Microsoft discontinuing Xbox 360 Core?

Now it appears Microsoft may be following a similar tack with its $279 Xbox 360 Core console. On word from a tipster, Kotaku is reporting today that GameStop corporate has sent a memo to retail outlet managers telling them to remove in-store advertisements for the Xbox 360 Core. The reason? Once current supplies of Microsoft's low-end console dry up, "there isn't going to be anymore."

There does seem to be some validity to the claim. GameStop's online store is currently only listing the Premium, Elite, and Halo 3 Special Edition consoles, as well as its token megabundle, with no Xbox 360 Core package in sight. It seems unlikely GameStop would voluntarily give up one of its revenue streams, but at the same time, the 360's many configurations are something of an imposition on retailers forced to stock each version in adequate quantities. It's also worth noting that other online retailers such as Amazon and Best Buy are still flying the Core flag.

Still, with the across-the-board price drop of the Xbox 360 in August, the Core console is priced competitively with Nintendo's $249 sales juggernaut Wii console. It seems unlikely that Microsoft would want to ditch its most affordable model and possibly alienate thrifty consumers. But then again, Sony has done that exact thing with the PS3 twice now.

The official story: "Yes, we are still manufacturing the console included in the Core SKU. We believe $279 is a great entry point for next-generation gaming and a SKU at that price will remain an important member of the Xbox 360 family of consoles."-- A Microsoft representative.

Bogus or not bogus?: Bogus that Microsoft is ditching its $279 budget console. However, that isn't to say Microsoft doesn't have repackaging or rebranding plans for the Xbox 360 Core to maximize sales this holiday, or a little farther on down the road.