Squilliam on 05 August 2008
If assume the Xbox360 is price elastic and given that the numbers of Pro/Elite models sold would be expected to fall, and an average selling price of 340 before the cut and an average selling price (ASP) of $250 after the cut.
102,000 consoles per week at $340 ASP gives 34.68million in revenue.
34.68million in revenue divided by the $260 new ASP means we would expect the Xbox360 to sell on Average 140,000 consoles per week in the U.S.
The Wii sold an average of 170,000 consoles per week in the U.S
If my elasticicity is correct then based on the previous years data there actually may be some truth to that statement.
Tease.
