Microsoft Cuts Xbox 360 Prices
Microsoft yesterday confirmed rumors of an Xbox 360 price cut. Starting tomorrow, the "Arcade" base model will sell for $199, down from $279. The other two models--the "Pro" and "Elite"--will sell for $50 less, clocking in at $299 and $399, respectively. This new price cut makes Microsoft's Xbox 360 the cheapest video game console on the market, strategically timed for the upcoming holiday season. Aaron Greenberg, director of product management for Xbox 360, told The Wall Street Journal that 75 percent of console sales occur in the fourth quarter.
Currently, Nintendo's Wii sells for $249 and the 80GB version of Sony's PlayStation 3 costs $399.
It's worth noting that the $199 iteration of the Xbox 360 does not feature a hard drive, composite or HDMI cables. The "Pro" ships with a 60GB hard drive and the "Elite" with 120GB; both also include component, composite and HDMI cables.
PC World compared the lower-priced Xbox 360 and the PlayStation 3 and found that, despite cuts, the PS3 may still be the best choice for consumers. The PS3's main selling point is its built-in Blu-Ray disc player--acknowledged as one of the best Blu-Ray player deals on the market. The Xbox 360 underwent the embarrassing allegiance to HD-DVD, which lost the hi-def video war earlier this year.
Even though sales are lagging and the Xbox 360 is sans hi-def video player, Microsoft may hop ahead of the market come fall when high-profile exclusive games such as Gears of War II and Fable II are released. Microsoft also landed a downloadable content deal with the makers of the mega-popular Grand Theft Auto IV, and nabbed the hitherto-Sony-exclusive Final Fantasy XIII. Microsoft also plans to unveil a Netflix-streaming service in the fall.
As far as the casual gamer market goes, the family-friendly Wii currently dominates, but an overhaul of the Xbox 360 user interface, as well as avatars that look suspiciously like Nintendo's "Mii" characters, may bolster the Xbox 360's appeal.
So while we still haven't seen Microsoft's version of the motion controller, Friday's price cuts certainly stand to intensify the console wars just in time for the holiday season.
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