Xbox 360 Arcade dropping to $199?

Source: According to an oddly written Ars Technica story, Microsoft is going to cut the price of the Xbox 360 in early September. That was followed by a bit of photographic supporting evidence from VGChartz. What we heard: Ars Technica ended last week with a tip from the same mole who clued the...

Source: According to an oddly written Ars Technica story, Microsoft is going to cut the price of the Xbox 360 in early September. That was followed by a bit of photographic supporting evidence from VGChartz.

What we heard: Ars Technica ended last week with a tip from the same mole who clued the tech-savvy site in to Microsoft's 60GB Xbox 360 configuration announced last month. According to the mole, Microsoft is planning an early September price drop for the hard-drive-less Xbox 360 Arcade system. Currently selling for $279, the bundle would supposedly be dropped to $199.

Accompanying that drop would be $50 cuts to the tags of the 60GB Pro and 120GB Elite hardware packages. That would put the Pro system at $299, with the Elite fetching $399. Presumably, the currently available but discontinued $299 Xbox 360 Pro 20GB system will have sold out entirely by then.

Further evidence for the Xbox Live Arcade system's price drop appeared over the weekend on VGchartz, with a picture sent in from an anonymous reader showing a retailer's inventory screen. According to that picture and the accompanying article, the Xbox 360 Arcade price drop is set for September 7.

Ars Technica's source also seems to be from the retail sector, as some of the information passed along seemed to be targeted to game sellers' concerns. And if there's one thing that history has shown us about retailers, it's that they apparently love nothing more than letting price cut cats out of console makers' bags.

The official story: Microsoft had not responded to a request for comment as of press time.

Bogus or not bogus?: Probably not bogus.

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Discussion

319 comments
fib112
fib112

That's cool because my 360 does not have HDMI. So I could buy this, sell my current 360, and have HDMI on my 2ms 120hz new LCD. I'm told I will really notice a difference from component video.

Mor-GanX
Mor-GanX

$200 is still too much for something that will malfunction in 6 months.

zpeed69
zpeed69

good news, but if the core is that cheap, aren't they losing money since it has more tech than a wii? that might force nintendo to make a price cut alongside microsoft and sony.

Shoujo-Gamer
Shoujo-Gamer

If this is true, and it looks like its turning out to be, I will upgrade to the Arcade from my ps2. I wont be using it for online stuff or downloading anything so it works out perfectly for me.

iesexywarden
iesexywarden

this is dumb imo. Xbox arcade to me is exclusive...Why spend the 200 bucks to get a half-assed system..makes no sence to me

elmejor_10
elmejor_10

[This message was deleted at the request of a moderator or administrator]

bandarman
bandarman

I think MS price drop would boost the already leading X360 sales... The world is full of idiots and they would still go for the $200 HDD less X360 instead of buying the HDD one. I was kinda disappointed that where Sony is putting so many games and exclusives for the FALL, MS has nothing but GEARS OF WAR 2 on their side...

blackace
blackace

necronaux Posted Aug 15, 2008 8:35 am PT It'll be interesting to see if Sony will follow, before the holiday season. ******************************************** Sony better follow or they are going to be in a whole of trouble come this holiday. At least in the USA anyways. Price drops in Europe and Japan probably won't make a huge difference, but in the U.S., Americans will be snatching up 360's and copies of GeoW 2, Halo 3, GTA IV & Fable 2 this holiday season.

fredbob3
fredbob3

f'n microsoft is cutting prices instead of upping there game.

xbox360progamer
xbox360progamer

I DONT THINK IT BOGUS. BUT I DO THINK THAT MICROSOFT IS GOING TO MAKE ALOT OF MONEY FROM THIS PRICE DROP ..

xbox360progamer
xbox360progamer

I DONT THINK IT BOGUS. BUT I DO THINK THAT MICROSOFT IS GOING TO MAKE ALOT OF MONEY FROM THIS PRICE DROP ..

