Thu, Sep 04, 2008 | 07:53 BST
Xbox 360 US price cut is not about turning “profit today”
Speaking on the now-confirmed American price drop for Xbox 360, Toan Tran, analyst with Morningstar has pretty much summed up the move: it’s about selling boxes right now at the expense of profit.
“Microsoft wants to drum up demand for the holiday,” he said. “Microsoft’s long-term vision for the Xbox is not to turn a profit today.
“It’s a way to get a foothold into people’s living rooms.”
Microsoft confirmed overnight that all Xbox 360 SKUs are to be dropped in price in America tomorrow, with the Arcade cut to $199; the Premium pack moving to $299; and the Elite now costing $399.
The Arcade is now significantly cheaper than Wii in both the US and Japan.
Indications are now pointing to a European drop in a similar vein, although there’s been no official comment on the possibility of another drop on the Continent from Microsoft as yet.
8 comments
#1
bxsentinel
04/09/08, 12:07 pm
i think one reason xbox sales have slowed down is because the market is saturated with them. since it had a year head start alot of people who wanted one already own it, thus there is less demand for one.
#2
Psychotext
04/09/08, 12:44 pm
bx: Actually, 360 sales are up year on year. So if they’re saturated, they were saturated day one.
#3
wickedman
04/09/08, 3:47 pm
SONY IS SO FUCK!!!!
#4
patlike
04/09/08, 4:03 pm
Incoming!
#5
morriss
04/09/08, 4:24 pm
360 IS BEST!!
#6
RevolutionBlues
04/09/08, 6:30 pm
@bxsentinel,
Yes, that’s why Nintendo dropped the price of the Wii in order to get sales moving again.
Oh no, wait a minu
#7
bxsentinel
04/09/08, 8:47 pm
@ Revolution
no no no! nintendo is not the best system for the hard core gamer now is it?
Oh no wait i was wrong after all they have games like Cooking Mama; now that has to be hardcore?
#8
DrDamn
04/09/08, 8:54 pm
Would be impressed if there was a further drop for the premium and arcade in the UK. That would actually make them cheaper here than in the US for once as these two SKU’s are near identically priced currently.