Are Microsoft ready to cut the price of the Xbox 360?

There have been various rumours surfacing around, that Microsoft are considering cutting the price of the Xbox 360 leading up to E3. Sony’s Playstation 3 console has begun to outsell the Xbox 360 considerably in Europe and is also outselling it slightly in the US. It will be interesting to find out if Microsoft cut their console, if it will boost sales, and how Sony would react to this.

Wedbush Morgan Securities analyst Michael Pachter believes that this new Revelation would make a lot of sense for Microsoft. In an interview over at gamesindustry.biz, he states, “Microsoft has historically been a price taker - meaning that they typically wait for Sony to cut first,”
“However, they haven’t been in the position of having a cost advantage before, as they do now. Putting Microsoft’s cost advantage together with Sony’s reticence to lose more money, it’s easy to conclude that you will see Microsoft reverse course and be a price leader.”

It may be time for Microsoft to re-think their strategy, as the recent release of Metal Gear Solid 4 has helped boost PS3 sales further. While Blu-Rays victory over HD has also done no favours to Microsoft, it may lead to them producing a Blu-ray add on to their 360 in the future.

If Microsoft does decide to cut the price of their console, Pachter believes the ball will then switch over to Sony’s court and it will be them to may need to respond. “Sony will have to respond if they see 360 sales increase significantly - say to over 300,000 a month in the US, I believe that every 360 sold is one less potential PS3 sold - and vice versa - and expect Sony to behave rationally.”

What do you think of this latest info; it would do no harm at all, if the console did receive a price cut. To read the full article, follow the link below.

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