Irishmandkg
Irishmandkg

Sony doesn't really need to drop their price,the only ps3 that will be on the market come August 27th is the 80g for $399. So you still get more storage and a blu-ray player as well. Also the line up for ps3 games is awesome for this year and next, can't really say the same for microsoft...um...fable 2....gears 2...and too human sucked so not much else, sony...killzone 2, resistance 2, motor storm 2, socom confrontation, sly 4, ratchet and clank quet for booty, metal gear online, final fantasy 13, versus 13, kingdom hearts 3, cyrsis, little big planet, god of war 3, shadow of the colossus sequel, and all the third party games, free internet and blu-ray tech in all games. Xbox 3 comes out in 2010, so have fun for the next year and a half.

kb8618
kb8618

if this is true, then Sony needs to make one as well, otherwise sony will loose the progress they made towards overtaking xbox360 sales they have made in the last 12 months

rey1294
rey1294

that would be a pretty good idea. sony should make a price cut.

necronaux
necronaux

It'll be interesting to see if Sony will follow, before the holiday season.

Irishmandkg
Irishmandkg

@halosniper Getting a refurbished xbox 360 is a really bad idea since refurbished means that they had to be fixed for problems such as the rrod. Meaning that you will be getting an xbox that could still break down, and having only the first xbox 360 tech will most likely do so. Not a wise buy, people wait for the $299 60g with the new tech that takes away the red ring of death and makes the xbox more quiet than before.

irulezz
irulezz

Guess I know when to buy a 360. For all of those thinking a cheaper price means more hardware problems: This price drops coincides with the release of the Jasper Chipset which is cheaper and more effecient than the current Falcon chipset.

padrenes86
padrenes86

finally I should be able to buy a new system

s1l3n70n3
s1l3n70n3

ALRIGHT! Blade8Aus, you just whammed the nail on the head! Hear that guys! If your like me and Blade, spend youe money on a good pc. It may be expensive, but the graphics can beat ALL current gen games, you can emulate last gen games (and the previous gens), It can be modded, and you can actually do your homework. It's because people buy consoles that I have to buy one too. If all my friends played PC games, the mode of online talk and game playing would always be free.

Blade8Aus
Blade8Aus

@irish i highly doubt the ps3 will last as long as the ps2 just look at the sales not even close and with rage that might not nesseseraly be the case as u shuld no with he graphics i mean obviously there will be more disks in there howeverit is also posible (and likely) that they can store a lot of the information on the harddrive as aresdude said the xbox 360 is also a dvd and cd player but i dont really care for either because i own a dvd player as i assume most peole do as well not to mention on pc u can burn disks as well when i plan 2 get a blue ray player (when its finally nessesery) i will buy a burner for pc so thats that problem solved so i wont hav 2 buy a ps3 or blu ray player AND a burner as for the online i completely agree with you why the hell can sony hav free internet and microsoft not? and yes nintendos is also free and altho i dont hate the wii like a lot of people that internet just plain sucks although it is ok if your bored and your on msn and your friend says to you "hey wanna play ssbb?" then you say "sure man gd idea" o by the way the xbox 360 has live silver for free at least i mean its certainly better than nothing o and also i think pc has the best online anyway in every aspect in fact as for your critisism of using batteries that is absolutly ridiculous i mean how much can it cost for rechargable batteries? also i think that you can get wired ones anyway and thats cheaper than the ps3 controlers than right? also 20GB isnt very significant in my opinion when theres 60 verses 80 but who said u couldnt buy an xbox 360 elite? of cors i tend to play most of my games on pc so i dont have a problem because i have almost 1TB in there i dont know what drugs ninty are on 512MB? come on nintendo! we all no that that is its biggest flaw and thats pretty much it but im glad about the price drop because it sounds like microsoft are moving on i mean with the industry instead of bein an expensive console with seemingly unnessesery features being added on we are finally getting a high definition console somewhere between the relatively expensive price of the ps3 and the far cheaper price of the older xbox and ps2 btw u betta still have backwards compatability because that makes a huge difference for me when i buy my consoles

mangojuiceboy
mangojuiceboy

@irish Half of those games you mention are shooters, one came out on 360 already and the other will be on the 360 as well. I understand the fact that you think and believe the PS3 is the best. Heck I play CoD 4 nonstop on mine, but all you,re doing is being a fanboy.

