Blurry snaps of sales flyers are fanning speculation that come September 7, Microsoft will drop the price of all three Xbox 360 models by at least fifty bucks a piece. From top to bottom, the Xbox 360 family currently ranges from $450 to $280 in variants ranging from a high-end "Elite" model with a 120GB hard drive down to an entry-level "Arcade" without a hard drive or high-definition video cables.
Ars Technica started a rumor in early August suggesting the 360 would shed 12 to 29 percent of its retail sales cost in early September. The rumor gained some credibility in recent weeks as various blogs snapped pics of sales flyers from Best Buy to Kmart to Radio Shack showing the same thing: price drops a-comin' across the board.
Assuming the rumor is true, and it looks likely to be, how do the new numbers affect the bottom line when you plug them into an accessory and services lineup?
Let's see...

Current pricing in black, new rumored pricing in red.
What's changed since I ran this comparison back in early July?
1. Microsoft and Sony added new hard drives to a few models. The PS3 jumped from 40GB to 80GB, and the Xbox 360 "Premium" hopped from 20GB to 60GB. Also: The 20GB hard drive upgrade went away, so irrespective of the used market, the only hard drive upgrade Microsoft currently sells is the $180 120GB model.
2. Sony's added its DualShock 3 (force-feedback) controller to the PS3 (it's $55 standalone). Alas, the company still refuses to slip either a component or HDMI cable into the system. A Sony HDMI cable will set you back upwards of $60, though you can pick one up from a third party vendor for a fraction of that cost. you shouldn't add the cost of both component and HDMI, since you'll pick one or the other, making the PS3's high-def cable delta (shopping frugally) about $20. Same for the Xbox 360 "Arcade."
3. Sony has Blu-ray and movie downloads, Microsoft has movie downloads. A standalone Blu-ray player baselines in the $300 range. Make of that what you will.
4. Sony just announced a 160GB version of the PS3 at GCDC in Leipzig for $500, bundled with the terrific albeit pithy Uncharted: Drake's Fortune (a $60 value) as well as a voucher for Idol Minds' ragdoll-chaotic PAIN (a $10 value).
What hasn't?
1. Microsoft's still outrageously overpriced in terms of upgrade costs if you plan to buy all at once. The notion that customers should pay $180 for 120GB when you can get a 250GB 2.5" SATA hard drive for $130 is ridiculous. So is paying a hundred bucks for an 802.11g USB wireless network adapter worth less than half that in the form of a PC USB key. The upside? Microsoft's cheaper up front, and gives you upgrade options over time, where Sony's an all or nothing proposition.
2. Still no PS2 backward compatibility. Shame on Sony for not including this just to sell more PS2s and clutter up entertainment centers.
3. The best deal going is probably the Xbox 360 "Premium," which manages to be $20 cheaper than the PS3, $100 cheaper than a fully configured "Elite," and a whopping $120 cheaper than the "Arcade." Word to the wise, the "Arcade" is only a good deal if you plan to never, ever upgrade anything.
Update: Everyone has their own "optimal" configuration based on what they think is important, superfluous, or just plain irrelevant, so bear that in mind -- I'd never dogmatize about which configuration is "best," because that's something only each one of you can determine. And of course a chart like this doesn't say a thing about the subjective value of exclusives like a Halo or a Metal Gear Solid 4, as well as whose online or interface schemas deliver more bang for your buck. Some people would gladly pay more or less for access to a given franchise, or to work within the strictures of one platform's architecture versus another's.
Very good comparison
It's to be noted they are comparing the lower end PS3 to the 3 models of xbox360, not the 80GB PS3 (soon to be 160GB) that has emulated backwards compatibility with most PS2 games as well as all PSone games, 4 USB ports and ships with a game as well currently MGS4 ($59.99).
One problem with your pricing is that you are adding $180 for the Xbox 360 and not adding anything to upgrade the PS3 Hard Drive. So your numbers are wrong. I know that it is cheaper to upgrade the PS3 drive, but you should have a price listed for a 120 GB drive if you include it for the other console.
The $400 PS3 is also Not backwards compatable with PS2 and it most certainly is not backward compatable with PS1.
Xbox Live Silver is Free, which gives you access to the Arcade, Marketplace, etc. So the Xbox does have free online.
