Microsoft cuts Xbox 360 by $85 in Japan

It's one of the principles of supply and demand that as supply goes up while demand is down, the great equalizer is lowering the price; well, Microsoft finally has the supply they were after with the Xbox 360, but the demand sure as hell isn't there in Japan. So what's Redmond to do? Dump 'em off for about ¥29,800, or about $255, a solid $86 US off its current retail price and $45 less than in the US. First the UK, now Japan -- what's America got to do to catch a break with the 360, play hard to get and stop buying the damned things?

[Thanks, theburn16]

Update: Well wouldn't you know it, our Japanese bureau informed us that they aren't actually slashing the price, but are just introducing the Core system to the Japanese market. Still, it's at a price far less than that of its US counterparts -- and it kind of makes you wonder why they didn't launch the more affordable version over in the Japanese market to begin with. Japanese 360 buyers: it's coming your way November 2nd!

[Yan @ Sep 7th 2006 9:41PM]

Introducing the 360 core at $255 won't make a difference.

However, if the 360 core system drops to 255 in the US by the holiday shopping season, you have to wonder how that will affect the Wii, given that the Wii will likely debut at 250 or less. I don't think MS will do it, but it's interesting to speculate.

[theburn16 @ Sep 7th 2006 9:51PM]

yeah, i really dont think this is going to help them out very much in japan. the only thing that will make that console sell over there is if MS picks up and moves their headquarters over there which aint gonna happen.

[Ryoga Vee @ Sep 7th 2006 9:52PM]

I can see Sony craping themselves right now.

[Josh Glaser @ Sep 7th 2006 9:54PM]

Japan only got one 360 SKU - they never got the hard-drive-less Core System. It sold for about $340. So are they introducing the Core System now, or are they honestly dropping the price that much?

[OPTICAL OUT PLEASE @ Sep 7th 2006 9:58PM]

Read the article:

Business daily Nihon Keizai said Microsoft plans to launch a simpler version that lacks a hard disk drive and other accessories on November 2 for 29,800 yen ($255), about 10,000 yen ($86) less than its standard version.


...so, Core for 255 usd. Sony is very lucky that MS has messed up their Japan launch, they would be in a much worst situation if 360 had sold well in Japan.

[Milton Richard @ Sep 7th 2006 10:02PM]

"...play hard to get and stop buying the damned things?" Hell, I didn't think people were purchasing the 360s anyway. LONG LIVE DREAMCAST, SIC SEMPER TYRANNIS!!!!!

[Michael @ Sep 7th 2006 10:04PM]

Of course M$ is going to drop the price on the 360 in North America, right around the time of the PS3 launch. Firstly it steals some of Sony's thunder to be around half of the PS3 launch price and undercuts the Wii's 'value' argument by being only slightly more. Not to mention it will be available in large quantities, something the PS3 and Wii will have problems with at first, and have a large selection of value priced games which will be another problem with the new consoles. I hate to say it, but this will be a very merry Christmas for Microsoft.

[theburn16 @ Sep 7th 2006 10:11PM]

Josh: they are just now releasing the core version

[CheeseGod @ Sep 7th 2006 10:20PM]

Supply and Demand you say? Well if demand in Japan for the Xbox is inelastic, and just plain low, then cutting the price isn't going to help move much more product. Microsoft is publically seen as a foreigner with games that would not interest Japanese, and this alone lowers the demand curve as far as the Japanese market is concerned. Sony knows it will sell well because the Japanese are always buying and throwing away the latest electronics. A thousand bucks on games, accesories and the console, many young Japanese throw that much electronics away each year. Yet they won't buy an Xbox 360 + games for half the price. Xbox is not cool in Japan, what a bind.

[Jeff @ Sep 7th 2006 10:59PM]

"A thousand bucks on games, accesories and the console, many young Japanese throw that much electronics away each year."

Huh?

Are the streets paved in gold in Japan? Does money fall from the sky?

The Japanese don't "throw away" any more electronic equipment than we do (in fact, we lead the world in non-degradable electronic refuse by a wide margin). Why the hell do you think people were buying Famicom games for *20 years* there? People in Japan buy stuff that they expect to last. That's as true of electronics as it is of cars; quality matters. And that means buying game consoles that they think will actually be around for a while and supported by developers, unlike what they perceive from the Xbox 360.

