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Microsoft official confirmed the worst-kept secret in games: the Xbox 360 is receiving a price cut on its top-end Elite system starting Friday. In other words, the long list of leaked catalog circulars weren't fakes. What this means is that the 120GB hard-drive-toting Xbox 360 Elite that used to be $400 will now be $300--the same cost as a PS3 Slim.

The Xbox 360 Pro, with its 60GB hard drive, will drop to $250 instead of $300, and will keep being sold until it vanishes off shelves. Kudos, by the way, to Microsoft for actually lowering the price on a soon-to-be-discontinued model, as opposed to the fate of the PS3 Fat. The updates are official on the company's Web site.

Great value, or just fair?

(Credit: CNET)

The Xbox 360 Arcade, however, will continue to cost $200. While that's somewhat fair, considering it's technically the cheapest next-gen console on the market, it's a bad deal. A hard drive, however, is an absolute necessity. The 360's proprietary 120GB hard drive costs $150, so you're effectively saving 50 dollars on the purchase of an Elite. If the 360 had a removable standard hard drive like the PS3 does, we might be singing a different tune on the Arcade.

This only makes the sound of that ticking clock over at Nintendo headquarters even louder. Will the Nintendo Wii reduce its price this holiday season? According to Nintendo's Yasuhiro Minagawa, the company still has no plans to do so. This doesn't mean, however, that a similarly priced bundle with a Wii MotionPlus and possibly a new game (Wii Sports Resort?) isn't in the plans.

Now that the 360 and PS3 are cheaper, the landscape of gaming is shifting in terms of value. We commented on this in terms of handheld systems, but it's also true in terms of the Wii. It can no longer be called a budget system by any stretch.

Realistically, Nintendo probably won't lower the price until one of its rivals makes its fully fledged system even cheaper than a Wii, and that's not likely to happen soon...or ever.

The other question is, has the PS3 leapfrogged the 360 in terms of console value, even with the new Elite price cuts? The Slim consumes less power, has Blu-ray, and is already based on hardware that came out a year after the Xbox 360 hit store shelves. Meanwhile, the Xbox 360 has held the fort with a console that still lacks built-in Wi-Fi, a feature available on the Nintendo DS.

So, which is it...a $300 Xbox 360 Elite, a $300 PS3 Slim, or a $250 Wii?

Or, a $200 Xbox 360 Arcade?

The end of the Xbox 360 Pro is nigh.

(Credit: Kotaku)

Treat this right now as very likely, but still a rumor--a photo of a catalog page posted to Kotaku shows the 120GB hard drive-and-HDMI Xbox 360 Elite going for $299. The Meijer catalog (a Midwest store chain) in question is slated for August 30, which would mean a nice holiday surprise for future Xbox 360 buyers.

Other rumors have it that the price-dropped Elite and the bare-bones, hard-drive-free Arcade system will be the only 360s left on the market. It's a move that makes sense, since 120GB is not exactly a luxurious amount of storage space anymore, and is far more suitable for the mainstream than a fine-in-2005-but-now-piddling 20GB.

The 360 wasn't the system that most needed a price drop, after all. But then again, Sony might be following close behind with a cheaper (and redesigned) counterpunch of their own.

This leaves the Xbox 360 Elite at a price that's only $50 more than a Wii. And, for that price, you get a system that streams Netflix, plays DVDs, has robust online gameplay, and has far more storage than Nintendo's white box (even adding in a mountain of SD cards).

While we have absolutely no problem with getting more Xbox 360 for less, this raises a rather sharp sticking point with the prices of Microsoft's proprietary Xbox hard drives. An impassioned rant from Gizmodo accurately and appropriately skewers the currently ludicrous $160 retail cost of the 120GB hard drive. When half a terabyte can be had for the same--and when Microsoft, after all, wants us to buy more downloads than ever before--this hardly seems logical. Then again, maybe hard drive price drops/capacity increases are also on the horizon. In fact, wouldn't that be expected? If 120GB is the mainstream, there has to be a larger capacity to upgrade to.

Or, even better: Wi-Fi built in, and a slimmer, more reliable 360. How about that?

(via Kotaku)

Grab the top-of-the-line Xbox for under $200.

