Microsoft follows Sony by cutting console prices

Discussion in 'Wall St. News' started by ASusilovic, Aug 27, 2009.

  1. MSFT said Thursday that it will cut the price of its top-end Xbox 360 Elite games console by $100 to $299.99, starting Friday. In addition, it will cut the price of its Xbox 360 Pro console by $50 to $249.99, while supplies last. The Arcade model of the console, which doesn't contain a hard disk, will remain at $199.99. The announcement comes a little more than a week after rival Sony cut the cost of its PlayStation 3 console by $100 and said it would introduce a redesigned, slimmer model in September.

    Price wars have just begun...
  2. Lethn


    lol it's about time, I've always thought that consoles now were usually nothing more than overpriced pieces of plastic. Looks like I was right, this sort of thing happens every single time they bring out a console or a game, they rack the prices up high like mad and build up the hype then they lower the price when they realize it's not going to sell anymore.
  3. Couldn't be anymore wrong. The companies lose money on each console for a while until production costs come down.
  4. Correct but Sony did mess up by overpricing the PS3 while also rushing it out. Blu-Ray was one of the biggest costs in the console.
    If you just look at the number of versions of PS3, it's clear how disorganized Sony got.

    PS3 is a wonderful piece of technology and the best capability wise but the price point (due to rushed release) was always a big problem.
  5. Well that is besides the point. XBox 360 is a joke, and the only reason that Xbox ever had any market share was due to MSFT buying out Bungie for Halo.

    Nintendo Wii, on the other hand, is rocking.
  6. I like (MSFT) for the fact the they charge users a small yearly fee for XBL. Price drops on systems is not a good thing, systems already have little or no profit in them. I use PSN personally but the added revenue from XBL for (MSFT) doesn't hurt. The next gen systems will truely tell who is wining the console wars. Remeber the PSP go is a DLC only system. Profits for console makers should increase.

  7. Lethn


    I'm not actually disagreeing with you or arguing against it :) they still lose money but you'll find that they do actually rack the prices up in order to compensate. Look at any game as well, I saw Red Alert 3 at £30 once then after a few months it eventually went all the way down to £14 or so.

    The problem is these consoles are desperately trying to compete with the PC by pushing their no-piracy agenda instead of just trying to make a market all on their own.
  8. Those lost per unit is very long time ago.

    Is it still valid after recent success?