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No HDMI cable with Elite

by on18 August 2009

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More cost cutting to make the price point

In a surprise move by Microsoft, our sources tell us that they will be ditching the HDMI cable in the latest version of the Xbox 360 Elite console when they start to ship. As everyone knows by now, Microsoft will be discontinuing the Pro system in the lineup, leaving only the Arcade and Elite as the only two models from which to choose, but the Elite (as we now know) will carry the new price tag of $299 USD.

The move to not bundle the HDMI cable with the system will save Microsoft money; but also is likely to increase the sales of the add-on Microsoft Xbox 360-branded HDMI, which retails for $49.99 USD, but does include both optical and RCA stereo out audio options which users can’t get by just buying a regular HDMI cable.

Of course, most gamers know the HDMI connection yields the best picture quality with its digital connection. Microsoft will instead bundle the new Elite consoles with the standard Component HD AV cable that the company has been using for the Pro system previously and it costs much less to produce than the HDMI cable.

Some might remember when Sony pulled a similar move back in 2006 with the PlayStation 3, and discontinued bundling the HDMI cable with that console, as well. Some users might complain about this move by Microsoft, but the company likely sees little gain from continuing to include the HDMI cable with the Elite consoles, since Sony is not bundling it with the PlayStation 3, either. Of course, margins are tight and both companies are trying to maximize every dollar on console sales.

As we have reported previously, the Xbox 360 console lineup will remain unchanged this holiday season, with buyers having a choice between the Arcade and the Elite. Our sources tell us that you should not look for a change in the current Xbox 360 lineup till Natal is released; and at that time it is expected that Microsoft will launch a new console bundle that will include Natal as part of the new console bundle. We doubt if the new bundle will include an HDMI cable with it.

Speaking of the holiday console lineup, we are hearing whispers about potential titles that are likely to be added to the Arcade and Elite bundles this holiday season, but it seems that nothing has been confirmed yet.  It is likely that Microsoft will be making a move to announce their holiday titles to be bundled with the system in the next several weeks, if not sooner.

Last modified on 18 August 2009
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