360 price drop confirmed!

[Nuckles87]

It's been confirmed by Wal-Mart:

http://i7.photobucket.com/albums/y300/MechDX/rollbackyo2.jpg

Special thanks to NeoGaf's MechDX for the scan:

http://www.neogaf.com/forum/showthread.php?t=175076

This is how the PS3 price cut was confirmed, so this is about as legit as you can get without an MS official confirmation.

Thoughts?

In my opinion, it's too little....too early. We are so close to the Halo 3 launch now, the 360 would have gained huge numbers even without a price drop. Combined with their cheaper chipset, MS could've made a mint at the $400 price point. November would have been the perfect time for a price drop. Of course, this is , just the business side of me talking. The gamer side is saying "the sooner, the better" but I can't help but think that a price cut at this point in time will do anything but hurt the 360's chance of making a profit this year.

A $100 price drop. I have no doubt that the $50 price cut will have a huge initial effect on sales, but I am less enthusiastic about it's long term effects. I mean, $50 doesn't sound nearly as cheap as $100, you know?

This should make things a bit more interesting for August. At the very least, this ensures that the 360 will be selling 500,000+ in September. This will also put the Core at the same level as the Wii. Maybe it'll hurt Wii's sales and finally start selling?

[Dreamcastpwns]

It's been confirmed by Wal-Mart:

http://i7.photobucket.com/albums/y300/MechDX/rollbackyo2.jpg

Special thanks to NeoGaf's MechDX for the scan:

http://www.neogaf.com/forum/showthread.php?t=175076

This is how the PS3 price cut was confirmed, so this is about as legit as you can get without an MS official confirmation.

Thoughts?

In my opinion, it's too little....too early. We are so close to the Halo 3 launch now, the 360 would have gained huge numbers even without a price drop. Combined with their cheaper chipset, MS could've made a mint at the $400 price point. November would have been the perfect time for a price drop. Of course, this is , just the business side of me talking. The gamer side is saying "the sooner, the better" but I can't help but think that a price cut at this point in time will do anything but hurt the 360's chance of making a profit this year.

A $100 price drop. I have no doubt that the $50 price cut will have a huge initial effect on sales, but I am less enthusiastic about it's long term effects. I mean, $50 doesn't sound nearly as cheap as $100, you know?

This should make things a bit more interesting for August. At the very least, this ensures that the 360 will be selling 500,000+ in September. This will also put the Core at the same level as the Wii. Maybe it'll hurt Wii's sales and finally start selling?

I think this is wrong, because Walmart could just be having a sale. And Microsoft wouldn't reduce the price a few weeks before one of their biggest games comes out, people who want Halo 3 will buy a 360 regardless of the price. Alot of magazines are speculating they would have had one in November.

[ShadowLegend]

This is exactly what I've been telling Cam for months now. MS isn't going to be dropping the 360 price by $100. They can't.


A $50 price drop is exactly what I was saying they would do and they did it. I disagree with nuckles that it was a bad idea to do this before Halo 3, I think it was a great idea. It'll make it a little easier for people who were thinking of buying a 360 specifically for Halo 3, of which there should be many.

...but that's really the only purpose this price drop will serve; making things a bit easier for people considering buying a 360 already. For everyone else, a $50 price cut won't have them running to Gamestop...

[Dreamcastpwns]

This is exactly what I've been telling Cam for months now. MS isn't going to be dropping the 360 price by $100. They can't.


A $50 price drop is exactly what I was saying they would do and they did it. I disagree with nuckles that it was a bad idea to do this before Halo 3, I think it was a great idea. It'll make it a little easier for people who were thinking of buying a 360 specifically for Halo 3, of which there should be many.

...but that's really the only purpose this price drop will serve; making things a bit easier for people considering buying a 360 already. For everyone else, a $50 price cut won't have them running to Gamestop...

But the point is, they know people will buy 360s for Halo if they do not already own it. This has been a trend, if it wasn't for Halo 11 or 15 million people would not have bought a Xbox 1.

[Nuckles87]

A $50 price drop is exactly what I was saying they would do and they did it. I disagree with nuckles that it was a bad idea to do this before Halo 3, I think it was a great idea. It'll make it a little easier for people who were thinking of buying a 360 specifically for Halo 3, of which there should be many.


For MS, as far as financials concerned, it was a bad idea. People who where going to buy a 360 for Halo 3, would have bought one for Halo 3. People who'd buy it with a $50 price drop, would buy it at a $50 price drop in November. I don't think leaving the price the same till November wouldn't have costed MS anything as far as sales.

