Tuesday, September 26, 2006

Microsoft to cut price by $100, snatch Resident Evil 5 exclusivity?



Microsoft is rumoured to cut the price of its premium Xbox360 down to $299 - including a HD-DVD disc drive, as DigiTimes reports:

Microsoft, to prepare for the price cut, has negotiated reduced production costs for the Xbox 360 with Taiwan-based manufacturing partners, stated the sources. The manufacturers estimate that the total production cost can be reduced by 15-20% due to diminishing costs for most components along with increasing production scales and decreasing defect rates, the sources pointed out.

This rumour comes alongisde speculation that Microsoft has secured an exlusivity deal with Capcom regarding Resident Evil 5, as Games Industry reports:
Industry chatter at the Tokyo event claimed Resident Evil's no-show is owing to Microsoft tying up a shock exclusivity deal for 360, with an announcement due at the US firm's X06 event in Barcelona next week.

Speaking exclusively to GamesIndustry.biz at TGS 2006, Xbox boss Sensui refused to pour cold water on the rumour when questioned, stating that it had already been announced for Xbox 360 and adding, somewhat enigmatically: "All I can say is we are very good friends with Mr Inafune [the game's producer]".


If true, this would significantly up Microsoft´s chances in Europe and the US. I am more sceptical about Japan, since the console has been sitting on store shelves even at the ridiculously low price of $250, I believe. In the US and Europe, though, a $299 price tag for the premium version including an HD-DVD drive would spell huge trouble for both Sony and Nintendo. If anything is announced at X06 starting tomorrow, you will read about it here. I am attending the event.

Sources: DigiTimes, Games Industry

33 comments:

Grandmaster B said...

Not good news........for the western market.

pitendo said...

m$ and their plan to rule the world...

truthkilla said...

Nintendo needs another round just to stop 360. They did their buy for the Ps3 but what about the 360. I bet Nintendo didn't expect this. But if it happens I might not get a Wii.

pitendo said...

i wonder how much money ms loses...

Lord_Darcia said...

See what I mean? I never buy consoles early. With the exception of only 1 system: Sega Dreamcast.

Last minute changes are creeping up at the close to ps3 and nintendo wii's launch. Also, keep in mind all the hardware defect problems that plagued consumers on xbox360's launch will probably happen again in ps3 launch and maybe wiis launch. My advice is WAIT and try out ps3 and wii first before you buy it.

910do said...

Ouch !!! another kick in Nintendo crotch.

pitendo said...

could m$ be the number 1 with x360?holy shit if they dude that,whats next?japan domination?hope nintendo has a back up plan if the ms lowers x360 by 100$..if only nintendo had the money of freakin ms..

Grandmaster B said...

Nintendo would expect a price drop, I am sure. I dont know about $100 though!

pitendo said...

boy if the rsi 5 exclusivity its true,thats a huge blow for sony..

Zaro said...

At least Wii will have Resident Evil Chronicle.

The price drop can really hurt.

Anonymous said...

I find it hard to believe that they will be dropping the price by $100 AND including the hd-dvd drive. Thats the equivalence of a $200+ price drop and totally not necessary to compete with the PS3 at this point in time since the supply is so short. The PS3 will sell out of initial supply regardless of what price the 360 is. Microsoft would just be losing money fo rhte sake of it. I doubt this will be happening.

Falafelkid said...

Hi Lord_Darcia.

Last minute changes are creeping up at the close to ps3 and nintendo wii's launch.

I really, really don´t think that Nintendo will change their prices. After all, they must have foreseen the event of Microsoft reducing the price (agreeing with Grandmaster and disagreeing with Truthkilla here).

I also believe that while Xbox has become a reasonably big player in the industry for gamers, it has failed to become a household name. So a lot of casual gamers may be more attracted to the Nintendo brand. Regardless, Xbox360 will never sell many units in Japan (disagreeing with Pitendo). So I am pretty sure that this cannot put a dent in Nintendo´s sales figures over there. It´s the US and Europe they have to worry about, if anything.

Hi Zaro.

Good point about Wii still getting their exclusive RE game. PS3 won´t be getting any - so if the Xbox360 exclusivity is true, this will hurt Sony far more than Nintendo.

Hi Anonymous.

I find it hard to believe that they will be dropping the price by $100 AND including the hd-dvd drive. Thats the equivalence of a $200+ price drop and totally not necessary to compete with the PS3 at this point in time since the supply is so short. The PS3 will sell out of initial supply regardless of what price the 360 is. Microsoft would just be losing money fo rhte sake of it. I doubt this will be happening.

I agree and it´s a good point to count the inclusion of the HD-DVD drive as a further reduction. Counting the drive at $100 and accounting for the fact that Microsoft is still selling the console at around $100 under value, Microsoft would be losing $300 with every console sold (answering Pitendo´s question).

Economically speaking, that´s madness. At the same time, the only company capable of such madness is Microsoft. But the entire Xbox venture has cost them billions already. So I am thinking that even a Bill Gates might be getting hesitant.

Anonymous said...

MICROSORT ARE ALL READY MAKING MASSSIVE LOSSES ON 360 XBOX 1 IS 4 BILLION IN THE RED THIS IS BAD NEWS FOR MICROSOFTS SHARE HOLDERS AND NO ONE ELSE BILL JUST KEEPS SPENDING MONEY YET INOVATING NOTHING ALL I SEE IN THIS IS FEAR OF NINTENDO AND A EXTERNAL DVD DRIVE OHHH PLEASE WEN SEGA SAID THAT EVERY ONE LAFFED PATHETIC BILL GATES JUST PATHETICWHEN IS THE X360 COFFEE MAKER AND TOASTER ADD ONS COMMING OUT IDIOT 360 FANS NO SELF RESPECTING GAMER WOULD PICK XBOX PAD OVER WIIMOTE

Anonymous said...

on the issue of microsoft loosing money on every xbox360 they sell...

