Xbox 360 Price Cut Coming

azsouthendzone

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Xbox 360 sweet spot is $199
Lower price and targeting the console at the family group is key to lifting Xbox 360 success above that of Xbox.

Speaking to Bloomberg, group product manger David Hufford has revealed that Microsoft is well aware of the price at which the Xbox 360 will begin to be an attractive proposition for the family audience.

"We are well aware that the sweet spot of the market is really 199 bucks," said Hufford. "When Mom walks into the store and sees she can get a console with a game for USD 250, she sees it as a USD 300 value. They've done a good job."

However, if the Xbox 360 is to compete in the same segment as the Wii, a price cut is only half of the puzzle. New family orientated titles and a strong marketing push will be just as important.

"If we don't make that move, make it early and expand our demographic, we will wind up in the same place as with Xbox 1, a solid business with 25 million people," said Xbox boss Peter Moore. "What I need is a solid business with 90 million people."

Institutional Investor's analyst Heather Bellini estimates that Microsoft could make a price cut to the console as early as September, ensuring they have enough consoles in the market to drive huge sales of the biggest titles.

"If they really are going to have a good Christmas games line-up, then they just have to have the largest number of boxes out there so that they sell the largest number of games," said Bellini.

The latter half of 2007 will see the release of numerous blockbuster Xbox 360 titles from Microsoft, including Halo 3, Project Gotham Racing 4 and Mass Effect.

http://www.virginmedia.com/games/gamingnews/news-story.php?storyid=9059176
 

MigratingOsprey

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I have a Wii right now - but am still looking to go either 360 or ps3 - i'm just waiting for the dust to settle a bit, some early bugs to get worked out and prices to level out

i think this would be a good move for microsoft - ps3 has some bad momentum right now and microsoft could be a bit of a loss leader for a year to wipe that one off the market and then dominate next gen gaming
 

Gaddabout

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I was really hoping sales would flag on xbox 360 so I could buy a used one or overstocked one at a greatly discounted price, but it seems they're holding their value on the secondary market. I would buy one for $199 though.
 

JS22

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Not so sure about a price drop. MS is actually making a profit on each system. (which is unheard of in the gaming industry) They're still blowing away the PS3 in sales, so there's no real need to lower the price yet.

Plus Halo 3 is going to move a ton of systems. Is it really wise for MS to cut the 360 price when they know it's going to sell a few million because of halo alone?
 

Gaddabout

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Plus Halo 3 is going to move a ton of systems. Is it really wise for MS to cut the 360 price when they know it's going to sell a few million because of halo alone?

Publicly traded companies don't operate in a vacuum like that. You have to consider future earnings and human behavior (investing) as well. The bottom line isn't always the bottom line. Sometimes the bottom line is the stock price.

Christmas sales of games is an important ingredient to stock price, especially because there's usually a stock buying frenzy leading up to Christmas. If Microsoft is making a few bucks on every console, but actual number of consoles sold flag by September, MS could be set up for a stock price dip. Common theory is they'll want to visibly position themselves to sell more games to remain enticing for the fall rush. If they can project an increase of console sales at a lesser price to sell exponentially more games, that is probably an easier sell to the stock market than a fixed profit on consoles.

Probably better said, you never really want the market to put a real number cap on your future earnings. You want at least some speculative mystery to it.
 

dreamcastrocks

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It would be nice, but I doubt that we see one.
 

SuperSpck

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Right now at the place I work, Xbox 360 seems to have a 3:1 sales advantage over PS3. The average consumer simply looks at the price.

Most of the folks who purchase the PS3 say they do so because it's the cheapest way to get a blu-ray player. It's lack of flagship titles have really hurt it so far.

It's funny, I remember when Microsoft threw their hat into console gaming and people were skeptical. Same story with Sony's original playstation trying to compete with the then industry giants' Sega and Nintendo.

It's funny how time changes all things.

I wonder if I'll have to explain to my kids who Sega was. I wonder if they'll even know to ask?
 

D-Dogg

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I'll buy a Wii for $179. Anyone want to sell it to me for that?

DCR. Anyone. DCR....?
 
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azsouthendzone

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He had to say that otherwise consoles would stop selling. It will happen. Its just a matter of when. When the PS3 drops the 360 will too.
 

dreamcastrocks

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I'll buy a Wii for $179. Anyone want to sell it to me for that?

DCR. Anyone. DCR....?

:biglaugh:

I may trade a Wii package for a PS3 on craigslist. I know someone who wants to sell their Wii for $150.
 

Covert Rain

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I don't think that means much. MS couldn't confirm a price cut or would even want to hint to one. It would KILL all their sales until that happens. This was actually a smart move on MS part.

I think a price cut is coming but not until the next revision of the MOBO with the cooler CPU comes out. The MOBO and other parts should be cheap enough to produce to allow them to lower the price.

They need to lower the price point to keep momentum going. However, MS will deny the heck out of it until it happens. They won't jeopardize current sales.
 

Linderbee

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I don't think that means much. MS couldn't confirm a price cut or would even want to hint to one. It would KILL all their sales until that happens. This was actually a smart move on MS part.

They need to lower the price point to keep momentum going. However, MS will deny the heck out of it until it happens. They won't jeopardize current sales.
Exactly what I thought.
 
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