Xbox 360 price drop hinted for late 2007

13 July 2007
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Xbox 360 Core System is the cheapest so far1UP‘s Patrick Klepek got the chance to sit down with Shane Kim, corporate VP at Microsoft Game Studios, to ask about Microsoft’s response to the PlayStation 3 price drop in America.

Question: What is the mass-market price, and when will Xbox 360 achieve that?
Answer: : If you look back in history — again, it’s not just going to follow what’s in history — in some cases, 75% to 80% of the business gets done $199 and below. So, we’re not quite there yet. I think that number can change over time because of inflation, greater capabilities; what we can do what Xbox 360, even the core system, is far beyond what you could do before in previous generations. Who knows? Maybe $249 will be a mass-market price point — but historically, $199 has been when you’re talking a PlayStation 2-like install base. 80% of the business gets done at $199 and below. We’re like the other guys, right?

We’re trying to drive costs out of the system as much as possible so we can hit those price points. We’re a little closer than Sony is with PlayStation 3, thankfully, but we’re all trying to get that magic price point.

Question: Are you going to move toward that in 2007?
Answer: Stay tuned. We didn’t announce anything here, didn’t feel the need to. July is a very odd time to announce a price reduction. I’m not even sure Sony announced a price reduction, anyway [Kim is pointing to the fact that the PS3 launched with a $499 20GB version and a $599 60GB model; Sony discontinued the $499 20GB version in April 2007 in North America, so the company is essentially reducing the 60GB model to the 20GB price. –Ed.], but we don’t feel the need to do it here at E3.


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Ferry Groenendijk By Ferry Groenendijk: He is the founder and editor of Video Games Blogger. He loved gaming from the moment he got a Nintendo with Super Mario Bros. on his 8th birthday. Learn more about him here and connect with him on Twitter, Facebook and at Google+.

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