Quote:
Wedbush Morgan Securities analyst Michael Pachter stated in a note to investors today that Microsoft will announce an Xbox 360 price cut tomorrow at the start of the revamped E3 Media & Business Summit, which takes place all week.
Microsoft is holding its E3 press conference Tuesday evening.
He said that the price cut will affect all three Xbox 360 models. The $299 Core pack will drop to $249; the $399 Premium pack will drop to $349; and the recently released $479 Elite model will drop to $399.
Such a price cut would be a likely move for Microsoft following the PS3 pricing announcement today. Sony dropped the price of the 60GB PS3 from $599 to $499 and announced an 80GB PS3 with MotorStorm bundled for $599. The price drop appears to be in response to lower-than-expected sales of the console.
The drop in PS3 price puts the standard 60-gigger precariously close in price to the top-end Xbox 360 Elite, which is currently priced at $479.
Pachter stated, “…The value proposition for the PS3 is increased at the new lower price point, putting increased pressure on Microsoft to cut the price of its Xbox 360. The 80GB and 60GB PS3 models compare favorably to the 120GB and 20GB Xbox 360 models.”
He added, “Last week, Microsoft announced a slight Xbox 360 shipment shortfall (11.6 million units versus prior guidance of 12 million units through June 30), and we do not believe that the company is prepared to allow Sony to erode its pricing advantage.”
Pachter said that he expects the Xbox 360 to lose some share to the PS3 next year, mainly due to the PS3’s secondary ability to act as a high-def movie player. He expects $250 Nintendo Wii to outpace sales of Xbox 360 and PS3 until the latter consoles come down further in price.
Lazard Capital Markets’ Colin Sebastian said in his own investor note today that such a price cut for the PS3 is likely to generate more consumer interest, but the new $499 price point “still firmly occupies the high end of the current lineup of next-generation video game consoles.”
He added, “…We are encouraged by Sony’s willingness to cut the PS3 retail price less than a year following launch as component and production costs have decreased somewhat.”
Microsoft is still keeping its plans under wraps. "Microsoft has not made any announcements regarding a price cut on Xbox 360," a rep told Next-Gen in an e-mail today.
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Well i am shocked! i just didnt see this coming
Not confirmed yet but i think the easy money is on this being true.
If i were to guess i would say if the uk get a drop, we will see the premium at £249.99
Do we even have the core in Europe anymore?
360 Getting A Price Drop
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