The bare-boned $299.99 "Core" model is being marked down by just $20 to $279.99. The new Elite systems that come with beefy 120-gig drives will now be $449.99.
It's no surprise to see the Xbox 360 come with a deeper price cut than the stripped Core model -- the company wants to move more units of the former console. Microsoft's plans for the digital delivery of software, flicks, and music require a hard drive.
A price cut was expected after Sony's
Mr. Softy probably thought that it could get away without taking a bigger hit on the hardware side this year. Its own Halo 3 is coming out next month. The company also offered Take-Two
Even with the price cuts, the Wii availability is still scarce. The $250 system doesn't come with the tantalizing specs of its pricier peers, but the addictive nature of its casual games and motion-based controllers are a hit. Nintendo's surprising success will make for a great business school case study in the years to come, but right now, it's Sony and Microsoft who are smarting.
With deep price cuts on the hardware, the pressure is even greater for the companies to make it up elsewhere. However, for that chain reaction to get started, folks need to start snapping up Xbox and PS3 systems. Keep an eye on monthly sales trends to see if the slashing will pay off.
Continue? Sure. Here are a few related stories:
- Sony cut the price on its PS3 last month.
- Mr. Softy is taking a $1 billion hit to offer extended warranty repairs on its buggy systems.
- Take-Two announced that it would be delaying its GTA4 game until next year.
Longtime Fool contributor Rick Munarriz has been a fan of video games dating back to Pong. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.