Microsoft's Xbox 360 will be priced at $299

KdjaCL

Microsoft's Xbox 360 will be priced at $299 when it hits shelves later this year, according to analysts at major investment bank UBS, with Microsoft subsidising each console to the tune of $75 in order to meet that price point.

Predictions by the analysts, reported last week in the Toronto Globe and Mail, suggest that Microsoft will pay $375 per unit to its manufacturing partners, with the final retail price of the console pegged at $299.

That's in line with comments from Microsoft boss J Allard, who told the media at E3 that the Xbox 360 would launch "in the neighbourhood" of the $300 price point at which the original Xbox launched in late 2001 in North America.
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The $75 subsidy reportedly required to hit the launch price is quite high, but not unusual for a new console. Platform holders routinely subsidise their consoles at launch in order to build an installed base, and then make back the money from software sales and the rapidly falling price of hardware manufacture late in the lifespan of the console.

However, Microsoft found it more difficult to do this with the original Xbox, since it had to continue buying components from partners such as NVIDIA and Intel at high prices - unlike Sony, which has been able to hugely reduce the manufacturing cost of the PS2 as it builds most of the core components itself.

For Xbox 360, Microsoft has moved to a more Sony-like model, and expects to be able to realise similar economies as the scale of manufacturing ramps up and the component costs fall.


http://www.eurogamer.net/article.php?article_id=59517


nice price


kdjac

Headshot

very good price

flogen

So going by the conversion rates Ninty and Sony have followed for the DS and PSP respectively, we should see it for €300? Or is that wishful thinking?

aphex™

I presume It will be €300, isn't that always the way?

I'm more interested in how much more games will cost.
I predict xbox games will be cheaper than PS3 ones. Why? Because Sony will say "if you can't afford it, buy the psp version". MS can't do that.

honru

They should have set the price at $360/€360...

C'mon, that would've been pretty cool.

Games are going to be about €70 (probably around €55 from play.com et al).

KdjaCL

$300 to game = £300 = €550


Seems a very low price with such nice tech inside it.

kdjac

flogen

KdjaC wrote:

$300 to game = £300 = €550


Seems a very low price with such nice tech inside it.

kdjac

I hope they just do a direct euro conversion, so it's $300 - €300. like the DS and PSP, obviously I'd much prefer them to do a proper conversion but that just isn't going to happen.

(and by $300 to game, do you mean game the company or something else?)

KdjaCL

The company. most will buy it online tbh get the proper price.


kdjac

danniemcq

$299 is €243 so it'll be €250 and then for launch day it'll be €300 with game or someother special item or bundle (extra controller and remote???) the usual rubbish wait and you'll see then you'll all bow before me and call me the gaming god. that or fluffy pants

kaimera

i like fluffy_pants myself...

flogen

KdjaC wrote:

The company. most will buy it online tbh get the proper price.


kdjac

tbh, the companies don't really set the price, the makers do, up until recently an xbox, ps2 and gc cost the same everywhere, the bundles were different though

skywalker

f®eak s&#169 wrote: »

They should have set the price at $360/€360...

C'mon, that would've been pretty cool.

Games are going to be about €70 (probably around €55 from play.com et al).

Them charging an extra €60, would make it cool?

Do you work in marketing by any chance?

Lord Oz

I wouldn't advise buying the console at launch - wait a week or two and the prices will drop. Remember the first Xbox? That launched at €400 I think and dropped pretty soon after.

zAbbo

I might pick one up at the US lauch, heopfully

Whats the time difference in launching in US/Europe

ShiverinEskimo

Didn't sony drop the price of the already out ps2 leading to the price drop of the xbox?

they wont have to drop the price this time - they are the first and only next gen console - they can set the pace.

Retr0gamer

I'm getting mine from the states. I'm fed up chipping consoles for imports and then having them break in just over a year (I'm looking at you PS2).

dearg_doom

danniemcq wrote:

$299 is €243 so it'll be €250 and then for launch day it'll be €300 with game or someother special item or bundle (extra controller and remote???) the usual rubbish wait and you'll see then you'll all bow before me and call me the gaming god. that or fluffy pants

lol, I love optimists!!

