Microsoft Drops Xbox Price to Compete With Wii

Posted on September 3, 2008

Xbox 360 ArcadeMicrosoft has lowered prices on the Xbox 360 to compete with the hot-selling Wii from Nintendo. The basic Xbox 360 will now cost about $50 less than the Wii. The Nintendo costs $250 and the entry-level Xbox 360 Arcade will now cost $199. Microsoft is also cutting the price of its more expensive Xbox 360 units. The cost of the mid-range Xbox 360 model (includes 60GB hard drive) drops from $349 from $299, The Xbox 360 Elite (includes a 120GB hard drive) drops to $399 from $449. The price drop will begin on September 5th.

Don Mattrick, senior vice president of the Interactive Entertainment Business at Microsoft, says in the announcement, "We are thrilled to be the first next-generation console on the market to reach $199, a price that invites everyone to enjoy Xbox 360. Xbox 360 delivers amazing performance at an extraordinary value with the leading online service and best lineup of games, downloadable movies and TV shows available from a console. The majority of consumers make the decision to buy consoles once the price falls to this mark, making this an important milestone for consumers and the industry."

Team Xbox noted the rumors about the Xbox 360 price drop in a blog post that is no longer available.

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