Posted Jul 21, 2008 at 02:43PM by Enrico S. Listed in: News Tags: Microsoft, Sony, HDMI, Todd Greenwald
Ó

Analyst calls for real Xbox 360 price cut - Image 1Todd Greenwald, an analyst for Signal Hill, recently told investors in no uncertain terms that the "Xbox 360 needs a real price cut." While Microsoft did drop the price of the console in the US by US$ 50, the analyst believes that it isn't enough in the face of the competition.

According to Greenwald, "We [Signal Hill] remain very skeptical of Microsoft's pricing strategy and competitive positioning versus the PlayStation 3." He expounded on this further:

At US$ 349, with a 60GB hard drive, we just don't think it is a compelling product compared with the PS3 at US$ 399 with an 80GB hard drive (along with more processing horsepower, Blu-ray, Wifi, HDMI, and going forward, more exclusive content.


Further driving home his point, he pointed out that the Xbox 360 has already been surpassed in the U.S. by the Wii, this is despite the one year head start the former console had over the latter.

In addition, he added that the introduction of an 80GB PS3 model which is retailing at the same price as an Xbox 360 40GB "was a strong counter-punch to Microsoft's US$ 50 price cut on the 360."

With regards to games, Greenwald said that the PS3 is already going to be getting the upper hand with all of the exclusive titles that will be coming out:

We think this should give Sony a leg up versus the 360, along with several exclusive titles like the just-released Metal Gear Solid, LittleBigPlanet, Resistance 2, Killzone 2, Gran Turismo 5, God of War 3, etc. Beyond Gears of War 2, Microsoft doesn't seem to have the same library of exclusive, must-have titles.


He put out a solid argument as to why the Xbox 360 should drop its price. However, there are more things Microsoft has to consider before doing this. We'll have to see if Microsoft can indeed drop its pricing to make the Xbox 360 even more competitive.



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84 Comments


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   by 93pauott - 2008-07-21
 » ..

lower the price and keep the failure alive, Microsoft.
It's over nine thousaaand, RROD's!!


   Re: fingahs - 2008-07-22
 » RROD IS WHAT'S KILLING 360

i know 4 people in a 2 mile square, with rrod machines. that's just people i know. god knows how many had it that i dont know, in that two mile square. i loved the first xbox and i'll tell you now, i've bought a wii and a psp just so i could leave the 360 off cuz of fears of rrod i've had one Red Ro Death myself and basicly i wont repeat WONT reccomend this console to anybody. i'll be getting a ps3 as soon as they are cheap enough cuz i wasted £350+ on the xbox and wont be jumping into any new consoles from microsoft anytime in the future the next xbox will stay on the shelf for me i only bought it to play games and get into xna as a noob programmer then microsoft wanna charge me to run stuff on a machine i'm not confident switching on. i have one thing to say to microsoft YOU RIPPED ME OFF. and I'm no longer loyal to xbox. the games are good but the console is BULLSH*T

   Re: KnowLedge - 2008-07-22
 » Well the RROD problem is not affecting 360 sales...

... they continue to grow steadily, so I'm not sure where you get the idea that it's killing the 360.

Anyway, just because you're getting a PS3 soon doesn't mean you have to play the hate card against MS and the 360. Yes there is the RROD issue, yes it should have been avoided, especially for the early 360 models, but that's why you have a 3 year warranty for the console. So to say you're afraid to use your 360 because of the RROD is a rather lame excuse imo, because if your console dies due to a RROD, then it will be covered by the warranty.

The most important thing about any console are the games available, and I believe you would agree that the 360 is great in this respect. And when it's working (as it does for the majority of gamers without problems), it's a great games machine. The RROD for the minority of gamers is unfortunate, just as the DRE problem was unfortunate for the minority of PS2 owners, but that doesn't mean you were ripped off or that the console is bullsh*t (just as PS2 gamers were not ripped off or that the PS2 was bullsh*t because of DREs, and they were not covered in the way you are with the 360!).

So imo, your post was just a pointless and unnecessary rant on your part, fuelled by the fact that you're getting a PS3.

   Re: mr.x256 - 2008-07-22
 » -

I think DREs were only a problem for the old PS2 not the Slimline or the new Slimline (Has internal power supply).

   Re: KnowLedge - 2008-07-22
 » ^^^ That's correct mr.x256

Just as the RROD is mostly a problem for the early models of the 360 (still happens on the new models, but not to the level seen with those early 360s).