Irishmandkg
Irishmandkg

The xbox is a good gaming machine if all you are interested in is shooters and mindless fun, but the playstation 3 has games for everyone, kingdom hearts 3, killzone 2, resistance fall of man series, ratchet and clank, infamous, final fantasy 13 and versus, crysis, bioshock, metal gear solid, plus all the 3rd party games that will look better on ps3, as well as fit on one disc. Look at rage, the graphics will be toned down on xbox and it will fit into 3 discs, whereas the ps3 will have only one with all the graphics intact, most likely the case with final fantasy 13 as well. The xbox 360 is just a cheap computer that will be discarded when the new xbox comes out just like the first one. The playstation on the other hand will go on for another 8 or 10 years just like the ps2. So the better investment is the playstation 3 for anyone tha does their research.

aresdude
aresdude

@irish WOAH the ps3 is a dvd and cd player!? your acting like the xbox 360 is not? =p. and yeah blu ray is definetly a bonus for the ps3 everyone i know bought the ps3 just cause of that, and own like 2 games for the ps3, and use the xbox 360 for games. the ps3 is awesome, cause its a cheap blu ray player. who cares if it isnt the greatest gaming console, its a nice piece of electronics.

darkride66
darkride66

@ Makaatsu. That's some interesting data and I have to say I've gained a bit more respect for your argument, but I still see PS3 sales that dwarf the 360's sales for the last half year - I see PS3 sales down 10% from the same period last year and 360 sales down 30%. I think you're theory about MS gaining some momentum may have some legs but really this exercise has opened my eyes to just how well the Wii and PS2 are doing in Japan relative to the PS3 and 360. Maybe a price cut will help the 360 there, but I don't think this price cut applies to Japan.

Makaatsu
Makaatsu

@Darkride The numbers are not weekly numbers they are month to month numbers, guess you mis-read that part. In my orgional post i said "Next week 360 sales could beat PS3 sales due to TOV" That is my only talk of weekly sales. If it is easier to understand i will write it in a buisness way comparing this year to last for both consoles. PS3 Jan 07 = 174k Jan 08 = 170k = -4k Difference Feb 07 = 85k Feb 08 = 68k = -17k Difference Mar 07 = 134k Mar 08 = 60k = -74k Difference Apr 07 = 53k Apr 08 = 37k = -17k Difference May 07 = 43k May 08 = 44k = +1k Difference June 07 = 52k June 08 = 130k = +78k Difference July 07 = 87k July 08 = 52k = - 35k Difference 360 Jan 07 = 49k Jan 08 = 25k = -24k Difference Feb 07 = 20k Feb 08 = 10k = -10k Difference Mar 07 = 18k Mar 08 = 7k = -11k Difference Apr 07 = 10k Apr 08 = 8k = -2k Difference May 07 = 9k May 08 = 10k = +1k Difference June 07 = 12k June 08 = 13k = +1k Difference July 07 = 15k July 08 = 20k = +5k Difference So as you can see overall both consoles are down majority of the months (not weeks) since start of the year. However if you look at March of 2008 you can see the 360 stopped it's minus slide and starts to put pluses on there, which as i said means it is gaining momentum. With all the 360 bundles of TOV already sold out in Japan i would expect that to continue into August where as sales thus far have continued in the minus for the PS3. The PS3 figures have no pattern to them except for obviously MGS4 month of June. In fact for the end of July and start of August the PS3 sales were down over 50%. So this prooves what i said that if this rumour of a price cut is true then you would expect the 360 to continue to outsell the PS3 worldwide which has now done so for the past 5-6 weeks. IF the rumour is true you would expect it to boost sales from Sept into start of Oct. Which would mean July,August,Sept the 360 would have outsold the PS3 worldwide meaning a quarter of a year. Then add to this a lot of 360 exclusives are expected in the end of Oct start of Nov that could help to increase sales further. So to re-iterate what i said this would spark a remarkable come back by MS. With the SC4 comment i guess you don't really understand how the Japanese buy their games. They love fighting games and when it comes to a choice between buying a version for either the Japanese console or the foreign console the Japanese one will win everytime. The fact they have bought the game on a non Japanese console for the first time shows they are starting to open up to foreign industry even if slightly. When i was in Japan there was zero advertising from MS, nothing at all. Where as PS3 is rammed down your throat everywhere. Considering the difference in the advertising it is a massive feat for the 360 version to be only 50% away from the PS3 version. Hope that helps you understand a bit better how things work.

