Exclusive: Xbox price slashed in Europe on April 26
Thursday 18-Apr-2002 12:00 AM Blink. You read it right. Microsoft has just confirmed that the price of its console is about to fall by £100, with full compensation for those who bought at the original price Microsoft is to drop the price of Xbox in Europe by £100 to £199 on April 26, less than six weeks after the launch of the machine. Slow pan-European sales prompted calls from industry leaders in the last week to drop the price immediately. Microsoft has obviously had its ears wide open.
"At 6.00am today, we'll be reducing the price of the Xbox to €299, £199, effective from April 26," said Chris Lewis, UK divisional director for Xbox retail. "There are no announcements, or any plans to make price changes elsewhere. It is a European-only announcement at this stage."
The speed of the move will come as a shock to many, but Microsoft has merely pointed to its wish to remain competitive in an increasingly tough market.
"When we announced the price back in Cannes at X01 [In October, 2001 – Ed], the terrain was slightly different to that which we have now," said Lewis. "Nintendo [GameCube] wasn't imminent, and certainly PlayStation 2 was at a different price point. We were always committed to being competitive.
"For us to remain competitive, and to allow even more people to get the best value and get the chance to play with Xbox, we want to remove any obstacles to success and change our price-point now."
Lewis went on to reiterate Microsoft's commitment to the console market for the long-term.
Obviously wary of causing chagrin among early adopters - already at least £345 lighter due to buying at the original European price - Microsoft also confirmed today a system for refunding gamers who supported the format from the off. Anyone who has already bought an Xbox, or buys one in Europe up to April 25, will be eligible to receive two free games and a free controller in the wake of the cut. Honestly and truly, kids, you cannot say fairer than that.
Xbox games retail at £45. Xbox controllers sell for £25. That's £115 in total. That's free money. Say "thank you Mr Microsoft". "We want to reward the early adoption," said Lewis.
Lewis denied that the price for the machine was pitched too high for Europe initially. "When we first made our pricing decisions in late summer last year, we felt that at that time – we were twice the power of PlayStation 2, we had a better games line-up, the box was future proof, we were built with broadband and there are a whole lot of online announcements coming at E3 - we offered great value for money," he said. "We still do.
"What we recognise now is that we need to remain competitive. To that end, we've made this decision and we've made it for Europe. We feel that we've made the right decision at the right time."
Xbox Europe is planning to head into E3 bouyed by extra sales garnered from the drop, with the general focus for the show looking increasingly likely to be online play. "What that does do is leave the way very clear for us to have some good discussions around the games and remove any obstacles that might be debated around the price," said Lewis.
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