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August 27, 2009 1:00 AM PDT

Microsoft drops price of Xbox 360 Elite, kills Pro

by Don Reisinger
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On the heels of Sony reducing the price of its PlayStation 3 and announcing the PlayStation 3 Slim, Microsoft announced Thursday that it too will be dropping the price of its console.

Xbox 360 Elite

It's just the $299 Elite and the Arcade now.

(Credit: Microsoft)

Starting Friday, the Xbox 360 Elite will be priced at $299, $100 cheaper than its current price. The Xbox 360 Pro, which currently retails for $299 will be priced at $249 starting Friday. Once retailers sell through their entire stock of Xbox 360 Pro units, that SKU will no longer be offered by the hardware maker.

Going forward, Microsoft will offer only the $299 Xbox 360 Elite with its 120GB hard drive, and the $199 Xbox 360 Arcade which comes bundled with five games and a 256MB memory unit.

Microsoft's decision to reduce the price of the Xbox 360 isn't a surprise. Numerous rumors have been swirling around the Web for weeks. But perhaps the reason for the price drop, at least according to Microsoft, might surprise you.

When I pushed Microsoft's director of product management for Xbox 360 and Xbox Live, Aaron Greenberg, on why the company had decided to reduce the Xbox 360's price now, he said that it had been planned for months.

"I'm sure some will think this is a response to competitor pricing," Greenberg said. "But we had planned this reduction months in advance. Retail circular ads and store merchandising were all lined up. We wanted to be ready for the holiday season."

Microsoft wouldn't say whether it is generating a profit off the sale of each Xbox 360 unit it sells. Greenberg would only say that, overall, Microsoft's Xbox division is profitable. That stands in stark contrast to Sony's PlayStation 3, which is currently being sold at a loss.

Other changes?
Microsoft was quick to say that no other changes will be made to its offering. The Xbox 360's design will remain unchanged. Accessory pricing on products, such as Wi-Fi adapters and hard drive add-ons, will also stay constant.

Say good-bye to free cables
Perhaps the most glaring omission gamers will find when they pick up the now cheaper Xbox 360 Elite is that it will not be bundled with an HDMI cable. Current units on-sale for $399 include one.

When I asked Microsoft why it decided to ditch the it, the company had a rather interesting take.

"When we first launched the Xbox 360 Elite, HDMI cables had high perceived values," Greenberg said. "Now, they're commoditized." Greenberg went on to say that research Microsoft performed found that the majority of its customers weren't using the cable. Realizing that, it decided to remove it from the Elite packaging and "pass the savings on to customers."

That logic flies in the face of Microsoft's contention that HDMI cables are being commoditized. Commoditization suggests production costs are low and including them with the Xbox 360 Elite wouldn't be as costly as they once were. It's debatable that Microsoft is actually helping consumers by taking the HDMI cable out of the Xbox 360 Elite box.

Browsers and Blu-ray
Windows features a browser. Windows Mobile has a browser. And the upcoming Zune HD sports one too. But so far, there isn't a browser in the Xbox 360. I asked Greenberg if Microsoft plans to offer an Xbox 360 browser in the near future and he didn't hesitate: no chance.

"It's a pretty bad experience," Greenberg said when asked why Microsoft won't offer a browser in the Xbox 360. Microsoft has decided that it wants its console's software to focus on home entertainment. A browser doesn't quite fit into that strategy, although it's worth noting a software update that's slated to be released later this year will add native applications for Twitter and Facebook.

Microsoft also has no plans to bring Blu-ray disc playback to the Xbox 360. The hardware maker doesn't see a reason to add Blu-ray to its console when users can already get HD content through Xbox Live.

Looking ahead
So, a new pricing battle has been started. Starting Friday, you'll be able to choose between an Xbox 360 Elite for $299 or a PlayStation 3 for the same price.

Which will you choose?

Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.

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by SteveW928 August 27, 2009 1:35 AM PDT
The HDMI cable thing is pretty funny... so let me get this straight... I can get a high quality cable from Monoprice.com for under $4, but M$ pulled a cheaper version and is passing the savings on to me? LOL I guess it is true that a $299 price tag looks better than $301.

He's right on the browser being a pretty bad experience, though I'm not sure why. The PS3 browser isn't really that great, but has been useful at times**. I'm not sure why they (either M$ or Sony) can't make a good browser on these consoles.

**I do use my PS3 browser quite often to watch an episode of some TV show I miss. It makes it really easy to just go to the web site of the TV show and watch it on the entertainment system. So, I'm really glad Sony included a browser, even if it is a 'poor experience'. Once the video is playing, it is once again an excellent experience.
Reply to this comment
by solitare_pax August 27, 2009 2:54 AM PDT
On the other hand, by removing the HDMI cable, they were able to cut the price down to $299. That seems to be the only major change I can see...
by ibeetle August 27, 2009 4:51 AM PDT
@solitare_pax

Jesus, you XBox fanboys are ridiculous. Sony does not include a cable and you go ballistic. Microsoft does not include a cable and your response is: "Gee, shucks Microsoft thats O.K.".
by sting7k August 27, 2009 5:50 AM PDT
@ibeetle, the 360 is still HD ready out of the box with it's component cables. I do agree it's lame they take out the HDMI cable though, should keep it in there just to stick it to Sony for not having any HD cables in the box.
by GrayWolf323 August 27, 2009 8:04 AM PDT
@sting7k

nope it only comes with composite cables now, they dumped component as well as HDMI
by AlnilamE August 27, 2009 8:10 AM PDT
When we bought our X-Box, we got the Pro, which had the HDMI port, but no cables, as we didn't have an HDTV at the time (they guy at EB wasn't even sure it had the port).

