Xbox 360 Arcade selling for £130!

[Million]

mrstickball said:

Phrancheyez said:

Why do they feel they need to do this? Are they getting scared of the PS3 for beating them week-over-week so much this year or something? I don't know..130 is low, are they targeting the Wii now? I think this will come back to haunt them honestly.

It'll help them for now, but think about it..if they do that, they're almost as low as they can possibly go. They'll outsell the PS3 by a little bit, but the Wii will still outsell the 360, and probably still by a lot. When the Wii lowers it's price, for the first time none-the-less, it's going to be beating the 360 by even more. And then when the PS3 sees it's first price reduction, it'll break ahead of the 360 again. This being said, both the Wii and the PS3 will still be able to reduce prices..I honestly can't see the 360 being lower than 130..

I think this price will help short term, but severely cripple them long term. Unless they rake in some huge console sales in the short term, I really see this hurting them big in the long run, by the middle-end of next year..anyone else agree with me on this?

Not really. The X360 can go lower if it wants.

Playstation fans can't decry the Xbox 360 as technically inferior due to the lack of built-in HDD, wifi, Blu-Ray, and other amenities, then start to argue that the Xbox 360's price changes are desperation. Microsoft took the cheapest route for building a system: It first showed with the slapdash unreliable X360 that came on the market first, and also the fact that the technical aspects lacked a lot of expensive components.

The X360 is as low as it *can* get now, but in a year, more revisions will take place, and they can drop the Arcade to $169 or even $149.

You see, part of Microsoft's strategy is to maintain a price advantage against it's rivals - Not only was it the first console on the market, but it's also had a years' start with model revisions that can drive costs down. This will help Microsoft to maintain flexibility to re-do prices when they are required.

It's not desperation, it's not stupidity. It's a cold, calculated move by MS to get as much marketshare in underpreforming markets as possible. The MS machine has the ability to re-price the machine due to the deep cost cutting strategies they've employed on the X360 that just weren't there on the Xbox.

 

WOW that was alot of garbage , Microsoft strategy is marketshare as opposed to profitability ? what exactly do Microsoft gain from aggresive price cutting if it's not profits ?

 

How do you know that Microsoft are even making a profit of the Arcade ?