MS increases Arcade 360 price in UK
Retailers given official notice.
Retailers have told Eurogamer that Microsoft will increase the price of the Arcade Xbox 360 bundle to £159.99 (from £129.99) starting 1st September. The five XBLA games will no longer be included in the bundle, either.
ShopTo boss Igor Cipolletta received confirmation from Microsoft this morning, as did a corroborating independent retail chain source.
We're also told that Microsoft will bump the price of individual Xbox 360 accessories by one or two pounds. Our independent retail source said this is being done to counteract the poor pound-to-Euro currency exchange rate.
Furthermore, the email from Microsoft to retailers mentioned only Arcade and Elite bundles. This strengthens rumours that the Premium Xbox 360 bundle is being discontinued.
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Comments (114) 2 years ago
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@ Rubarack - well said. The UK gets price gouged when the pound is strong and then they put prices up when it's weak. It's a bullshit excuse.
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While I am not happy about the increase, it would be unfair not to mention that Microsoft has been consistently selling the various 360 SKU's in the UK for cheaper than America for some time now.
This is not something the other platform holders can claim.
Personally, I am surprised that it's taken MS so long to bring the UK price up.
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It's simple economics really. Regardless of whether they are quicker to raise prices than drop them, the fact is the exchange rate is costing these companies thousands of pounds.
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GLOD
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In this retail climate, this is a very stupid decision.
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If I was Mr Sony, now would be the perfect time for a main console price reduction.
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But the least they could have done is thrown in an extra game in the bundle and not remove the ones already included. Or maybe throw in some MS points/XBL gold subs into the deal to soften the blow. Thats the really shitty part of the equation for me.
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I assume it will be renamed then. There's only so much salt a wound can take.
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Arcade $199
Pro 239 euros
Elite $399 298.6 euros
Not including sales taxes for the states, and assuming the current exchange rate:
Arcade £122 (+VAT = £143)
Elite £245 (+VAT = £288)
And from euros
Pro £206
Elite £260
We currently have the elite at £220, and the arcade at £135. Makes the current Elite look a bargain, though I'm not so sure about the increase in price in the Arcade.
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So we're basically going to be left with two options:
£160 for the Arcade
£230 for the Elite.
This is very aggressive\stupid behaviour from M$ I have to say. No-one wants a console without a HDD, but most could probably get by with 20GB (certainly 60GB). By removing the Premium option you're forcing people to buy the top-tier model. I can't help but think they're pricing a lot of people out of the market with that.
Not to mention that if Sony reduce their prices slightly, you could get an entry-level PS3 for not much more than the Elite. Could be a big own-goal!
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We should probably hold off from jumping on this too much as there may easily be an extra bit of info that we are currently missing.
No point bitching about it till we have all the fully confirmed facts.
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There has got to be something up their sleeve with this being gamescom week and all, so maybe there is more to this.
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Not that I mind, I just import everything from the UK right now >
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Indeed. Currently UK'ers pay less for the various 360 models than both EU and US customers.
I would say that we have been fortunate for this last 9-12 months that MS chose to try and ride out the exchange-rate storm. They could have followed both Nintendo and Sony, which charge more to UK'ers than those other markets.
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(that was a sarcastic oh cool by the way)
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you are right man. but punish the companies by not buying their product instead of going out and buying it anyway, but griping at the same time not talking about you ofc but about every day joe)
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When the inevitable PS3 price-drop comes, I can imagine Microsoft wanting to be able to say "Hey we can drop our prices too".
Hardware sales are pretty flat right now, so I don't imagine this affecting sales terribly much.
But, if a price-war breaks out, this means Microsoft have one in the chamber...
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Only for customers who have lost their short term memories.
Are we suggesting that the price increase is so that they can then announce a price cut back to the same amount in 6 weeks time... and nobody will notice what has really happened? Oooookay.
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they could also announce the HDD included int he arcade next week
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Maybe they are discontinuing the arcade and are trying to make it look less attractive as a value proposition whilst not losing the face of discontinuing it all together?
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These exchange rate arguments bore me. We've paid more for virtually everything in the electronics industry for countless years. Many European nations have higher VAT than we do and they often still end up paying less. The UK is often last in the line for release dates as well, meaning not only do we pay more, we have to wait longer.
Maybe the Arcade was for once a 'fair' deal for us over recent months, it makes a change after paying over the odds for countless years. We were shafted on Steam for quite some time and that's digital distribution, they don't even have the excuse of physical distribution. Not that physical distribution is even an excuse either, the software can be sent over the internet at worst, or on a master disk via plane to a localised production facility. The hardware is all made in China/Asia and all of it has to be shipped around the world, I doubt it's that much cheaper to ship it to NA than it is to Europe.
