Microsoft Confirms Price Cut on 20GB Xbox 360

If you’re considering the Xbox 360 console, or plan to buy the Xbox 360 Arcade Edition for USD $279.99 please take pause, until the Xbox 360 20GB models dry up, you can now purchase them for USD $299.99. As Microsoft has bluntly stated, get them “while supplies last.”

We’re sure Microsoft is going to take a hit in Arcade sales while these supplies last, but that’s the sacrifice you make for drying up a console SKU and removing it from the market. So, while you can save $50.00 now, you’ll also be able to get a new 60GB model for the same price as the original Xbox 360 Preimum at USD $349.99.

You’ll still be able to purchase the Elite for its epic price of USD $449.99 if you really need the larger disk capacity (120GB). This is an official statement, leading up to E3, so we’ll have to see what Microsoft plans to announce at the event.

Will Sony respond to the price cut now that this is official? Probably not, as the Elite price is the same, the only concern Sony may have is the disk capacity comes closer to their high end console solution.

Redmond, Washington—Microsoft is giving consumers more gigabytes for their buck. The company today announced an Xbox 360® console with triple the storage space of the original console, but for the same price of $349 (U.S.) estimated retail price.

Available in retail stores in the U.S. and Canada starting in early August, the upgraded Xbox 360 will include a 60GB hard drive for storing the growing wealth of digital entertainment available for the console, including music, movies, television shows, and game content. In addition, Microsoft today dropped the price of its 20GB Xbox 360 console in the U.S. and Canada to just $299 (U.S.) (ERP) while supplies last, a savings of $50.

“We know consumers need more and more space to store the amazing digital content Xbox 360 offers, and we’re giving it to them at no extra charge,” said Albert Penello, Xbox director of product management at Microsoft. “No one device offers the depth and breadth of entertainment that Xbox 360 can deliver, and now you’ll have three times the storage to manage all that great content.”

Xbox 360 is just one of three Xbox 360 gaming and entertainment systems Microsoft offers. Microsoft’s Xbox 360 Arcade, which comes with a 256MB memory unit and five Xbox LIVE Arcade games, is a value for the whole family for $279 (U.S.) (ERP), and the premium Xbox 360 Elite console is available with a 120GB hard drive for $449 (U.S.) (ERP).

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Wii Takes US Lead In Console WarWii Takes US Lead In Console War

Just in case people were actually thinking the Xbox 360 was going to hold out against a viral console, Nintendo is now the best selling console in the United States. Anyone really surprised?

This months sales figures for consoles broke down something like this:

  • Nintendo DS: 783,000
  • Wii: 666,700
  • PlayStation 3: 405,500
  • PSP: 337,400
  • Xbox 360: 219,800
  • PlayStation 2: 188,800

Barring the crazy hand held sales of the Nintendo DS, you can clearly see Nintendo holds top-spot yet again, but this month Sony’s PlayStation 3 followed right behind. Although there was a good 200,000 difference, Sony didn’t do so bad; imagine if Nintendo had an MGS4 killer app?

Metal Gear Solid 4 sold 871,300 copies, individually, and roughly 1-million if you include those bundled with the PlayStation 3. The question is clearly answered, MGS4 helped sell Sony’s consoles. The new question will be: Can Sony keep the 2nd place rank against Xbox 360?

Until Gears of War 2, there isn’t a killer game for the Xbox 360 and GoW2 probably won’t move any consoles, those that love the series bought their console when Gears of War arrived. The next big console mover may, in fact, be Final Fantasy XIII for the Xbox 360 as it’s no longer exclusive to Sony and the 360 is a more cost effective way to get into the game.

How does Nintendo continue to keep the pace? Perhaps because their games are still in top positions with Wii Fit in 4th place, Wii Play in 5th place and Wii Kart in 7th on the June 2008 software charts.

(Thanks, 1up)

Microsoft Shoots for Number Two In Console WarMicrosoft Shoots for Number Two In Console War

Microsoft recently announced their price cuts on the Xbox 360, effective today, but what is motivating them? Microsoft’s not going to make much additional money by passing off the savings to the customer but they will, more than likely, sell a bunch of great new Xbox 360‘s to a new crowd of gamer.

Motivation? Sony.

“I’m not at a point where I can say we’re going to beat Nintendo,” says Don Mattrick, senior vice-president of Microsoft’s Interactive Entertainment Business. Indeed, Nintendo is likely to run away with the lead in the current generation of console gaming, leaving Microsoft and Sony to battle for second place. (businessweek)

Who would have thought Sony and Microsoft would be battling out this generation for second place while Nintendo breezes through with their Wii console and a handful of games with mediocre game reviews? Don’t answer that, it’s a rhetorical question. If you saw this coming and you’re not on the marketing or project planning for one of these console makers you better prep your resume!

The battle isn’t cooling, Microsoft drops their price to compete with their big competitor Sony which also brings it closer to the price tag on the Wii getting two bird with one stone. The reason Wii is winning is clearly due to its broad demographic of grandpa and grandma non-gamers along with hardcore gamers who have to collect all the consoles and younger gamers that want to fit the trend.

Microsoft’s clearly shooting for second place by installing more units into the consumers home as possible. They’ve got a great library of first person shooter titles, a few RPG’s and RTS titles and the typical contraversial titles like GTA and Saints Row with more hot blockbusters (read: Gears of War 2) arriving soon.

I see this as a great opportunity for casual game developers to get into the Xbox Live Arcade market and start making themselves (and Microsoft) some money off the new gamers that will buy their first Xbox 360 for $199 and up. Microsoft’s getting closer to the low-budget gamer crowd with their price cuts so it would be great if they can take advantage of that market with lower cost titles as well.

If you’re a game developer looking for console stick time and you want to grab the attention of a large pool of gamers, the Xbox 360 isn’t a bad start!

While Microsoft isn’t aiming at Nintendo just yet, there is no doubt Nintendo will be in their sights if they can smoke the pants off Sony in the near future (by this holiday).

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A lot of this episode revolves around the 30th anniversary of the classic fighting game in this week’s Gaming Flashback, Street Fighter II. The episode also looks at a lot of the hot news around the industry.

The news includes:

  • Microsoft plans to merge ZeniMax into a new Subsidiary called ‘Vault’
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Let us know what you think.