[ShadowLegend]

For MS, as far as financials concerned, it was a bad idea. People who where going to buy a 360 for Halo 3, would have bought one for Halo 3.

Not necessarily. I still don't own one. And I am still not sure if I would have went out and paid $400 for one just for Halo 3.

This makes it a bit easier. And many people who are "on the fence" of purchasing a 360 will have more incentive to purchase it with this price drop.

In the long run, I agree, it won't do anything, but again, this price drop was likely for people (probably casual gamers) who will be interested in Halo 3 based on TV commercials, or whatever. This will give them a bit more incentive to purchase a 360.


People who'd buy it with a $50 price drop, would buy it at a $50 price drop in November. I don't think leaving the price the same till November wouldn't have costed MS anything as far as sales.

Why wait until November? Their killer app isn't coming out in November, it's coming out in September.

[Nuckles87]

Why wait until November? Their killer app isn't coming out in November, it's coming out in September.

Exactly. Two huge games that will sell millions of consoles, no matter the price, will be coming out consequetively in the two months prior. Combined with the cheaper chipset and high price tag, this would make Microsoft of a profit.

MS doesn't need a price cut to sell Halo 3 or GTA4. These games sell consoles.

November is when casual games and people on the fence will be buying consoles for the holidays. A price cut in November will give 360 another huge jumpstart and maximize possible sales, while not sacrificing the profit that will be made on Halo 3 and GTA4. People on the fence will buy the console in November, rather then August, at the very least.

[ShadowLegend]

MS doesn't need a price cut to sell Halo 3 or GTA4. These games sell consoles.

Why not allow them to sell MORE consoles?

Why p1ss off everyone who purchased a 360 for Halo 3 by announcing a price drop 2 months later?

Would not be a good move.


November is when casual games and people on the fence will be buying consoles for the holidays.

Look at the sales trend for Halo 2, dude. It sold almost all its copies in its first month. Very front-loaded. People won't be waiting until November to play it.

[Camron Kosciozko]

This is exactly what I've been telling Cam for months now. MS isn't going to be dropping the 360 price by $100. They can't.

But thats all youve been saying. You havent had any facts to back your claims of "they cant" and the arguements you did bring didnt have merit. Losing money on consoles sold? 3 year warranty plan? 360 supposed to be profittable?

It makes no sense how Microsoft, who has more money than Sony, cannot drop their 2 year old machine's price by $100, but Sony can drop their 9 month old machine by $100. The excuse "they cant" never applied or said anything.

Anyway on topic, if it turns out to be true, then good for them. $50 is better than nothing and we'll see if sales are impacted in August and throughout the rest of the year.

I personally thought it would be a $79-$100 drop, but its clear MS doesnt have to follow what Sony is doing as they are in the position with all the advantages. They will obviously stay a step ahead of Sony, which is what all the big honcho's at MS have been saying for awhile now, but i think $100 wouldve been more effective.

Now (if this holds true) with the core & Wii being the same price, itll be interesting to see what happens at retail towards the holidays. Wouldnt be surprised if cores started moving just because kids wanted gta4 or madden. Sounds like Ps2 all over again.

[ShadowLegend]

It makes no sense how Microsoft, who has more money than Sony, cannot drop their 2 year old machine's price by $100, but Sony can drop their 9 month old machine by $100. The excuse "they cant" never applied or said anything.

Because MS, unlike Sony, wants to PROFIT on the 360, and soon. With that plan in mind, they can not afford a $100 price drop.

Sony dropped their price by $100 in an act of desperation. The system's flopping. That price drop wasn't something that Sony WANTED to do.


Now (if this holds true) with the core & Wii being the same price, itll be interesting to see what happens at retail towards the holidays. Wouldnt be surprised if cores started moving just because kids wanted gta4 or madden. Sounds like Ps2 all over again.

Last year's Madden didn't move 360's; I don't expect this year's to either. GTA targets an older audience, and it's unlikely that older audiences will buy the CORE. And with this price drop for the Premium, there's even LESS incentive now to buy the core.

[ShadiWulf]

just wait to start arguing until microsoft confirms it, might be one of walmarts rollbacks or whatever they call their sales.

[ShadowLegend]

just wait to start arguing until microsoft confirms it, might be one of walmarts rollbacks or whatever they call their sales.

I don't think even Walmart does random price drops on their consoles, but you're right, this is FAR from official confirmation.