Then, when we bought our HDTV, we talked BestBuy into throwing in an HDMI cable for free.
by SteveW928 August 27, 2009 11:07 AM PDT
I'm sure the real reason is that now retailers will be happier, as they can try to soak unsuspecting customers $30 - $50+ for an HDMI cable. Since the cables are more of a 'commodity' now for smarter customers, M$ realizes that including one isn't a big selling point any longer. Win-win... retailers happier and M$ doesn't lose anything by excluding it.

I've stated in other articles, not having the cable isn't that big of a deal since I hardly ever use the included cables anyway. I usually need a custom length or want a descent quality cable.
by jaguar717 August 27, 2009 2:00 AM PDT
"why it decided to ditch the it"
Reply to this comment
by redserpent7 August 27, 2009 2:04 AM PDT
Man I wish the stores where I live drop the prices of X360, its getting ridiculous. The other day I went to a shop hoping to see some new prices for the device, I was completely wrong. Man the Elite costs almost 1000$ and the arcade is about 500$. They didn't have the Pro but the man told me that he can fix me one that should cost about 700$.

I wish they all die.......
Reply to this comment
by Kwasiowusu August 27, 2009 5:11 AM PDT
@ redserpent7, I am gonna tell ya just once: Get off the crack!
by captain_numerica August 27, 2009 11:19 AM PDT
@redserpent - order it online
by Tucknoloji August 27, 2009 2:05 AM PDT
Well this is a good news for the gamers, who are expected the price reduction. But now when gamers will have the Same Xbox 360 in reduction of 100$ it will be best news for them.
Reply to this comment
by celticbrewer August 27, 2009 6:03 AM PDT
Yeah, this is great news to all the people I know who have XBoxes who have to re-buy their console due to hardware failures. One guy is on his 4th machine NOT including refurbishes. Most people I know are on their 2nd or 3rd machine. 54% failure rate?? That's great for MS sales numbers.
by Vegaman_Dan August 27, 2009 12:42 PM PDT
@Celticbrewer:

Have you noticed the people who have the hardware issues tend to be the ones that really seriously stress the systems, putting in hundreds of hours of gametime on the units and are not exactly known for their proper care and maintenance of the systems?

My 360 hasn't given me a bit of trouble in the four years I've had it. Granted, I only play with it for a few hours ever couple of weeks or so and not a serious hard core gamer by any means.

My point is that hard core gamers who overclock their desktop systems, tweaking it for every possible erg of energy tend to also have the most equipment failures.
by forever4now August 27, 2009 2:12 AM PDT
Check out this cool demo of O3D, to see where 3D graphics acceleration in the browser is heading. It's awesome!
http://www.youtube.com/watch?v=NAgug5D6Kdg

Including a browser that supports O3D would give gamers the best of both worlds. You could run local games AND you could run upcoming O3D-based games in the browser.
Reply to this comment
by forever4now August 27, 2009 3:22 AM PDT
Another cool benefit of O3D on game consoles:

As more browsers (smartphone, desktop, etc.) incorporate O3D, gamers on the move will be able to continue playing the SAME game...albeit with reduced performance.

That's a major plus for game developers! Now, their games are always being played, versus just when the game console is turned on.

Exciting!
by t8 August 27, 2009 2:32 AM PDT
PS3 has got to be better. It includes Blue-ray.
I have also heard a lot of alarming stories about how badly put together Xboxes are. Something like one in three break down soon after purchase.
Reply to this comment
by August 27, 2009 3:01 AM PDT
Depends what games you're into really. I got one of the newer (Holiday 2008) Xboxes and have had no problems since (knock on wood) so really it's all down to preference.
by gertruded August 27, 2009 3:25 AM PDT
The poor quality of the x box is the reason I have not purchased one. I wish Apple were in this market.
by Kwasiowusu August 27, 2009 5:02 AM PDT
@ gertruded :"The poor quality of the x box is the reason I have not purchased one. I wish Apple were in this market."

Huh?
If Apple made game consoles those consoles would be exploding.
Read this:

EU's exploding-iPhone investigation heats up
http://news.cnet.com/8301-17938_105-10312537-1.html?tag=mncol

Report: Apple tried to silence family over exploding iPod
http://news.cnet.com/8301-13579_3-10302038-37.html?tag=mncol

"Apple sued over 'exploding' iPod Touch"
http://news.cnet.com/apple-sued-over-exploding-ipod-touch/?tag=mncol
by ddesy August 27, 2009 6:10 AM PDT
Kwasiowusu ,

Time to stop pretending Apple's failures are common. They are not common at all.

