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Microsoft Drops Price of Xbox 360

Effective tomorrow, 28 August 2009, Microsoft has dropped the price of the Xbox 360 Elite and the Xbox 360 Pro. The Xbox 360 Elite’s price has been dropped from $399 to $299 and the Xbox 360 Pro, which has now been discontinued, will have its price dropped from $299 to $249 while supplies last.

Just like in the last console era (Dreamcast, GameCube, Xbox and PlayStation 2), Microsoft is stuck in the second place in terms of the number of sales. Sony’s PlayStation 3 is 6.4 million units sold behind the Xbox 360, while Nintendo’s Wii is ahead by a distant 22.42 million units sold. While the Xbox 360 Elite’s price drop may increase sales for the Xbox 360, it is too late in this era of consoles for it to catch up to the Wii’s sales and the chances of it being outsold by the PlayStation 3 are slim.

Before August 2009 the Xbox 360 Elite came with an ethernet cable, an HDMI cord and HD component cables, but it now comes without any of these. The only benefit of buying an Xbox 360 Elite over an Xbox 360 Pro now is the larger 120GB hard drive, as opposed to the Xbox 360 Pro’s 20GB or 60GB hard drive. What Microsoft has basically done is to offer a larger hard drive in their $299 Xbox 360 model.

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