A lot of westerners still obviously just don't get Japan at all. Some of the theories I see about them here and on gaming blogs about the Xbox 360 are nothing short of wacky. But this is a new one - the Japanese won't buy the Xbox 360 because they like technology that they can throw away. Do you really think this makes sense?

[Uetani @ Sep 7th 2006 11:19PM]

CheeseGod didn't say that the Japanese buy things because they are disposable -- Either you're reading from the Bush-Cheney playbook on interpreting your data, or you've taken Rummy's position and just plain ignored it. The Japanese, by and large, can't look forward to buying a home, so one result is that they spend a lot -- a helluva lot -- more money on electronic gadgets than Americans or Europeans do. That's all CheeseGod said, and he's spot-on with the observation. I also don't buy the "MS is a foreign company and therefore cannot succeed in Japan" argument at all. MS Japan is by far the largest Japanese software company because their products are, as shown by USD or JPY voted, the most popular products (Note, before I get flamed, that I didn't say "best.") for general use right now. The problem with the XBox in Japan is that it got a rep for crappy quality when it first came out, and (I think more importantly...) the games available on the XBox don't appeal as much to the Japanese consumer as the games that Sony and Nintendo push.

Think about it this way: When Toyota first came to the USA, people were skeptical, but at some point they achieved wide penetration in the market because their products were in general high quality products that served people's needs well. They still made crappy trucks, however, and American consumers like trucks. It took Toyota a while, but they finally started selling products that were more and more enticing to Joe Sixpack, leading to Toyota's impressive performance in trucks now. Microsoft's XBox in Japan is about where Toyota trucks were in the US about 10 years ago. Given the relative speeds at which the two markets move, I'd say that MS has about another 2 years to go at the current rate of change before they have a really popular truck to sell in Japan. In the meantime, lowering prices may get them marginally more market penetration, but given the way that Japanese consumers spend their money on electronics, I really wonder how much more it will be.

[scooter @ Sep 8th 2006 1:05AM]

to the guy ^^^ with the comments about toyota trucks 10 years ago (1996)outlasted anything made by americans.

I also dont see MS droping hte price of the 360. I believe they will add a game or another controler or something like that.

[Josh Einstein @ Sep 8th 2006 1:53AM]

Maybe along with the update, you should fix the headline?

[Gen Kanai @ Sep 8th 2006 2:48AM]

Microsoft Japan is trying hard to prove that they can do a worse job launching the XBOX 360 than they did with the original XBOX, which was a dismal failure. This is not news in Japan. No one cares about the 360 in Japan.

[bgdc @ Sep 8th 2006 3:07AM]

Xbox 360 is a massive failure in Japan. Like the original xbox, the japanese simply aren't buying. MS is seen as just a bad company that makes bad products.

BTW, the guy who made the toyota comments, stick to video games, bub. toyota's full-size pickups still aren't seen as viable alternatives to the big 3's trucks. Even nissan's truck has a better rep in the large truck world. toyota's foray into SUVs is altoghter different...they base their most successful lines (Rav4, RX, highlander) on the Camry and Corolla chassis platforms. They sell truck-looking things that are little more than raised cars. In fact the RX is Lexus' bestselling vehicle followed by the ES350 (another camry knockoff). Stick to video games...

[RisingSunofNihon @ Sep 8th 2006 7:17AM]

I agree that introducing Xbox 360 at this price isn't going to make a lot of difference now. MS isn't viewed as a gaming company in Japan; a lot of my friends think of them as pretty much software only and therefore aren't too keen on trying other products (like the Xbox).

[Perrey Z. @ Sep 8th 2006 7:29AM]

I'm glad i haven't bought one. And i will never buy one until the price drops under $300.00 for the premium bundle system.

[Albino Moose @ Sep 8th 2006 7:47AM]

Wait, Something seems a bit ood here. Why on earth would MS put two months between a product announcement and shipping date for a product that has been on the shelves for almost a year? That makes no sense unless there is a shortage of core systems, or the X-Box localization requires some sort of complex process. It really seems to me that this is something that they should have been able to announce and ship on the same day.

