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Tuesday, October 14, 2008

Microsoft undercuts Wii value with $20 Xbox 360 HDD promo

As we head into the holiday season, Nintendo, Sony, and Microsoft will try every trick in the book in order to maximize sales. One of the best weapons Microsoft has is its price point; after the September price drop, the least expensive 360 model is selling for $200, $50 less than even the Wii. While the Arcade unit doesn't come with a hard drive, Microsoft is seeking to fix that: the company has launched a promotion giving Arcade users the choice of a free 512MB memory card or a $20 refurbished 20GB hard drive. 

Gamers need only to go an official Microsoft page and enter their serial number and console ID to see if they quality; it appears that only Core or Arcade units can take advantage of this promotion. This is Microsoft's answer to their promise of a "storage solution" in order to allow all gamers to take advantage of the new UI and Avatar functionality launching on November 19. That update will require 128MB of storage space, which would leave precious little space on the Arcade's included 256MB stick.

This move catapults the Arcade model from the gimped choice for hardcore gamers to the most affordable option for any gamer: $220 gets you the system, a 20GB hard drive, the Arcade games, and the 256MB memory card. Newer bundles will also include a copy of Sega Superstars Tennis and a Netflix trial. That's a hard deal to refuse, and absolutely creams Nintendo in the value department. Right now GameStop is selling its refurbished 20GB drives for $59.99, and the cheapest model that comes with a hard drive is the 360 Pro that retails for $299.99 and comes with a 60GB hard drive. This new deal makes the Arcade unit the best value for most gamers, one that could possibility get a batch of fence-sitters to make a choice.

If gamers sign up for this promotion in droves, and 360s without hard drives become more of an exception, it could give developers and publishers the confidence to use the hard drive more heavily. (The new firmware will allow gamers to load the entire game into the hard drive to cut down on loading times, something that Arcade owners will now be able to enjoy along with their Pro and Elite friends.) While you do have to fill out a form and wait for the drive to be mailed, it's clear that Microsoft has patched a major hole in its product line, and a full-featured Xbox 360 for $220 is an incredible deal.

Microsoft undercuts Wii value with $20 Xbox 360 HDD promo

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