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E3 2007: Microsoft: Price cut? So what? photo

Sony has played some very strong cards from their hand this week, announcing new titles yesterday and and a price cut for their flagship console on Monday, but as Sony shaves off $100 from the PlayStation 3's price, Microsoft shrugs its shoulders and calmly goes about their business ... or so they say.

Sony's price drop was met with a "Spartan Green" special edition Xbox 360, but no mention of any kind of price reduction. The Independent says that Microsoft's decision to maintain its current pricing has something to do with the company missing the target of 12 million consoles shipped by the end of last month, racking up 11.6 million so far. Some analysts think that the refusal to come down in price could reflect the company's desire to turn a profit on their games division, but they're playing it cool now.

Shane Kim, the head of Microsoft Games Studios, said: "We have no desire, no need, to react to anything the competition has done ... We feel really great about the Xbox 360 right now."

They must be banking on upcoming blockbusters like Halo 3 and Grand Theft Auto, as these would definitely fall under the classification of "system sellers." Microsoft really has nothing to gain with a price cut at this time, and they know that they still hold some really good cards in their hand. We're just surprised that no one has played the "we're still cheaper" card yet.

[via The Independent ]







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Dale North is Destructoid's Editor-In-Chief, a founding editor, and specialist in Japanese gaming. An accomplished musician, Dale was reporting from Japan during the earthquakes of 2011. Luckily, he got the fuck out alive and is home in America now with his wife and beloved corgi, Einstein. Dale is also a co-founder of Destructoid's sister anime site Japanator. Likes Corgis, Sega Saturn, PSP, iPhone, Photographic tools. Meet the rest of the team



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30 comments | showing # 1 to 30
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BlindsideDork's Avatar - Comment posted on 07/12/2007 14:05
BlindsideDork
Ship and Sell aren't the same thing though! Haven't they barely sold 10 million?

I remember during their E3 conference said something about wanting 10 million XboxLive users...I laughed cause they forgot they would need to at LEAST sell 7 million more units and that is only hoping everyone who buys one actually GOES online.
Extreme_Drunk's Avatar - Comment posted on 07/12/2007 14:08
Extreme_Drunk
They've sold through 11 million (nexgenwars.com) I think they've shipped over 12 million.


I wouldn't however bank on GTA IV to sell the 360 at a 400 price range. That provides people with me a decent chunk of hardware. More than I'll need to run GTA IV on max @ 60fps.
GuitarAtomik's Avatar - Comment posted on 07/12/2007 14:09
GuitarAtomik
My guess is that they're taking the "wait and see" approach. If the PS3 gains too much ground on the X360 with it's price cut, I'd bet they drop the price the same day as Halo 3. If not (and most likely) they'll wait until Christmas time to drop it instead.

If there was still a 20gb version of the PS3 and it got the $100 cut as well, I'm sure Microsoft would be a lot more worried about it. But as the situation stands, the PS3 at base level is still too expensive.
BlindsideDork's Avatar - Comment posted on 07/12/2007 14:09
BlindsideDork
Also...I remember saying this awhile back, don't expect a price drop until well into at least 3 or 4 months of Halo 3's life.

"Oh, yes! Let's drop the price of our console right BEFORE we release our BIG hit game that made our console possible, the game that if it didn't exist, the 360 wouldn't!"

That is REAL smart, fo cereal!
Lightthrower's Avatar - Comment posted on 07/12/2007 14:10
Lightthrower
Microsoft is going soft on this issue. They remind me of Sony in 2006 when they were saying that everything was ok with their price.

