Well the rumor about Microsoft cutting prices on their Xbox 360 in September is now confirmed by some authorities. But my question is will additional price cuts rally a Xbox 360 revival?

In my opinion, a price cut is worthy when a company cut prices on a unit but doesn’t cut down on the hardware. Cutting down the hardware while cutting the price is sheer nonsense and is not recognized as a REAL price cut. As an example I’ll use the Toshiba laptop that Wal-Mart was selling a few weeks ago [see article here].  Pricing the unit at $398 in itself was a bargain. But what made the price even more attractive was that the laptop came with a 15.4″ screen, 2G of RAM, DVD recorder and also Vista Home premium. The unit could of come with a smaller screen, say 14″, 1G of RAM, a CD recorder with a DVD player and Vista Home Basic. This is usually what trimmed systems in the $398 price range come with.

Looking at what is proposed with the $199 Xbox 360  called Arcade, the unit has no hard drive. One would of thought a small hard drive could of been added to make the unit more functional and add value to the model. According to ars technica the low priced units will be:

  • Arcade (no hard drive) to $199
  • Pro (60GB) to $299 
  • Elite (120GB) to $399

I really don’t see the value in the Arcade unit. Just my two cents.

What do you think? By removing hardware and lowering the price will it make the Xbox 360 more attractive?

Comments welcome.