   Re: mr.x256 - 2008-07-22
 » -

Thanks for the fast reply, personally I haven't encountered the Disc Read Error on either Slimline or old PS2 and I played them a lot.

   Re: ackeejag - 2008-07-22
 » well

i think people need to remember a few things.
1)33% failure rate means that 67% of users will have no problems at all.
2) the DRE didnt really start happening to the ps2 until years into its life and could be solved with a simple dusting of the lense with condensed air. much easier than shipping it off for a temporary fix.
3) a failure rate over 2-3 percent is completely unacceptable for electronics and they should have been recalled completely until they fixed it.

the RRoD is the only reason i wont get a 360. im sure its a good console for games but i want my things to work when i want them to. i dont care if the warranty covers it. thats 2 weeks that i cant play my game because microsoft was cheap on parts and still is for the most part. the new 360s should be completely cured of this problem but it still happens at an extremely high rate.
ill stick to my ps3 until they fix this.

   Re: na2rul - 2008-07-22
 » i brought 360 with confidence

Its not a launch one so thats why - we all have expectations and i expected mine to have the smaller chip.

   by ISOHaven - 2008-07-21
 » WTF!?!?!?!?!

I agree! For $50 more dollars you might as well go Bluray. Unless of course you already bought a standalone player but then again, if you have that much money then this price cut doesn't mean much to you.

   by Orlyeh - 2008-07-21
 » An Issue?

Is this really an issue when the 360 already has such a high saturation rate? Yes, for $50 more you do get a Blu-ray player and larger hard drive, but I've yet to go anywhere near maxing out mine on my 360 (a puny 20GB one). Therefore, I will take the better controller - sorry, the 360 controller is perfection over blu-ray right now.


   Re: Eclipze_ - 2008-07-21
 » well

it would be an issue for me considering that I already wasted 20 GB's out of my 60 Gig ps3 already. I think people tend to get more content when they know they actually can.

   Re: ISOHaven - 2008-07-21
 » WTF!?!?!?!?!

I've filed up my PS3 drive TWICE. I have to keep deleting trailers and demos.

   Re: damonous - 2008-07-21
 » Filled up PS3 more than twice

Like ISOHaven, I've filled-up my PS3 drive more than twice. My 60gb got close, so I inserted a 160gb drive. A couple months back, I upgraded to a 320gb drive (which is already over half filled). Now that they are offering movie rentals and purchases, I have to start hoping that 500gb 2.5" drives are around the corner. :-) And that 120gb drive on my 360 has maybe 15gb free, after having downloaded the entire season 1 of Jericho in HD. So, sorry to Orlyeh, but ...you're WRONG. But, I'll also agree with Eclipze that once you have the space, you tend to take advantage of it. Microsoft is shooting themselves in the foot (long-term) by being stingy. And that's what the analyst's report is about: LONG-TERM.

   Re: y2bangali - 2008-07-21
 » what a fanboy

LMAO.... all you have are 360 fanboy comments..... Stop being a fanboy and just face the truth..... I have both systems... and my 360 is modded, so i have all the games others (consumers..lol..) dream of having. I play more games on my 360 than ps3, but when it comes to hdd and multimedia its always ps3 for me. You can't do ***** with a 360 hard drive if you dont have media center connected, while you can do so much more with a ps3. I even download movies nd songs from the ps3 internet. Controller wise, I like the ps3 controller much more because i have been use to that for more then 10 years... and i think it is better hands down... The buttons and analog stick is in correct order, but i dont have a dualshock 3, and i really love vibration, so in those terms, i am enjoying the vibration only on 360.... y are u comparing video format with a cheap ass controller (when compared to blu ray)? U have to be really really dumb to state that.... and anyways, i think ppl go for blurays now.. and ps3 dvd player can upscale regular dvds to 1080i while the 360 can't. I have compared the quality of standard dvds on both consoles, and while I cant really see the difference in game visuals, i can really see the diff here, so dont argue with this fact if you DONT have both consoles....

   Re: mr.x256 - 2008-07-22
 » -

I've used over 50 GB of space on my HDD and now I have to delete stuff, personally I don't think that 80 is anywhere near enough.
As for the contolers, I think the DualShock 3 is better because: compare to the 360 controller the L1 + R1 buttons are acctually pressure sensitive and so are the face buttons aswell as the D-Pad (just like PS2 only PS3 has controller has more levels of analog sensitivity PS3(10 bit) PS2 (8 bit) i think,check wikipedia).

