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Xbox 360 launch price will be $399.99


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Microsoft plans to introduce its new Xbox 360 video-game console for $100 more than the launch price of its predecessor -- while departing from industry tradition by offering a scaled-down version for substantially less.

In a move that may surprise some gamers, the company this morning announced a price of $399.99 for the hard-drive-based Xbox 360, unveiled this spring and slated to launch later this year. Microsoft also disclosed plans to simultaneously offer an alternate version -- with no hard drive and without the ability to play original Xbox games -- at the more typical $299.99 launch price.

Analysts say it's a gamble on two fronts: It's unusual for a console to debut in two distinct formats, especially with such different prices. And while consoles have launched at higher prices in the past, many game-console consumers have become accustomed to the $299 price upon release.

"Historically, if we look at the consoles that have been successful, they've launched at a price of $299 or less," said Schelley Olhava, video-game industry analyst at the IDC research firm.

Microsoft hopes to break that mold. The Redmond company is trying to end the financial losses in its console business and put itself in a position to top Sony's dominant PlayStation console franchise in market share.

The company believes $399 should be a "very attractive price point" at launch for the fully equipped Xbox 360 -- "particularly when you look at the power and versatility of these systems," said Mitch Koch, Microsoft's corporate vice president of worldwide retail sales.

At the same time, he said, the scaled-down Xbox 360 Core System will let people "get into the product, start enjoying the games and then have a fully upgradeable path to add any of the accessories or features" of the full-fledged Xbox 360.

Apart from the hard drive and some other peripherals, both versions will come with the same underlying technology, including advanced graphics and central processing capabilities.

The possibility of an Xbox 360 version without a hard drive has been a source of speculation since the company acknowledged that the hard drive would be detachable. Koch said the component of the console that enables backward compatibility -- the ability to play games made for the original Xbox -- relies on the hard drive.

That means someone wanting to play "Halo 2" or another game made for the original Xbox would need to buy the full-fledged Xbox 360 with hard drive, or continue using an original Xbox console.

Alternatively, Microsoft is selling a separate, 20-gigabyte hard drive for $99 that can be used to upgrade an Xbox 360 Core System, letting it play backward-compatible games and store large amounts of content. In addition, the company will sell a 64-megabyte memory unit for $39 for storing smaller amounts of content on the stripped-down system, although that would not enable backward compatibility.

Another difference between the two versions will be the controllers: As previously announced, the Xbox 360 will come with a wireless controller. But the stripped-down Xbox 360 Core System will come with a wired controller. Wireless controllers will be sold individually for $50.

The Xbox Live online gaming system will be playable on both the full-fledged and stripped-down Xbox 360s. Koch said game play should be the same on both versions. The company has told game developers inside and outside Microsoft to make sure their games work regardless of the presence of a hard drive.

Microsoft made the Xbox 360 pricing and version announcements Wednesday in conjunction with a German gaming conference.

Sony hasn't announced pricing for its competing PlayStation 3, which it plans to launch next year. Nintendo likewise has been quiet on pricing plans for its Revolution console, also expected to debut next year.

Microsoft's unusual strategy makes it difficult to predict how prospective buyers will react. IDC's Olhava, for one, said she isn't changing the forecast she made before the pricing announcement, anticipating 2.5 million overall Xbox 360 shipments worldwide by the end of the year, following the expected launch sometime before the holidays.

Olhava said sales of the two versions "will be very telling" about the preferences of gamers when it comes to pricing and features.

Wedbush Morgan Securities analyst Michael Pachter, who has previously suggested a $399 launch price for the Xbox 360, said it seems to be appropriate.

"It's essentially maximizing revenue without gouging the consumer," Pachter said. "It gives Microsoft the luxury of cutting the price after they sell several million units, before the Sony (PlayStation 3) launch."

Many hard-core gamers would still buy the Xbox 360 at a $399 launch price, said Ryan Erickson, 25, who runs a gaming-focused Internet cafe in Lynnwood called GameClucks. But in general, he said, most people seem to have been expecting a $299 price, based primarily on past experience.

"That's the tradition," Erickson explained.

Microsoft has said it will launch the Xbox 360 in time for the holidays this year in the U.S., Europe and Japan.

The company today announced a similar dual-pricing structure for Europe -- 299 or 399 euros, and 209 or 279 British pounds. Microsoft promised more specifics on Xbox 360 pricing in Japan soon.

Koch declined to be more specific about the timing of the launches.

Both the PlayStation 2 and the original Xbox were priced at $299 in the United States upon their respective launches. It's customary for the price of consoles to drop during their life cycles, and both currently retail for half that amount. Nintendo is selling its current console, the GameCube, for $99.

THE DETAILS

Xbox 360

Price: $399.99

Hard Drive: 20 GB, detachable

Includes: Wireless controller, headset, basic online membership, media remote.

Xbox 360 Core System

Price: $299.99

Hard Drive: None

Includes: Wired controller, basic online membership.

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sorry but nope.

http://news.yahoo.com/s/sv/20050818/tc_sil...HNlYwMlJVRPUCUl

In Europe, the Xbox 360 will cost 399 euros (about $490), while the Xbox 360 Core will be 299 euros. In the United Kingdom, the Xbox 360 will be 279 pounds (a little more than $500) and the Core 209 pounds. Prices in Japan will be announced at the Tokyo Game Show in October.

europe always gets screwed. hmmm maybe germany and EUshouldnt mess with MS

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that's horrible, i guess we can say the PS3 & evo are ganna sell more than the 360 now :lol:

i forget if it was ps2 or xbox that actually cost to make it was $315, even though they sold for $299 in the states. i do remember that for each ps2 sold in the states it require 5 games to be bought to break even the sony cost of the console. (first year out anyway)

frankly, i say no to both the x360 and ps3 and just buy more ps2, xbox and cube games cheap the first year that x360 and ps3 is out. that way they fix the bugs in the new consoles and i get all the older console games very, very cheap from game stores trying to move the old games. they make like $5 off a new release. but if they get that release in a trade then they make more money selling it cheaper then the $49 new release cost. plus the cost for the new consoles should go down somewhat by then.

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i personally just want a PS3 and an evo. both are completely backwards compatible, and now the price of the 360 just makes me wanna bitch slap BG ;)

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i personally just want a PS3 and an evo. both are completely backwards compatible, and now the price of the 360 just makes me wanna bitch slap BG ;)

another problem with x360 is that its tie into MS freaken webtv crap again. what is this the 8th time now?

i want something that plays games and only games and not as my home hdtv system. games and nice tvs do not mix.

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Guest Loshunz

i dont like the ps3at all...

1. i hate sony..

2. what if you sat on the controller the wrong way? XD lol

but i will probably not get either, pc all da way!!1!!11

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