Xbox 360 now only £129.99

[SamUK]

MS hav just announced another price drop and the arcade is only £129.99.

The new 60gb is only £169.99.

That means you starved ps3 owners can start playing some games without digging to deep!

Hehe, jus messing but that is incredibly cheap.

Cant post a link cos im on my phone but its on the front page of teamxbox.com.

[matt_mr2t]

It does bug me a little bit how much they cost when they came out only for a bit down the line to drop so much.

I think when the next gen of consoles come out I will wait until they've dropped off.

I bought my Xbox 2nd hand for £300 with 7 games. IIRC they were £300 for the console on release?

[un1eash]

They've got to do something to sell them.

[matt_mr2t]

They've got to do something to sell them.

Shame Sony dont come up with a simular idea then....

[thai boxer]

They've got to do something to sell them.

Shame Sony dont come up with a simular idea then....

[SamUK]

Matt, i get what your saying but hardware prices drop on a weekly basis, thats why we see price drops.

And i think if you check the latest npd stats then the 360 is selling the most this month.

I kno the latest madden game out sold the ps3 version by atleast 2 to 1.

[matt_mr2t]

Matt, i get what your saying but hardware prices drop on a weekly basis, thats why we see price drops.

And i think if you check the latest npd stats then the 360 is selling the most this month.

I kno the latest madden game out sold the ps3 version by atleast 2 to 1.

The reason it costs £300 when it came out (£425 for the PS3) is simply because people will pay it.

[SamUK]

Not really. They sell them cheaper than they are to make. Thats why they make a loss for about the first 12 months of the consoles life.

Its only when hardware is cheaper that they can reduce the price.

I think sony are stil losing out with each console sale.

[un1eash]

Xbox wont even break even on the console sales till year 2010-2011 due to all the warrenty replacements.

[matt_mr2t]

Not really. They sell them cheaper than they are to make. Thats why they make a loss for about the first 12 months of the consoles life.

Its only when hardware is cheaper that they can reduce the price.

I think sony are stil losing out with each console sale.

Not as much as the buyers

I'm not convinced I believe all this tbh. It's a terrible, terrible business plan to sell things at a loss hoping it'll be a success enough to make you money in the future. It would break a company if that risk failed.
Where do stories like this come from?

[un1eash]

From microsoft them selves. Also a collegue of mine has friends that work the microsoft and they have confirmed this. With all the warrenty replacements its put them behind 2-3 years.

[matt_mr2t]

Oh I can well believe the warrenty stuff has cost them a feck lot of money.

It's the fact they sell them at a loss I'm unconvinced about.

[toxo]

It's a terrible, terrible business plan to sell things at a loss hoping it'll be a success enough to make you money in the future.

Ford were doing it for a while IIRC. It is a standard practice with new technology because you couldn't possibly write off the R&D required across your first batch of products. Bugatti Veyron springs to mind!

[SamUK]

Its fairly simple. they rely on software and peripheral sales to make them money.

oh and a few million dollars is nothing to microsoft. they actually released a figure for how much the RROD is gonna cost them.

think sony have said when they expect to make a profit too and it wasnt for a while.

its hurting them more though as there softwware sales are pretty poor too.

[matt_mr2t]

It's a terrible, terrible business plan to sell things at a loss hoping it'll be a success enough to make you money in the future.

Ford were doing it for a while IIRC. It is a standard practice with new technology because you couldn't possibly write off the R&D required across your first batch of products. Bugatti Veyron springs to mind!

They Veyron was always going to be a showcase thing with no real way of making a profit. Apparently it was simply to relaunch the brand with the view to making more cheaper lesser Bugatti's.

Hell of a loss per car though £4.2m each one

[SamUK]

this articles from 2006 but it makes a point.

http://www.joystiq.com/2006/03/28/so-ho ... -360-sold/

that was before the RROD errors came to light too.

[matt_mr2t]

If it costs $310 dollars to produce a core system in 2006 when the ROE was $2 to the pound then they made a proffit as IIRC the core system then was around £200 - £250?

[SamUK]

well for one i dont think the dollar was that crappy back then and 2 the UK is a tiny tiny market in comparison with the US.

just google it dude. im still on my phone so its an effort but the info is out there.

[matt_mr2t]

I reckon 2 years ago was probably the stronest the pound has been agains the dollar, it's started going down again now to about $1.75 to the pound


I work in insurance and have to deal with dollars and rates all day

[SamUK]

ok fair enough. see point 2.