According to a report in The Hollywood Reporter, Microsoft is preparing to slash the price of its Xbox 360 next month in an effort to spur sales during the typically slow summer period. The report cites "one source in the retail world" who claims that a $50 reduction will take place on August 8.Why August 8? Well, EA Sports' Madden juggernaut is set to release only a few days later, and highly anticipated games such as BioShock and Stranglehold are slated for release in August as well. Combining these games with a price cut could give Microsoft the boost it needs. The 360 has a one-year head start on Nintendo's Wii, and yet the Wii has now sold over 9 million units worldwide compared to 11.6 million 360s. At this rate, the Wii will overtake the 360 later this year.
As for the price cut, nothing is confirmed by Microsoft just yet, but industry sources have strongly suggested to GameDaily BIZ that it is indeed true. What's not clear, however, is if the price cut would be for all three SKUs (core, pro and elite) or just a particular SKU. One source told us that the plan is simply to cut the core SKU from $299 to $249, thereby putting it on the same level with the Wii. It makes sense, too, since Microsoft would like to broaden its audience, and a cheaper console could go a ways towards that goal.
What's interesting is that Microsoft did not make a flat-out denial, instead stating, "We have no announcements to make on pricing at this time. While price matters, content is king. And no other system is offering all the games people want to play this holiday at a better price than Xbox 360."
A 360 price cut has been rumored practically all year. The rumor really heated up prior to E3 when Wedbush Morgan Securities analyst Michael Pachter predicted that Microsoft would announce a price drop at E3. It didn't happen.
Nevertheless, a price cut is inevitable at some point. As Peter Moore recently told us, "Our plans for price cuts have been laid out for years. We know exactly when they're going to happen."
by James Brightman
source:gamedaily.com