Irishmandkg
Irishmandkg

I can see why microsoft is dropping the price, because the xbox 360 sucks, plain and simple, they are most likely getting ready in the next year or so to unveil a new xbox. The playstation 3 on the other hand is now only $399, most people think that is a lot but really it is cheaper than even the $299 360. It is a blu-ray player, a dvd player, a cd player, and the online is free (its $50 for xbl on 360), the controllers plug right in after playing to charge so no wasting money on batteries like the 360, and it can connect to the psp, has a on demand service, and is super quiet with built in wireless internet(wireless adapter for 360 is $100) so in all you would be spending way more for a 360 that is only 60g. The ps3 is 80g, all u buy is a hd cable if you want and games, everything else is there, so now, which system is better, the poorly designed microsoft one or the amazingly designed sony one.......tough choice.lol

darkride66
darkride66

@ Makaatsu. Again, you're using one week of data which doesn't mean anything. So, let me see if I understand your point. In Japan, Soul Caliber 4 sold 74000 in it's first week on the PS3 and the 360 sold 35000. So the attach rate for Soul Caliber on the 360 is better than on the PS3. Fair enough. How you somehow translate this one week worth of sales into a huge shift in the 360's fortunes in Japan is another matter altogether. Ninja Gaiden II also did numbers similar to this in Japan when it launched. 27,000 in it's first week, amazing 360 numbers for Japan! Second week it was 4900. Then 2000. Then 1000. Now a handful. Do you see why using weekly data doesn't tell you anything? I bet Soul Caliber 4's 360 numbers for next week drop to 5000. Everyone's sales numbers do this but the 360 titles launched in Japan have zero staying power on the charts. I don't know what you're trying to prove by drawing attention to this, but it certainly isn't making me think the 360's fortunes in Japan have turned around overnight.

jimmeyg0101
jimmeyg0101

i think microsoft and sony pay way too much attention to what the other is doing instead on focusing their attention on whats important and thats putting out good products and keeping their installation base happy. if you make good games consoles will sell simple as that im so tired of reading that microsoft will beat sony this year and that sony processor has not been push to its limit yet . i dont think price cut for the 360 is a good thing i mean if your a gamer you proberly have one already they are trying to appeal to people who normally wouldnt purchase a game system and i mean even if they do buy one it wont be a steady flow of reveue because there not gamers they people who wanted to try a new toy

Makaatsu
Makaatsu

@Tenakuma My name is indeed Marcus :) i wanted Maakasu but someone had already beaten me to it :( so had to try a varient which was Makatsu but nope someone had that too! So last option was Makaatsu. 誰か他の人に会えてうれしい日本文化を楽しむ :) @Darkride Well the 360 in Japan has been improving month after month. This time last year it would be lucky to get 12k a month. Now it is at around 24k-30k a month. That is a huge increase. Where as this time last year in Japan the PS3 was selling averagly 30k a week (120k a month) and that has no dropped to around 10k a week (40k a month). So i think that is pretty clear proof of month to month changed over the past 12 months in Japan. To understand this a little better we can look at the sales of Soul Caliber 4 in Japan. On the PS3 it sold 70k and on the 360 it sold 35k. Which means in the charts the 360 has a game at number 6. The PS3 version sold 50% more however in terms of ratios that is a win for the 360 because the 360 has a 4.61 rate and the PS3 has a 2.76 rate. So again more evidence of something that has changed over time not week to week.

