E3 2008: 60GB Xbox 360 official, 20GB discounted and discontinued

After weeks of rumors, Microsoft unveils new console model, prices older SKU to sell at $299--while supplies last.

After long declining to comment on "rumors and speculation" about the Xbox 360's $299 price cut--even when such "rumors" came from the Wall Street Journal--Microsoft has finally come clean. Today, the company formally announced that it is dropping the price of the 20GB Xbox 360 Pro to $299 in the US and Canada, down $50 from its prior $349 cost.

However, the price cut isn't as straightforward a story as had been assumed. In a move reminiscent of Sony's discounting and then discontinuing of the 60GB PlayStation 3 at last year's E3 Media & Business Summit, the $299 price point will be in effect only while supplies last. That's because Microsoft is phasing out the 20GB 360 and replacing it with a long-rumored new model that will have a 60GB hard drive. The 60GB 360 will go on sale in "early August" at the 20GB's former $349 price point.

In a press release titled "Xbox 360 Console Now Offers Triple the Storage," Xbox director of product management Albert Penello played up the fact that the 60GB 360 will cost as much as the 20GB used to. "We know consumers need more and more space to store the amazing digital content Xbox 360 offers, and we're giving it to them at no extra charge," he said.

Contrary to other rumors, Microsoft is not discounting its other two Xbox 360 models: the $279 hard-drive-less Arcade and the $449 120GB Elite. Today's move will likely have only a temporary effect on the current console-sales struggle, which has seen the PS3 running neck-and-neck with the 360 this year. Currently, Sony's non-backward-compatible 40GB PS3 costs $399, whereas the full-featured 80GB PS3 retails for $499. The cheapest and most popular console on the market remains the single-SKU Nintendo Wii, which retails for $249.

Microsoft UK has confirmed to GameSpot that the price cut and new model are not currently planned for Europe. A spokesperson said, "The 60GB Xbox 360 and the 20GB clearance sale are for the US only. We have not announced any changes in Xbox 360 offerings or pricing in Europe."

528 Comments

  • happyman3

    Posted Sep 2, 2009 8:17 am GMT

    60 gb now cost 250!

  • ponchados

    Posted Jan 7, 2009 1:01 am GMT

    todo para poder vender????

  • ToxicClone12

    Posted Aug 12, 2008 9:55 am GMT

    *Meleemaster21* are u that **** retareded it's discontinued there is no xbox 360 20gb anymore!
    *Jmaster3265* the 60gb cost 349.99 and the 20gb if they still have they at the store they cost 299.99

  • meleemaster21

    Posted Aug 3, 2008 10:56 am GMT

    Are you **** me?

    "Hey guys, the 20gb is now only $300! And *coughcoughwe'rediscontinuingitthoughcoughcough*"

    Nice job Microsoft. Nice **** job.

  • Jmaster3265

    Posted Aug 2, 2008 7:37 pm GMT

    I am confused... So does the new 60GB cost $299 or $399? I keep seeing updated news that it's now $299 from some sites and others still say $349. As well as some stores not even showing the new 60GB model while others do for $349.

  • BoogieManZero

    Posted Aug 1, 2008 8:38 pm GMT

    I suppose my 20gb 360 couldn't have been stolen at a better time...

  • JadeAZNdragon

    Posted Jul 24, 2008 1:52 am GMT

    maybe this will boost japan's sales of the xbox 360, because the xbox 360 is practically drowning over there.

  • jedbeetle

    Posted Jul 17, 2008 7:15 pm GMT

    hmm....
    these don't really seem like very exciting announcements. i mean, i am a ps3 fan and all, but even objectively, the ffxiii thing is the biggest announcement but it isn't especially surprising when you consider MS's relationship with SE recently. i was honestly shocked and upset when i first heard about it, but then i realized that it only meant SE was getting even more money to make the game. it just means current 360 users won't have to throw down for another console to play this game, and it might make the 360 the premier JRPG console for this generation, if not the premier rpg console, which is a little ironic.

