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Xbox 360 Price Rumours

Xbox 360If you’re an F1 fan, you know that this time of year starts the “silly season”, where rumours run amuck about which drivers will go to which team. It looks like something similar is hitting the next-gen console circuit, as crazy rumours fly everywhere. OS X on the PS3! PS3 in 2007! Xbox 360 price to increase!

Yup, that’s the latest one. The Inquirer quotes their very reliable source “many”. As in, “many are thinking that Microsoft will raise the as yet unannounced price of the Xbox 360”. Now I don’t know who these “many” are, but I’d sure like to know how they came to that conclusion. Oh, wait. The Inquirer helps out there with a little bit of postulation.

One, since the price of the PS3 will be so high, Microsoft can raise their price too and still undercut Sony. Two, they don’t want to look cheap next to the PS3. Everyone knows that a more expensive console is better, right? *COUGH*

Now, The Inquirer is thinking in terms of the UK market where the original Xbox came out at £300 while in the US it retailed for $300 (quite a price difference). But I know people will read the INQUIRER and think about the possibilities for a price increase in the US, so I’m addressing those of you who are thinking like that.

So, let’s think up a couple reasons why Microsoft won’t increase their price above $300:

  1. Microsoft doesn’t know for sure that Sony actually will come out with a more expensive console. Sure, Ken (I’m on first name basis now) has said that the PS3 will be expensive, and that you’ll have to save for it. But the word “expensive” is relative. Maybe Sony is planning on $350. If Microsoft comes out at something at or above that, they wouldn’t have the more affordable console anymore. (I think it unlikely they’d raise the price by less than $50.)
  2. It leaves Sony the option of decreasing their price to match Microsoft’s. If Microsoft increases their price, Sony might just think it worth the gamble to match the price. Then, again, Microsoft wouldn’t end up with the more affordable console. They could change their price once Sony announces theirs, but that would look to reactionary. And everyone knows a leader isn’t reactionary.
  3. Microsoft has already given very strong hints that the price would be around $300. If they change their tune there will be some backlash at launch.
  4. “Many” have been known to be unreliable or just downright wrong in the past. “Many” bought the Russian-built Lada, for example. “Many” also like Michael Jackson. “Many” seem to like really hot humid weather where clothes stick to ya. “Many” put their life savings into Enron or Nortel stock. And they’re all wrong!

Link: the INQUIRERXbox 360 price could rise to match the PS3