Currently the PS3 with the price drop is more interesting that the 360. Elite at 480$ US has no wifi and no hd dvd. Buying Wifi is around 100$ and HD DVD is 200$ (in canada anyways).PS3 is 500$ and has both of these features (and a slightly better system).
bhive01's Avatar - Comment posted on 07/12/2007 14:10
bhive01
I think they're best bet is to wait until after Halo 3 to do anything, and even then wait until late winter early spring. There is still demand and it'll sell well this winter because there is a lot to play for it. That and the 3 year warranty.
BlindsideDork's Avatar - Comment posted on 07/12/2007 14:10
BlindsideDork
yeah, I haven't looked at nexgenwars.com but I never know HOW accurate that was. I think it said Wii had sole 1 million before they had actually sold that many.
Crackhippo's Avatar - Comment posted on 07/12/2007 14:11
Crackhippo
a price drop would be sweet...but they do have a point, i'm buying a 360 for halo 3 price drop or not
..but not 360 covered with halo 3 vomit
Dale North's Avatar - Comment posted on 07/12/2007 14:13
Dale North
Lightthrower, nice points.
kenoji's Avatar - Comment posted on 07/12/2007 14:23
kenoji
This week there is a 50 dollar off xbox 360 sale at shoprites....
Dennen's Avatar - Comment posted on 07/12/2007 14:24
Dennen
I don't think GTA can be considered a "System seller" more than the PS3 despite the $100 price difference.. If I had to choose anything to go with Halo 3, it'd probably be Mass Effect *nod*.. But that's just in my opinion.
Vigor's Avatar - Comment posted on 07/12/2007 14:38
Vigor
I think they will do the pricedrop when the new 65nm processors come out this fall.
Aex's Avatar - Comment posted on 07/12/2007 14:49
Aex
If I was MS, I'd just do the same thing they did last year... Rebates. Last year I ended up getting my Xbox 360 Premium for 200+tax due to the Microcenter Rebate and CC offer. If MS does the rebate dealy again this year, they will still sell tons, and be able to "raise" the price again for the slow periods.
TheBrain's Avatar - Comment posted on 07/12/2007 14:55
TheBrain
I was afraid they might not drop the price. Honestly they won't have to with Halo 3 coming out. We might have to wait until Q1 2008 or hope for a late 07 surprise after the Halo train has lost some impact.
Sharpless's Avatar - Comment posted on 07/12/2007 15:58
Sharpless
You left out the part where Kim mentions wanting to possibly compete for casual gamers' money, in the price-drop realm. This would make sense with a $50-100 price drop, bringing the Core to the Wii's level. I'm sure it'll happen, and it'll likely happen this year. They certainly don't need the drop, but the time is right for it.
SubOrbital's Avatar - Comment posted on 07/12/2007 16:06
SubOrbital
They don't care about Sony because they're still kicking ass and taking names along with Nintendo. Sony still has shit games. With GTA getting exclusive content and Halo 3 coming out, who would want a PS3?
Crunshii's Avatar - Comment posted on 07/12/2007 17:13
Crunshii
thats right SubOrbital, who would want MGS4, KZ2, Unreal3, & GTA4, Lair, on PS3 just to mention a few. u can trust that if the PS3 sales continue to rise, M$ will care n come with another xbox console edition to counter sony, lol. and trust me, u dont want that...
Funnydale's Avatar - Comment posted on 07/12/2007 17:21
Funnydale
@ BlindsideDork

The Nextgenwars site has been designated by Google as a Malware site. I wouldn't go there If I were you.

Google Warning about nextgenwars
Crunshii's Avatar - Comment posted on 07/12/2007 17:21
Crunshii
oh & my neighbor has a 360 that has RROD 2 time already and now hes nervous how much time he plays that it doesnt RR when he plays with me & other friends.

and if u really want another good reason why M$ cant afford (actually they can) a price cut, read: http://digg.com/gaming_news/Microsoft_Admits_ALL_Xbox360_s_Are_Defective

Sorry for the double post
uptonogood's Avatar - Comment posted on 07/12/2007 17:35
uptonogood
360 will not have a price cut in the near future -- they want to pull a profit sooner or later and they just took a billion dollar hit for that little ring of death issue.
DrNutt's Avatar - Comment posted on 07/12/2007 17:53
DrNutt
@crunshii

I applaud your witty and insightful posts, good sir.

But seriously, at this point, I don't see why people are so irritated that MS hasn't released a price drop. I mean, sure, it would be nice, but it's still cheaper than the PS3 and has about a billion more games.