Also, you are dealing with a device that has a rechargeable battery. Do you remember the exploding Dell laptops? I sure hope so.
by gudin August 27, 2009 6:40 AM PDT
@Kwasiowusu

Heh, yeah. 1 in 3 xboxes vs. a couple in how many million iPhones and iPod Touches? Perhaps you should spend less time on your xbox and more time studying Math?

However, I am curious about the failure rate of the PS3 by comparison to the xbox. I know my nephew, who lives for his xBox had 3 die on him, including 2 from last christmas within a couple months. If I were buying the things, I'd have sold the games on eBay and gotten ANYTHING else at that point.
by Kwasiowusu August 27, 2009 6:52 AM PDT
@ ddesy : "Time to stop pretending Apple's failures are common. They are not common at all."

Yeah?
Read this..and weep!

"An exclusive KIRO 7 Investigation reveals an alarming number of Apple brand iPod MP3 players have suddenly burst into flames and smoke, injuring people and damaging property.?
"It took more than 7-months for KIRO 7 Consumer Investigator Amy Clancy to get her hands on documents concerning Apple?s iPods from the Consumer Product Safety Commission because Apple?s lawyers filed exemption after exemption. In the end, the CPSC released more than 800 pages which reveal, for the very first time, a comprehensive look that shows, on a number of occasions, iPods have suddenly burst into flames, started to smoke, and even burned their owners."
http://www.kirotv.com/money/20089894/detail.html?ref=pop

Heck, even the EU has launched an investigation into the exploding iPod phenomenom
"EU's exploding-iPhone investigation heats up"
http://news.cnet.com/8301-17938_105-10312537-1.html?tag=mncol

@ ddesy ""Do you remember the exploding Dell laptops? "

Yes..and I remember the exploding Mac laptops too.
by Kwasiowusu August 27, 2009 7:02 AM PDT
@ gudin :"Heh, yeah. 1 in 3 xboxes vs. a couple in how many million iPhones and iPod Touches?"

Is that why authorities in both the US and the EU are investigating Apple over exploding iPods, that have put children's lives, and people's property at risk both here and in Europe?

EU's exploding-iPhone investigation heats up
http://news.cnet.com/8301-17938_105-10312537-1.html?tag=mncol

"An exclusive KIRO 7 Investigation reveals an alarming number of Apple brand iPod MP3 players have suddenly burst into flames and smoke, injuring people and damaging property.?
http://www.kirotv.com/money/20089894/detail.html?ref=pop

At least if you get an rrod on your 360, it doesn't turn round and EXPLODE, like the grenade iPods do.
Hey Al Queda might just decide to laubch ther next attacks using an iPod.

@ gudin :"Perhaps you should spend less time on your xbox and more time studying Math?"

I suggest you study your chemistry.. as in what chemical mixes are needed to cause an explosion..as in iPod explosions.

@ gudin :"However, I am curious about the failure rate of the PS3 by comparison to the xbox"

The Falcon 360's that have been out since September last year, are every bit as reliable as the PS3's.
by rfelgueiras August 27, 2009 8:43 AM PDT
@ Kwasiowusu

it's the batteries that are exploding, not the ipod. Apple doesn't make them - or any of the batteries in their products - other than the new Mac book pros. Apple is just a large and popular brand with deep pockets and a litigious target on their back and a knack for attracting readers/viewer to "journalistic reports". Most importantly, they are far from the only one who have this happen to them. if Journalists were worth more than your average blogger they would be investigating the source of the batteries, not just flagging who ambulance chasers should sue:

Nokia-branded batteries at risk of overheating -- 46 million devices affected
http://www.engadget.com/2007/08/14/nokia-branded-batteries-at-risk-of-exploding-46-million-devic/

Sony battery recall approaches 10 million, costs mounting
http://www.engadget.com/2006/10/19/sony-battery-recall-approaches-10-million-costs-mounting/

"Exploding" Dell Laptop Destroys Truck, Imperils Outsdoorsmen
http://www.consumeraffairs.com/news04/2006/08/dell_fire.html

Motorola phone battery explodes ? kills Chinese welder!
http://www.intomobile.com/2007/07/05/motorola-phone-battery-explodes-kills-chinese-welder.html

HP facing lawsuit over exploding Presario, injured daughter
http://www.engadget.com/2008/01/15/hp-facing-lawsuit-over-exploding-presario-injured-daughter/

Two last notes.

1. Pretty lame to attack apple (which has nothing to do with the current convo other than the earlier poster mentioned they would like to see apple design one) over exploding batteries when batteries play no part in console design. Last time I checked, they plugged into an outlet.

