Analyst: There was no Xbox360 Price Drop at E3 Because of RRoD Options

[Xbox-Scene]

Analyst: There was no Xbox360 Price Drop at E3 Because of RRoD Posted by XanTium | July 16 17:38 EST | News Category: Xbox360

From next-gen.biz: [QUOTE] Pachter also speculates that Microsoft opted not to choose E3 to announce an Xbox 360 price cut for fear of sending out the wrong message to consumers in light of recently acknowledged problems with the system. "The company did not cut the price of its Xbox 360 despite our speculation that Microsoft would feel compelled to do so after Sony's price cut. It appears to us that the company is trying to deal effectively with its warranty issues, and was concerned that a price cut so soon after the announcement might send an unintended signal that discounts were required to move hardware." However, Pachter goes on to state that an Xbox 360 price cut is still "appropriate" and that it should occur later this year. [/QUOTE] Full Story: next-gen.biz

[bucko]

But my bum needs a dump though,

seriously like i said in the ps3 section, shut up analyst's stop talking trash.

[mlapaglia]

indeed bucko.

[whitesquire02]

"The company did not cut the price of its Xbox 360 despite our speculation that Microsoft would feel compelled to do so after Sony's price cut. It appears to us that the company is trying to deal effectively with its warranty issues, and was concerned that a price cut so soon after the announcement might send an unintended signal that discounts were required to move hardware."

And yet this doesn't send an unintended signal.

[Replex]

Seriously, these 'Analyst' can sit around and make assumptions all day long, and for every one that says one thing, there is one that says the opposite. They aren't even news worthy.

[goboom225]

why would M$ cut the price of the xbox 360 with a ton of HUGE games coming out in the next couple of months (Bioshock, Halo 3, GTA 4, etc..)
when high profile titles like that come out, systems will sell no matter what the price is.

wouldn't it be funny if they raised the price. ha

[RuFf rYdA]

MS doesnt even need a price cut at the mo
Amazing games out and games coming out
3 years for rrod

[Enygma]

Another reason to not cut the price of the 360: They would sell more boxes that potentially could suffer the RRoD. They are not quite ready to go to the 65nm process that hopefully will fix the overheating issuses. Dropping the price would mean they would have to manufacture more boxes with the 90nm process that they seem to be having issues with.

Once they go 65nm there will be more savings, therefore they can then drop the price of the 360 and maintain their profit margin. (Or maybe increase it, depending on how well the system is selling at that time)

[ShadowElitePro]

My friend keeps asking me when its going to drop and I say I dont know. Microsoft will drop it when its the right time. My guess it will be droped before Halo 3 is released.

[0794]

regardless of when they make the price cut, the release of H3 will push extremely large numbers of 360s out the door, thus the sweet spot would be November or early December - it's kind of nice that MS doesn't even have to flinch that Sony dropped the price of the PS3 since its sales aren't so hot anyways...

[sabbath_dude]

^^^What Bucko and goboom said

[BoNg420]

before the holiday season would be their best move. Then they could compete with the Wiis price and be under the PS3 price.

[Jnadke]

They won't announce price cuts for the following reasons:

1. They just spent $1 billion extending the XBOX360 warranty to 3 years. Stockholders don't like them right now (although it's better than the ensuing class action lawsuit).

2. They're still riding the afformentioned "good news". A whole ton of gamers that were 'on the edge' and getting ready for college will buy an XBOX360 for Halo 3 and because of the extended 3 year warranty. It puts their worries at ease. Now they can buy systems knowing Microsoft has got their back for 3 years.

3. The mainstream buying season hasn't happened yet. They'll wait until early October to announce price cuts. I guarantee it.

This post has been edited by Jnadke: Jul 17 2007, 01:36 AM

[Oxideous]

The average consumer is not thinking about what moves the company has to make to move hardware, just the features of the console versus cost. Lowering the price would defiantly move more hardware regardless of the RROD issue, as I'm sure most aren't even aware of it, just those whom follow closely. I think it's more logical that they are trying to squeeze as much money as possible before sales begin to fall, too recoup what they will loose with the extended warrenty.

[xzenor]

Dont these analyst's have anything else better to predict? Like say when the troops will be pulled out of Iraq??

XzeneR