While the Arcade version of Microsoft’s Xbox 360 is already the cheapest console available, Microsoft plans to sweeten the deal.
The $200 Arcade version does not come with a hard drive, but the company announced on Tuesday that it will offer Arcade owners either a free 512MB memory card or a $20 refurbished 20GB hard drive.
Users need to enter their serial number and console ID via the Xbox web site to see if they are eligible for the offer.
The promotion comes as Microsoft prepares to launch its “New Xbox Experience” (wherein the upgrade will eat up 128MB of free space – a problem for some Arcade owners), which includes a movie streaming deal with Netflix, a new dashboard with avatars, and several new bundles. The casual gaming move, coupled with the low prices, could give Microsoft a leg up on rivals.
“The [Arcade version] plus the hard drive is still less expensive than the Wii. I think this could help Microsoft stop or at least counter some of Nintendo’s growth,” said Matt Rosoff, an analyst for Directions on Microsoft.
Regarding Sony, he said, “The lead against Sony is likely to increase given that Sony has no plans to cut its prices this holiday season.”
Microsoft was down $1.42 from its previous closing price of $25.50.