When it's priced the same, for all intents and purposes, which it's looking like it just might be by late next week. Referencing "trade sources," MCV claims that Microsoft plans to drop the price of its entry-level Xbox 360 Arcade by as much as ?50 ($76 USD). TechRadar.com adds spice to the rumor by avowing the drop and claiming it'll occur across Europe on March 14, sourcing "numerous UK retailers...who agree that the 360 price is set to be slashed on this date."
Altogether, the Xbox 360 Elite is poised to take a dive from ?300 to ?240, while the basic Arcade system, which lacks a hard drive, should drop from ?200 to ?150. That would technically make the Arcade cheaper than the Wii, which lists for ?180.
Is it time to drop the price of the Xbox already? Let's see:
- Microsoft dumps HD DVD drive for Xbox 360 -- more of a psychological oops, but it leaves a ton of existing 360 owners in a lurch, and feeds a right or wrong public perception that something major associated with the Xbox 360 failed.
- Sony muscled past the 360 for the first time in January. I know, it shocked me too, and since Microsoft beat the pants off Nintendo and Sony each in software sales that month, I guessed it was Blu-ray sales driven. Which means Sony could be on the verge of a hardware sales turnaround that's not even games driven.
- The Xbox 360 has (or had) an absurdly high unit failure rate, i.e. the doleful "red ring of death," and enthusiast confidence on message boards and blogs is low, trending toward sardonic. Microsoft has performed minor miracles to rectify the situation and deserves full honors for being stand up about the problem, but first impressions (like possession) are nine-tenths law. Unreliable and expensive is of course a universe away from "bargain-priced" and "sufficiently revised."
- A considerable part of the Xbox 360's revenue model is Xbox Live and aftermarket online and/or casual game sales. Drop the 360 price into Wii territory and get your marketing team going toe-to-toe with Nintendo on the casual-online front and you just might redraw the battle lines. Nintendo may have found a new niche, but it remains a pretty monolithic one. The Xbox 360 (uniquely) has the economic and creative potential to mix and match hardcore and casual demographics. Figuring out how to market that message is Microsoft's game to lose.
So yeah, I think it's time to drop the price, unleash the new marketing campaigns, spin the monthly statistics to emphasize the company's forte (software revenue and critically acclaimed games), release a standalone Blu-ray player, etc. to get the system back on its feet, lest Nintendo continue to pull ahead based on sheer momentum, and Sony eradicate Microsoft's lead by virtue of movie player sales alone.
Will U.S. Xbox 360 prices follow suit? Grab hold of your wallet, then bet your bottom dollar.
Replay
Agree? Disagree? Have your say below in comments, visit Wake the Happy Words for expanded dialogue, or pelt me with emails here.
The 360 is more of a niche platform "hardcore shooter" then the nintendo wii " everybody and there grandmas want one". However I'm all for a pricecut!
Xbox 360 has more top rated games than any other next gen platform. 360 outsells every console for cross platform games. The technical problems are behind them. The RROD was solved over a year ago, and Microsoft added a 3 year warranty too. The price cut is needed to keep pace with the Wii, and Sony will not be able to match the new price point. The HD DVD sold around 200,000 drives out of 17 million systems so it was hardly a mainstream device. I agree the price cut is great move because it is bound to sell a lot of 360's. Sony sold a few PS3 systems to Blu-Ray fans and it is doubtful they will sustain these sales. As for the USA Sony won two months for PS3 sales by approixmately 20,000 units. PS3 is behind Xbox 360 in the USA by 7 million units at that rate it will take many years for the PS3 to pass Xbox 360. It may not matter anyways because I don't think anyone will pass Wii in sales, but you can bet Xbox 360 will be a strong 2nd place.