(As reported by gamespot.com) What we heard: At the beginning of August, Ars Technica's Opposable Thumbs blog predicted that Microsoft would be slashing the price of its three Xbox 360 models. According to the site's mole--which accurately predicted the launch of the 60GB 360--the 120GB Elite would slip $50 to $399, the now-60GB Pro would fall $50 to $299, and the hard drive-less Arcade would slip $80 to $199. The last reduction would have the potential to upend the console race, as it would make the powerful 360 $50 cheaper than the best-selling $249 Nintendo Wii.
Today, game-blog Joystiq appears to have uncovered confirmation for one-third of the price-cut theory. This evening, the site posted what it claims is a scan of a forthcoming promotional flyer for RadioShack, which began selling games late last year. According to the flyer, the Elite will cost just $399 as of Sunday, September 7, a week after Labor Day.
Why would Microsoft so drastically discount its console? For the simple reason that, to keep the 360 competitive, it has no other choice. Since the release of the exclusive Metal Gear Solid 4, the PlayStation 3 has been on a roll. According to NPD figures released last week, the once-dominant 360 was outsold by the PS3 224,900 to 204,800 respectively. While both consoles lagged far behind the Wii, which sold 555,000 units during the month, the PS3's Blu-ray capabilities give it an edge in the long run, both in terms of high-def video playback and game-media storage. At QuakeCon last month, id Software's John Carmack announced the forthcoming action game Rage would have inferior graphics on the 360 due to the limited size of its DVD format.
The official story: Microsoft reps had not responded to requests for comment as of press time.
Bogus or not bogus?: Likely not bogus. While not proof positive, the flyer looks authentic. And didn't a RadioShack flyer predict the 20GB price drop to $299 earlier this summer?
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