Microsoft confirms Xbox 360 price cut in UK, launches 'Elite'

Two weeks after reducing the price of its Xbox 360 video game console in its home market, the world’s largest software company Microsoft confirmed Monday that it will cut the price of its video game and entertainment system in the UK.

Starting August 8, the price of the 20-gigabyte Xbox 360 Premium will be reduced by US$67.45 to US$472.27, while the European price of the entry-level model Xbox 360 Core, which has no internal storage, will be reduced by US$26.98 to US$377.79, Microsoft said.

“We’re pleased to be able to offer Xbox 360 at a new, lower estimated retail price. We pioneered the successful concept of multiple products for multiple categories of consumer. First-timers will love the Xbox 360 Core system, which offers an affordable entry into high-definition gaming,” said Stephen McGill, Head of gaming and entertainment at Xbox UK.

On August 6, the Redmond, Washington-based software titan announced the cut down in price of Xbox 360 in United States. It reduced the U.S. price of the Xbox 360 Premium model by US$50 to US$349.

Besides shaving the price of its high-end version of gaming consoles, Microsoft also slashed the estimated retail price of its cheaper "core" package by US$20 to US$279 and its higher end "Elite" package by US$30 to US$449.

The basic version of Xbox 360 (without a hard drive or wireless controllers) was launched with a price tag of US$299, while the high-end versions were retailed for $US399 (Xbox 360 Premium System with a 20GB hard drive, wireless controller and headset). The Xbox 360 Elite System with a 120-gigabyte hard disk and HDMI connector is priced at $US479.

On July 26, the software giant announced the 10% price cut of Xbox 360 HD DVD Player. Microsoft has already started selling the player at reduced price of US$179, down US$20 from the original $199. Launched in November 2006, the Xbox 360 HD DVD Player plugs into Xbox 360 and gives the ultimate home theater experience with more clarity and detail than broadcast, cable, or satellite HD.

In addition to price change, Microsoft also announced the British launch of its new Xbox 360 Elite, which comes with a substantial 120GB hard drive, high-definition multimedia interface (HDMI) port, a high-definition cable and premium black finish as standard. The much-anticipated ‘Elite’ version of Xbox 360 will carry an estimated retail price of £299.99 when it hits the UK market later this week. It was originally scheduled to retail for £329.99.

“The Xbox 360 Elite, with its large hard drive and wireless controller, will appeal to casual and experienced gamers and families. The Xbox 360 opens up whole new avenues of entertainment for those who seek the ultimate gaming and entertainment experience,” McGill said.

Besides a 120-gigabyte hard drive, which is six times bigger than the current high-end Xbox 360 model and twice as big as that of Sony's PlayStation 3 console, Xbox 360 Elite includes a wireless controller and Xbox LIVE headset. The Elite hard drive has space to hold a library of arcade games and thousands of songs, as well as high-definition TV shows and movies downloaded from the company's Xbox LIVE online service.

Xbox 360, the future-generation game and entertainment system from Microsoft, represents a dramatic leap forward in high-definition gaming and entertainment experiences. Xbox 360 has ignited a new era of digital entertainment that is always connected, always personalized and always in high definition.

Microsoft’s Xbox 360 gaming console is facing tough competition from Nintendo’s Wii and Sony’s PlayStation 3 in the gaming consoles markets. The three biggies in gaming arena are locked in a fierce battle for dominance in the $13 billion U.S. video game market, and for the moment, Kyoto, western Japan-based Nintendo is leading all the way with its Wii video games console, the least expensive of the so-called next-generation consoles that costs US$250.

Early last month, Tokyo, Japan-based tech mammoth’s American unit, Sony Computer Entertainment America, Inc., or SCEA, made an announcement to sell its 60 GB PlayStation 3 game console in North America for a lower price of $499, down by $100, or 17 percent, from US$599, with immediate effect.