Game on: Microsoft cuts Xbox and games prices

Microsoft has celebrated the second birthday of its Xbox gaming machine by cutting the price of the console and selected games in a bid to claw market share away from Sony’s market leading PlayStation 2.

Microsoft yesterday announced worldwide price cuts on Xbox as well as selected games bundles. In Australia, Microsoft has cut $50 off the console price, which will now retail for $249.

The games vendor has also sliced prices of its Xbox Halo Elite Force Pack – reduced $50 to $299. It has also slashed $30 from the price of its Music Mixer (now $49.95) and Project Gotham Racing 2 ($69.95).

Amped 2 and Counter Strike have been reduced by $20 to $49.95.

“We are making a clear statement here – we mean business in Australia,” Microsoft’s home entertainment regional director, David McLean, said.

Speaking to ARN earlier this month, McLean claimed that Xbox’s market share was running at between 34 and 37 per cent.

“Xbox was the only platform that grew last year,” McLean said. “In the second half of last year sales grew 10 per cent. The other two platforms declined.”

Microsoft was keen to point out that the price cut puts Xbox $50 below its major competitor.

But a spokesperson for Sony Computer Entertainment (SCE) said that it had no plans to further cut PS2 prices in response to Xbox’s latest move.

SCE released two bundles on March 25 which include a PS2 console, 2 controllers, DVD remote and a Platinum game. The standard bundle with a black console is $329. The bundle with silver console and remote is $379.

While Xbox is still running second to the older Sony PS2, Microsoft claims to have sold more than 400,000 consoles in Australia, generating $300 million in retail sales.

Much of the value in gaming consoles lies in the ongoing revenue from games purchases, an area Sony claims to have stitched up.

“15 of the top 20 games last year were PS2, across all formats,” a spokesperson said.

More than 340 games have been launched for Xbox since its debut two years ago, according to Microsoft.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?