Xbox 360 60GB Model Slated to Hit $299?

Whew, two weeks have barely passed since the ‘official’ price-drop of the Xbox 360 Pro 20GB model, and already rumors are floating about that real price-drops are right around the corner. For those unaware, the first price-drop wasn’t so much a price-drop, as the 20GB models were simply marked down in order to be cleared out.

The proper price-drop is speculated to put the 60GB model in place of the current 20GB, so it will sit at $299. If you were about to run out and pick up the 20GB model, it might pay to wait, if you can happen to have a ~months worth of patience. What could be considered an even bigger deal is the Xbox 360 Arcade, which will sit at $199. Sure, it doesn’t include a hard drive and other goodies like the Pro/Premium models, but it’s $200!

VGChartz investigates how Microsoft could still profit from such insane price-drops, but the fact of the matter is, part prices have vastly dropped as well since the console first launched in late 2005. Plus, we all know that console sales are not where the big bucks are. It’s in the software, and that’s one area where the Xbox 360 excels.

Using Moore’s Law , it is believable that the Xbox 360 has reduced it’s price a further 35-50% from the November 2006 pricepoint, and could be manufactured for (after the Jasper revision) $140.15 to $182.19 before other cost considerations (such as cost of delivery) are applied. This would fit in perfectly with Microsoft’s goal to be profitable with the Xbox 360, as costs should be lower, or just at, the price of sale to distributors and retailers.