Microsoft is reducing the price of the Xbox 360 Elite console by $100 from Friday. The videogame industry is already struggling and this move by Microsoft will put more strain on other console makers. The Xbox Elite will now cost $299.99. The devices comes with a 120 GB HDD.
Additionally, Microsoft also announced that it would be lowering the price of the Xbox 360 Pro from $299.99 to $249.99. The price of the Xbox 360 Arcade, however, will remain the same at $199.99.
Microsoft’s announcement comes days after Sony Corp. announced that it would cut the price of PlayStation 3 by $100 to $299. PlayStation 3 faced stiff competition from other lower-priced consoles.
The economic crisis has had a bad effect of the videogame industry. According to studies, the game console industry is down by 29% from last year. The slow market is forcing many console-makers to decrease prices in order to make their products seem a good option in the upcoming holiday season. The slowdown of the market has also affected third-party publishers such as Electronic Arts Inc., Activision Blizzard Inc. and Ubisoft Entertainment SA.
As of now, Nintendo has not announced any price cuts on the Wii. Its price has remained $250 since 2006. However, there are speculations that Nintendo will make the move soon in order to meet its year-end sales targets. The Wii is currently the market leader among the newer generation gaming consoles.
Microsoft, Sony and Nintendo are aware of the potential of gaming consoles. These devices can be used to surf the Internet and play movies apart from playing games. These devices could eventually serve as a media hub for the home.
Microsoft will discontinue the Xbox 360 Pro after the supplies run out. Xbox 360 Elite and Arcade will be the two models that will be available in the future.