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Xbox 360 Price Cut Dismissed

Posted by Zonk on from the no-rest-for-the-gamery dept.

Next Generation is reporting that, despite comments from director of Xbox product management David Hufford saying that a console's 'sweet spot' is $199, Microsoft has no plans to drop the price any time soon. His comments came from a Bloomberg article we discussed last week. "Some are getting really spun up about the Bloomberg story and inaccurately reading tea leaves that don't exist. I spoke to Bloomberg nearly two months ago and we were talking about NPD data that had just been released, and chatting generally about price points of consoles in the market. The comment, which is accurately reported, unfortunately has now been taken way out of context and being reported as if I am signaling a price drop ... With Xbox 360s selling well at their current price point, Elites selling out at $479, and an insanely great portfolio of games in the market, there's no reason to announce any kind of price drop anytime soon."

8 of 36 comments (clear)

  1. Also, ANY price cut will not be telegraphed... by nweaver · · Score: 5, Insightful

    Any price cut will not be telegraphed in advance, as as soon as a price cut is announced, sales will plumet until the cut takes effect.

    --
    Test your net with Netalyzr
    1. Re:Also, ANY price cut will not be telegraphed... by Turken · · Score: 4, Interesting

      And not just price cuts... News of newer, better models will also publicly be denied until the time that company XYZ wants the news to be released.

      Anyone remember Nintendo with the DS Lite announcement? Nintendo was vehemently denying all rumors (and a lot of rumors at that) right up to the day before they made their grand announcement of the newer model.

      This latest series of rumors and denials does tell us something though: The price drop is coming, and it is coming soon. Like the early contraction pangs of a woman in labor, there are simply too many rumors and too much corroborating evidence for it to be otherwise. However, by constantly denying the rumors in public, Microsoft is able to keep the rumors from being published in the mainstream media as news. That is where the real damage would come. Hardcore gamers and geeks who follow all the gaming blogs and news sites have either already bought a 360 or are resolved to hold out for the price drop. It doesn't really matter too much if they catch wind of the price drop early. But for the sake of investors and the more casual gamers sitting on the fence and considering investing their money in the 360, Microsoft has to keep the rumor rumbles as quiet as possible for as long as possible.

  2. I'm confundled by JamesRose · · Score: 5, Insightful

    How is NOT dropping the price of a product news. I mean, if it were, we're not doing it now we're doing it on this date instead then maybe, but honestly this is just another story adding to the FUD around xbox pricing.

  3. No shit... by WIAKywbfatw · · Score: 5, Informative

    No shit. There's even a historical IT precedence for this that's defines such a boneheaded move.

    Ladies and gentlemen, I give you the Osborne Effect.

    --

    "Accept that some days you are the pigeon, and some days you are the statue." - David Brent, Wernham Hogg
  4. We want casual gamers... by Dark+Paladin · · Score: 4, Funny

    So we're coming out with an Xbox 360 that costs $100 more! Take that, Nintendo!

    --
    52 Weeks, 52 Religions with John Hummel
  5. Not for another few months by Coopjust · · Score: 4, Insightful

    MS isn't going to cut the 360 price points at any time soon. They JUST made the elite $480, and they're not going to do anything which makes it seem like less of a value yet. As others have said, announcing a price cut would be boneheaded for MS, because it would give time for competitors to act appropriately and would decimate sales until the price cut came.

    Now, I wouldn't be surprised if in the few weeks/days before Halo 3, the often predicted price cut comes. It would push sales of Halo 3 for Bungie/MS/retailers, but more importantly the 360 itself. Not to mention all of the wireless controllers, memory cards, and other games. It would be a huge blow to the PS3 if the lower end 360 was availible for 1/3 of the price, and the top of the line for 1/2 the price.

    It's not really a question of "if", but "when" and "how much". If MS was to drop the high end 360 to $300, you could get the 360, 3 additional wireless controllers ($150), 4 rechargeable batteries ($80), and Halo 3 for $10 less than the PS3.

  6. Re:I Disagree...because of the Wii by Pojut · · Score: 3, Insightful

    If you think about it, there are MANY MANY more people in the Wii's target demographic than there are in the 360's target demographic...

    Example. My girlfriend's parents bought her sister a Wii for her birthday. Her sister has NEVER owned a gaming console and frankly doesn't even really like gaming. She messed around with a Wii at a friends house and instantly wanted one.

    I assure you she would not want a 360. Get my point?

    --
    Living With a Nerd
  7. Re:Want a price cut? by fimbulvetr · · Score: 4, Funny

    Want a price cut? Stop buying it.

    That doesn't seem to be working for the PS3...