Leading analysts say that North American price cuts are likely to follow similar move in Japan
After Microsoft’s aggressive price cuts in Japan that saw its entry level Arcade machine drop below the price of Nintendo’s rival Wii console, leading games industry analysts are predicting that price cuts are now sure to come in North America.
Edge Online reports that both Lazard Capital’s Colin Sebastian and Wedbush Morgan’s Michael Pachter agree that this strategy is probable.
“We believe the Japan announcement is a likely precursor to more aggressive pricing of the Xbox 360 in the US,” Sebastian stated. “We continue to expect a lower $199 price point on the base Arcade SKU (below the $249 Wii price point), as well as lower $299 and $399 prices for the 60GB and 120GB versions, respectively.”
Pachter has also echoed these sentiments: “Due to the relatively stagnant demand for Xbox 360, we may see additional price cuts for this system before the holidays. We note recent speculation of Xbox 360 price cuts on September 7, with the Arcade going to $199 from $279, the Pro going to $299 from $349, and the Elite going to $399 from $449.”
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Comments
Are these analysts shut-ins?
Seriously, MS announced a september price cut for the 360 about 3-4 weeks ago.
Either they dont do their research or like to predict things that have already been announced.
Re: Are these analysts shut-ins?
Yeah, 'predicted' here seems to mean 'repeated'
Re: Re: Are these analysts shut-ins?
I'm amazed that Microsoft aren't considering a major price reduction of the Premium for Europe.
With their competitor seemingly hog tied to their current price point and in light of the current economic climate, if either of the 'enthusiasts' machines dropped significantly they'd almost certainly enjoy a huge upsurge in Q3 sales and any lost revenue would be negated by an upturn in software sales.
In my opinion if Microsoft don't aggressively attack SONY with a full on price point battle this christmas then they've given up already of winning all important market share.
Just my two penneth.
Re: Re: Re: Are these analysts shut-ins?
I would think so too koti.
I do hope the earlier euro price drop was to bring it inline with US prices and do think an extra little price drop would be suited to the time especially as the jasper versions out in september supposedly with smaller chipsets will allow costs to be cut.
Though with the relatively cheap price of the arcade I dont know what they would do.
Possibly make the arcade 150 and like play are doing now make the pro/premium 180 with the elite around 220-230.
We'll have to see.
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