  • lettuceman44

    Posted Jul 17, 2008 12:27 pm GMT

    Aww.....not a perma drop.

  • grambyte

    Posted Jul 17, 2008 5:09 am GMT

    Good, good... Gnagnagna everything working according to plan. The Microsoft brainwash project did work excellent.

  • GoldenBlackness

    Posted Jul 16, 2008 10:59 pm GMT

    I like this news. I was recently considering buying an Xbox 360 and now that the new ones have the same price but triple the storage, I'm definitely getting one now.

  • _Sam_

    Posted Jul 16, 2008 3:24 pm GMT

    thankfully I didn't just get a xbox 360. I bet people who just bought one will be pissed.

  • grambyte

    Posted Jul 16, 2008 3:26 am GMT

    Yipee! I Guess...

  • gamah_killah

    Posted Jul 15, 2008 8:03 am GMT

    Good strategy MS

  • htotheo

    Posted Jul 15, 2008 2:53 am GMT

    i just bought one and i have to say 20 gig hard drive is enough, i mean why all the space needed, sure you can download demos but you can jsut delete them if you want the game or dont like it and then 10 gig is enough for saves xbox live arcade and the like so i dont see why more space is necessary. what are you people doing with all this damn space.

  • lhardwick692

    Posted Jul 15, 2008 2:34 am GMT

    funny how they announced that the 360 was having a price cut but now its just a price cut until the 20 gig versions are gone--so this isnt an actual price cut now is it--now everyone saying hmmm xbox360 had a pricecut now maybe the ps3 will but hmm there is no true price cut--- in the article it says cfo nobuyuki oneda says electronics giant has no plans of countering microsofts 50 buck discount of xbox360 pro--- --- this is not a lower in price its just to phaze out an old sku for a new one--which the 20 gig drive is obsolete anyhow--by time you do all the updates and stuff you barely have 10 gig left so eveyone will want to go with a bigger drive---so for all reasons go for the elite with the huge drive plus its black..thats my 2 cents later

  • Valen_Ca

    Posted Jul 15, 2008 2:21 am GMT

    Great, Microsoft could have used this opportunity to kill off that stupid 360 Arcade, but noooo, they kill off the model that's actually useful and still worth buying.

  • Firefly00

    Posted Jul 15, 2008 1:25 am GMT

    What about here in Europe? I'm guessing we get this updated Xbox, but how much will it be and will it release at the same time?

    I'm due to buy the 20GB one this Friday, but if this one is coming out early August for the same price I may as well just wait...

  • king_bobo

    Posted Jul 15, 2008 1:19 am GMT

    Oooh. This is interesting, especially with everyone saying that this year would be the PS3's year. Now things might change, but I hope that the PS3 really has a chance to push it's way into the market fully so that it's exclusive titles are recieved well (hopefully meaning more exclusives).

  • rbgixxer750

    Posted Jul 15, 2008 12:51 am GMT

    cool, a new model for the 360 w/60gb hd at $349. sounds great, i'm planning on getting a 360. i hope it dont break down, or its a must buy for a aftermarket cooling fan to be safe.

  • wilso326

    Posted Jul 14, 2008 8:04 pm GMT

    I don't mind paying for live every year, not being able to copy music from my computer, or the infamous RROd, but the hard drive prices are beyond ridiculous. I got a premium a while ago, and it only took me a week or two before I filled it completely with demos, preview videos, ripped CDs etc. And it's not even a 20 gig since the OS takes up 7 freakin' gigabytes! I was always looking to buy a 120 gig hard drive, but its $180 in USA, and in Canada its $229 at most places, which is insane. I don't care how "expensive" MS says laptop drives are, I could probably buy a 500 gig laptop drive for $229. I'm not even going to consider buying the 60 gig drive unless its under $120, but considering the way MS prices these things it'll probably cost $150-$200.

