While the whole gaming industry gears up for E3, including our own Steve519, Desz, and Edie from the Platform Nation community. Microsoft confirms the introduction of a Xbox 360 60GB system while dropping the price of 20GB systems while supplies last.
Redmond, Washington—Microsoft is giving consumers more gigabytes for their buck. The company today announced an Xbox 360® console with triple the storage space of the original console, but for the same price of $349 (U.S.) estimated retail price.
Available in retail stores in the U.S. and Canada starting in early August, the upgraded Xbox 360 will include a 60GB hard drive for storing the growing wealth of digital entertainment available for the console, including music, movies, television shows, and game content. In addition, Microsoft today dropped the price of its 20GB Xbox 360 console in the U.S. and Canada to just $299 (U.S.) (ERP) while supplies last, a savings of $50.
“We know consumers need more and more space to store the amazing digital content Xbox 360 offers, and we’re giving it to them at no extra charge,” said Albert Penello, Xbox director of product management at Microsoft. “No one device offers the depth and breadth of entertainment that Xbox 360 can deliver, and now you’ll have three times the storage to manage all that great content.”
Xbox 360 is just one of three Xbox 360 gaming and entertainment systems Microsoft offers. Microsoft’s Xbox 360 Arcade, which comes with a 256MB memory unit and five Xbox LIVE Arcade games, is a value for the whole family for $279 (U.S.) (ERP), and the premium Xbox 360 Elite console is available with a 120GB hard drive for $449 (U.S.) (ERP).
Truthfully, this might be a bad move. For a short period of time there will be 4 SKUs in retail space. At such time there will be no point in purchasing the Arcade SKU. There are two scenarios I would like to see. The first one would be Microsoft is getting rid of the Arcade SKU, moving the Pro SKU to be priced at $279.99, as the 60GB system is introduced while Elite stays at the current price. This would eventually mean from that point on, there should be less buyers of systems without a hard drive. The second one would be SKU wide price drop, meaning that the each system would receive some sort of price drop, at least $50 I suggest. However, if the 20GB and 60GB were at the same price, where would the 20GB stock go?
I know that the two ideas do have some holes in them. For the first idea, where will the current stock of Arcades go? On the second idea, we still have the short duration of four SKUs being on the market while having to liquidate 20GB somehow. I don’t make business choices for Microsoft. However, I feel what they are doing right now might confuse the average consumer and may not boost sales to a level they are expecting.