[Nuckles87]

Why not allow them to sell MORE consoles?

Why p1ss off everyone who purchased a 360 for Halo 3 by announcing a price drop 2 months later?

Would not be a good move.

1. They will...in November.

2. Do they really matter? They bought the console. Their feelings as far as the price goes is a non factor.

3. Financially, would have been a great move.

Remember dude, I am speaking purely from a financial standpoint. The standpoint that MS actually wants to MAKE MONEY, and please their stockholders, whom currently see the 360 as the 25 year old son without a job, spending all his parents money on games. If he doesn't start making money, soon, stockholders are going to want MS to kick him out of the house.

I acknowledge, for gamers, there is absolutely nothing wrong with this move. But from a financial standpoint, it's too early.



Look at the sales trend for Halo 2, dude. It sold almost all its copies in its first month. Very front-loaded. People won't be waiting until November to play it.

And so MS will make $50 more off of each 360 sold, make a profit, get some solid press on 360, and make the stockholders happy.

Not really seeing the bad side of this. The fact that it's so front loaded is why I don't think MS should cut the price until the Halo fanatics make the jump with Halo 3.

Although Halo 2 was under considerably different circumstances compared to Halo 3. It was on a console where most of it's fanbase (the Halo 1 fans) already owned an Xbox. The original Halo had a lot of staying power, staying in the top 20 years after release at the $50 price point, so you can't really say the series has no staying power. I see no reason why the people who where on the fence over the price point, won't make the jump for Halo 3 when the 360 lands in their price range.

[silverX]

Yes! Now when my warrenty expires and my 360 explodes i can get a new one cheaper! :D












:(

[ShadowLegend]

1. They will...in November.

2. Do they really matter? They bought the console. Their feelings as far as the price goes is a non factor.

3. Financially, would have been a great move.

Remember dude, I am speaking purely from a financial standpoint. The standpoint that MS actually wants to MAKE MONEY, and please their stockholders, whom currently see the 360 as the 25 year old son without a job, spending all his parents money on games. If he doesn't start making money, soon, stockholders are going to want MS to kick him out of the house.

I acknowledge, for gamers, there is absolutely nothing wrong with this move. But from a financial standpoint, it's too early.

lol no, they will not. When a HUGE EVENT like Halo 3 comes around, people don't say, "hm...I think I'll wait 2 months for the hell of it and get it then."

DOESN'T HAPPEN. The game will sell almost all its copies in Sept/Oct. Just like Halo 2. In an effort to get Halo 3 to sell as many 360s as possible, they're dropping the price slightly. It's a good move. Waiting until November is not beneficial at all to them.


And so MS will make $50 more off of each 360 sold, make a profit, get some solid press on 360, and make the stockholders happy.

Instead, they will sell MORE 360's with the cheaper price point.


I see no reason why the people who where on the fence over the price point, won't make the jump for Halo 3 when the 360 lands in their price range.

Unless MS announces the price drop in ADVANCE, how will people even know the price is dropping in November?

[Nuckles87]

1. They will...in November.

2. Do they really matter? They bought the console. Their feelings as far as the price goes is a non factor.

3. Financially, would have been a great move.

Remember dude, I am speaking purely from a financial standpoint. The standpoint that MS actually wants to MAKE MONEY, and please their stockholders, whom currently see the 360 as the 25 year old son without a job, spending all his parents money on games. If he doesn't start making money, soon, stockholders are going to want MS to kick him out of the house.

I acknowledge, for gamers, there is absolutely nothing wrong with this move. But from a financial standpoint, it's too early.

lol no, they will not. When a HUGE EVENT like Halo 3 comes around, people don't say, "hm...I think I'll wait 2 months for the hell of it and get it then."

DOESN'T HAPPEN. The game will sell almost all its copies in Sept/Oct. Just like Halo 2. In an effort to get Halo 3 to sell as many 360s as possible, they're dropping the price slightly. It's a good move. Waiting until November is not beneficial at all to them.


And so MS will make $50 more off of each 360 sold, make a profit, get some solid press on 360, and make the stockholders happy.

Instead, they will sell MORE 360's with the cheaper price point.


I see no reason why the people who where on the fence over the price point, won't make the jump for Halo 3 when the 360 lands in their price range.

Unless MS announces the price drop in ADVANCE, how will people even know the price is dropping in November?

Ok, I'm gonna try this one more time, before I leave again to work on more important things when the weekdays start...

