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Microsoft cuts Xbox console prices
Email Printer friendly version Normal font Large font Asher Moses
July 2, 2008
The Xbox 360 is now the cheapest non-handheld games console on the market after Microsoft slashed the price of the entry level Arcade model to $349.
Jeremy Hinton, Xbox group product marketing manager, said the company was passing on savings from recent currency fluctuations and lower manufacturing costs.
But retailer EBGames suggested the cuts may be due to flagging sales of the Xbox 360.
"Wii is so far in front, then PlayStation 3 is a clear second with Xbox coming in at third," said EBGame merchandising director Shane Stockwell.
The move means the Nintendo Wii, which was previously on par with the Xbox 360 at $399, loses its title of budget console king.
It also makes Sony's Playstation 3, priced at $699.95, an even harder sell for budget-conscious buyers. But Stockwell said, even at that price, EBGames was having difficulty keeping the console in stock.
"$699 is no barrier to sales for PlayStation 3," he said.
Some retailers, such as Big W, have slashed prices even further than Microsoft's official adjustment, selling the Xbox 360 Arcade for $279 for a limited time.
The mid-range Xbox 360 console, which adds a 20GB hard drive, headset and high definition cables, now sells for $499. Before the cuts it was $579.
The high-end black Xbox 360 Elite, which adds a 120GB hard drive, HDMI cables and a free 30-day Xbox Live Gold membership, was slashed from $729 to $649.
Sony and Nintendo refused to comment on the Microsoft price cuts.
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