NEWS

Microsoft Explains Arcade Price Increase

Tom Ivan's picture

By Tom Ivan

August 27, 2009

Microsoft has explained the reasoning behind its decision to raise the price of the Xbox 360 Arcade by £30 to £159.99.

"We have not made upward adjustments to the trade price of consoles before. A modest increase on the trade price of Xbox 360 Arcade consoles in EMEA allows us to offset exchange rate fluctuations and changes in local market conditions while still offering the most affordable console on the market," Microsoft told CVG.

"Xbox 360 remains the most affordable console in the market and offers a great value entry point into a fantastic range of entertainment experiences available on Xbox 360 now and in the future like Zune Video Marketplace, Facebook, Twitter, Avatar Marketplace and of course Project Natal which will be compatible with all Xbox 360 consoles," the company added.

Earlier today Microsoft confirmed that it is to cut the price of the Xbox 360 Elite, raise the price of the Arcade model and phase out the Pro unit.

toadwarrior's picture

Basically european money and and economies are doing better so rather than get more customers, MS will raise the price so they get a lot more dollars out of each system sold.

If they want to use Europe to subsidise their US business then how about more European characters in games. Not everyone in the world is a white American male.

Simon_Winstanley's picture

They can raise the price so long as it is always cheaper than the Wii so they can continue to say that they offer the cheapest console on the market. In my opinio that is why they have raised the price, simply because they can. And if you don't like it you can buy an Elite.

ArronC07's picture

Translation: We want to keep bleeding you dry. Also its the most affordable until you factor the online surcharge and then it becomes the most expensive!

darren_mccoy's picture

You would have to be mad not to spend an extra £40 to get a 120Gb hard drive.

Jack_'s picture

That's what they're counting on. You know how in ice cream shops the difference between 8oz of ice cream is only 25% more money you spend? Same system.

They don't want anyone to be buying Arcades anymore. They just want everyone to get the Elites.

toadwarrior's picture

No, it's not the same system and if they didn't want you buying an arcade then discontinue it like the pro.

Food pricing works completely different to pretty much everything else so comparing it to food is just really dumb.

Indrema's picture

True enough. It's just how business works these days.

Just like High Definition devices that don't come with High Definition cables. Not everyone will need it, technically, but almost everyone should have them. In the SNES days, Nintendo gave you a coaxial & composite cables.

Jack_'s picture

It's really not that big of a deal, HDMI cables are a penny apiece on Amazon.

toadwarrior's picture

Yes if you buy a shit one or one that appears cheaper but has a high shipping cost.

Still, it's not admittedly that much but then you add in Wifi, a blu-ray movie play and monthly subscription fees for an internet service that doesn't even let you freely browse the internet and you're left with a loud, RRODing, boring system.