1. I believe you've misunderstood me. Anyone who wants a 360 for Halo 3, and is willing to pay $400 for it, they will buy it when Halo 3 comes out. For anyone who won't pay $400 for one, but will pay $350 for it....they will buy it in November when it gets a price cut. MS doesn't loose any sales in this. They just get some of their sales in November instead of September.

2. ...does happen. Screw Halo 2, it was in a different position. Halo 1 was in the top 20 for several years at $50. The series has staying power. Yes, most of it's sales will be September. The game has 4 million+ pre-orders. Thats pretty much garunteed. But it's not like people whom couldn't get a 360 when the game comes out because it's too expensive, will magically forget about the game they've been waiting three years for. They'll just buy it when the 360 falls into their price range. It's not as if there is a limit on how long the game has to sell. November and December are the biggest months of the year for this industry. A game like Halo 3 will be able to sell quite well in these months, even with a September launch.

3. No....they will sell the same amount of 360s, sooner, at $50 less then they could have for a sizable amount of them.

4....what? They won't. Thats kind of the point. Anyone who's willing to pay $460 for Halo 3 will get it in September and October. People whom can't afford it because it's out of their price range, will buy it in November for $410 when it IS in their price range.

Come on dude, I'm explaining this as clearly as I can. This isn't very hard to grasp. Just in case I overexplained it to the point where this makes no sense (which I tend to do a lot) here's the jist of it:

Anyone who will spend $400 for a 360, just to get Halo 3, will do so in September and October. This, I'm sure, will at least cover the initial 4 million pre-orders the game has recieved. Considering this is 2/3s of the 360's entire fanbase in America, I'd wager a sizable amount of these buyers are people who don't even own a 360 yet, but will own one no matter what come September.

For those people who can't afford a $400, simply won't buy the game or 360 in September. In November, when the 360 gets a $50 price cut, anyone this price cut effects will then buy the 360 and Halo 3. I doubt they lost interest in the game if they had any interest in it in the first place.

This maximizes profits gained from Halo 3, while still giving the 360 a much needed price cut right before the season that REALLY matters: the holiday shopping season, where the game industry makes 40% of it's yearly sales. People who wanted Halo 3, and a $50 cheaper 360, will buy it then.

[ShadowLegend]

1. I believe you've misunderstood me. Anyone who wants a 360 for Halo 3, and is willing to pay $400 for it, they will buy it when Halo 3 comes out. For anyone who won't pay $400 for one, but will pay $350 for it....they will buy it in November when it gets a price cut. MS doesn't loose any sales in this. They just get some of their sales in November instead of September.

No, they will buy other things instead of a 360 and then MS will lose the sale. (If they refuse to pay $400 for one.) Nuckles, let's look at reality;

A person is hearing nothing except the amazing hype for Halo 3. It's got critical acclaim, he sees tons of commercials for it on TV, he hears about Peter Jackson's interest in the movie...he now is interested in playing this game.

When the game is released...that's when people buy it. They don't sit around and wait on the off chance that "oh, there may be a price drop shortly."

Either they buy it or they don't. It was kind of like me with the 360...I kept saying I would buy it for games like Kameo when the console came out...now, time's went by, and I couldn't care less about playing Kameo. Eventually you lose interest.


2. ...does happen. Screw Halo 2, it was in a different position.

...how is it in a different position? Both Halo 2 and Halo 3 are sequels to smash hits.


will magically forget about the game they've been waiting three years for.

I'm not talking about die-hard fans, dude, I'm talking about causal gamers.


For those people who can't afford a $400, simply won't buy the game or 360 in September. In November, when the 360 gets a $50 price cut, anyone this price cut effects will then buy the 360 and Halo 3. I doubt they lost interest in the game if they had any interest in it in the first place.

This maximizes profits gained from Halo 3, while still giving the 360 a much needed price cut right before the season that REALLY matters: the holiday shopping season, where the game industry makes 40% of it's yearly sales. People who wanted Halo 3, and a $50 cheaper 360, will buy it then.

I see what you are saying, dude. But I just don't think it makes any difference. Microsoft obviously wants to make sure Halo 3's launch is as great as it can be, so they are dropping the 360's price to accomodate that. I see no problem with it. They know that this game has the potential to move systems, and it has that potential WHEN THE GAME IS RELEASED, not 2 months later....so why not drop the price? When the game is released, that's when its hype will be at a breaking point...that's the optimal time for it to move systems. Not 2 months later.