Checking Amazon quickly we have these current prices for the 360 Arcade (I'm aware they will change and Amazon may not be the cheapest, but it's a stable comparison):
UK - £134.99 ($220.32 €156.42)
US - $199.99 (£122.55 €142.04)
EU - €179.95 ($253.37 £155.19)
UK (new) - £159.99 ($261.03 €185.44)
It's clear that Europe gets the biggest shaft here, but the UK is also shafted compared to the US. You could argue that Europe is shafted because of 'localisation', lots of different languages to cater for, although I expect things like the manual are already in 15 languages. However, this 'excuse' loses all it's weight once you see the price increase. UK residents will now be expected to pay more than anyone else in the world for the same product, despite less localisation requirements than their European brethren.
Unfortunately, muppets will still purchase these consoles in droves and I don't see this increase suddenly putting a halt on the 360's sales figures. A lot of people purchasing these things don't have a clue about the differences between the systems, they only know what in-store staff tell them and that is routinely a load of inaudible crap anyway. Mums will still buy them for their children and most of the savvy gamers already have whatever console they prefer anyway.
I didn't buy any of the 'new' consoles, they all seemed like full-on money grabbing crap at the time each of them came out and they still do. Stupid prices for 'DLC', ridiculous usage of fixed 'points' systems which are as bad as the Oyster card in terms of prepay 'scams'. Made worse by the fact that you can't really buy the amount of points you want and the amounts you can purchase don't match up very well with the price of content.
To the Euro's that complain about us having it cheaper than you; you are certainly correct and within your rights to do so, but really both of us should join forces and complain against the continuous price-shafting we receive from the electronics industry in the first place. Having to pay €180 for the Arcade is ridiculous given what other countries are paying.
I wonder why they don't raise the price in America, since after these changes all of Europe will be paying over $50 more for the same product. MS could be getting $250 for the same console if they raised prices and they could use the old exchange rate excuse!
Longest comment ever but not entirely useless I think!
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I used to feel secure in the knowledge that when my pleasefixme goes tits - I could pick up a replacement as an impulse buy.
Very strange message to be sending during a recession.
/admires barrel as MS savagely bums.
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Actually, it is entirely useless I'm afraid. You've not accounted for differences in tax, distribution costs, standard of living, and average wages to name a few. You can't just do an exchange rate conversion between countries and come to any kind of meaningful conclusion on the relative real costs of a 360.
Furthermore, in the UK we are generally willing to pay more for electronics - we place a higher value on it than other (hotter) countries. Therefore we are charged more. The price point doesn't need to be somehow 'fair', it's set at a point to maximise returns or market share.
I'm still surprsed at this news however, and reckon we aren't getting the whole picture yet.
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1. I recently bought a 60GB with two games for £160
2. See number 1
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nah.
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I think this has more to do with Microsoft profit margins falling than the value of the pound, which I don't ever remember seeing knock hardware prices up more than a few quid.
Add to this VAT changes if they come about - don't forget, the current 15% is just a temporary respite.
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PS3 Slim out and price? So if Sony going to cut then there would perhaps be a little less barrier of price? Sure most people would not look at the features but rather the cash at the till price point factoring into their choice of console as well as words of mouth.
This time around, the market share seem still to be pretty much more even than last gen. Question... is that new market reality a bad thing?!
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Scandalous. 360 accessories are already a massive rip of - I know it's only a few quid, but still... Poor show MS.
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The Wii did it in the UK a couple of months ago.
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It wont be so easy to decide if these do end up being the prices. Not even counting the games coming out
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Yep, VAT up to 20% after the election next June.
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A truly bizarre move, especially if as rumoured there is a new PS3 + price drop announced tomorrow.
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Putting the price of accessories up is downright offensive.
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MS wouldn't up the arcade by £30 and remove the games without some other reason. They're not completely stupid despite what people think.
This ALL to do with the SKU reshuffle and I agree completely that an arcade with either a HDD or a new multi-GB Memory Card is going to be announced next week.
Look at it this way. The Premium (£170) is going. Given that this is by far MS's biggest seller the Elite HAS to drop to that price or close to it. You can't lose your £170 console and replace it with a £230 one. That would beat even Sega for console gafs.
So if the Elite is £170 (or even £180), NO ONE is going to buy an Arcade for £160.
Ergo... The SKU is changing.
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The image on Kotaku http://ko taku.com/5330287/xbox-360-pro-b... seems to comfirm there wont be another 'premium' pack 360 for the forseable.
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They're surely about to lump a hard drive on there, no? Hence the price increase.
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Seriously, can anybody think of a time when people in the UK paid LESS for something? ANYTHING?!
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This is the ONLY reason I don't move to the US - pricing and availability of Marmite.
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Exactly, clearly this is all miscommunication being jumped on by hit-hungry websites. Until there's official word it should be listed as rumour.
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As much as "real" gamers hate the Arcade, it's been doing well because of the casual gamers who'll pick it up simply because it's cheap. While I'm sure it'll still sell at that price, it definitely won't do anywhere near as well. If they keep it at £120, and bring the Elite down to £160 it would be a great deal, and take a lot of the wind out of the sails of the PS3 slim.
I just don't see why they'd do this, the arcade sells because of how cheap it is. Making it the same price as a Wii is just a bad idea.