   Re: na2rul - 2008-07-22
 » @Eclipse

"I think people tend to get more content when they know they actually can. "

That my friend, is something 360 hardcore fanboys refuse to accept.

   Re: Mister Common Sense - 2008-07-23
 » .

I only have 40gb filled on my 60gb, and that's with Linux installed on 10gb of it. I just stream music off my PC rather than installing it.

   Re: ISOHaven - 2008-07-25
 » WTF!?!?!?!?!

And what about the OTHER two PS3's you claim to own? I notice whenever you make a specific PS3 comment you consistantly only reffer to one unit. Yet you consistant claim to own many PS3's.

Just another lie I guess! I'm sure you'll come up with some BS excuse....so let's here it...

   Re: Mister Common Sense - 2008-07-28
 » what about them?

I only use one. The other 2 are unopened 60gb and MGS 4 40gb consoles I'm collecting.

I also have 7 (yes 7) more I bought broken and am fixing to re-sell on ebay.

I don't lie, ever. Someday you may learn.

   Re: ISOHaven - 2008-07-28
 » WTF!?!?!?!?!

You are so FULL OF IT. It was only last week you claimed to have 3. Now you have 7?

What a pathetic liar.

You also claimed as such BEFORE the MSG packs were released.

What a douche bag!
   by Apeaggedon - 2008-07-21
 » lol haha

dude,20 gigs is NOTHING these days. 20gigs goe's by so fast,i have allready used over 40 on my 80gig ps3 and all i have is one album and like 10 trailers,and of course the rest are games and the BIG one-installing games-..
orlyeh,you must hardly play games or dont utilize your system at all,cuz if you did then 20gigs would be gone in an instant.
almost EVERYTHING these days is more then 1gig long.
so for $50 more,i think a ps3 is the best and smartest way to go. :)


   Re: Orlyeh - 2008-07-21
 » Orly eh?

"orlyeh,you must hardly play games or dont utilize your system at all,cuz if you did then 20gigs would be gone in an instant."

I just don't keep stuff on there - preview comes out, dl, watch, and delete. The same thing with demos and games I no longer play. I don't think there's one demo that I've missed, but I tend to stay away from non-game content since I can get that on my pc anyhow.

   Re: mr.x256 - 2008-07-22
 » -

I'd say if you were to chosse one of the two consoles to purchase, you'd be better off with the PS3 unless there were some particular games on 360 that you really like. Becasue it acctually would cost less to buy a S3 then to buy a 360 and all the addons to make it do the same features and it still wouldn't do it all.
Things like: online gaming, wireless access, HD-DVD larger HDD.
Then there are things you can't get on xbox: blu-ray(obviously), card reader and 4 usb instead of 2(note this only on certain PS3 models, allough 360 does have xbox memory slots, bluetooth headset compatibility ( I think only 360 elite has this), bluetooth keyboard and mouse support, printer connectivity, 1000 mbps NIC compared to 360's 100 mbps, easy to install Linux, built-in browser ( not sure if 360 has this, if it doesn't microsoft should have given it one, folding@home (probably not that interesting though), remote play(requires a PSP).

   Re: mr.x256 - 2008-07-22
 » -

Also if you were all ready used to the PlayStation 2/PSP and had never had an Xbox then that would be another reason because you there would be less change to get used to( especially controller layout (this STILL catches me out).
   by platon - 2008-07-21
 » is this a joke?

M$ won't even tear a swet to win the console war now that square-enix switched camp. I mean, all the JRPGs are on the x360, still japs are not buying the console since, like everybody, they are patriotic. But with square-enix letting sony down, the table turned back and M$ will get the sales back (from sony, since sony gained them from M$ with MGS4). Anyway, I have a ps3 and like it, but I made the wrong choice. Instead of buying a ps3 1st, then an x360, I should have done it the other way, buying the consoles at a lower price. Still, I guess that next summer the x360 won't cost me more than 250$ chipped. But I feel ripped. All the games will pop on the x360, so I won't buy any other multiplatform games untill I have my chipped x360. All the JRPGs are on the wrong console, sadly for me, happily for x360 buyers...


