Analyst: Q1 Xbox 360 Price Cut 'Unlikely' Options

[Xbox-Scene]

Analyst: Q1 Xbox 360 Price Cut 'Unlikely' Posted by XanTium | January 26 12:00 EST

From next-gen.biz: [QUOTE] Microsoft announced last night that it would be decreasing its worldwide hardware targets to 12 million units from 13-15 million by the end of the fiscal year on June 30, 2007. Lazard analyst Colin Sebastian wrote in an investors' note that Microsoft made the target reduction to help the Xbox business' Entertainment and Devices Division edge towards profitability. Division head Robbie Bach has said he wants the division profitable by fiscal 2008. Sebastian adds that Microsoft would have had to make a price cut relatively soon in order for the company to meet its former hardware targets, which would hurt profits. [/QUOTE] Full Story: next-gen.biz

[bucko]

Dam < really need a part time job if I'm ever to get a 360

[kics]

thats cool cuz i just bought mine

[sabbath_dude]

I think its due a price drop!. I think it would be better for M$ to take a little loss in profits to make sure as many people as possible have a 360. I'd drop the price and go for the 15 million units sold mark, but then again what do I know .

[mlmadmax]

They already do take a loss on each system and with the PS3 being so expensive they won't have to drop there price to be competitive for a long time.

[sabbath_dude]

They already do take a loss on each system

Last I heard was that manufacturing costs have gone down and M$ are now making a profit on each unit sold.

The premium unit anyway CLICKY.

This post has been edited by sabbath_dude: Jan 26 2007, 07:47 PM

[peachy997]

i agree can believe how sony have been so arrogant with respect to the ps3. They think they own the market on next gen consoles and can impose their own standards i.e. blueray and charge such a large amount for a console that albeit an improvement on the current consoles does not justify such a large price.

I know that every console is expensive when they first come out but being the last out they should have taken into account that their console is going to cost 30% more than the nearest competition which is more established and with a wider base of games availible.

They also have their blueray discs to push and should that fail (like the umd for the psp) it takes away one of the major features of the console.

Soif i was a m$ director id be less than worried bout the ps3 and leave the 360 priced as is, and concentrate on pushng my hd-dvd media to totally corner the market

Sorry to rant bout $ony but they have really annoyed me with their whole approach recently, it was what eventually made me get my 360, and im so glad i did its a great console.

ps on a side note has ne one seen a film on either hd-dvd or blueray as am interested as to the differences and if its worth getting the hd player for my 360 ?

[mike96sc2]

A price cut isn't necessary per se, what would do more good would be the increase in Platinum Hits games and a cut in the prices of those games. You'd be able to pull in the price conscious if you could bundle a game or two in the box (especially older games that don't sell) or have older games selling for less making their dollar go further.

I mean if I could purchase 2 Platinum hits games vs. 1 Gears of War, as good as GoW might be still it's hard to argue to say I could purchase 2 games instead.

[BrooksyX]

They already do take a loss on each system and with the PS3 being so expensive they won't have to drop there price to be competitive for a long time.

Actually M$ stated a while back that they now break even on every xbox 360 sold.

[dmitri]

Soif i was a m$ director id be less than worried bout the ps3 and leave the 360 priced as is, and concentrate on pushng my hd-dvd media to totally corner the market

..and you'd probably be fired for it. Microsoft had no real investment in the HD-DVD market.. They took a Toshiba drive and wrote some code. The accessory is there to compete with Blueray, if their customer is on the fence.

Don't think for a moment Microsoft wants to keep selling HD-DVD drives.. They allow you to delete & re-download content to keep space on your HDD.. meaning bandwidth for them is plentiful and cheap. If they weren't stuck with the 20GB harddrive in so many million Xboxes, they'd probably be selling full games over marketplace by now.

-dp

[peteo]

I think is a bad move. I don't understand why they wouldn't want to cut the price to move more units. This is a long hall game. Plus every xbox sold is a chance to make more money from not only games (like the old console model) but also xbox-live subscriptions, live arcade, down-loadable game add-ons, Movies, TV shows. There are way more ways now to make a profit in the industry and they really need to get more units out there to compete with not only the ps3 but also the wii.

[Arvarden]

It’s not in MS interest to drop the price on the 360 atm while the PS3 and Wii are playing catch up. When MS rolls out its online media services worldwide and produces more of its home grown killer apps, maybe we will see a price drop at some point in the future.

[jabroniekilla]

no price cut is fine as long as new options/features are implemented. HDMI, larger HDD, etc.

[Ichijoe]

A price cut isn't necessary per se, what would do more good would be the increase in Platinum Hits games and a cut in the prices of those games. You'd be able to pull in the price conscious if you could bundle a game or two in the box (especially older games that don't sell) or have older games selling for less making their dollar go further.

I mean if I could purchase 2 Platinum hits games vs. 1 Gears of War, as good as GoW might be still it's hard to argue to say I could purchase 2 games instead.

Funny you'd should mention that.
I just picked up an Advanced XBOX 360™ a few Day's ago for €449.99(EUR),.
It came with Three Games: Kameo: Elements of Power ~Older Game that presumably didn't sell well~ Project Gotham Racing 3 and a 3-Month Live! Card came in a Bog-Standard Black DVD Case.
Sadly it came w/o the Manuals though.

The Third Game was Need For Speed Carbon...

So I've just screwed 'round with Kameo (yep it's bad!), and I haven't gotten 'round to Carbon yet either.
But by do I love PGR3s' Graphics!!!

[mlmadmax]

Actually M$ stated a while back that they now break even on every xbox 360 sold.

I would like a link for that, these price reductions were going to happen when the new production process went into process (65nm?) according to what I last read from microsoft.

Microsoft i think has yet to confirm breaking even or making a profit on the 360 but i could be wrong.