SUMMARY:
Based on this analysis, MSFT’s price cuts on their console will not necessarily lead to more losses in their EDD division.
If they can relegate Sony to a distant 3rd place, this price cut may be very effective in terms of their short to mid term strategy.
Though it still remains to be seen if Xbox can achieve significant sales growth that would rival the Wii or even the PS2.
IMPORTANT NOTE:
I have a template of the numbers you can use for your own assumptions. Do note that if you make a suggestion, you can try to make suggestions for the other set of figures and follow the template. This way, you can numerically back up any point or opinion that you may have.
Discuss.
If you have any questions, please let me know.
I have done this analysis in a rushed manner, so feel free to comment on any mistakes or inconsistencies. Thanks.
