Microsoft could cut Xbox to $99 in N. America

maxcom

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Dec 1, 2000
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Microsoft could cut Xbox to $99 in N. America -- Amtech : After speaking with several industry contacts over the past couple weeks, Amtech Research believes that Microsoft possibly cut the price of the Xbox in N. America to $99 by this Labor Day. This dramatic price cut could spur on Xbox hardware console sales and provide upside for the game software publishers. Both THQI (-1.7%) and ATVI (+2.2%) generate approx 15% of revenues from the Xbox, while ERTS (-2.2%) earned 14% of its DecQ net revenues on Xbox games. TTWO (unch) has less than 10% of its publishing revenues from the Xbox platform.
 

RagingBITCH

Lifer
Sep 27, 2003
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Originally posted by: brtspears2
I'm still waiting for the PS2 to hit rock bottom just in time for GT4.

This sure as hell will make PS2 hit rock bottom in terms of pricing. If Sony doesn't cut it first, MS will.
 

DanJ

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Oct 15, 1999
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Its a good thing MS has some funds in the bank, at $99 they will be hemoraging cash in the red.
 

RagingBITCH

Lifer
Sep 27, 2003
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Originally posted by: Hammer
its not going to happen.

XBox 2/PS3 slated to come in 2005. Why not? GC is already down to $99. PS2 and XBox are/were suffering in terms of sales to the GC.
 

vi edit

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Oct 28, 1999
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Amtech Research believes that Microsoft possibly cut the price of the Xbox in N. America to $99 by this Labor Day.

Call me crazy, but I'm not all hot and bothered by this being that it's happening 9 months from now.
 

RagingBITCH

Lifer
Sep 27, 2003
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Originally posted by: vi_edit
Amtech Research believes that Microsoft possibly cut the price of the Xbox in N. America to $99 by this Labor Day.

Call me crazy, but I'm not all hot and bothered by this being that it's happening 9 months from now.

You were always hard to get off vi :(
 

Tom

Lifer
Oct 9, 1999
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I bet they do, but it will be some new xbox-lite, probably sans hard drive.
 

Hammer

Lifer
Oct 19, 2001
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Originally posted by: RagingBITCH
Originally posted by: Hammer
its not going to happen.

XBox 2/PS3 slated to come in 2005. Why not? GC is already down to $99. PS2 and XBox are/were suffering in terms of sales to the GC.

it costs more to produce an xbox then a GC. Yeah, the GC finished 2003 as the #2 console, passing MS after the price cut. But while, PS2 sales dropped 30% when the GC dropped its price, Xbox sales remained flat. I don't think MS will do it. It's still selling pretty well.
 

RagingBITCH

Lifer
Sep 27, 2003
17,619
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Originally posted by: Hammer
Originally posted by: RagingBITCH
Originally posted by: Hammer
its not going to happen.

XBox 2/PS3 slated to come in 2005. Why not? GC is already down to $99. PS2 and XBox are/were suffering in terms of sales to the GC.

it costs more to produce an xbox then a GC. Yeah, the GC finished 2003 as the #2 console, passing MS after the price cut. But while, PS2 sales dropped 30% when the GC dropped its price, Xbox sales remained flat. I don't think MS will do it. It's still selling pretty well.

The more you produce the lower your cost of goods sold. At $99 the loss on the XBox in September of this year would be less than the loss they were taking selling it at $299 when it first debuted. (That was the selling price right? I can't remember) Besides, consoles usually are not profitable for a company anyhow - it's the games and accessories that your profit margins are on, like printers and cartridges. I can see your point and to make a concession, maybe they won't drop it all the way down to $99 - $129 or even $149 seems more logical. Dropping it to $99 would increase sales dramatically though.
 

Hammer

Lifer
Oct 19, 2001
13,217
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Originally posted by: RagingBITCH
Originally posted by: Hammer
Originally posted by: RagingBITCH
Originally posted by: Hammer
its not going to happen.