2. The second you mentioned AL-Queda, you lost all credibility. Stay on topic or don't comment.

Now on topic. To me the PS3 seems like the better deal of you have neither. the game as far as I can see have a similar stable of game save for a few exclusives. If you like those particular game, then the choice is made for you (I wanted InFamous and DCOU) so I picked the PS3 myself). Considering though, if you have no allegiance to either, for the same price you get a bluray payer ? that seems like a no-brainer to me. And please don't mention downloads/streaming as an actual alternative. What if you want to bring a movie to a friend's house or lend it to some one. A lot of people still prefer physical media. PS3 makes sense.
by Kwasiowusu August 27, 2009 9:35 AM PDT
@ rfelgueiras :"it's the batteries that are exploding, not the ipod"

You gotta be kidding me!
The batteries ARE part of the iPod.
That's like saying, if you buy a car from GM, and the tyres explode , cause an accident and kill you, its not the car that failed, it's only the tyres.
Earth to rfelgueiras , the tyres ARE part of the car that you bought. GM is held to full acountabiliy.
Apple buys nearly everything in the iPod from 3rd parties. Apple don't have factories that make hard drives, RAM, flat panel screens etc. They buy nearly every single compotent from 3 rd parties.
Its encumbent upon Apple to make sure they test every component they buy, befrore they put it inside the iPod.
iIt's their product. They can't turn round and say hey, we bought this particlar part from someone else so it's not our business. It IS their business.
What a stupid excuse!
Only an Apple fanatic will come up wiyh such a ridiculous defense.
by Kwasiowusu August 27, 2009 9:51 AM PDT
@ by rfelgueiras :" Pretty lame to attack apple (which has nothing to do with the current convo other than the earlier poster mentioned they would like to see apple design one)"

You Apple fanboy clowns brought Apple into this thread in the first place, with your lame talk about better qualityconsoles if Apple made gaming conoles.
Well their iPods have some of the highest failure rates ever of any electronics device. It's almost guarenteed that any gaming console from Apple, would have pretty high failure rates too, and probably explode as well, like the iPods have been exploding.

@ by rfelgueiras "for the same price you get a bluray payer ? that seems like a no-brainer to me."

What does vburay have to do with gaming?
Especially since the DVD drive on the 360 has faster data transfer rates than the bluray on the PS3, and most 3rd party games run better on the 360 than on the PS3?

@ by rfelgueiras " And please don't mention downloads/streaming as an actual alternative. "

Why not?
The 360 has full instant on 1080P HD streaming right now, just like the bluray's 1080P HD.

@ by rfelgueiras "What if you want to bring a movie to a friend's house or lend it to some one. A lot of people still prefer physical media"

Oh puleeze!
I don't lend any movie to anybody. Let them go buy/rent their own, or get an XBOX 360 and do HD streaming.
Plus as a fan of the iPod, you should know that downloaded music sales on MP3 players/PC's/cell phones are rising very fast even as sales of physical CD's keep gowing down. Downloads are where the future is.
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by Tucknoloji August 27, 2009 2:59 AM PDT
Guys don't u all smell for the New Xbox in nearby future???, they have less stock for Xbox 360 pro and price is reduced ed for the both Elite and pro. i think they are coming with the New Xbox in coming Christmas....
Reply to this comment
by celticbrewer August 27, 2009 6:05 AM PDT
you wish. At best there will be a hardware add-on, or perhaps a version with BluRay; but the fundamentals (ie a "NEW" XBox) is not coming this year or probably next.
by rfelgueiras August 27, 2009 8:17 AM PDT
uh, did you guys read the article? he said No new designs, no BluRay... hell I doubt there will be any add ons.

The price drop WAS for the holiday season. If anything, they will bundle a game or two.
by IanDWay August 28, 2009 12:49 AM PDT
2011 buddy, at the least, next year they may do add ons, but really its much to soon for a new console.
by ywkhgqo August 27, 2009 4:20 AM PDT
I feel like this kind of a mute price change. People have been able to get sub $300 xbox360s off the internet for a while. I got my friend one for $270 brand new. The PS3 looks a lot nicer now though. Built in wifi and bluray, user-replaceable HD, good game lineup. I think Microsoft should have gone even lower.
And them not including a $3 cable? Retarded
Reply to this comment
by Kwasiowusu August 27, 2009 5:06 AM PDT
@ ywkhgqo :" Built in wifi and bluray, "

You need neither wifi nor bluray to play your games or get online on the 360. The cat 5 cable on the 360 gets you online fine..with no lag like wifi does.

@ ywkhgqo "And them not including a $3 cable? Retarded "

Ummm..the PS3 doesn't come with HDMI cable either. Why don't you go whine at Sony about that?
by GrBear August 27, 2009 5:33 AM PDT
@Kwasiowusu : Are you in Microsoft's marketing department? Seriously, having wifi and blu-ray are features one unit has and the other does not. The point is not if they are essential, its that a percentage of people will use them and as such provides a benefit over the competition because it has higher value-added features.

I was half expecting to read in your response something to the effect of at least the xbox has a red ring feature in it to let you know when it's died and Sony does not, therefore clearly the microsoft product is superior.
by celticbrewer August 27, 2009 6:09 AM PDT
WiFi (G, at least) shouldn't have any lag. And some people don't have a wired net connection at their TV. If you're a kid in a dorm room, fine. But if you have a house with an office in one room and a home theater in another, WiFi might be a better or only option.

I prefer picking my own HDMI cable, thank you. It doesn't need to be included on either system. BluRay adds at least $150 to the value of a PS3, it's definitely a feature whether or not you personally want it.
by Kwasiowusu August 27, 2009 6:17 AM PDT
@ by GrBear :"@Kwasiowusu : Are you in Microsoft's marketing department? "

I take it you are a paid shill for Sony then yes?