As for WiFi and HD, well, I guess there's a point there, but I'm okay with ethernet (it's more reliable than wireless, anyway, from my experience) and I'm not going to worry about HD until I can afford a 2000 dollar TV. I think for this round of consoles, MS really knows what it's doing: catering to actual gamers, not Audi0/Video philes and technogeeks.
SniperFodder's Avatar - Comment posted on 07/12/2007 18:16
SniperFodder
You know the WiFi is a good point and convenient, not a dealbreaker though. I don't particularly care about bluray (Ihave a PS3 and have yet to rent/buy a BR movie) because I can download movies in HD from XBLM. I would guess that is the logic they used for not cutting the price. I still have a few hold-out friends that won't budge until they drop the price of the 360.
cquezaad's Avatar - Comment posted on 07/12/2007 20:44
cquezaad
How does the 360 HD downloading work? cuz I haven't done it cuz I have no where to save all those movies to. But I've been using my PS3 to play Blue-Ray movies a lot. I either play Oblivion or watch movies.
Monte's Avatar - Comment posted on 07/12/2007 21:13
Monte
@Lightthrower

While your adding up the costs of the 360, you might what to throw in the costs for xbox live in there ($50 per year)... sure it doesn't sound like much, but by the time the next xbox comes out you'll have spent a few hundred dollars in total ($250 in 5 years), where as it would have been free with the PS3...

Grant it, that's and iffy point in that the services are not equal... xboxlive is still better than PS3 from what i hear... but some wound still rather have free service over costly service, even if the costly one is better...

really, the difference between the two is that Xbox gave you a choice in the matter, where as PS3 had everything bundled together... the upside to 360 is if you don't want any of the add ons (wi fii, HD-dvd/blu-ray, online service); but the downside is that if you do want those add ons then it will overall cost you more than the PS3, especially now with the PS3 price cut... And as far as i've seen, most gamers want atleast one of those things... and just one is enough to put the 360's overall price equal to or above the PS3's price
kittridge's Avatar - Comment posted on 07/12/2007 21:36Image Hosted by ImageShack.us</a><br/>
kittridge
I'll be on my 4th 360. It's actually costing me $50 just to get it repaired now, since I didn't get the RRoD syndrome. I pay for two (2) xbox live accounts.

If they had refused to fix my 360, I would have saved up and purchased another one before considering buying the PS3.

Yeah, it's beat, but I don't play movies from a disc, and I like playing a variety of awesome games on a well implemented and reliable online service. Right now. Not next year. (Except I can't because the DVD drive is broke)

Good for Sony though. Competition is society's friend.
Zero Iscariot's Avatar - Comment posted on 07/13/2007 01:22
Zero Iscariot
Zero be droppin bombs... hopefully Dtoid believes me, 'cause this shiz got dugg.
Electrobes's Avatar - Comment posted on 07/13/2007 06:31
Electrobes
Well I think Microsoft from a business sense makes perfect sense.

- If they annouce a date for the newly chipped consoles.. people would wait to pay full price for that instead of what they have now (Problematic machines).

- Microsoft will wait on a price cut because they know patience wears out quick with potential consumers (like me) but they also want to cover the cost as much as possible when it is returned.

Personally I want nothing more than for them to announce when the newly chipped consoles are coming out. I want a 360 bad, but luckily have a wife who knows I should wait for the better product to come out, and if it doesn't anytime soon, it will be worth the wait when they do have price cuts.
nathanstl's Avatar - Comment posted on 07/13/2007 18:20
nathanstl
There is NO comparison between sony's online attempt and xbox live. Actually instead of looking at xbox live as an extra cost, I would pay for the 360 just to have xbox live. It's that good. And I continue to be wowed by their updates to the functionality of the console. The last update that added all kinds of video streaming support is great. I use it for hd streaming and organizing all my dvds on my hard drive. Oh and someone was talking about how many subscribers there are now. Last I heard they already have 7 million. Thats a lot of people to game with all linked by the same gamertag and online identity. I think it's a bold move not to give in to a price cut. Also agree that Halo 3 will be a huge system seller and why lose out on that much money.
thisissami's Avatar - Comment posted on 07/15/2007 09:11
thisissami
crunshii! you forgot heavenly sword, uncharted, Haze, ratchet and clank futures, Final fantasy XIII, Final Fantasy Versus XIII, LittleBigPlanet, Home, Warhawk, SOCOM, and even the new Echochrome which looks totally awesome!! also singstar is probably gonna rock!!
LongCat's Avatar - Comment posted on 07/16/2007 08:48
LongCat
lol. Full price for a faulty console. Enjoy your paperweight, suckers.
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