    And does anyone even buy these things at these prices? You'd think MS would have considered a price cut ages ago since nobody's buying them for 3x the price they should actually cost.

  • cajunstrike

    Posted Jul 14, 2008 7:45 pm GMT

    Agreed. Not surprising with all the retail leaks.

  • smcaudata

    Posted Jul 14, 2008 7:31 pm GMT

    So... if they can sell a 20GB model for $299... you are paying $50 for 40GByte. At more than $10 per gig that is more expensive than flash. I can get a 300GB laptop HD for $100. This is just stupid.

    If MS wanted to compete with the 20GB PS3 they would have included wireless AND a bigger hard disk at this pricepoint. As the only current Gen console to not only leave out wireless but to charge a ridiculous amount of $$ for it, MS once again shows they don't actually understand what consumers want.

    I'll wait for Fable 2 before I buy my 360 anyway to see if any other deals come out. Perhaps just wait for the holidays. If MS thinks this will sell them more consoles they are mistaken.

  • TAK93

    Posted Jul 14, 2008 7:27 pm GMT

    BTW, I forgot to add at the end, a freakin fan will keep your system from dying. My friend has an origional release 360 that he got at the desert launch. Hooked a window fan up to it and viola!!!! NO RRO-FREAKIN-D!!!!!!




    Sorry. Just tired of all the Sony-Microsoft BS.

    Nintendo fanboys, my previous comment was not toward you.

  • TAK93

    Posted Jul 14, 2008 7:23 pm GMT

    I have an XBOX 1 and a PS2. My 'Box gets all the love unless I'm in a GTA mood.

    ALL Fanboys-Suck my ****.

    Now to the serious stuff.
    The price drop would drive me to get the 20GB anyway. The only DLC I would get would be Halo and GTA related. Movies? No. TV Shows? No. Music? Maybe. People, the PC is NOT a console. If it is on a console then goes to PC, it is still a console exclusive. Why? Different content and features. Look at GRAW 1. PC, fully customizable weapons. 360, Third-Person and HD graphics. PS2/XBOX, one member squad. To me, each version is an exclusive. Same with GTA IV. (I AM NOT A FANBOY) 360, DLC. PS3, graphics. My nephews have a Wii which only gets played when I'm there (I'm 14). My other nephews and their sister all have a DS (two sis's born 20 years earlier-LUCKY ME!) IMO, all the companies should get together and build a universal system that can be cheaply upgraded every few years.

    I might just get a 360 because I had one before until it melted itself and my TV. This time however, I'll get a tried and true cooling system fan.

    Jeez!

  • jasonbarbour

    Posted Jul 14, 2008 6:45 pm GMT

    ctg867 - wow that was an impressive rant - I agree with your sentiments

  • blackace

    Posted Jul 14, 2008 6:05 pm GMT

    jakeboudville They should made the 60gb version at 299 ************************************************************
    I agree, but it may still happen. M$ may drop the price before the holidays. They should. I wouldn't run out and get that 60GB 360 anytime soon. Just wait until the end of the year and see what happens.

  • solidpython

    Posted Jul 14, 2008 6:03 pm GMT

    Why do us European gamers (as much as it pains me to be called European) keep getting pissed on? It's ridiculous, especially when you consider the size of the European gaming market, just seems ludicrous to me... plus it makes me all kinds of annoyed!

  • espoac

    Posted Jul 14, 2008 6:01 pm GMT

    I wonder why MS would do this when Sony caught so much flak for doing the exact same thing last year.

  • insanitycheck3

    Posted Jul 14, 2008 5:34 pm GMT

    Why is the new disk so small?

  • jakeboudville

    Posted Jul 14, 2008 5:08 pm GMT

    They should made the 60gb version at 299

  • Gamerzone23

    Posted Jul 14, 2008 4:30 pm GMT

    This is kinda wasting money. They should just fix the Pro consoles and leave it at that.