@ GrBear :"Seriously, having wifi and blu-ray are features one unit has and the other does not"

So what?
It's a gaming console. You don't need either bluray or wifi to play great games on the 360 or any gaming console.
As a matter of fact, the DVD drive on the 360 actually has faster data transfer rates than the bluray on the PS3, and overwhelmingly, most top 3rd party games run much better on the 360 than on the PS3.
The # 1 reason why the P3 has racked up horrendous losses of over $4 billion is because of the inclusion of the bluray.
Sony added in the bluray to the PS3 just so they can win the bluray versus HD-DVD war, and it's cost them plenty. They didn't put bluray in there because of games. Most 3rd party games fit onto an normal DVD.

@ GrBear :"The point is not if they are essential, its that a percentage of people will use them and as such provides a benefit over the competition because it has higher value-added features."

Looking at NPD monthly sales figures for the past 11 months, where the 360 has regularly clobbered the PS3 in monthly sales, I'd say that the percentage of people who think bluray gives the PS3 an advantage over the 360, is pretty small, wouldn't you?

@ GrBear :"I was half expecting to read in your response something to the effect of at least the xbox has a red ring feature in it to let you know when it's died and Sony does not"

The last desperate act of a losing PS3 fanboy strikes again.
Falcon 360's which have been out since September last year, are every bit as reliable as the PS3.
by Randoug August 27, 2009 6:59 AM PDT
Kwasiowusu is clearly troll sent by Microsoft OR maybe just another dumb fanboy. To say that Blu ray doesn't affect a persons choice when buying either console just isn't true. Yes I agree that the XBox dvd player is at a higher speed the the BD player on the PS3 but people wouldn't mind giving up speed for better quality movies that can be displayed on the PS3.
by Kwasiowusu August 27, 2009 7:24 AM PDT
@ Randoug : "Kwasiowusu is clearly troll sent by Microsoft OR maybe just another dumb fanboy."

Naaaah.
YOU are the dumb fanboy. However, I think you are too dumb for even Sony you hire you as a troll.

@ Randoug :" To say that Blu ray doesn't affect a persons choice when buying either console just isn't true. "

Look at the NPD monthly hardware fales figures for the past 12 months, then come back to me.
The 360(no bluray), has oustold the PS3(with bluray) every single month since August last year.
In total, the 360 has outsold the PS3 by over 2 million units in since August 2008 alone.
Doesn't much look like the gaming public were too impressed with the bluray in the PS3 does it?

@ Randoug :" agree that the XBox dvd player is at a higher speed the the BD player on the PS3 but people wouldn't mind giving up speed for better quality movies that can be displayed on the PS3. "

It's a GAMING console. Peformance on games count more than anything else. And time after time, top 3rd party games have performed better on the 360 than on the PS3.
Plus you can watch HD movies on your 360 using instant on 1080P HD streaming with with 5.1 surround sound from Netflix or Zune video.
by BCF1968 August 27, 2009 8:27 AM PDT
"by Kwasiowusu August 27, 2009 5:06 AM PDT

You need neither wifi nor bluray to play your games or get online on the 360. The cat 5 cable on the 360 gets you online fine..with no lag like wifi does. "

Well if I need a 50 foot cat 5e cable does that come with the XBOX? No so that's an added expense. Do I WANT to have 50 feet of cat 5e cable sprawled across my house? No. For system that likes to say it's superior than the PS3 because of it's online and to not include wi-fi is a joke.
by Kwasiowusu August 27, 2009 9:54 AM PDT
@ BCF1968 :"Well if I need a 50 foot cat 5e cable does that come with the XBOX?'

I don't need a 50 foot cat 5, and neither do most people.
Just place your XBOX close to where your hub is, and you are set to go.
by rfelgueiras August 27, 2009 10:22 AM PDT
@ Kwasiowusu

Dude, what is with you? You have your 360, no one's taking it away - relax with the attacks on anyone who may have an opinion that differs from you.

The point people are making are wholly valid. BluRay as a physical media option is picking up steam and even on this site it's rated as the best BluRay player available. True these are game consoles but both companies have made no bones about their push as a Media entertainment system. Microsoft has made just as much of a push (albeit in a different direction) into the media console market by adding audio and video playback as well as Windows Media Center connectivity and the ill fated HD-DVD add on. Sony's bush was in a different direction with BluRay. Both are more than just gaming consoles.

The two things you say no one wants (BluRay and WiFi) were what drew me the the console, the two specific exclusives finally sold me, resulting in this particular sale to me. I and other people in this thread alone are TELLING you we did, resulting in our purchases. And that was BEFORE the price drop. Now that the two systems are more comparable in price there is a really good argument to look at a PS3 over a 360. Telling people that the features they find important aren't important is idiotic. What does it have to do with you?

Lastly, using "data" of the last 12 months is useless in the discussion since not only does it not reflect the new pricing (which, by the way, is the current topic). New data projecting forward is much more useful :

The NPD Group Reports Blu-ray Disc Consumer Awareness and Sales On the Rise
http://www.npd.com/press/releases/press_090506.html

Coupling that with the fact that now you can get a player for 299, with wiFi (you mean I don't have to rewire my house?) AND it plays all the latest video games at 1080p? The next 12 months will be interesting.
by kewell82 August 27, 2009 12:42 PM PDT
@ Kwasiowusu

Sense you are responding to everyone's comments here is one for you. You keep saying that you do not need the Blu-ray format for a gaming console. That there is enough space on dvds for modern games. Well what about the future of gaming?