XBox 2/PS3 slated to come in 2005. Why not? GC is already down to $99. PS2 and XBox are/were suffering in terms of sales to the GC.

it costs more to produce an xbox then a GC. Yeah, the GC finished 2003 as the #2 console, passing MS after the price cut. But while, PS2 sales dropped 30% when the GC dropped its price, Xbox sales remained flat. I don't think MS will do it. It's still selling pretty well.

The more you produce the lower your cost of goods sold. At $99 the loss on the XBox in September of this year would be less than the loss they were taking selling it at $299 when it first debuted. (That was the selling price right? I can't remember) Besides, consoles usually are not profitable for a company anyhow - it's the games and accessories that your profit margins are on, like printers and cartridges. I can see your point and to make a concession, maybe they won't drop it all the way down to $99 - $129 or even $149 seems more logical. Dropping it to $99 would increase sales dramatically though.

i know all about how they make their profit. I just think that a $99 would seriously hurt their bottom line. they would be hemmoraging money on the console. $149 i would believe. $99, no way.
 

thenerdguy

Senior member
Jan 24, 2003
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sweet that might mean the gamecube will drop to $50.00 :)
There is nothing in heven or hell that would make me buy a X slop.
 

Freejack2

Diamond Member
Dec 31, 2000
7,751
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It will probably drop to $149.99. While Sony could probably break even at $99, MS would lose quite a bit of money. However we had these rumors last year that the PS2 was going to drop to $150 but they only dropped it $20. It'll be the same this year.
 

Mr N8

Diamond Member
Dec 3, 2001
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Originally posted by: vi_edit
Amtech Research believes that Microsoft possibly cut the price of the Xbox in N. America to $99 by this Labor Day.

Call me crazy, but I'm not all hot and bothered by this being that it's happening 9 months from now.

My thought, too. Why would anyone buy a new Xbox by then, anyway. The Xbox 2 should be coming out not too long after that. If they really wanted to drop the price, they could do it now.
 

RagingBITCH

Lifer
Sep 27, 2003
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Originally posted by: MogulMonster
Originally posted by: vi_edit
Amtech Research believes that Microsoft possibly cut the price of the Xbox in N. America to $99 by this Labor Day.

Call me crazy, but I'm not all hot and bothered by this being that it's happening 9 months from now.

My thought, too. Why would anyone buy a new Xbox by then, anyway. The Xbox 2 should be coming out not too long after that. If they really wanted to drop the price, they could do it now.

4th quarter 05. That's 1.25 years from the expected price drop.
 

MrBond

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Feb 5, 2000
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Originally posted by: Dead Parrot Sketch
I bet they do, but it will be some new xbox-lite, probably sans hard drive.
Why would they do that? You couldn't play games like Blinx: The Time Sweeper that use the hard drive. Games couldn't be buffered to the HDD to allow faster load times. There'd be no place to save downloadable content from Xbox Live either.

The xbox NEEDS a hard drive.
 

RagingBITCH

Lifer
Sep 27, 2003
17,619
2
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Originally posted by: MrBond
Originally posted by: Dead Parrot Sketch
I bet they do, but it will be some new xbox-lite, probably sans hard drive.
Why would they do that? You couldn't play games like Blinx: The Time Sweeper that use the hard drive. Games couldn't be buffered to the HDD to allow faster load times. There'd be no place to save downloadable content from Xbox Live either.

The xbox NEEDS a hard drive.

What he said ^. The hard drive is crucial/critical to the XBox. It's not like lopping off something useless, like the expansion port of the N64. (Only use was that memory expansion which really did jack chit)
 

bcterps

Platinum Member
Aug 31, 2000
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Cool, maybe I'd pick up an Xbox then. Although it would be kind of funny that I'd buy an Xbox but 0 Xbox games. $99 for a good MAME/NES/SNES/etc. emulator would be a bargain.