  • akiwak

    Posted Jul 14, 2008 4:27 pm GMT

    This generation of systems is not even halfway through their life cycle so I can see more changes to the systems in 2-3 years. These are changes that should be available to all consumers WORLDWIDE though. It is not just a gaming country, WE ARE A GAMING WORLD!!!

  • JediDrew02

    Posted Jul 14, 2008 4:18 pm GMT

    So will the red ring of death finally be fixed in this new SKU?

  • Dirk13

    Posted Jul 14, 2008 3:47 pm GMT

    @Dirk13...i don't think so. that's the whole reason for their 3 year warranty. why fix the problem when they can just extend the warranty? Microsoft is known to make products that break down and freeze etc. ask apple.

    your rant aside though, they have obviously released newer versions of the same model, like with an HDMI, and now a bigger hard drive, and of course more importantly, less inherently error prone parts.

    So I ask, can they finally start using slightly newer revisions of pros for replacement? I know i dont like getting a red ring on my earlier pro only to get the same damn thing back (plus i dont like their optical port, it stinks, I would want to use HDMI just by virtue of the fact that the cable probably wouldnt be as loose as the optical cable is).

  • dithindious

    Posted Jul 14, 2008 3:23 pm GMT

    And once again us European consumers get screwed over by Sony from Japan and Microsoft from America, they give us half a PS3 and don't give us the option of the midway point or 20GB sale that the US has and will probably match Sony in as far that they won't do it in the future!

    TO - MPK
    I totally agree man Microsoft shafts the early buyer once again :/ As if the Elite was not enough...

  • sharpsh0t

    Posted Jul 14, 2008 3:11 pm GMT

    still moving in the right direction.

  • MPK

    Posted Jul 14, 2008 3:11 pm GMT

    So basically everyone that supported Microsoft by buying their consoles early (like me) get screwed. Maybe Microsoft could actually give something back and offer 60GB drives to registered owners at a discount? Oh wait, this is Planet Earth and Microsoft. My mistake.

  • sdkingsht

    Posted Jul 14, 2008 3:06 pm GMT

    @Dirk13...i don't think so. that's the whole reason for their 3 year warranty. why fix the problem when they can just extend the warranty? Microsoft is known to make products that break down and freeze etc. ask apple.

  • Dirk13

    Posted Jul 14, 2008 3:01 pm GMT

    so does this finally mean then when our Xbox360 20GB non-HDMI pros break down (and oh they will), that we'll start getting some sort of newer Pro system instead of them trying to force the very oldest revisioned unit back on us again?

  • cell_100

    Posted Jul 14, 2008 2:36 pm GMT

    PS360 LOL!!!

  • GeneralXiahou

    Posted Jul 14, 2008 2:26 pm GMT

    This is becoming a pain.... As both a console and PC gamer its hard to support both. It doesn't help when they keep making changes halfway through the consoles lifespan. When I started gaming (SNES/N64) things were much simpler (granted I was very young and couldn't tell the difference). But as technology has evolved so has the complexity of the market. New system versions are brought halfway through the life of the system, making anyone who bought earlier have the "lesser" machine. I bought a 360 about 4-8 months ago and now wished I had waited. While I got it cheaper then the sale rate it is impossible for me to get the same amount back to buy the new version. It is imperative that they stick with something, fix the problems before you release the system and then leave it alone until the end of its lifespan. This will benefit consumers and gaming companies. If you have more money to spend since you didnt need to buy another system you can buy more games (granted they put out some real bad games now) I think I got into a bit of a rant, sry

  • JDaniels48

    Posted Jul 14, 2008 2:11 pm GMT

    we dont need another 360, start making a new xbbox genioses

  • Jagrofess

    Posted Jul 14, 2008 2:02 pm GMT

    All this game racing beween Sony and Microsoft lets Nintendo keep steady sales without the need to drop price or bring in a new model. Like in a 3-way RTS match, often two players will fight it out while the other is free to tech up and expand until they begin dominating end game.

