Another reason to buy a 360...

Xbox 360 price cut 14 March
50 euros per SKU, cheaper than Wii

TechRadar understands that the price of every Xbox 360 SKU is to be slashed by €50 on 14 March across Europe, according to numerous well-placed games industry sources.

We have corroborated this story with numerous UK retailers this morning, who agree that the 360 price is set to be slashed on this date.

The rumour is that the price cut will be in the region of €50 per SKU (£38.26 at the current exchange rate) which we will confirm as soon as we find a retailer willing to go on record. Microsoft has of course responded with a swift 'no comment' when we contacted the company this morning.

This effectively means that the cost of the Xbox 360 Elite system on Amazon will be in the region of £240 and the basic Arcade system (without a hard drive) will cost in the region of £150.

The news follows recent 360 price cuts by Microsoft in Canada.

360 cheaper than Wii

All this means that the Xbox 360 is to be cheaper than the Nintendo Wii this coming Easter. Trade magazine MCV notes that the price cut, "will allow its lower-spec Arcade model to compete with Nintendo’s Wii on price."

TechRadar spoke to a Gamestation store manager earlier today who expressed surprise that a price cut was being introduced.

“We are currently selling the Elite plus one game at £330, the Premium system with any game at £280 or £260 with FIFA Street or Assassin’s Creed and the Arcade version for £230 with any game or £220 with FIFA Street,” the retailer told us.

Knock around £40 off those prices and you have what is clearly this Easter’s biggest gaming bargain. “I might even buy one myself now,” the store manager quipped.

360 Elite MkII

Of course, this begs the question: What new iteration of the Xbox 360 does Microsoft currently have in the works and when will it be released?

Rest assured we will be the first to let you know the answers to both of those questions as soon as we find out. The games industry rumour mill is already discussing the new Opus and Valhalla 360 motherboards.

In the meantime, if you have still to buy yourself a 360 to enjoy the wonder that is Rez HD on Xbox Live Arcade, then you really do have no excuse this coming Easter.

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Sony, Microsoft discuss Blu-ray for Xbox 360
By Chris Nuttall in San Francisco

Published: March 6 2008 18:50 | Last updated: March 6 2008 18:50

Sony is in talks with console rival Microsoft about offering a Blu-ray drive for the Xbox 360, according to a senior executive.

The Japanese electronics maker has until now touted Blu-ray as an advantage its PlayStation 3 holds over Microsoft’s console. Microsoft has backed Toshiba’s HD-DVD format and offered an HD-DVD drive that can be plugged into the 360.

A Blu-ray drive in a 360 would make Microsoft more competitive with the PS3, but it would also mean extra revenues for Sony’s electronics division. It would also add further cost to the 360, meaning a premium edition of the console could be necessary.

A Blu-ray drive could be incorporated in its top-of-the-range Elite Xbox, or Microsoft could again offer a drive as a plug-in peripheral.

Mr Glasgow, speaking at a media dinner, added that discussions were also taking place with Apple, which has not offered Blu-ray drives on any of its computers so far and has focused on digital media via downloads and streaming through devices such as its Apple TV.

The Sony president said he did not believe Blu-ray would be overtaken by high-definition content becoming available over the internet. Bandwidth limitations meant it was still available to only a few, he said, and consumers favoured disks they could own.

“Downloading will build over time, but this will be over a period of years,” he said.

Microsoft declined to confirm any talks, saying: ”We have made no such announcement. Games are what are driving consumers to purchase game consoles and we remain focused on providing the largest library of blockbuster games available.”

On Blu-ray pricing, Mr Glasgow expects prices of players to drop to as low as $299 by the end of the year. They currently cost $399 and higher. He feels the price of a player could fall to about $200 by the end of 2009.

The prices of Blu-ray players are not expected to fall as precipitously as they did with regular DVD players. The Blu-ray Association, the group controlling the standard, has yet to license it to Chinese manufacturers, who would be expected to drive down prices.

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Microsoft Downplays Blu 360 Talk

A Sony exec has reportedly said the electronics giant is in discussions with Microsoft about Blu-ray for Xbox 360, but a Microsoft rep tells Next-Gen that there are "no plans" to bring the technology to its console.
With Microsoft-supported HD-DVD now in format heaven, speculation that Blu-ray will head to Xbox 360 is now as open as ever.

The Financial Times in a Thursday article cited Sony Electronics US president Stan Glasgow, who reportedly said during a media dinner that Microsoft and Sony are discussing Blu-ray for Xbox 360.