(Credit: Geeks.com)

Geeks.com has a ridiculously good deal on a refurbished Xbox 360 Elite: $199.99 (after applying coupon code XDEALS at checkout). Shipping will run you about $16.

For those not thoroughly versed in Xbox models, the Elite is, well, the elite. The top of the line. The Xbox that normally sells for $399.99.

Like a new unit, the refurb comes with a 120GB hard drive, an HDMI port, a wireless controller, and a headset. Unlike a new unit, the warranty expires after 90 days.

On the cabling side, the Xbox comes with only the usual component-video cable. If you plan on making an HDMI connection, you can get what you need for just a few bucks.

If the Elite is overkill for your gaming needs and/or your budget can't stretch quite that far, Geeks.com also has a refurbished Xbox 360 Pro (20GB) for $149.99.

Either way you're getting a killer game console and a damn fine media center extender (meaning it can stream music, videos, and photos from your PC).

The Xbox also lets you stream movies from Netflix, though for that you need both a Netflix membership and an Xbox Live Gold account.

OK, so what do you think? Too good to pass up? If memory serves, this is by far the lowest price I've seen on an Xbox 360 Elite. The deal is available through July 31, but something tells me it'll sell out long before that.

Rumor has it the Xbox 360 Elite will take the place of the Pro.

(Credit: Microsoft)

Ars Technica's "favorite inside source" is at it again, telling the Web site that Sony is clearing inventory on the $399 80GB PS3 in advance of "dropping the price of hardware and launching the PS3 Slim rumor in the fall."

At the same time, Ars' mole claims the 60GB Xbox 360 Pro ($299) will be replaced by the Xbox 360 Elite ($399), which has a higher-capacity 120GB hard drive. In other words, Microsoft will offer up more hard drive capacity at the $299 price point, which seems to dovetail nicely with its plans to deliver a full assortment of retail game downloads that require more disc space than Xbox 360 Arcade titles.

According to the mole, which Ars claims has "an outstanding track record," we should also expect Microsoft to serve up some enticing system/game bundles for the holidays, similar to what we've already seen with the Halo 3/Fable 2 bundle.

In terms of rumors, this one sounds pretty straightforward and logical, and could really come from anybody who has some basic insight into the gaming industry. But hey, other blogs are posting this item, so we feel obligated to let you in on what's floating around out there.

Probably the most important thing to note is that the PS3 Slim rumor is alive and well and we expect it to continue to gain steam as we approach the end of the summer. In the light of Sony's inability to keep the PSP Go a secret, if the PS3 Slim is indeed for real, we somehow doubt Sony will be able to keep it completely under wraps.

It's also clear (if you believe this rumor) that Microsoft intends to keep the pressure on Sony, making sure the PS3 remains in third place behind the Wii and Xbox 360. The other day I spoke with Aaron Greenberg, group product manager for Xbox 360, and he gave me the impression that Microsoft fully expects Sony to drop its price to $299 this year. "Otherwise, it's going to be very difficult for them to compete," Greenberg said. "They have to."

As always, feel free to comment.

(Source: Ars Technica)

In celebration of the release of "Resident Evil 5," Microsoft will be offering a limited-edition version of the Xbox 360 Elite console.

The Resident Evil 5 Xbox 360 Elite will come in a red finish and have a red controller. Bundled inside the box you'll find everything the Elite has to offer, in addition to a code for an exclusive "Resident Evil 5" theme for your dashboard. Also included as a bonus will be a free voucher for "Super Street Fighter II Turbo HD Remix."

Limited-edition Resident Evil 5 Xbox 360 Elite (red)

The console should ship around the time "Resident Evil 5" launches, which is Friday, March 13. (The game will also available for PlayStation 3.) The price of the special console will remain the same as a regular Xbox 360 Elite at $400. In the meantime, check out our photo gallery of the red console.

(Credit: CNET Networks)

Now that the Xbox 360 Elite has been released, let's take a look at which accessories are must-buys. The actual amount of accessories you'll want ultimately will be up to you, but some decisions should be made depending on which version of the Xbox 360 you have. An Xbox 360 Core System owner will need to buy more accessories than an Xbox 360 Elite owner simply because of the difference in the items bundled with each system. Here's a list of what you should consider when in the market for Xbox 360 add-ons.