If microsoft reduce the price maybe sony could buy some xbox360s, and stock pile them. it would cost microsoft more than it would cost sony...then they could burn them as a PR stunt!

but microsoft are pretty rich....hey maybe microsoft could do the same to sony with the ps3...and make them bankrupt.

pitendo said...

i hope nintendo stays in profit until the end of the world.by the way nice analysis falf dude.so no change in fate for m$ even with those rpgs coming?

pitendo said...

sorry for the double post.i mean for japan

Anonymous said...

The Wii will vanish faster than the Dreamcast did, mark my words !! a GCN with a remote against two beasts ( PS3, Xbox360 ) , No nintendo it's not the handheld market , it's the home console market , you have to get everything right to succeed ( power, AAA games, gameplay ), miss one and join the Sega club.

Anonymous said...

"The Wii will vanish faster than the Dreamcast did, mark my words !! a GCN with a remote against two beasts ( PS3, Xbox360 ) , No nintendo it's not the handheld market , it's the home console market , you have to get everything right to succeed ( power, AAA games, gameplay ), miss one and join the Sega club."

Dude, the crack you smoke. have you ever been to Japan? I have, let me tell you something that you might not know about Nintendo. In Japan, they are considered a Historic part of japan, do you know why?

Because In 1889 Nintendo was founded as an entertainment company, they have always been an entertainment company. They aren't poor, and they are the only company that is always in the lpus when selling its sytems, a smart move if ya ask me.

Nitendo will not go the way of the dreamcast. Here, let me give you an example.

Magnavox 1972 Weakest strength at $100 dollars

Atari 1977 Medium Strenth at $200

Intellivision 1979 Maximum Strength at $299

Which one one out the first console war? Atari

Next...

NES 1985 Same strength at $199/$249 w/ROB

Sega Master System 1986 Same strength $199

Who won, Nintendo

Sega Genesis 1989 faster processor weaker graphics $200

Neo Geo 1990 Stronger System $650

SNES 1991 Medium Strength $199

3DO 1993 Strongest $700

Nintendo Won That Time around too, seeing a pattern?

Sega Saturn 1995 Medium $399

Playstation 1995 Weakest $299

N64 1996 Strongest $199

Who won this time? Playstation. The pattern should be clear now.

Dreamcast 1999 Medium $200

Playstation2 2000 Weakest $299

Gamecube 2001 Medium $199

Xbox 2001 Strongest $299

Playstation won.

Xbox 360 2005 Medium $399

PS3 2006 Strongest $599

Wii 2006 Weakest $250

By following monetary and release order patterns, try to guess the logical outcome. Have fun.

Arsenis said...

Nintendo having a price drop would be a big mistake...

the best would be adding an extra controller and keeping the same price.

Tetsuo Otomo said...

http://www.kotaku.com/gaming/capcom/resident-evil-5-not-360-exclusive-says-capcom-203324.php The rumour is debunked! Huzzah!

Blizz419 said...

i am a Nintendo fan myself but how blind some fools are do to fanboyism, to say microsoft has not innovated at all is pure foolishness. the XBox was the first home console to have a hard drive and incorporate custom music tracks from your own library into songs, also dont forget about Achievments on the 360 and the first real online service for a console.

Blizz419 said...

correction: into games not songs lol

Spak-Spang said...

If this happens do you foresee Nintendo dropping the price of the Wii to compete. I know you say price drops are embarrassing, but I believe it isn't when you are aggressively reacting to competition changes.

pitendo said...

i agree with arsenis.an extra controller would be perfect;)

ColdBlooder said...

they should just include zelda AND wii sports für 249 -> insta buy for most hardc ore gamers ;-)

Spak-Spang said...

If Nintendo just packaged in an extra controller I would be happy.

Even if it is only just another Wiipointer and not the entire controller I would be happy.

Though, packaging has already been done...so more than likely they will do a coupon to get an extra controller, or at least, tell the stores that if they buy a system and Controller give the controller to them for free, and Nintendo will reemburse the store.

pitendo said...

any big news from x06?

Blauw said...

According to Gamefront.de:

Microsoft announced 'Halo Wars', a strategy game which will take place in the 'Halo' universe.

Also, there will be a new 'Banjo Kazooie' title, developed by Rare of course.

HereticPB said...

Well it was bound to happen.

Falafelkid before you find out and write another sad post.

Mr. Inc has joined my blog - I'm sure that will anger you but I have promises from both Rebus and Mr. Inc about no BS posts - I did agree to Mr. Inc posting rumors though not crazy ones.

---

The X360 price drop means that Nintendo may drop the price of Wii to $225 in America. Hey it could happen.

Anonymous said...

No price drop either! They said the price of the HD-DVD drive is 200 and you can buy the whole kit and kaboodle for the price of the PS3...all of it debunked.

pitendo said...

thank God!wii for the win brothers!amen!

Matt said...

You people don't get it... If there's one thing that allows Microsoft to win in almost any situation, it's the fact that they aren't required to make any money with XBox, or play by any other business rules. They have a practically infinite supply of revenue, and can GIVE these things away if they have to.

Because of this, they are able to operate in a very simple, effective way: like a parasite. They get into an industry, and make you need them through any means necessary. Sure, you could use something else, but why? It's so much easier to just do what they tell you. Never mind how much they'll take you for in the long run.

Marketing got Microsoft where it is. Remember the "start me up" Windows 95 campaign? If Nintendo is going to fight the juggernaut, they have to take it to them in that arena. I'm talking television blitz, theater ads, full-page spreads in all kinds of magazines; the works.

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