   Re: keengsnake - 2008-07-21
 » you fail

If you think that FF will make a difference for the X360 then you my friend are retarded . First it's not coming out for Japan , where the Series makes most of its money . Second it's still coming for the PS3 so we did not loose anything . Third there is a EXCLUSIVE title for the Ps3 involving the series . The FF series really has all it's fans in the Sony side.....So you + PHAIL
   by Justingraziano - 2008-07-21
 » And...

You forgot to mention that for $50 bucks more you also get a rechargeable controller, free online gaming, a web browser, ability to copy videos, music, and pictures to your HDD, PS1 game support, ability to play media from your PS3 on your PSP, upcoming PlayStation Home service, a much less cartoonish interface, movies by Sony Pictures (Xbox 360 doesn't have Sony Pictures movies available) and more. Plus, when you buy a PS3 your not supporting a 50+ billion dollar company that still continues to charge you for every little thing.


   Re: fingahs - 2008-07-22
 » and the bomb goes off

boom. i have to agree the xbox live, is rip off. i wont be buying jack from any download service. but to charge for a internet service when the console is in such a bad state(RROD) would be a good idea and cutting the price of the console buy £70 pound wouldn't be enough to convince me to buy another one when my second brand new xbox fail's and it will, i'm sure of it. gotta say an a xbox fan PS3 does kick xbox's ass hands down

   Re: KnowLedge - 2008-07-22
 » Rather sad attitude from you fingahs

(See my post above)
   by thefinalhero - 2008-07-21
 » Glad to see someone admit the PS3 has superior hardware...

But the 360 is pretty stable right now. @Platon- They didn't jump ship at all. Jumping ship would be dedicating all their games to the 360, they're sort of walking the plank right now. I am pissed that I bought my PS3 for RPGs and instead we're getting all the good shooters instead. It's supposed to be the other way around.


   Re: gio2009 - 2008-07-21
 » but see heres the deal

ps3 may have superior power but thats it, its only processing.... processing only makes up part of the systems hardware unit. The systems GPU on the other hand is worse than the 360's GPU. A proceessor can only make up so much if its GPU is holding it back, so even if the ps3's processor is better and faster not to mention that the people need years to utilize it, it cant deliver better looking games if the graphics chip isnt capable of it, 360's processor is perfectly capable of producing beautiful images to the full power of the GPU, Ps3 can also but thats as far as it goes since the graphics chip isnt equally powerfull to the processor.......

   Re: keengsnake - 2008-07-21
 » it goes both wat

The PS3 Is not being held back by anything . If anything it has the most amazing looking games OUT! Like you said the " ps3 is being held back " then it is fair to say that the Xbot has lame processing power ...which shows in games like GTiv when certain amount of stuff is happening all at the same time..the ps3 version runs smoother and doesn't jagg ..MGS4 can't be compared ....and Uncharted has been reviewed to be the best looking game so far for any system. Graphics don't really mean allot to players . If it did then the Wii would be the last place in sales . Any ways the only thing holding any company is DVD and M$ they can only store so much data without being compressed and they didn't even provide an HDD to all xbots so they can at least preinstall the game...(compression + sacrifice to quality to all major concepts as ..sound , image, available content etc.)

   Re: mr.x256 - 2008-07-22
 » -

Does't PS3 use combined power of CPU and GPU?, and one of the CPU cores turned off at the moment?

   Re: KnowLedge - 2008-07-22
 » Eh?

"which shows in games like GTiv when certain amount of stuff is happening all at the same time..the ps3 version runs smoother and doesn't jagg .."

Untrue. I've seen comparisons which have tested both versions under the SAME conditions (same place, same cars etc) and fired a rocket to see the explosions. Both were exactly the same with the same performance, and overall, despite the 360 running at a higher resolution than the PS3 version, the average framerate is slightly better in the 360 version.

"Any ways the only thing holding any company is DVD and M$ they can only store so much data without being compressed"

*Sigh* It never fails to amaze me at the number of gamers who still fail to grasp the simple concept of using multiple disks. :) Why do you think everything HAS to be compressed onto just ONE disk at the expense of quality?

   Re: mr.x256 - 2008-07-22
 » -

Has 360 had any multiple disc games yet? The Last console I can remember having multiple discs was PsOne.