Extra controllers and batteries: The Xbox 360 can have up to a total of four controllers (wired or wireless) connected to the system at any time. Most gamers, myself included, like the feel of the Xbox 360 wireless controller ($50, also available in black). If wires don't bother you, a cheaper, wired alternative ($40) is available as well. As an added bonus, the wired controller will also work with any PC via USB.

If you choose to go with a wireless controller, you may get tired of constantly replacing the AA batteries. Instead, consider investing in a rechargeable battery pack ($12, also available in black) along with either a play-and-charge kit ($20, also in black) or a quick-charge kit ($30). The play-and-charge kit comes with a rechargeable battery and allows you to charge your controller while you play, using the 360's USB port for power. The quick-charge kit is a separate, more-expensive device that needs its own power source but can charge two batteries quickly at once. It too comes with an extra rechargeable-battery pack.

Storage: If you bought the Core System you're going to need storage space. The best way to do this is by purchasing a hard drive. Depending on how much downloading you plan on doing, you have two choices: the 20GB ($100) and the recently released 120GB ($180). In terms of value, I'd recommend the 120GB over the 20GB. If you already own an Xbox 360 with the 20GB hard drive and wish to upgrade to 120GB, Microsoft is offering its data transfer kit for free. But be warned, there have been some bumps in the road.

Wireless networking: Each Xbox 360 is ready for connection to the Internet directly out of the box using the included Ethernet cable. However, not everyone has their Xbox 360 close enough to their modem. If you find yourself in this situation, consider the wireless network adapter ($100) which connects to your 360 via the rear USB port. Of course in addition to the adapter, you'll need a wireless router to provide the Xbox 360 with a signal.

Wireless headset: If you're tired of wires all together, you may want to replace your wired headset with a wireless one ($60). It may be a little pricey but once you use it, you'll wonder how you ever played a game online without it.

HD DVD player add-on: If you're the type of person who must have the latest and greatest technology available, the HD DVD player add-on ($200) is something you should take a look at. Microsoft opted to keep the drive out of the 360 because of the current (and seemingly endless) format war between HD DVD and Blu-ray and to keep production costs down. Xbox 360 Elite owners may be more inclined to buy the HD DVD player add-on because of the inclusion of HDMI-out in the new console. HDMI will allow the best possible picture quality for the 360, making HD DVDs look even better then they did on previous Xbox 360 systems.

(Credit: CNET Networks)

New owner of an Xbox 360 Elite? Well, if you were planning on transferring your Xbox Live Arcade games along with the rest of the data from your old 360, think again. There seems to be a major problem with how the transfer kit imports the games, involving DRM--yes, even games now suffer from this poorly thought-out technology. After a successful hard drive transfer, all of your purchased Arcade games will magically downgrade to demos. In order to have full access to these games, you must sign into Xbox Live (thanks to Joe at The Pensive Gamer for pointing this detail out).

Even more upsetting is that the DRM woes aren't exclusive to Xbox Live Arcade games. It seems that any movie or TV episode you've downloaded and transferred is susceptible to viewing limitations. In order to watch a television show, you must also be connected to Xbox Live in order to verify your identity. Microsoft is now recommending against performing a data transfer should you ever desire to view your shows offline.

As far as movies are concerned, all hope is lost. Any movie transferred using the kit cannot be viewed at all off the new hard drive. And what was Microsoft's actual solution to this issue? Watch your movies before you transfer your data.

In light of all the recent trauma, the transfer kit is currently being offered free from Microsoft by filling out this PDF form.

[Source: Gamespot]

(Credit: Kotaku)

No, those new Xbox 360 Elites that were released last weekend do not contain the new 65nm chips that Microsoft promised us. Production on those new silicon wafers is only starting this month, so they won't be finding their way into consoles you can actually buy until the fall.

For those keeping score, that means the new 65nm technology will be incorporated into both the game machine's CPU (central processing unit) and GPU (the dedicated graphics chip). The new smaller chips reportedly run a lot more efficiently than those found in current Xbox 360s. That should mean less power consumption, a cooler running temperature, and--since cooling fans won't have to work overtime--the possibility of a quieter overall system.

[Source: Commercial Times (China) via Kotaku.]