darkride66
darkride66

[This message was deleted at the request of a moderator or administrator]

skemaal
skemaal

Well Xbox 360's official page publicizes the bew 60gb version. When you click on "buy now" you see 299$ at futureshop and best buy Canada

Irve
Irve

chibi-acer : you have to remember that the PS3 has already had a price drop ... of sorts ... the only SKU is now $399 .. that's cheaper than the 360 elite .... personally even at it's alleged new price the elite is far too expensive .. MS need adverts saying 360 starting from $199 ... as for Nintendo cutting the price of the Wii ... not unless sales seriously drop off !

DiscGuru101
DiscGuru101

@TenAkuma: "Anyway, the significant price drop here is with the Arcade version, which only uneducated gamers would want" I don't agree. Cheap is cheap. This will seriously move GTA4 and Gears at Christmas.

chibi-acer
chibi-acer

Price drops are good for everyone. If you don't want a 360, it's likely that Nintendo and Sony will eventually follow suit. Even if you already have all three systems, more sales means increased growth of the game industry, which leads to more game development. It doesn't matter what kind of fanboy you are, this is pure win.

DiscGuru101
DiscGuru101

@Grognard: Very informative and fair.@darkride66: You have contradicted yourself a lot, and, you are intelligent. So either you do this deliberately (taking us on a dark ride?) knowing that most readers won't notice. Or you are unsure about your own feelings. Common enough. -You did just get busted out as a hypocrite officially. I hope you will turn over a new leaf.

TenAkuma
TenAkuma

@ Makaatsu The katakana in your little avatar-picture is wrong. It says Maakasu. Makaatsu should be マカーツ. Although the katakana in your picture seems like a katakana version of the name Marcus. So, if that is your real name, then I guess it's fine... Haha. Anyway, the significant price drop here is with the Arcade version, which only uneducated gamers (i.e. parents looking for the cheapest 360 for their 5-year-old) would want. If I can find it for $50, then I'll get it. Haha. However, the Pro and Elite versions are really the only 360s worth buying, and they are currently still too expensive (with the Live subscription and other features being significant add-ons). Of course, the PS3 is also way too expensive right now. A 360 price drop is definitely a smart move for Microsoft. If Sony counters with a $50-100 price drop, then the game will still be on between the two.

darkride66
darkride66

@ Makaatsu. Meh. You know how I feel about short term, week by week sales. We've talked about this before. I pay attention to the longer term trends, and there I'm still seeing the PS3 with a 1.5 million console lead for the first half of the year. Price cuts will change everything though.

Makaatsu
Makaatsu

@Darkride Indeed all of the consoles are on the down slope, even the Wii is selling far less then it was. It has gone from comfortable 160k+ per week sales to 92k a week. However the 360 is actually currently an exception to the rule and is doing better each week then the previous. In fact just over a month ago it's average per week worldwide was 118k compared to 160k of the PS3. In 6 weeks those numbers have swapped places sort of with the 360 currently at 146k and PS3 at 116k. That is before the price cut. Since the price cut as you would expect the 360 has sold more reaching up to 180k a week. So for the end of June and whole of July the 360 beat the PS3 in worldwide sales and as i mentioned if this rumour is true then that will likely continue into September. Which then means we are looking at the end of September start of Oct for things to settle back down before the holiday period. As for the japan thing, i lived there for over a year and you are right the 360 did beat the PS3 for 1 week. But the difference now is the PS3 has been out almost 2 years and has just had a few important games such as MGS4 and the 360 has had nothing but sales have increased. To put that into perspective if the PS3 sells 40k a week in NA as it currently is that is the same as saying it will sell 240k a week, that is a huge difference and is why it will send shockwaves as it will show that the Japaneese market are starting to buy 360's more then they are buying PS3's and anyone who has been to Japan and knows how the Japaneese think about foreign products especially american ones knows that does not happen often. If the 360 beats the PS3 on Japaneese,American and European soil that will mark an amazing turn around i'm sure you agree!