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i was hoping to get another 360 which would stay in the living room (dvd/divx/games machine), thus leaving my "proper" 360 in my office.
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Rumoured PS3 Price cuts.... and Microsoft retaliates with a CONFIRMED price increase right...
The only way this will be forgiviable is if the second the exchange rates return to there old rates this move is reversed.
Something i don't see games developers will be doing..hint hint Activision hint.
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Not many gamers would go for a £160 core without a harddrive over a ps3 thats only £40-£90 extra with probably a game thrown in.
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If they bundled even a 20Gb Hard Drive with the arcade and increased it by £30, then fair enough - but to just increase the price whilst also removing the games is shooting yourself in the foot, especially in a recession.
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Good breakdown you have done there. Very insightful.
One small thing though - don't the US consumers have to add Sales Tax (of upto 7% I think) onto their prices (which differs depending on which state you're in) whereas the UK prices already have VAT included.
Doesn't make a big difference, but does narrow the gap slightly.
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I think chances are it'll probably have a lot of internal memory, there's been rumours about this for a while. Perhaps even more than 20gb.
But it still seems like an odd move considering how well the Arcade has been selling, simply because it doesn't come with any of these extras. Maybe they've changed their stance because of the massive amount of DLC, downloadable games and mandatory installs coming though. Games like Forza require you to install content, so it does sort of make sense that they want to make sure you can acess everything.
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What they are doing is stopping the Pro and instead of lowering the price of the Elite (which they may do everywhere else), they are raising the Arcade and removing 5 games. I hope Sony don't look at this and choose NOT to lower the PS3 in the UK.
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MS took a serious hit with discounting the 360 so much last year. Now that the effect is pretty much over and the PS3 is still quite a bit more expensive, they apparently feel that the benefits of a price hike (not selling units at a loss or even making a small profit) will surpass the downsides (selling less units).
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here in Ireland, we've long been gouged on the Stg to Euro exchange rate, because alot of our stuff is imported from the UK, not Europe, so I have a feeling that the UK getting gouged is gonna make things worse for us too...
bullshit though, its the middle of one of the worst recessions (depressions?) ever, with huge uneployment, governments running out of money, wage decreases, and M$/Nintendo/Activision decide now is the time to increase prices?
crazyness
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No HDD, just more internal memory. It's been rumoured for a while, and would explain the increase.. But who knows.
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It may very well turn out as most people imagine - then again, it may not...
Time will tell.
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The weird part is that this is apparently only in the UK, which you'd think would rule out a proper new SKU being introduced, as that would be a territory-wide change.
That said, supporting that extended warranty must have gotten quite expensive over the course of the recession (transport costs, running repair centres and helplines) and MS may feel the need to claw back some of that cost.
The arcade really has been remarkably cheap by any standard, especially given that its sales have never been that high and as result the whole economy-of-scale savings mechanism cannot have kicked in that hard.
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A couple of major retailers will realise they'll make more money by keeping the price the same when the others increase it. Higher sales at a lower price > Lower sales at a higher price. Pretty soon everyone will keep it at the old price, to prevent losing out to the competition.
...Also, I'm amused by how many people whining here probably ALREADY OWN 360s....
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The Xbox 360 Arcade pack is a joke. I ended buying one only to find that I had to spend more on accessories a few months down the line. It's a bigger joke if the price is increased and no hard disk is included.
Microsoft should have stuck to the pricing model. That's the only edge they have over Sony. You can't really say Xbox 360 has the games when you look at the variety on offer on PS3.
It seems bizzarre to up the price at a time when quality releases are thin on the ground in the face of Killzone 2, Infamous and the Wipeout update.
Over to Sony then!
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That would be a much nicer announcement than a price increase, but probably not likely.
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Unfortunately, MS don't have a 2nd string to theri bow like Sony and Nintendo do with the handhelds, so Sony can make up on the £ weaknesses with a $249, €249, £249 pricing policy.
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anyhows... it would be a very strange and totally unexpected move they'd make. the coming days should be interesting...
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Lets face it if Microsoft actually sold 360s at a profit and with all the repairs they've had to do the real price of the 360 should have been about £600 at launch and just going under about £400 now.
Wii prices seem to have fallen rather than gone up.
It feels like Microsoft have done a massive favour to Sony by increasing their prices when the slim is almost here.
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you should pick up Valkyria Chronicles, its gud
also, besides Killzone 2 and Infamous, see: Uncharted, Ratchet and Clank, MGS 4, Disgaea 3, Motorstorm 1 & 2, and PSN titles like Flower, Fat Princess, Pixeljunk series, Nobi Nobi Boy
Demon Souls and Yakuza 3 may or may not make an appearance in this hemisphere...
anyway, saying theres a lack of quality PS3 exclusives is just as ignorant as saying theres a lack of quality 360 exclusives, both consoles have fantastic libraries already
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[link url=http://kotaku.com/5339432/elite-360-no-longer- ships-with-hd-cables
]http://ko taku.com/5339432/elite-360-no-l...[/link]
\o/
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*Lights his flaming torch and marches upon Redmond*
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