HQ NETWORKXbox One | Xbox | InstallerDeluxe.Com 2,413 HQ Network UsersHQ Network: 2,413 | Members OnlineGuests: 864 |Guests OnlineMembers: 3

  Active Topics  | Achievements  | Cheats  | Downloads  | Feedback  | Forums  | Games  | Hardware  | My Profile  | News  | Reviews  | Tutorials  | Leaderboards  | Videos

Arcade Prices to $199.99 on Sept. 7th

Catch up on everything Xbox including the latest Gaming News, Release Dates, DLC, Xbox Live and Modding..

Browse All News |  Write for Us |  Most Popular |  Browsing: 42 SEARCH XBOX NEWS:      

Arcade Prices to $199.99 on Sept. 7th

Arcade Prices to $199.99 on Sept. 7th
Published by HQM0NSTERB0Y on Monday, August 04, 2008
Tagged: Gaming, Hardware, Live Arcade, Xbox 360,
Price drop for the XBOX 360 Arcade comming to a store near you:

This picture is confirmation of the earlier Ars Technica article from an informant stating that the Xbox 360 would drop it's price in September to $199.99 for the Core, $299.99 for the 60GB model, and $399.99 for the 120GB Elite model. This picture shows nearly irrefutable proof that those rumors are substantiated, and are set to happen in just over a month.
Calculating the Impact of the $199.99 Price Point

Microsoft has been no stranger to the $199.99 price point. In interviews, high brass officials from Microsoft have stated they are 'very aware' that the $199.99 is the sweet spot for console sales. Earlier this year, a weakening Xbox 360 had it's price re-vamped to the 199 Euro price point in February. According to VGChartz.com tracking information, this price drop has allowed the Xbox 360 to gain traction, and sell 100% more units in the February-July timeframe - From an estimated 750,00 to 1,750,000 units in the 6 month timeframe.

Could a similar boost happen in the United States? It is entirely possible: Such a price point will leave the Xbox 360 as the lowest priced Next-Gen console on the market ($50 below the Wii's $249.99 price point), and digging ever-closer to the Playstation 2's pricepoint of $129.99

If you are on the 360-Hq homepage click Read More to view the whole story!

Not only is the impact of the $199.99 going to of large importance, the scheduling of the drop is telling as well. It takes place 1 week after Square Enix's 'Infinite Undiscovery' and 2 weeks before Harmonix/EA's 'Rock Band 2' - Both exclusive to the Xbox 360 platform at the time of release and pricedrop (obviously, Rock Band 2 will ship in November for the other platforms).

Could Microsoft be making a true power-play for the Holidays? I think so. At a $199.99 price point, and Microsoft's continued dedication to steal away both Sony's hardcore user base through gobbling up former exclusives such as Tales of Vesperia, and Star Ocean , and attempting to woo casual gamers away from Nintendo with such offerings as Your In the Movies and Lips , it would seem that the price drop could act as a suitable catalyst for higher sales.
Can Microsoft Still Profit from Such a Bold Move?

Dropping the price $80 on Arcades (and price drops on the Pro and Elite models), one has to ask, can Microsoft be profitable while reducing their price by over 20% on the base model, and roghly 15% on the Premium/Pro and Elite?

Lets take a look at past statements regarding the history of the cost to build an Xbox 360:

1) At launch, the Xbox 360 costs approximately $525 in parts to make a unit - Roughly 24% over the price of a standard $399.99 USD Premium model.

2) By November 2006, that price, according to iSuppli had decreased by nearly 40% - From Approximately $525 per unit to $323.90 per unit for the Premium model, and under $280.00 for the HDD-Less Core model (which is now the Arcade).

3) Since then, Microsoft has made 2 major revisions to the Xbox 360, the 2nd heatsink , and the cost-cutting 65nm archatcture of the Falcon revision. According to DailyTech, the Falcon revision cut CPU manufacturing costs by 50%.

4) And most recently, the Jasper chipset, with the 65nm GPU archatecture began it's production run in early May. TG Daily reports later in the article that they expect the Jasper chipsets to launch this month (which interestingly enough, coencides with the 60GB model and the price drop, exactly like last year's price reduction).

Because of the steps Microsoft has taken to reduce cost on the production of the console, and maintain profitability, it is very likely that the Xbox 360 has seen major reductions in the cost to manufacture a Xbox 360 since the $280.30/$323.90 prices were used more than 18 months ago. Using Moore's Law , it is believable that the Xbox 360 has reduced it's price a further 35-50% from the November 2006 pricepoint, and could be manufactured for (after the Jasper reivsion) $140.15 to $182.19 before other cost considerations (such as cost of delivery) are applied. This would fit in perfectly with Microsoft's goal to be profitable with the Xbox 360, as costs should be lower, or just at, the price of sale to distributors and retailers.

