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Xbox 360 Price Cut a Bad Idea? - console|
| (hx) 12:28 AM CEST - May,22 2008 | EEDAR Director of Analytical Services
Jesse Divnich serves up the novel idea that Xbox 360 price cut is a bad
idea:
I always encourage comments on my articles, and for this particular one, I would love to hear the different opinions on whether or not the PS3 or the Xbox 360 should drop its price. Keep in mind this one aspect -- if the PS3 or the Xbox 360 drop in price, they would no longer make a profit on each system sold and would solely rest on the increase in royalty revenue from extra software sold
Oh well. I think, since the departure of Bill Gates, Microsoft has been much
more interested in profitability than marketshare. Sony said something similar
recently about the PS3 -- that people should not expect a price cut soon.
Michael Pachter
touched on this subject with the OXM guys last month, basically saying that
it would be foolish to do a pricecut soon and put the Xbox 360 back in the red.
If I remember correctly, he said that a $50 price cut would cost Microsoft all
of the profit it made from Halo 3 last fall.
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