Microsoft Drops Xbox 360 Elite Price to $299

By Ian Bell August 27, 2009

Xbox 360 Elite — Xbox 360 Elite Image used with permission by copyright holder

Hot on the heels of Sony dropping prices on its PlayStation 3 console (and introducing the PlayStation 3 Slim), Microsoft has indicated it’s willing to engage in a price war with Sony: today the company dropped $100 off the price of its Xbox 360 Elite game console, dropping it to $299.99. The price cut represents a 25 percent discount, and goes into effect August 28.

“With the holiday season right around the corner, it’s already time to start looking for entertainment and gifts that everyone will enjoy,” said Microsoft’s corporate VP Shane Kim, in a statement. “If you’re looking for deep experiences that don’t require deep pockets, now is the time to purchase an Xbox 360.”

After Sony’s price cut on the PS3, the Xbox 360 Elite held the dubious distinction of being the most expensive console game on the market. The new pricing bring it in line with the PlayStation 3. The Xbox 360 line is the number two console in the United States in terms of sales (lagging behind the Nintendo Wii); however, in recent months the Xbox 360 is the only console to show a growth in sales, where the Wii’s sales momentum—which at one point seemed almost unstoppable—seems to be petering out.

Microsoft is keeping pricing on its entry-level Xbox 360 Arcade model at $199.99; Microsoft is expected to phase out its $249.99 Xbox 360 Pro, leaving the Xbox 360 line with just two entries.

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