Furthermore, it would also be in line with what Sony has done, reducing the price of the Playstaion 3 from over $700 to $400 since November 2006.

Stay tuned for more updates! Lets see how accurate this photo is. Obviously, if this does come to pass on September the 7th you have VGC to thank for the exclusive industry-altering news :) I hope they drop the price of the games too...lol.

News-source: vgchartz.com
( Subscribe via )

Associated Topics

GamingHardwareLive ArcadeXbox 360

Rate this Article

Average Score: 0 | Votes: 0


 Printer Friendly Printer Friendly  Send to a Friend Send to a Friend

Latest Xbox 360 News

Xbox 360 NewsXbox Branded Hooded Union Suit arrives December 13 - Pre-order Now!
Microsoft has just announced that their Xbox Hooded Union Suit - Green is now available for pre-order ready for it's December 13 launch.The Xbox Hooded Union Suit delivers a whole lot of comfort—and s..

Everreach: Project Eden is now available on XBO..

Ancestors: The Humankind Odyssey Is Out Now On ..

Remastered version of 'Verdun' is Out Now on Xb..

Neverwinter Nights: Enhanced Edition Now Availa..

Xbox 360 News | Submit News

Xbox 360 News Archive

   Wednesday, December 04
 Trover Saves The Universe Is Now Available On

   Tuesday, December 03
 Xbox360Best Online Casino Games Overview
 Indie Gems Bundle: Explosive Edition Out Now

   Monday, December 02
 Xbox360Pathologic 2 Digital Pre-order And Pre-downlo

   Friday, November 29
 Xbox360Wreckfest's Steel & Wheels DLC Pack Is Out No

   Thursday, November 28
 Xbox360XBOX Games With Gold for December 2019 Reveal

   Wednesday, November 27
 Xbox360Woven The Game Is Available Now On Xbox One

   Tuesday, November 26
 Xbox360American Fugitive's next DLC 'State of Emerge

   Monday, November 25
 Xbox360The Ultimate Sonic Bundle Available Now For X

   Friday, November 22
 Xbox360Sniper Ghost Warrior Contracts takes aim on X
 Disney+ app is now available to download on X

   Thursday, November 21
 Xbox360Xbox One X enhanced 'Tokyo Warfare Turbo' is

   Wednesday, November 20
 Xbox360Free West Of Dead OPEN BETA is available now
 DreamHack Halo Series 2019: What Do We Know?

   Tuesday, November 19
 Xbox360Romancing SaGa 3 Is Out Now On Xbox One

   Monday, November 18
 Xbox360New Xbox Elite Wireless Controller Series 2 I
 'Terminator: Resistance' XBOX One Digital Pre

   Friday, November 15
 Xbox360Mad Games Tycoon is Out Now on Xbox One

   Tuesday, November 12
 Xbox360Shadow Of The Tomb Raider Definitive Edition

   Monday, November 11
 Xbox360Need For Speed Heat Races Onto Xbox, PS4, and

   Friday, November 08
 Xbox360Ancestors: The Humankind Odyssey XBOX Digital

   Thursday, November 07
 Xbox360Xbox And DPM Studio Team Up On X019 Camouflag

   Wednesday, November 06
 Xbox360 Xbox All Access Includes upgrade option for

   Tuesday, November 05
 Xbox360XBOX Black Friday Deals: Discounts on Sea Of
 Sniper Ghost Warrior Contracts Digital Pre-or
 The importance of software for online casinos

   Monday, November 04
 Xbox360JUMANJI: The Video Game XBOX Digital Pre-orde

   Thursday, October 31
 Xbox360Secret Neighbor Out Now & Included In Xbox Ga

   Wednesday, October 30
 Xbox360Plants vs. Zombies: Battle Is Available Now

   Tuesday, October 29
 Xbox360PUBG Corporation Announces The PUBG Global Ch

See All Xbox 360 News | Xbox 360 News Archive

HQ Network Affiliates

Xbox One Games
Xbox One X Games
Video Game Consoles
Xbox 360 Cheats
Xbox Cheats
Game Bullets
Xbox One Forums
Xbox 360 Cheats
Xbox 360 Achievements
Xbox 360 Cheats
Video Codecs
Get 360 Achievements
HD wallpapers
View All HQ Affiliates