   Re: KnowLedge - 2008-07-22
 » ^^^Yep

Blue Dragon was 3 discs, Lost Odyssey was 4 discs. Hence Square Enix said FFXIII for the 360 will be on multiple discs, but they're not sure how many as yet (hence makes nonsense of keengsnake's single disc compression claim).

Last gen, numerous PS2 RPGs were also on multiple discs too, such as FFVIII which was on 4 discs, and FFIX which was also on 4 discs.

   Re: mr.x256 - 2008-07-22
 » -

OK thanks. I wasn't so sure it were possible like if the hardware had to be made to support it or required updates. As you can tell I'm not into Japanese games although I prefer PlayStation.

   Re: chessboxer - 2008-07-22
 » @ KnowLedge

You're wrong.

Final Fantasy VIII and IX were both PS1 games not PS2.

   Re: KnowLedge - 2008-07-22
 » LOL! Ok, call me 'Lack of KnowLedge' instead ;)

You're right, both were Playstation (serves me right for going by memory alone).

Therefore for multi-disc games last gen, a few examples are PS2's Star ocean: Till the end of time (2 discs), RE4 for the GC (2 mini-DVD discs, but 1 DVD for the PS2 version), Grandia III for the PS2 (2 discs).

That's all I can think of, but I know there's a few others. :)
   by hush404 - 2008-07-21
 » no

matter what people think on either camp in terms of hardware, it's all about the games.

Simply put this year, Sony HAS the games to justify the system quite a few times over. Last year it was the 360's time to shine but this yeah they are left ammoless.

With the superb line up of great games coming from Sony this year and next along with the fact that the PS3 and 360 are mere $50 away in differences means that Sony has a much brighter spotlight right now. - Back when the two first clashed the PS3 was hundreds more expensive, little to no games to speak of, the PSN not yet established and things like "no Rumble" making people wonder what was going on.

   by andre_euro - 2008-07-21
 » only 50 bux...

oh what is dis..., in NZ we get the cheapest version of the xbox360 for $nz400(bout 300us), but its $nz800(bout 600us) for the cheapest version of the ps3... thats complete rubbish... i dont understand why we have such different prices to the us... ugh

btw these are the lower end versions(smaller hdd)


   Re: mr.x256 - 2008-07-22
 » -

That is because the cheap Xbox is nothing but that "cheap" Its the other 2 Xbox's that are acctually worth money.

   Re: andre_euro - 2008-07-22
 » hmm :S

the prices of the other ones are still unreasonable here id say, 20gb xbox is 420us, 120gb is 530us, whereas the ps3, 40gb is 600us, 120gb is 710us(dis version however comes wit a 40gb+120 extra hdd), thats 180us diff here for the 120gbs, and in America they talking bout a 50us difference.. :S

and we get the 80gb ps3 for 690us!!!, US get for 400!!.. explain that large difference? :P, we follow closely to the prices Australia holds i believe, so it is significant.

   Re: mr.x256 - 2008-07-22
 » -

Well Austrailia or atleast Queensland state doesn't have a choice of anything but the 40GB model so New Zealand does get something, but AUS+NZ always have higher prices than the rest of the world for some reason I don't know. I think New Zealand favors the PlayStations Over Xboxs so why are they prices so high? maybe its just the stores overcharging. The prices may come down soo there if the new 80GB model PS3 is confirmed for Australasia aswell as US and EU.
   by Orlyeh - 2008-07-21
 » re:y2bengali

"y are u comparing video format with a cheap ass controller (when compared to blu ray)? U have to be really really dumb to state that...."

because video storage or quality really isn't an issue since I've been watching hd videos on my computer for far longer than you've even known that hd existed

hell, nintendo made an entire system revolving around a controller and you have the blindness to ask about why I would bring it up - the 360 controller is the epitome of ergonomics. have you ever held something in your hand(s) and it just feels right, just fits in subconsciously and you don't have to learn how to hold it or manipulate it?

that's what the 360 controller is and Sony should learn from it


   Re: keengsnake - 2008-07-21
 » wait

but shouldn't the 360 controller catch up and get motion like the wii and ps3 ? Really to be honest I don't mind playing the games I like with whatever controller . Like Unreal I like to play with the keyboard and mouse with my ps3 . I like to play Burnout with my 360 but the Ps3 version has the same "familiar touch" to it .. I say this because some of us have had the Dual Shock since it was made for Playstation 1 . Point is M$ should learn from Sony and Nintendo .