Games are getting more and more advanced and it is logical that they need more memory. For example the new Final Fantasy 13 is coming out to both Xbox and PS3. That game is going to be both amazing and huge in memory. Square Enix has said that for the Xbox it will require 2-4 DVDs to store the whole game. Does this sound familiar? This goes back to FF7 on PSone where you had to switch the cds when you got to different areas of the game, annoying right. Guess how many Blu-rays the PS3 will need for FF13? ONE! So if you are going to get FF13 on the xbox have fun switching out the dvds when you go to different areas in the FF13 world, while all the PS3 owners won't have to deal with memory shortages.
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by badasscat August 27, 2009 4:31 AM PDT
They planned this "months in advance" because Sony's PS3 price drop was rumored months in advance. If you actually believe this is not a reaction to Sony's pricing moves, then I've got a bridge to sell you.
Reply to this comment
by Maclover1 August 27, 2009 4:49 AM PDT
Because of the usual Microsoft naming confusion and constant changing of the names and pricing this will not be that big of a deal.

Just log into the MSN store with your passport/hotmail/msn/live account and order you self an Xbox core/arcade/pro/elite. While your at it go ahead pre-order Windows 7/starter/home premium/professional/ultimate/enterprise and finally pick up a copy of Office 2007/home student/standard/professional/professional plus/ultimate/enterprise.

Make sure you consult the proper upgrade chart to make sure you can upgrade and then finally choose between 32bit or 64bit.
Reply to this comment
by CDubber August 27, 2009 5:18 AM PDT
Hmm, for $299 I can get the PS3 with built-in WiFi and Blu-Ray and free online gaming or the Xbox plus another $100 for WiFi, plus another $50 yearly for online gaming, and no Blu-Ray.

Tough decision...not.
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by Kwasiowusu August 27, 2009 5:28 AM PDT
@ by CDubber ,

You don't need bluray to play games on the 360 or any console.
And the cat5 on the 360 gets you online just fine, with no lag like the wifi does.
Plus XBOX Live is by some distance the best onlne system for a gaming console ever made.
Plus no one I know pays $50 for XBOX Live. You can get great Live deals online for as low as $30 and even less.
Plus of course you can buy a 30 Pro right now for just $250, and an Arcade for only $200. The PS3 is not going to hit the sweet $200 price spot for years.
by ausernamenoonehaschosen August 27, 2009 5:42 AM PDT
My thoughts exactly CDubber. I wonder why the fact that you always need to get add-ons for the XBox to get basic functionality isn't noted more in these articles, especially when comparisons are made. I always thought it was funny that the original XBox couldn't play DVDs unless you paid extra for the remote.
by sting7k August 27, 2009 5:47 AM PDT
You can get Xbox LIVE from Amazon for $30 and Best Buy also sells 13 month cards for that price every couple weeks. For that money you get a service that works and is pure awesome. I will never game over Wifi.
by ausernamenoonehaschosen August 27, 2009 5:48 AM PDT
@Kwas...whatever: Your excuses for the XBox are getting thinner and thinner. How is the weather in Redmond today?
by Kwasiowusu August 27, 2009 6:05 AM PDT
@ ausernamenoonehaschosen :" I wonder why the fact that you always need to get add-ons for the XBox to get basic functionality isn't noted more in these articles"

Neither bluray, nor wifi is "basic functionality".
You don't need any of those to play your Halo 3 on your 360, or to get online using cat 5.
You can buy your 360, and right out of the box, play your Halo 3 and get online, without buying anything to add to it.

@ ausernamenoonehaschosen : "I always thought it was funny that the original XBox couldn't play DVDs unless you paid extra for the remote."

Umm..the original XBOX also came with a hard drive, which the PS2 didn't come with.
by sticks1839 August 27, 2009 6:23 AM PDT
But Kwas, you didn't need a HD to play games on PS2. You could just buy your PS2, open it up and play your GOW or FFX...Welcome to the argument, thanks for playing.

Relax, it's just additional features that a potential consumer will want. Why buy a car without GPS or Satellite radio for the same price as another reasonably similar car with both those options? You don't need either to drive the car and get from point A to point B, but they might make it easier and you'll probably enjoy the ride a little bit more. The 360 has the great Live experience and easier integration with Netflix, but it's tough to argue that it's a better "value" than the PS3 at $300, especially because it's hard to put a price tag on those features. As a Blu-ray player (if you intend to use it), the PS3 saves you $200+ right there, plus about a ~$100 or so for the Wifi addtion if running cable will be difficult for you or unapproved by the significant other (let's face it, wives hate having cables run all over the place). That's the argument Kwas. That the PS3 at $300 looks like it adds value that the 360 does not. Each consumer will have to determine what each consoles' features are worth to them.

