"Mole" says Microsoft will sell sub-$200 Xbox 360 this fall

A “mole” — the informant kind, not the small furry burrowing animal — told Ben Kuchera at Ars Technica that Microsoft is planning to further cut the prices of the Xbox 360 in September.

The Xbox 360 will come in three flavors:

  • The Arcade: no hard drive, $199
  • The Pro: 60 GB hard drive, $299
  • The Elite: 160 GB hard drive, $399

The “mole” also whispered that hardware and game bundles will be available for the Arcade, Pro, and Elite models in the 4Q, just in time for the holidays.

The last time the “mole” met Ben in some parking garage he told him that Microsoft was going to release a 60 GB Xbox 360, “and he was right on the money with that one,” Kuchera said. “I’d be very surprised if this wasn’t accurate information.”

If the “mole” is correct, Microsoft will be the first company to release a major gaming console for less than $200, which may truly reach the mass market for gamers and home theater enthusiasts alike.

Nintendo’s Wii, the top-selling game console, retails for $249, when you can find one, and Sony’s PlayStation 3 costs $399 for the 40 GB model (an 80 GB model for the same price may be introduced this fall).

At $199, the Xbox 360 arcade would be a compelling purchase, especially if you can attach your own hard drive to it.

last100 is edited by Steve O'Hear. Aside from founding last100, Steve is co-founder and CEO of Beepl and a freelance journalist who has written for numerous publications, including TechCrunch, The Guardian, ZDNet, ReadWriteWeb and Macworld, and also wrote and directed the Silicon Valley documentary, In Search of the Valley. See his full profile and disclosure of his industry affiliations.

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