Xbox price takes a dive

In a bid to keep up with rival PlayStation 2, Microsoft is dropping the recommended retail price of its Xbox console to $399, knocking nearly 40 per cent off the original launch price tag.

The new pricing will be effective from April 26. To placate customers who have already purchased Xbox consoles Microsoft has said these folk will be entitled to a gift offer worth more than $250.

Regional director of Xbox Alan Bowman said the decision to reduce the Xbox price comes from competitive pressure from rival console PS2, which he says has been an obstacle to promoting the whole Xbox "experience".

"We wanted to take away any potential barriers for purchase and enable more consumers to enjoy Xbox," he said.

"Microsoft has made a long-term investment into this [gaming] market. We launched with what we thought at the time was a very competitive price. Sony had launched the PS2 a year earlier at $749 with no competition."

Since its launch in November 2000 the PS2 has had many pricing changes. It went from a starting price of $749 to $699 in May last year and dropped to $499 by September. It then went back up to $529.95 in October before coming back down to $499 this February.

"We can't sit around and let it [the PS2 price] change. We have to be competitive," said Bowman.

Microsoft has also dropped the price of Xbox in Europe.

The decision to cut $250 off the Australian Xbox price follows a general decrease in the amount of Xbox units sold. According to Australian retail analysis group Inform, sales figures between March 14 and April 7 saw Sony's PS2 ahead of the Xbox by two to one.

The announcement also comes just weeks before the arrival of Nintendo's next generation gaming console, GameCube, into the Australian market on May 17. The GameCube will retail for $399.

Bowman says that while console price will decrease, recommended retail prices for software will remain unchanged.

The Xbox gift offer, which will available until July 1, includes two games of the customer's choice, and a controller, valued at over $250.

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.
Nadia Cameron

Nadia Cameron

PC World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

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.

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?