pokomo
pokomo

Seems to be that Microsoft are trying to boost flagging (but not poor) sales by dropping the price to compete with the Nintendo Wii, still the cheapest "next gen" console in the market. No doubt shortly we will see a price drop from Sony of their lower sized hard-drive consoles to gain too. Though this all seems to be an arbitrary decision, since the economy started to wane, sales of software and hardware have stayed strong and even increased in some cases.

darkride66
darkride66

Makaatsu said "next week could actually see the 360 outsell the PS3 in Japan, that would send shockwaves through the industry!" That already happened once in November last year. As far as I know, it didn't send shockwaves through anything. You also said "Add to this fact the PS3 is decreasing fast in europe with only a 20k difference compared to 100k a few months." All three consoles are decreasing fast from the spring peaks they hit in April and May, just like console sales have historically done forever. Spike at Christmas. Spike in Apr - May. Lull till the fall then a slow climb leading into the holiday period again. It's hard to make the argument that somehow one console is in trouble and the others aren't when they're all mimicking the same pattern to varying degrees. Although I know you'd like everyone to believe that the PS3's momentum is dying off, it's really not - they're just coming down from the MGS4 high, just like the 360 did after Halo 3. The only thing that can snap this type of pattern (and even then it's only momentary) is a huge game, or a price cut. Let's see if this rumor has legs. If they are cutting the price before Christmas I can see that posting the 360's fortunes, but I don't know how much wind that will take out of the Wii's and PS3's sails. When you think about it there were 120 million PS2 owners and so far this gen all consoles combined amount to about 60 million (roughly). That's a lot of gamers yet that haven't made a switch to the current gen.

Makaatsu
Makaatsu

What i find interesting is right now the 360 is starting to gain momentum in Japan. It has gone from selling 1k a week compared to PS3's 10k a week and started to sell between 5k-7k a week. That is a increase of near 600%. Add to this fact the PS3 is decreasing fast in europe with only a 20k difference compared to 100k a few months ago makes things even more interesting. Plus now we have this price drop for NA this will i assume keep the 360 sales well ahead of the PS3's (in fact the PS3 only sold 20k last week comapred to 90k on the 360) So if you think about it MS might actually pull off a master comeback if this is indeed true as it will regain 2nd place in worldwide sales monthly. The fact that it is only within 3k a week of the PS3 in Japan is a miracle in itself, sales of TOV will shift loads more next week so you never know next week could actually see the 360 outsell the PS3 in Japan, that would send shockwaves through the industry!

jimbo102671
jimbo102671

[This message was deleted at the request of the original poster]

Liberator72
Liberator72

@ darkride66 & Guts5 Good posts both of you. I'm glad to see some people can stay away from the fanboyism. I just wish everyone else would stay on topic instead of bashing everyone else now @ linx-ibarra Thats total rubbish. The only diference between the Arcade,Pro and Elite these days is the HDD and the disk tray. The insides of all the consoles are the same no matter what SKU you buy so you are wrong when you say they spend less on the machine if its theArcade one. I'm sorry to hear though that your first Xbox went wrong, I know the feeling. My launch console has still to this day had no problems and I know this cos my son now has it. But my launch Elite lasted just 6 months. So much for revised hardware eh! Luckily MS replaced my broken Elite with a brand new one instead of repairing it and I've had no problems since. You really are missing out on some great games though so $200 for the Arcade machine would be a great way back into the Xbox scene.

MidNiteX
MidNiteX

If this is true, then I'll be picking up a 360 later this year.