By the way, I may pick up an Elite at $300 because I think it's a reasonable price for what I would get out of the console. Then again, I paid $600 for an original 60GB PS3 and don't think I wasted my money...
by BCF1968 August 27, 2009 3:02 PM PDT
"by sting7k August 27, 2009 5:47 AM PDT
You can get Xbox LIVE from Amazon for $30 and Best Buy also sells 13 month cards for that price every couple weeks. For that money you get a service that works and is pure awesome. I will never game over Wifi. "

The point is you have to WAIT for a sale to pick up those $30 cards. That's dumb. Sorry XBL is not that much better( if at all ) than PS3 online. Certainly not $300 better one is going to spend over 6 years. Trust me we have a XBOX 360 in the house and have XBL, so I know what I am talking about. Have you been on PSN? Nope you haven't. As far as wi-fi. Once again because you CHOOSE to not use wi-fi doesn't mean I should be FORCED to not be able to use it. I should have CHOICE too. Boy the fanbois are making excuses today. Face you don't play online via wi-fi BECAUSE YOU CAN'T. Kind of like the nerd that claims he doesn't want to date the homecoming queen. Sure easy thing to say about something that's not even an option to you to begin with.
by ausernamenoonehaschosen August 27, 2009 5:44 AM PDT
CNet, you didn't mention that MS increased the cost of the XBox 360 arcade from 130 to 160 quid, for some crazy reason.
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by Kwasiowusu August 27, 2009 6:34 AM PDT
@ by ausernamenoonehaschosen : "CNet, you didn't mention that MS increased the cost of the XBox 360 arcade from 130 to 160 quid, for some crazy reason. "

Only in the UK.
This is an American oriented site.
The Arcade price stays the same in the US, and probably in the rest of Europe too. It hasn't gotten a price increase in the US.
Plus even the new Arcade price in the UK, is still cheaper than the Wii, which a vastly inferior, vastly less powerful machine.
by sting7k August 27, 2009 5:46 AM PDT
While it's lame that they are removing the HDMI cable from the Elite I think he is right. In the first Elite unit I bought I did use the HDMI cable as it was the only HDMI cable I had. Since then more things I have use HDMI and I ordered a bunch of cables from Monoprice for $10 each and just have them around. My Elite died in May of this year and I exchanged it at Best Buy, the HDMI cable is still in the bag it came in; as are the other cables for that matter.

Also agree on the keeping the browser out, no need for it on a game console. I never use the one on my Wii. I do think they should look at lowering the prices on some accessories.
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by CylonCheese August 27, 2009 5:50 AM PDT
Picking up a $299 Elite tomorrow... need to replace my 360 I've had since launch day. Old unit still works great but... would like the larger hard drive (120gb vs. 20gb), HDMI port on Elite, unit is now black to match my other components, don't need wifi since I have a network jack behind my entertainment system. Loving Xbox Live & Netflix streaming!
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by celticbrewer August 27, 2009 6:15 AM PDT
Bummer for you. I just put in a 320gig HD in my PS3 without having to re-buy another console. I have a network jack behind my TV, too. Loving Netflix, Hulu, and other streaming without paying for Xbox live.
by CylonCheese August 27, 2009 6:22 AM PDT
no... bummer for the sucker that bought the PS3 from me on launch day for $1000. I then went home and enjoyed playing my Xbox again.
by Vegaman_Dan August 27, 2009 12:54 PM PDT
@Celticbrewer:

I'm glad you can do all that on your PS3. I can do all that on my $250 netbook and *more*.
by tronb24 August 27, 2009 5:51 AM PDT
I don't know. Some of you keep saying you don't need blu-ray or built-in wifi. I agree with blu-ray, but I disagree about wifi. It can be quite inconvenient and expensive to run cat 5 cables through multiple rooms to reach your 360. Most people I know have their routers in different room like a study or home office while their 360 is connected to the tv in the living room.

I just don't get why would they not drop the price of accessories? It just makes the comparison between the two consoles look more favorable for the PS3 if you don't own either system. If you have a 20GB model like the early adopters, I have no use for games on demand. Sure I could buy a new hard drive at the current price, but I've grown quite fond of having two arms and two legs, so no thank you.
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by Peteara August 27, 2009 5:56 AM PDT
@ Kwasiowusu

Please give it a rest with the "You don't need blu-ray to play games on the 360."

You're right, you don't. But that's not the point. It's just another feature that you have access to on the PS3 that isn't available on the 360. That doesn't mean it's necessary or that everyone will take advantage. It's there if you want it, and now that we're on a level playing field, it's that much more enticing. And with blu-ray slowing gaining traction, it may play a larger role in buyer's decisions from here on out.
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by Kwasiowusu August 27, 2009 6:28 AM PDT
@ by Peteara :"You're right, you don't. But that's not the point"

What is?

@ by Peteara:"It's just another feature that you have access to on the PS3 that isn't available on the 360. "

Acess to what?
You can use cat5 to get online fine on your 360, and get less lag than with wifi.
Lots of folks refuse to use wifi for games for that same reason.

@ by Peteara:"That doesn't mean it's necessary or that everyone will take advantage"

Why pay for something that you don't need?
For the financially constrained gamer, a 360 Arcade at just $200 will do everything they want from a gaming console. Even if they want to watch HD movies, they can still use the instant HD movie streaming on the 360 Arcade, without needing bluray to watch HD movies.

