The Rabies Blog

Xbox 360 community-friendly blog

Does the Xbox 360 need a price drop?

It seems pretty obvious that, on the subject of an Xbox 360 price drop, the issue is not so much “if” as it is “when”. All consoles come down in price eventually but what triggers the price change determines when it will happen.

The reason for Sony’s recent $100 drop of the PS3, regardless of what anyone has said, was an attempt to boost poor sales figures. Sony needed to do this in order to compete, period.

The Xbox 360 on the other hand has sold reasonably well, negating the need for a competative drop in price. Microsoft also happens to be looking at one of the best ever holiday line-up of titles this year beginning with the release of Halo 3 in September followed by GTA IV, Mass Effect, BioShock, PGR 4, Blue Dragon and more. These titles could very well serve to sell consoles themselves, again defeating the need for a price drop.

That being said, there are a number of rumors out there that say a $50.00 reduction is imminent although, to the best of my knowledge, these are strictly rumors.

My instincts are saying that we won’t see a significant price drop on the console until sometime next year. Right now, there just doesn’t seem to be any justifiable reason for a price drop. Of couse, now that I’ve put this in writing, I wouldn’t be surprised at all to see some major announcement from Microsoft to make me look the fool!


July 30, 2007 - Posted by | Console, Game Companies, Games


  1. For a simple answer to your title question, xBox does need a price drop.

    360 has been out for a while and being the first they didn’t put 1 vital thing into their systems that the others did, a wireless card. This having been said the additional cost of $100 to get wireless on a console that almost requires internet is hurting them. A $50 price drop and maybe a 25% drop in the price of peripherals like the wifi adapter and wireless controllers will go a long way in helping them gain more market share. After all if you have to add the wifi adapter to a premium 360 your looking at the same price as a 60 Ps3 at the moment.

    Comment by Xero | July 30, 2007 | Reply

  2. I don’t think it needs one right now (at least not as soon as August 8th, which some sources have claimed).

    I think the release date of Halo 3 (the next AAA title) would be a good point to do this.

    Perhaps have the special edition Halo 3 themed console plus the game for the same price as a Premium is now ($399, I believe), and then reduce the normal Premium to $350?

    That’s what I would do, anyway. I would also drop the Core price a little to try and steal some sales off of the Wii, because the Wii is quickly catching up with the 360, especially due to all of the faulty 360 stories.

    I’m not sure what I would do with the Elite. The PS3 is now $499 in America, is that right? If so, I think the Elite needs a bit of a price drop too. If Microsoft really have the balls/money to, then dropping the Elite’s price to $399 would put another nail (not the final one) in the PS3’s coffin – however I’m sure a drop to $449 would still dent the PS3’s sales slightly.

    Comment by Ross McClymont | July 30, 2007 | Reply

  3. Of course it doesn’t need a drop, but, it would be nice for the system on a whole. It would help bring some focus back to the 360 now that the PS3 got some publicity with its drop, as well as give potential Wii owners a reason to maybe think again.

    As far as the price drop though, I think it is coming. The co-writer on my site wrote this and was able to pull some good info from Wal Mart. Add to that the new Toys R Us scan that basically confirms the drop.

    With the new “Falcon” chips + better heatsinks, costs are getting cheaper for the 360, they are probably going to start turning a profit from the system this year, so .. might as well ensure they stay number 1 by dropping the price.

    Comment by PacoDG | July 31, 2007 | Reply

  4. @ PacoDG: Just read your story from your link. You guys really did your research! Nice work. Seems as thought this “rumor” may very well turn out to be fact. Thanks for the info.

    Comment by rabid72 | July 31, 2007 | Reply

  5. Everyone wishes for a price drop of Xbox 360. We all know how much it cost and not all of us can afford its price. I think it will just lower it price when there is a new release from Microsoft.

    Comment by XBox 360 | May 17, 2008 | Reply

  6. I believe the X-box 360 does need a drop, its price is rediculus to begin with, I mean not alot of people that want it can afford it, they’re stuck with the older systems. I think it sould drop to about 179 dollars that would be reasonably fair. If they lower the price to about that they would still make a good profit because even more people would be able to afford to buy it thus increasing sales

    Comment by Perry Moore | June 20, 2008 | Reply

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