[KilgoreTrout XL @ Sep 8th 2006 8:49AM]

"Blue Dragon", from Mistwalker, comes out at approximately the same time. They made Chronotrigger, and I believe that additional members of the team were important members of past Final Fantasy games.

It's not really my cup of tea, but this game (along with Lost Odyssey, which I think comes out around the same time) will go some distance in lending credibility to the 360 in Japan.

The introduction of the cheaper core system is just MS trying to take advantage of the two titles that shoudl do fairly well in Japan. Could work.

[Uetani @ Sep 8th 2006 1:18PM]

Hmmm...Opinions abound, but a short history lesson based on facts would show that Toyota started in 1964 with a truly crappy truck (The spiritual equivalent, perhaps, of the Microsoft MSX...). By 2000 they won the Motor Trend Truck of the year award and sold 100,000 trucks. That was still a pittance compared to what Ford and GM sold, but it made money (More than what MS can say for Xbox's in Japan.). The new Gen2 2007 Tundra is larger than the Ford F-Series, Chevy Silverado, Nissan Titan, or Dodge Ram, and is forecast to sell 200,000 units next year. The Titan, BTW, has yet to reach the 100,000/year mark. To be fair, Ford will sell 900,000 trucks, give or take, in 2006, and Toyota only has about 5% of the truck market in the US right now.

In any case, MS is generally much more liked and respected in Japan than it is in the USA -- They just need to get focused on what the market wants, and lower prices is not the answer. They also need to overcome the mentality that MS only makes software, keyboards, and mice -- Maybe all those 40-year-old Japanese guys buying Playstations remember the MSX?

[Cnet Guy @ Sep 8th 2006 3:41PM]

With Sony annoucing the recent alarm of only 400,000 available PS3's this fall and Nintendo up to their necks with controller issues with their Wii(stupid name), Microsoft is sitting in a darn good position this fall and most likey could raise their prices on the 360 consoles.

Blueray Fanboys can wait for the PS3's to hit ebay this fall at an expected $2000.00 - $3000.00 price tag.

[Count Chocula @ Sep 8th 2006 3:44PM]

Microsoft doesn't need Japan's support of the 360.
America and Europe, are enough to keep the 360 #1.

[Journey @ Sep 8th 2006 11:59PM]

Wow... I knew this was coming. What is it with the Japanese and not wanting to try the Xbox.

[Z @ Sep 9th 2006 5:33PM]

No one in Japan is going to buy the Core system (no one in the U.S. wants the core system, either - the Premium system is what everyone wants). But the Japanese are gadget crazy, so a featureless Xbox isn't going to whet their appetites. This move won't accomplish a thing.

MS doesn't understand the Japanese. Japan likes FEATURES. Not boring, watered-down, featureless technology like the core system. Yawn.

The way MS can succeed with its Xbox in Japan, is if they stamp the name "Sony" on it. Then the Japanese will go crazy for it and snap up every last one. The Japanese are pretty Sony-crazed, IMO.

But in all seriousness, MS needs to come out with a system that is even sleeker with better colors - and integrate every feature they can (forget add-ons!): integrate WiFi, integrate a HiDef drive, include a huge HDD (60GB at least), include TWO wireless gamepads (not just one), include the remote control, and add advanced connections like HDCP compatible HDMI, along with digital optical or coax, in addition to DVI and component connections. As a matter of fact, they should also backlight all the buttons and controls on both the gamepads and remote control (maybe allow for on-the-fly color changes) for nightime use.

They do this, then they'll have a great chance at succeeding in Japan.

[Murc @ Sep 10th 2006 3:19AM]

Milton Richard ---Your kiddn' right? Microsoft if selling roughly a quarter million 360's every month.

[Rushg60 @ Sep 11th 2006 1:24PM]

Are people not buying the 360 in Japan because it's too expensive or because they just don't like it? MS needs to ask this question. Electronics are luxury items. For the most part they just don't go flying off the shelf when the price gets lowered. Unless it just hits rock bottom (sub $100). The price is part of the appeal and prestige.