@ by Peteara: "It's there if you want it, and now that we're on a level playing field, it's that much more enticing"

The PS3 is still selling for $300. That was the launch price of the PS2, no?
If I recall correctly, over 90% of PS2 sales, took place after the PS2 hit the sweet $200 price sopt.
Right now, the only console with a $200 sweet price spot is the 360 Arcade. And it can even do HD movie streaming from Nteflix too if you want.
by kartman42 August 27, 2009 7:51 AM PDT
While it is true that you don't need a blu-ray player to play games on either an XBox or a PS3, it was the deciding factor for me. I was looking for a blu-ray player, not a game console. I wanted to rent, or own, and watch full 1080p movies on my HDTV. I don't live in a city, so my high speed internet isn't as fast as for some folks and streaming HD movies across the internet isn't a good option for me.

When I discovered that I could use my PS3 as my wifi media hub, and stream music to it, that was a bonus. The fact that I can play games on my PS3 is also a bonus.

At $300, Sony can market the PS3 to folks like me who want to buy a blu-ray player, and gee for a few buck more than the average price of a blu-ray player, I can get these bonuses. Microsoft tried to go after this same market during the HD format war when they had their HD-DVD drive. Today with Netflix streaming, they still want people to use their XBox as a media hub. For now, it is just is harder for Microsoft to convince people to buy an XBox for any reason other than buying a game console.

If I am just looking for a game console, then it is personal preference on the games and gaming experience. I like some of the games on both. If I am looking for a media center that happens to play games, then the PS3 was the better choice for me.
by ddesy August 27, 2009 6:12 AM PDT
Hmmm... better price, sure. What about the insanely high failure rate? Let's see a serious hardware redesign optimized for better cooling. Then maybe we'll talk.
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by Fire Balls August 27, 2009 6:15 AM PDT
Great... we still need a much bigger hard drive. Like 500GB+ now that we have games on demand for the xbox marketplace and the fact you can store your game on the HD. 120GB doesn't even come close to cutting it anymore.
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by Ckmost August 27, 2009 6:56 AM PDT
Been wanting to get a 360 (currently own a PS3 & happy with it), but the price for the value has had me on the fence for a while. I'm not a hardcore gamer, but I do like certain games that are offered on both consoles & I know for a fact that the online experience for the 360 is by far superior (i.e., Civ Rev, community and matchmaking on PS3 is abysmal vs. a thriving community with fast matches & features on the 360). I love my Blue ray and the media center streaming via wifi of the Ps3 (upgraded hdd w 500 gb newegg special 80 bucks). The 360 would be for online gaming & native netflix streaming. the one thing thats still killing me is the lack of built in wifi & the cost of the accessory (100 bucks?!) . In my case I need wifi to connect so 299+100 is a bit to steep right now. Wifi g/b is a commodity tech, doesn't cost much at all they be making profit @ 25 bucks.

I'd actually prefer to pay a nominal fee for the PSN if it meant the experience would be much improved. Bluray is awesome, but obviously the gamers market doesn't care that much (evidence by the unit sales of 360 vs Ps3 - 2x as much). If Sony would have made the games not exclusive to bluray (they don't need to the capacity) and offered Bluray on a premium model with a stripped down version sans bluray for significantly cheaper to be on par with the 360 things probably would have panned out quite differently.

this colossal mistake has taken so much pressure off Microsoft that they can get away with initial poor hardware (i.e., hardware failure) & the rape you on proprietary accessories for a relatively cheap base system (aka the lexmark printer business model - 40 dollar printer with 50 dollar cartridge replacements).

I hope the next go around the companies clean things up so there is better competition, as a consumer we always benefit more from tight competition.
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by mdub311 August 27, 2009 7:39 AM PDT
Once again, Dan's bias is showing. He didn't bother reporting on PS3's price reduction, but he falls all over himself to write about the Xbox 360's price reduction. Sure he did mention the compelling offering of both consoles finally being offered at the same price. I really hope consumers realize the value Sony is packaging in the Slim vs. the extras you have to purchase with both the Xbox and Wii. I owned an Xbox in the last generation warfare, but this time around I chose value over the bandwagon. But alas once again, Dan reveals his allegiance to the Microsoft bandwagon.
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by Zoobie August 27, 2009 8:26 AM PDT
Or how about this quote:
"Microsoft wouldn't say whether it is generating a profit off the sale of each Xbox 360 unit it sells. Greenberg would only say that, overall, Microsoft's Xbox division is profitable. That stands in stark contrast to Sony's PlayStation 3, which is currently being sold at a loss."

Umm--that's the exact same thing Sony said two days ago; the PS3 is sold at a loss, but the PlayStation division is profitable. I don't see any stark contrast.

I bought a PS3 after the price drop. It came down to a couple of things for me--built in WiFi (Xbox fans say it doesn't matter, but I need it and MS charges a ridiculous $100 for a PC componenet that probably costs $5 to manufacture) and failure rate. Yes, I've heard that some people have problems with their PS3, but it's hard to ignore a 30% to 50% failure rate, especially when I plan to use mine for watching movies in addition to playing games.
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