Xbox 360 price cuts come to Japan - now cheaper than PS3 & Wii
By Dave Parrack
We already knew that Microsoft was embarking on a round of price cuts across the Xbox 360 range in an effort to invigorate stalling sales. But this strategy is now reaching beyond the US and Europe, and hitting Japan, where the Xbox 360 has struggled to gain acceptance since release.
Microsoft cut the price of the 20Gb Xbox 360 Pro to make way for the 60Gb Pro earlier this year, and since then there has been speculation that further price cuts are on their way. While these rumours of price cuts for America have yet to be officially confirmed, Microsoft has announced a drastic price cut in Japan.
According to CNet, Microsoft held a media event in Tokyo today to reveal details of the substantial price cuts. The price cuts amount to around 30% of the RRP across all three models and will come in to effect on September 11th.
The 120Gb Elite model will be cut from $442 to $368, while the new standard Pro SKU will include a 60Gb drive and sell for around $275, lower than the $321 that the 20Gb model currently sells for.
The big cut is with the Arcade model, as although not really considered worthy by hardcore gamers, it is likely to appeal to the casual gaming market, and its new price point takes it below the magic $200 mark which many industry analysts consider to be the sweet spot to take any console in to the mainstream.
The entry-level Xbox 360 Arcade will now cost just $183 in Japan, a reduction of over $70. More importantly, it means that the Xbox 360 will now be cheaper than either the PS3 or Wii. With the Wii selling in such huge numbers in Japan this could help the Xbox 360 gain some traction, especially if the price cut is coupled with a marketing strategy aimed at the casual end of the market.
Microsoft has never really gained a foothold in Japan, but the release recently of Japanese RPG Tales Of Vesperia prompted a sales surge of the console, and ended with the Xbox 360 selling out in the territory. The company is sensible to follow up this initial success with price cuts across the range.
This should mean that price cuts of the Xbox 360 in the USA and Europe are not too far behind, and I’d expect some sort of official announcement of similar price cuts this side of the holiday season.
It also puts pressure on Sony to fight back with PS3 price cuts, but Sony CEO Howard Stringer seemed to suggest that these would not be happening before the start of 2009. Even Nintendo may be tempted to cut the price of the Wii in order to claim the title of ‘most affordable console’ back from the Xbox 360.
I’ve criticized Microsoft for seeming to have run out of ideas for pushing the Xbox 360, apart from continued price cuts, but if this approach means a price war begins, I’ll take it all back. The PS3 and Xbox 360 are about to join the Wii as being machines affordable to more than just the hardcore gamers and gadget freaks.
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September 1st, 2008
its cing of seding the rong masage cheap= mot wel made rg the city rover
September 1st, 2008
This makes perfect sense coming from a company that has deep pockets and is willing to take a gamble. If it will pan out… only time will tell. But in my opinion, this reeks of desperation. The 360 has finally had two solid quarters of breaking even, some argue profited, on hardware and they’re going to abandon that for “market share”? From a shareholder standpoint, this would really disconcert me. The M$ game division from inception to date has LOST money… two quarters of hardware profit compared to over 6 years of divisional loses in the tens of billions is reckless and explains why M$ stock has been in the crapper for over 6 years. Think about it… when M$ split its stock circa 2000 it was about $125 a share, the split resulted in prices averaging $50 a share that same fiscal year… fast forward 8 years and their stock is hovering in the mid 30s… doesn’t bode well, especially if you adjust dollars for inflation and currency devaluation. Even if you take into consideration software sales and associated royalties it still hasn’t made up for the 360s research and development, production, support, and marketing costs… let alone the both the 360 and original xbox.
Companies do not “slash” prices because sales are doing “well” and if we look globally, M$ is clearly worried. M$ already has a reputation for producing low quality hardware and with the new “cheap” prices, it will only reinforce the “cheapness” of their product and in a perception/name brand conscience society like Japan, it’ll be interesting to see what the results will be.
@ DAVE
You hit it right on the head.
September 1st, 2008
Thats funny I thought it was sold out there lol
September 1st, 2008
@ wavy
Hmmm… You my friend need to take an college level history and econ class. M$ said back in feb, that due to slow sales, they were reducing shipments to japan. They knew valyra chronicles’ release schedule… Know JRPGs are popular. Obvious.
News flash: M$ supplies 200 consoles to Japan… Reases JRPG… Consoles sell out… M$ experiences so much demand they slash prices… The end of the Wii and PS3 is near… LOL
I’m being sarchastic and don’t mean this to be a personal attack.
September 2nd, 2008
That is not necessarily true on a like for like comparison - without a WIFI adaptor, an Online Store, a Hi Def Drive which are all costs to be added on still makes the XBox more expensive than the PS3.
September 2nd, 2008
Release Vesperia… sell a bunch of consoles.
Two months later, drop the price of consoles by 30%
A nice slap in the face from Microsoft for all those Japs who held on for the Vesperia release before buying the 360.
@OH - You are right on.
@Jason - You are right on … as well.
September 4th, 2008
Microsoft Japan is already actually paying people to take the machines, with little success.”We hope more people will be able to enjoy Xbox 360,” said marketing marketer Takashi Sensui, “and we can stop enjoying quite so many of them. We also have this fine pile of HD-DVD drives … Wait! Come back!” http://notnews.today.com/?p=63