Microsoft Discontinuing Xbox 360 Pro

The Xbox 360 Pro (also known as Xbox 360 Premium) will no longer be on store shelves in the near future. Microsoft is apparently discontinuing the SKU is favor of replacing it by dropping the price of the Xbox 360 Elite to $299.99.

Microsoft launched the Xbox 360 on November 22, 2005. It was the first high-definition video game system on the market. Because of that, it was pretty expensive for Microsoft to produce. At the same time, they have to keep the price low in order to attract demand, especially considering that the original Xbox did not do well on the market.

As a result, they came up with an unprecedented plan: sell two SKUs on the market. The Xbox 360 initially came in two varieties: the Xbox 360 Core and Xbox 360 Pro. While the Xbox 360 Core was priced at $299.99, it was missing some essential features like a hard drive and head set. Consumers had to purchase the Xbox 360 Pro in order to get the full experience out of the box.

Microsoft would introduce a third SKU, the Xbox 360 Elite, in 2007. This luxurious bundle is built specifically for the hardcore gamers with a new color in addition to a bigger hard drive. Later in the same year, they would discontinue the Xbox 360 Core in favor of the Xbox 360 Arcade. Furthermore, the Xbox 360 Pro got upgraded from 20 GB to 60 GB on August 1, 2008.

Throughout the years, many were critical with the multiple SKU methods of Microsoft. Yet, they were able to keep the price of the system low and sold a healthy amount of hardware with this strategy. However, it looks like Microsoft may be done with the current three SKUs setup.

The Xbox 360 Pro is quietly being discontinued, which leaves only two SKU remaining: the Xbox 360 Arcade and Xbox 360 Elite. Of course, it wouldn't be a wise business decision for Microsoft to raise the price of their system. Thus, Microsoft will be lowering the price of the Xbox 360 Elite to $299.99, which will be the same price currently as the Xbox 360 Pro.

It is unknown when the current crop of Xbox 360 Pro units in transit will disappear for good. However, you can expect Microsoft to make the official move before the busy holiday season.

Although there are rumors of the Playstation 3 and Nintendo Wii dropping the price at the same time, the Xbox 360 is still selling briskly at the starting price tag of $199.99. Instead, Microsoft decided to add value at the $299.99 price point.