Speaking on the now-confirmed American price drop for Xbox 360, Toan Tran, analyst with Morningstar has pretty much summed up the move: it’s about selling boxes right now at the expense of profit.
“Microsoft wants to drum up demand for the holiday,” he said. “Microsoft’s long-term vision for the Xbox is not to turn a profit today.
“It’s a way to get a foothold into people’s living rooms.”
Microsoft confirmed overnight that all Xbox 360 SKUs are to be dropped in price in America tomorrow, with the Arcade cut to $199; the Premium pack moving to $299; and the Elite now costing $399.
The Arcade is now significantly cheaper than Wii in both the US and Japan.
Indications are now pointing to a European drop in a similar vein, although there’s been no official comment on the possibility of another drop on the Continent from Microsoft as yet.
Looks like they mean business at any price.
Will Sony be forced to respond?
http://www.videogaming247.com/2008/09/04/xbox-360-us-price-cut-is-not-about-turning-profit-today/
