| Whoa! Don't buy a console yet, Xbox 360 price to be cut |
|
| by Mike Bantick | |
| Tuesday, 10 July 2007 | |
  
Featured Whitepaper
5 Best Practices for Smartphone Support
Now analysts are coming out of the wood-work to predict a similar cut in Microsoft's Xbox 360 game console, which has not altered for over a year now. The Microsoft Press Conference due this Tuesday at E3 Media & Business Summit will be the platform for a price cut announcement according to Wedbush Morgan Securities analyst Michael Pachter. In a note to investors today he stated that the Xbox 360 price cut will be across the entire range of consoles. In US dollars, the $299 Core pack will drop to $249; the $399 Premium pack will drop to $349; and the recently released $479 Elite model will drop to $399. In a statement reported over on next-gen.biz Pachter said, "...The value proposition for the PS3 is increased at the new lower price point, putting increased pressure on Microsoft to cut the price of its Xbox 360. The 80GB and 60GB PS3 models compare favourably to the 120GB and 20GB Xbox 360 models." He added, "Last week, Microsoft announced a slight Xbox 360 shipment shortfall (11.6 million units versus prior guidance of 12 million units through June 30), and we do not believe that the company is prepared to allow Sony to erode its pricing advantage." This comes in the wake of a Microsoft responding to the Sony news with a 'we will see what happens' comment. Microsoft also added that it had no plans to drop the Xbox 360 price in the major market where it struggles, Japan. "Xbox prices in Japan are very competitive," Darren Huston, president of Microsoft's Japan unit, told Reuters on Monday. Asked if Microsoft plans to cut prices in Japan after Sony's $100 price cut for the PlayStation3 in the U.S., Huston said, "Not at this time." But he later added, "We will be watching market conditions. Price cuts are one option." |
Tags
| < Next story in category | Previous story in the category > |
|---|
