
Are there still a lot of people sitting on the fence about these systems? Haven't those people already "bit the bullet" and purchased their system or systems of choice?
Absolutely. I'm one of them. I'd like to buy a 360, there's at least five games on it I'd get in a heartbeat if I had one, as opposed to the single game I've bought for the PS3 in the two or three months I've had it (The Orange Box, since I found it new for $40). The reason I refuse to get an Xbox:
Quote:
Originally Posted by MelbaToast
Since it looks like I'm about to send my 4th 360 in for repair since last September, I'd say giving me some hardware that isn't going to break 10 minutes out of the box would be a step in the right direction.
I'm not going to spend hundreds of dollars on a console that will almost certainly have to be sent in to be repaired or replaced multiple times.
Are there still a lot of people sitting on the fence about these systems? Haven't those people already "bit the bullet" and purchased their system or systems of choice?
Plenty of people are waiting on a price drop for the 360 and PS3. There are a lot of people that enjoy playing videogames, but fell that $300+ is too much to spend on a gaming system. Once they lower the cost to a more Joe Consumer friendly price point they will see a good bump in system sales.
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Originally Posted by Steven Johnson
The dirty little secret of gaming is how much time you spend not having fun.
I think they need a pricecut on the Pro model, first and foremost. Whether that requires keeping it at 20GB or not is up to MS's accounting department, but I don't see the value of just adding in more GB to the HDD to the Pro model and keeping the price the same.
A $299.99 20GB 360 would sell better than a $349.99 60GB 360 (in my universe anyway).
For E3, I'm predicting $249.99 or less Arcade, $299.99 Pro (60GB), $399.99 Elite (120GB).
"This [the spike in PS3 sales, plus the drop-off in Xbox 360 sales] is likely due to the exclusivity factor as exclusive releases on Sony's platforms have historically shown to be a better hardware driver than that of multi-platform releases. On average, PS3 exclusive games sell 45% more, throughout their lifetime, than multi-platform titles available on the PS3. Exclusive titles for the other two systems, the Wii and Xbox 360, only boast a small increase in lifetime sales over multi-platform titles."
Just thinking about this, to me, that makes sense for the PS3 and 360... The 360 has a larger install base and is likely to do better for sales of multiplatform games compared to the PS3 (and the Wii). So the difference between sales of exclusive games and multiplatform games is likely to be smaller. It makes sense that PS3 exclusives, going forward, are going to generate more console sales, on average, than 360 exclusives.
I don't understand how the difference is also small on Wii. I would have thought that exclusives would have sold MUCH more, on average, than multiplatform titles. Or does this have something to do with the relative lack of multiplatform games that also come to the Wii, combined with strong Wii sales to households that are less likely to have another next-gen console?
