Xbox 360 price cut this Holiday season?

This has been a recently debated issue and I must say no. The price will not be lowered until at least mid-2007. The 360 is in no threat of the PS3, I say PS3 and not Wii because Microsoft is more so competing against Sony and not Nintendo.

The PS3 will only have a couple million units to the market this Holiday. When the stores are out of them the consumers will buy the 360. The PS3 will be out of stock at least until February, just like Microsoft was with the 360. The PS3 may even have a longer drought than the 360 because it’s a more complex machine.

The next reason is that Microsoft needs the Games Division to turn a profit. Now that the production costs of the 360 are decreasing, as more units come into supply, Microsoft may just be able to sell enough software to out-weigh the hardware cost.

Another reason is price value. You look at the 360 and see $399 for the high-end while the PS3 is $499 for the high-end, the consumer will question why when the games look exactly the same! The first wave of PS3 games will look very similar to the graphic quality of the 360 games. It won’t be years until there’s an actual difference here. The consumer will think that they get more bang for their buck.

With their saved $100 they’ll be able to spend it on a much larger library with more variety than the few PS3 launch titles.

It’s next holiday that Microsoft needs to “worry” about the 360’s price. Microsoft will most likely act in response to any price cut that Sony makes. Microsoft has the advantage and it’s unlikely to change anytime soon.

Of course we don’t have to even get into why Nintendo’s Wii will outsell the 360 and the PS3 over the long haul.

Author: DaveWeLike

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