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Microsoft Corp. will offer limited-time mail-in rebate on its Xbox 360 Elite version of the console, the company said on Tuesday. Potentially, mail-in rebates may indicate readiness of Microsoft to drop the cost of its premium Xbox 360 in order to be more competitive with Sony PlayStation 3.

“Beginning today through October 5, when you purchase an Xbox 360 Elite for $299, Xbox 360 will put $50 back into your pocket with a limited-time rebate,” a statement by Microsoft reads. Additional details are available here.

While the move will help Microsoft to boost sales of existing Elite flavours in the short term, mail-in rebates will not affect supplies of the console in the longer term. On the other hands, mail-in rebates will allow Microsoft to test the demand towards Xbox 360 Elite at $249 price-point.

Microsoft Xbox 360 Elite features 120GB hard disk drive, one Xbox 360 wireless controller, an Xbox 360 headset, Ethernet cable, composite video cable and so on. Later this year Microsoft plans to release two special editions Xbox 360 Elite with 250GB hard drives, additional wireless controller, a copy of a new video game and other advantages at $399 price-point. Availability of improved “special” version of premium console may point to intention to upgrade the existing Elite and/or drop its price to address new customers.

At present Microsoft Xbox 360 Elite competes against Sony PlayStation 3 Slim 120GB. However, the device from Microsoft lacks Blu-ray, Bluetooth and Wi-Fi support. On the other hand, it features Xbox Live and other advantages.

Tags: Microsoft, Xbox

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