Official European price falls, so will Australia follow suit?

or is it just a vision of things to come . . .

by DarkArmada

©2008 Lee Edgerton

Recently Microsoft announced a price drop across all Xbox 360 SKU’s in Europe after much speculation, lowering the pricing considerably across the board. The Arcade is now £159.99, the Xbox 360 £199.99 and the Elite to £259.99. Not only is this aggressive pricing evidence of Microsoft’s heavy handed approach to gaining more marketshare in Europe, it shows further proof that Microsoft’s crosshairs are pointed squarely at the casual gamer.

£159.99 for the Xbox 360 Arcade prices the Microsoft box under Nintendo’s own Wii. What does this mean? Where the Wii was considered to deserve it’s low price due to the lack of HD functions and it not being completely on par with the technology of the Xbox 360/PS3, now you have to ask yourself – what’s the point?

With Microsoft actively promoting XNA and moving further into the Casual Gamer space, this is the logical next step towards appealing to the masses and for the casual gamer looking to purchase a cheap gaming machine, now the Xbox 360 has been thrust ahead of the traditional choice.

But this doesn’t come as a surprise. Even throughout the conception and development of the Xbox 360, the idea of a “Casual” and “Hardcore” SKU was cemented right from the outset and although the lack of guaranteed HDD storage has been a development downfall for the 360 in the past, this latest move by Microsoft shows that they have finally reached their goal set many years ago.

With firm connections to both casual and hardcore gamers alike, as 2009/2010 approaches steadily and the inevitable arrival of the NextXbox is around the corner, Microsoft are planning moves ahead to secure their position in the next generation of consoles.

But the further reaching consequences are yet to be apparent. Nintendo’s reaction to these cuts have been less than encouraging, with them refusing to engage Microsoft in a price war. Sony has taken the same approach and will not be offering any relief (at least not in the near future).

Now that Microsoft is cheaper than both consoles and offers far more with regards to functionality, online service and game selection, only time will tell how this will effect the competition in the long run.

©2008 Lee Edgerton

Full Press Release:

Press release:

Microsoft today announced it is lowering the estimated retail price (ERP) for its Xbox 360™ family of consoles in Europe. Now with an entry-level ERP of £159.99, Xbox 360 is a mass market entertainment proposition with something to offer for every interest and budget.

From Friday, 14th March, Xbox 360, which includes a 20GB hard drive and one wireless controller, will have an ERP of £199.99 – a saving of £50 on the current ERP. The Xbox 360 Elite, which comes with a massive 120GB hard drive enabling consumers to store huge quantities of content downloaded from Xbox LIVE™ Marketplace as well as their own music, will have an ERP of £259.99 – a saving of £40. The Xbox 360 Arcade console, perfect for those wishing to make their first foray into the gaming and entertainment world of Xbox, will have an ERP of £159.99 – a saving of £40.

Xbox 360 is the number one next-gen console in EMEA, owning 42% of the market in terms of life-to-date revenue. Xbox 360 continues to enjoy the highest software attach rate of any game console in Europe with more than 7.0 games sold per console (PS3: 3.8; Wii 3.5) after 26 months on the market.

The new ERPs are part of Microsoft’s ongoing strategy to open up the ultimate in high-definition gaming and entertainment to an even wider audience, with an offering for everyone:

Best Choice for Families:

• Xbox 360 grows as your family does, offering games and entertainment for every member of the family – from movies to games to music videos.

• With over 150 3+ rated games and unparalleled parental controls, parents can feel good about their kids playing Xbox 360

• Most Diverse Entertainment:

• Xbox 360 offers great choice in high-definition entertainment

• Xbox Live Video Store offers a wide variety of movies to download, both in HD and SD, enabling great entertainment in the living room at the press of a button

• It’s easy to view and enjoy video and photos on Xbox 360 as well as connect wirelessly to share content with a Windows Media Center PC

The Best Games:

• There will be over 1,000 games available on Xbox 360 by the end of the year, with something for every skill level, interest and taste

• New community games allow gamers to sample the best of indie games, providing innovative new ways to play and enjoy

• Blockbuster franchises like Grand Theft Auto IV, with exclusive downloadable episodes on Xbox LIVE, and Rock Band make Xbox 360 the place to be this Spring

• Xbox 360 exclusives for 2008 include Fable 2, Gears of War 2 and Too Human, setting new standards for next-generation gaming

“Xbox 360 is now mass market in Europe,” said Chris Lewis, Vice President, Microsoft Interactive Entertainment Business Europe. “We have reached and surpassed several key milestones that form part of our long term strategic plan to achieve critical mass in Europe; and our portfolio now offers the kind of mainstream entertainment experiences that secure wider appeal for Xbox 360. These factors allow us to execute on our strategy to widen the market for Xbox 360, as planned.

“We continue to offer intense, immersive gaming experiences for gamers – but now we’re priced in a way that will allow new consumers to find out for themselves why Xbox 360 is the ultimate in high-definition entertainment.” said Lewis. “History shows that £159.99 is the price point where a console’s audience begins to expand, and with these new ERPs in place we’re ready to bring more consumers into the Xbox 360 world.”