Greenwald “very sceptical” of 360 E3 price adjustment

[Just_Ben]

rocketpig said:

reask said:

Signal Hill’s Todd Greenwald has issued a damning statement on Microsoft’s E3 360 price adjustment today, saying that it’s not enough to differentiate the machine from PlayStation 3 in the US.

“We remain very sceptical of Microsoft’s pricing strategy and competitive positioning versus the PlayStation 3,” said the analyst in a research note.

“At $349, with a 60Gb hard drive, we just don’t think it is a compelling product compared with the PS3 at $399 with an 80Gb hard drive (along with more processing horsepower, Blu-ray, Wifi, HDMI, and going forward, more exclusive content),” he offered.

“We’d also note that the Xbox 360 has just been surpassed by the Wii in the US, despite Microsoft’s one year head start over Nintendo.

“We do think that the Netflix announcement is a significant addition for Xbox users, though its far more of a positive for Netflix than it is for Microsoft in our opinion.”

Microsoft dropped the price of the 20Gb US 360 SKU and announced a new, 60Gb machine just before E3 last week.

 

 

It,s A fair point when you look at both products.

Are ms taking the american market for granted?

http://www.videogaming247.com/2008/07/21/greenwald-very-sceptical-of-360-e3-price-adjustment/

More processing power is debatable, both have HDMI, and more exclusive content for the PS3 is highly debatable.

With that said, I'm skeptical of the price adjustment also. MS needs to get the price of the 360 down RIGHT NOW. It's coming close to 3 years with one $50 price cut... Ridiculous. It really shows how new to the manufacturing game Microsoft really is.

 

No they don't. They know Nintendo is out of their league, and a price cut RIGHT NOW would only mean less profit, and a price cut from Sony, most likely. They will look closely at their sales, and if they are going down further (what is to be expected at least by me) they cut price, in Oktober/November, if they are not going down to low, they make it next year. That time makes way, way, way more sense. By that time, a price cut can be done, without hurting profitability too much (2 new chips are on the way!) And Sony can not respond in the middle of the Christmas sales. And we both know, Christmas is the time this business gets serious. Getting there a boost and mass attention is way more worth than right now.