But a Microsoft rep said in a phone interview with Next-Gen that that is "not at all" the case, and Microsoft will "remain focused on the games" for the console, not its movie playback capabilities.

"There are no plans to introduce Blu-ray," said the spokesperson.

"In response to Stan Glasgow’s statement that Blu-ray is a possibility for Xbox 360, we have made no such announcement," the rep added in an e-mail. "Games are what are driving consumers to purchase game consoles and we remain focused on providing the largest library of blockbuster games available."

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Of course, this begs the question

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Another contender emerges in DVD-format war

By Eric A. Taub | New York Times 6:06 PM CDT, March 9, 2008


No sooner has the battle for the next-generation high-definition DVD format ended, with Blu-ray triumphing over HD DVD, than a new contender has emerged.

A new system that is incompatible with Blu-ray, called HD VMD, for versatile multilayer disc, is trying to find a niche. New Medium Enterprises, the London company behind HD VMD, says its system's quality is equal to Blu-ray's, but it costs less. By undercutting the competition in production, replication and hardware costs, it thinks it can find a market among consumers with less disposable income, particularly outside the United States.

An HD VMD player costs less than a Blu-ray because it uses the red-laser technologies found in today's standard-definition DVD players. The Blu-ray and HD DVD machines use a more expensive blue-laser system. "We do not intend to take on Blu-ray," said Shirly Levich, New Medium's vice president and product development manager, in an e-mail message. "We see VMD as a natural extension of mass market DVD product enhanced to HD capabilities. We shall not rekindle the format war."


The industry and consumers may not see it that way, given that the company is promoting its price advantages. While Blu-ray players typically cost more than $300, an HD VMD unit is priced at $199. Sales through Amazon are scheduled to begin in five weeks, the company said. No talks have been held with the big-box retailers, like Wal-Mart Stores, to carry the product.

New Medium thinks its secret weapon is Michael Jay Solomon, one of Hollywood's best-known film distributors, who has been named its chairman.

Although he has yet to approach the studios, Solomon, a former president of Warner Bros. International Television, said his long tenure in the industry would help him succeed in licensing movies for HD VMD. "It's a combination of my good experiences and continual relationships," Solomon said in a telephone interview from Shanghai, China, where he was visiting with company engineers.

No matter how cheap a player is, it is useless unless major movies are released using its format. To date, New Medium has come up short. Just 17 movies are available to customers in the United States at the company's online store, including little-known ones like "The Enigma With a Stigma" and "Kandukondain Kandukondain," a Bollywood production. Its major suppliers to the American market are Anthem Pictures, Eros Entertainment and SFM Entertainment, all independent distributors. Some bigger movies, like "Apocalypto," are available in other territories.

Neither Walt Disney, Universal Studios nor Warner Bros. would comment on their interest in releasing movies on HD VMD.

But even without major studio movies, Solomon thinks the company will be successful. The low cost of producing HD VMD master discs, from which the consumer products are made, and the inexpensive consumer players have attracted the owners of movie rights in China, India and Spain, Solomon said. He said Australia, China, India, Central Europe, Russia and Scandinavia would be major markets.

"We can sell players for $90 and make a profit," he said.

In the United States, Solomon believes that producers of lesser-known movies, like religious organizations and independent filmmakers, will see HD VMD as a cost-effective way to create high-definition versions of their programming.

The Blu-ray camp is unimpressed. New Medium's price strategy will fail, said Andy Parsons, chairman of the Blu-ray Disc Association, a trade group, because it relies on a false assumption: Blu-ray technology will always be more expensive.

"When you mass produce blue lasers in large quantities, hardware costs will absolutely come down," Parsons said. "I'm sure we'll eventually be able to charge $90 for a Blu-ray player."

The HD VMD camp "is pitching a solution at a market niche that does not exist," said Carmi Levy, senior vice president for strategic consulting at AR Communications, a Toronto research firm. "And even if it is a niche, you will never sell enough to make it a business."

Solomon dissents. "Our idea is to create a player that people can afford. There is room for the two of us."

Unfortunately, those consumers who bought HD DVD players that are now orphaned may not agree.

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doobiwan said:

I don't buy it, it's coming from a Sony exec, we know just how honest they are . . .

While they may be talking Xbox, I doubt it:
1. Microsoft have flat out denied it, not just a "no comment"

2. Microsoft have a better manufacturing relationship with Samsung who are also BD player manufacturers and who are already cheaper than Sony.

3. They're more likely discussing HDi, the MS software component from HD-DVD, looking for a new home, as they have already mentioned this.

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