It looks like the Xbox 360 price cut fun has come to an end and is complete friends with North America covered, Australia getting theirs and now Europe taking the plunge. Get ready to empty those wallets ... empty 'em hard!
Congrats Australia on the price cuts you've just experienced and now we just have to wait for all of Europe to hop in on the fun and announce their participation in the 360 price cutting too.
Go ahead fanboys, buy your first, buy your second or be a nice guy and buy a 360 for a friend, because price drops are where it's at today.
And the hits just keep on coming. Joystiq received the above email -- sent to GameStop employees on Tuesday -- from several anonymous tipsters. The email details the arrival of signage regarding an "upcoming announcement" from Microsoft set to take place on August 8. As we try to rack our brains as to what such an announcement could possibly be, we are reminded of the ever mounting evidence that an Xbox 360 price drop is imminent. We're just going to go out on a limb and say that this is related. We're also guessing that nobody (including Microsoft) will officially confirm it until August 8.
Just to pass the time, how about you help us come up with some other kuh-razy thing it might be. Wait a minute, it's probably Voodoo Vince 2. You heard it here first.
Alright kids, it's probably safe to put the term "rumor" to bed now. Tipster ToeFurB sends us (and Joystiq) images of an upcoming Circuit City ad which reconfirms the 360 price drops we've seen in the Wal-Mart and Toys R' Us ads. The 360 Premium will see a $50 price break, the Elite will be reduced by $30, and the Core slims down by $20. For the Premium, Elite, and Core, this results in prices of $349, $449, and $279 respectively. Not only that, but those who purchase the newly discounted Premium console from Circuit City will also receive a free copy of Rockstar's Table Tennis. The ad is dated for August 12, so mark your calendars.
A European tipster has sent us info that Europeans may be getting the same 360 price cut satisfaction that seems destined to hit the US. Our tipster snapped a few pictures at a Dutch Media Markt, showcasing a €50 price reduction across all Xbox 360 models. This puts the Core at €249 and the Premium at €349. The tipster notes that Media Markt always lists temporarily discounted products in its weekly ad. The 360 price cut is not mentioned in the weekly ad, which seems to point toward a permanent price cut. With the Xbox 360 Elite touching down in Europe in just a few weeks (August 24 for those keeping score) the timing for a price cut seems about right. Have any of our European readers seen similar price reductions in their areas?
Xbox-Scene has posted the same prediction, also crediting an unnamed source.
[Via Joystiq. Thanks to elmersglue for the Xbox-Scene article]
" ... The company plans to sell 10 million Xbox 360 hardware units over the next year, so a price cut in November would likely impact 8 million of these, costing the company $800 million. At a software royalty profit of around $10 per unit, the company would have to sell 80 million incremental software units in order to be in the same place as without a price cut.
" ... Our model has Microsoft selling only around 60 million total units of software this fiscal year, so in order to break even on a price cut, they would have to sell 140 million pieces of software. Remember, we're talking about profitability for FY:07, not over the life of the 360."
That's a lot of software. Next Gen even mentions Peter Moore's comments to Joystiq during E3: "We had a price drop ... when Sony announced their price."
So, don't expect a price drop before next year. Do expect a software bundle instead.
[Thanks, Thomas Crymes]
Of course, Microsoft Taiwan has denied the rumor. And, it should be noted that cheaper production costs do not necessarily lead to cheaper retail prices. Not only that, but with the core system already being a full $200 cheaper than the low end PS3, Microsoft doesn't really need to lower its price.
Who knows, it might actually be true, but don't hold your breath. The much ballyhooed PGR and Points bundle is much more likely.