Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
July 28, 2014
arrowPress Releases
July 28, 2014
PR Newswire
View All

If you enjoy reading this site, you might also want to check out these UBM Tech sites:

U.S. retailers drop Xbox 360 prices to compete with Wii U
U.S. retailers drop Xbox 360 prices to compete with Wii U
October 15, 2012 | By Tom Curtis

October 15, 2012 | By Tom Curtis

In the weeks leading up to the Wii U's launch in November, major U.S. retailers have dropped the price of a number of Xbox 360 bundles in hopes of selling more units during the busy holiday season.

Retailers like GameStop, Best Buy, Amazon, and Wal-Mart have cut $50 from several of the existing Xbox 360 models. The baseline 4GB model remains at $199, though the $299 bundles (which include the 4GB model with Kinect and the 250GB model) are now $249. The upcoming Halo 4 console bundle also received a price drop, and will debut next month at $349 rather than $399.

With these recent changes, most Xbox 360 bundles will now be less expensive than the Nintendo Wii U when it launches next month for $299 (or $349 for its 32GB Deluxe Set). These price reductions arrived just as Nintendo announced its own price drop for the original Wii, and should help the Xbox 360 better compete with the new Wii U hardware.

At the moment, it's unclear whether Microsoft had a hand in these recent price drops, or whether these new prices are permanent. In previous years, many of the participating retailers have offered temporary holiday discounts by including $50 gift cards with Xbox 360 purchases, and the new price drops could very well be extensions of that same kind of promotion. We've reached out to Microsoft and a number of these retailers for comment, but have yet to hear back as of press time.

[Update: Microsoft announced today that the recent $50 price drop is a temporary promotion that will last through the holidays. All bundles are expected to return to their previous prices once the promotion ends.]

Related Jobs

2K — Novato, California, United States

Sr Analyst, UseràData & Monetization
Sony Online Entertainment, San Diego
Sony Online Entertainment, San Diego — San Diego, California, United States

UI Programmer, PlanetSide 2
Camy Electronics & Plastics
Camy Electronics & Plastics — Los Angeles, California, United States

Sales and Marketing Assistant
Red 5 Studios
Red 5 Studios — Laguna Hills, California, United States

Localization Project Manager


Bob Johnson
profile image
It is all MS. :) Retailers have no reason to drop the price in response to the Wii U.

The list price of a 360 means little given how many gift card promotions MS has offered in the past year. IF they are going to drop the list price but not offer these deals then this is hardly a price drop in the grand scheme of things. Be interesting to see what happens from a business point of view.

Alan Rimkeit
profile image
The ball is in your court Sony. o.O

Merc Hoffner
profile image
It would be embarrassing, but all three have sucked it up before.

John Flush
profile image
I personally think it is sad that a 7 year old machine is having to lower it's price to compete with a new console. The fact something 7 years old would have been the same price as the Wii U... that is just sad.

Stephen Cunha
profile image
I wonder how many consoles they produced for the holidays (I don't expect them to sell). You would think that they would be lowering prices drastically, to appeal to a larger market, knowing that the next gen consoles are right around the corner.

I guess they don't care THAT much about market share.

A business move that is not surprising, considering their last idea to sell xboxs for $99 with the 2 year contract at $15/month. WHAT A JOKE!

Lyon Medina
profile image
Pretty sneaky sis.

Of course this was done by Microsoft. There is no way that "Multiple" competing retailers would be offering the exact same special(s) and announce right around the same time. I think Microsoft should take it a step further and give a special where you can download a couple of more games when you activate a Live subscription. Really all out sell the 360 this year since it is probably going to be the last year it is going to be relevant.

Competitors have to down play their rival. No better way than allowing people to let the novelty wear off after the holidays. What I think Nintendo needs to do is make sure there are no kinds of shortages of Wii-U. If there are the probability of people picking up a 360 will be much higher.

Eric Geer
profile image
Shame they are lowering the price so late in the game. I probably would have gotten on if prices were lower about a year ago.

Since WiiU is coming out...I'll be saving for it.

Adam Rebika
profile image
So they're bringing the price back up after the holydays. Guess they want to keep this generation a bit longer...