    In my opinion the Xbox Arcade is an unnecessary piece of hardware (effectively a kiddy version of the Xbox), and as such I wouldn't buy it. If I had the money to buy an Arcade I'd save my money to get a Pro. If I had enough for a Pro, I'd save up until Microsoft sort it out, either by bringing out a new console with fewer faults and similar capabilities to the PS3 or by discontinuing the Arcade and replacing it with a handheld Xbox (it's about time if Microsoft want to keep up in the gaming industry and you know it would sell).

  • zeeshan810 posted Jul 14, 2008 1:51 pm GMT (does not meet display criteria. sign in to show)

    zeeshan810

    Posted Jul 14, 2008 1:51 pm GMT (hide)

    That's enough copyin' Sony Playstation 3

    60GB Xbox360 comon NOW STOP COPYIN' PS3

  • lanista

    Posted Jul 14, 2008 1:09 pm GMT

    @Needles-Kane "At least it is not as bad as sony screwing everyone over by removing promised backwards compatibility."

    That's a fair comment and one I made a while back. Europe never ever got any chance at BC from Sony as that functionality was deleted from day one in PAL regions. That's a fact not an opinion.

  • ctg867

    Posted Jul 14, 2008 1:04 pm GMT

    Sony discontinued the 20GB PS3 half a year after launch, then the 60GB drops in price to $500 a year after launch. The 80GB releases for $600 alongside it, then drops to $500 after the 60GB is discontinued. Then they bring out the 40GB for $400. Not crazy about how they did it, but it ended up in a huge sales increase for them.

    Year and a half after launch Microsoft brings out the Elite for $480. Two years after launch the Core drops to $280, the Pro drops to $350, and the Elite drops to $280. The Core is discontinued, the slightly improved Arcade takes it's place at the same price, the Halo 3 Edition comes out for $400. They discontinued the Halo 3 Edition half a month later. Now the 20GB Pro is dropping to $300, the 60GB Pro is coming out for $350, and the Arcade and Elite are staying at $280 and $450. Now you have no reason to get either of those overpriced SKUs. And now you have four SKUs on the market yet again, so there is no better way to mess with consumers then this.

    Wait, I stand corrected. After the 20GB sells out and is discontinued, the 60GB will most likely drop to $300, and the Arcade and Elite will most likely drop to around $200 and $400 respectively. Since neither of them have any business being at those prices when a Wii is $30 cheaper the a Core and a 40GB PS3 is $50 cheaper then an Elite. So now they're adding and removing SKUs faster then Sony did in it's first year, and they're adjusting prices in numerous ways just to confuse consumers and make them feel like they'll be screwed when things change or drop in price again.

    Sales will increase, but we won't know how much for a month. The PS3 will dominate June with MGS4's launch in the US and overall Worldwide. We should know about June NPD numbers (US sales) very soon. In mid August we'll get the July NPD numbers, and the 360 should beat the PS3 for that month, but only in the US. With this price drop not coming worldwide, which is a huge mistake, the PS3 will still beat them like they have every month in worldwide sales this year.

    All this is gonna do is make it three months this year the 360 outsold the PS3 in the US, while the PS3 will have four months of outselling the 360 in the US. Wow, so now they actually have some good news that doesn't have to be spun in a press release for something that wont have any noticeable effect until they do things right this holiday. How impressive. *Sigh*

  • Titanicles

    Posted Jul 14, 2008 11:32 am GMT

    Europeans get very little choice compared to the US, we have to settle for the 40GB PS3, which is one of the reasons I didn't get one. And now we aren't getting the 60GB 360, and on top of that the base model PS3s over here cost more than the the premium models over there. And although the 360s are much fairer priced, they are still not competitive with the US.

  • lego863

    Posted Jul 14, 2008 11:09 am GMT

    hmmm, i already have a 360...

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