Console Pricing Economics

Red Mercury writes "Red Mercury has just released a new installment of Monday Morning CEO. Today's topic: XBox Economics. The article explains some of the myths and realities about game console pricing, how the current price war is playing out, why Sony is winning, and why Microsoft is losing." Interesting piece about all the recent console price cuts.

Comments

The only way Microsoft

[Kaypro]

can even remotely have a chance at competeing with Sony and Nintendo is to drop the price of XBox, right now, to $99.99. I know this may seem desperate at first, but I think Microsoft should be desperate. Gamecube at $149.00 is already stepping up the price wars, and while in theory XBox may be superior in hardware, the PS2 will probably be chosen over Xbox if one were to choose between the two solely on the game choice. For 99.99, a console with built in NIC, hard drive, optional DVD playback kit, and in game 5.1 surround, many would choose to limit themselves to XBox's mediocre game offering.

No I don't have any three of the consoles yet, but the choice of which to purchase is getting harder and harder...