There's no waaay we'll get it for 250euro!!

Europe ALWAYS gets ass-raped when it comes to game/console prices, it's tradition at this stage:)

dloob

f®eak s&#169 wrote: »

They should have set the price at $360/€360...

C'mon, that would've been pretty cool.

Games are going to be about €70 (probably around €55 from play.com et al).

The preorder prices are scary on play.com
63.99 for most with Saints Row an epic 79.99 :eek:

aphex™

dloob wrote:

The preorder prices are scary on play.com
63.99 for most with Saints Row an epic 79.99 :eek:

Well it should really be €75 (converting the currency yoursef). They just made it €79.99 for their convenience. So if ordering, keep it with GB£.

The above make me believe the Xbox 360 @ €360 is indeed likely. Convenient for marketing.

Yeah the Xbox itself _should_ be €300 at the most but then of course you remember europe will get ripped off by 20%. Oh look that makes it €360.

KdjaCL

flogen wrote:

tbh, the companies don't really set the price, the makers do, up until recently an xbox, ps2 and gc cost the same everywhere, the bundles were different though

Right ....so someone walks into shot and asks for console for 299 and tgets told "oh we only selling bundles for 399"


Kdjac

1huge1

these new prices are beginning to scare my wallet

shabbyroad

words that spring to mind
"conclusions" and "jumping to"
"not" and "announced"
"prediction" <---- that's a good one

L5

well ive got mine pre-ordered in gamestop since 3 weeks ago
20 down secures a pre-order, these are going to be like golddust come November/December

BloodBath

I reckon the so called experts are $100 off what the true retail price will be, I'd say it will launch 1t $399. There is some serious hardware in there and they have no competition at launch.

iregk

I agree with bloodbath here, the hardware involved is going to push the price up in my opinion to at least 399. remember also they have no competition at launch so expect a wait most likely a week or two before ps3 launchs to get a price drop.

flogen

BloodBath wrote:

I reckon the so called experts are $100 off what the true retail price will be, I'd say it will launch 1t $399. There is some serious hardware in there and they have no competition at launch.

yeah, but MS have to think ahead, they have a 5 or 6 month headstart, but if they set their price too high they'll damage sales (people who will wait for a price drop). the longer people wait the more chance there is of them going sony again.
MS will take a hit on the price again, maybe not as much though

BloodBath

They will still take a hit selling the thing at $400 and they will still push a shed load of them with a christmas launch and no competition. I seriosuly don't see them selling it at $299 but then again it is Microsoft. If anyone can afford to lose millions selling a console at a major loss it's them.

grimloch

The PS2 sold at 380 pounds at first and they were impossible to get for months. I reckon the x-box will sell at 400 and have loads of people buying it.

monument

BloodBath wrote:

I reckon the so called experts are $100 off what the true retail price will be, I'd say it will launch 1t $399. There is some serious hardware in there and they have no competition at launch.

The “experts”, other wise known as the “analyses”, and Microsoft, have to think about this from more then the short-term cost of the hardware.

The competition will be - at least apparently - only around the corner, and if you kept an eye on what the “experts” were saying you may have also seen that they "predict" the 360’s few months head start will mean little to Sony in light of the amount the PS2 has sold in its lifetime.

Peteee

flogen wrote:

MS will take a hit on the price again, maybe not as much though

Again??

What price did the xbox launch at?

€479 (Launch Price (Ireland) 14 March, 2002)

(wikipedia)

A month later they dropped it to €299 because approximatly 7 people had bought one (my estimate)

i'm expecting both consoles to launch at €360 (Both for marketing reasons, sony taking the piss )

flogen

Peteee wrote:

Again??

What price did the xbox launch at?

€479 (Launch Price (Ireland) 14 March, 2002)

(wikipedia)

A month later they dropped it to €299 because approximatly 7 people had bought one (my estimate)

i'm expecting both consoles to launch at €360 (Both for marketing reasons, sony taking the piss )

yes again.