Microsoft playing catch up with price cut and HDD increase

Mike Bantick
Tuesday, 01 July 2008 04:38

Opinion and Analysis

Still rumour at the moment, but the good money is on Microsoft giving us an E3 announcement consisting of an Xbox 360 price cut coupled with and increase in hard drive capacity.  If true, once again Microsoft are attempting to take on both the Nintendo Wii and Sony PS3 at the same time.

It has been bandied around the interweb for a couple of days now.  Microsoft rumoured to slash US$50 off the price of the Xbox 360 Premium model.  Reducing the console to below US$300

This move is an obvious one to improve sales figures against a rising PlayStation 3 threat, and at the same time taking on the phenomenal success of the Nintendo Wii – currently priced at US$249.

Today, however the rumour thickens, with Ars Technica reporting Microsoft insider information suggesting that a price cut is not the only change on the E3 horizon for the Premium model.

"At E3 Microsoft will make an official announcement that we are dropping the 20GB pro console to US$299... As we launch the 60GB SKU throughout July, the 20GB SKU will DISCONTINUE. You will see the new SKU on your 7/1 price list." suggests the insider.

Even if this is the only hardware revamp in store for the Premium model, it is a good one.  With Microsoft already providing a TV download service (albeit US centric), a bolstering in HDD capacity is the best thing that the big M can do to add some future proofing to the Xbox 360 offering.

Now we just need to wait a few weeks (July 15 – 17) until the Microsoft press conference that will confirm/alter/throw out the window these rumours.