If someone is waiting for a $200 console, then they don't care how it compares to a PS3 as they can't afford the PS3 anyways. So I don't understand the point of the chart.
All you have done is invalidate your own data.
The Xbox360 premium is not $20 cheaper than the PS3 unless you only plan to use it for 1. Xbox Live is an annual fee. That means that for each year you intend to have your 360 add $50. If that's 3 years, then add $100 to the prices you've shown.
Using numbers you've provided the real bottom-line cost over 3 years.
PS3: $470
Arcade: $670
Premium: $550
Elite: $650
The Xbox360 lacks in-game keyboard and mouse support, a web-browser, has an inferior HDMI specification, motion control (for games such as the revolutionary Mirror's Edge), and, most importantly, the world's best performing Blu-Ray player.
So you pay more and get less. BTW, if you plan on keeping your console for 5 years:
PS3: $470
Arcade: $770
Premium: $650
Elite: $750
Ouch.
I like these comments...however just remember that NOTHING is free. Sony is not stupid, there will be charges for online play. This may not be through Sony itself, but through the Developers if they want online play that will at all compete with Xbox Live. There is already an article out about Guitar Hero World Tour having a subscription cost to play online. Also Sony cannot provide support for a service that is free, there needs to be money there. Just remember that when there's server issues and they start blaming the publishers...here's lookin at you EA (EA is the only publisher that wanted to maintain their own servers, and they are the only publisher that has issues often.)
Why would any serious gamer want to do so on wi-fi? And why a 120GB HD? Save game files are usually less than 100k, for the movie trailers? please, why do you think you bought that media center PC for.
@ wingman709
"it most certainly is not backward compatable with PS1. "
Actually it is, as well as all PS3 models. They ALL play PSone games.
It never said that model was compatible with PS2 games, PAY ATTENTION!
Yes, silver is free, however to play multiplayer games online you gotta pay. Silver is basically USELESS.
You make little to no sense with your comment.
ALSO to the author of the article. Do a little work and put up noth PS3 models, the 40GB (now 80) which you used in the chart and the 80GB that is the other main SKU on the market, ya know...the one with BC for PS2 games, 4HDMI ports and comes bundled with a game. It is the BEST value for the money. And it sells better than the 40GB (now 80GB).
.
@ajlopo
The only games on PS3 that I would expect to pay to play online for would be MMOs, several are in the works and on their way. However Sony wants to keep the key parts of PSN free.
And what about the yearly electricity bill?
320 watts for the PS3 vs 160W for the Xbox?
If the PS3 allows you to watch BD movies, browse the web, play music and download everything then it will likely be on 4 to 8 hours a day, that's a lot of Watts in the balance and at 5 hours a day, it would be 50$ yearly for a 360 and 100$ for a PS3, there goes your free live service.
As for the wifi, I still don't think I will take the console to the garden or the kitchen table, so, no thanks.
What about Xbox's unstability issue. I hear that even the company accepts that there are between 10-15 percent chances that your Xbox will burn out. Anyone can clarify on that? Apparently the problem was not resolved with the n65 Falcon which came out late last year.
I have owned a 360 Prmium for over 2 years and have never upgraded anything. It RROD on me at 2 years and they sent me a new one. It's still playing fine, and it didn't cost me a penny for the fix. And I am covered till the 3.5 year point per MS support. Cost - $399 and I have bought two 13 mo (12 +1 free) Live service cards at Walmart for $45, so $490 total for 2.5 years. In the first 3 years I owned PS2s two of them died. One simply died and the other couldn't read CDs anymore. Both died close to a year from purchase and I was told they were not covered anymore. My third one seems to be fine. 3-year cost of owning a PS2 - over $650. I have a friend who has an early model PS3 ($499) that quit reading discs after about 14 months, and out of warranty. He bought another one at $399. His 18-month PS3 cost of ownership, $900 so far. The 360 may RROD, but it's not money out of my pocket, so I don't care, still cost less than Sony by a long shot.
I will never buy the Nintendo WII for what they did to the owners of the Nintendo 64. I thought what they did was a slap in the face. They should have done something like what PS did so you could use the same games from one to the other plus add on.