Microsoft 9/19 Euro Price Drop: Desperation or Confidence? Also, effects?

[Bitmap Frogs]

drkohler said:

DirtyP2002 said:

I guess MS sells the 360 at a pricepoint where they just break even

Yea sure.... a HD-less XBox360 costs $250 to manufacture. Factor in the much higher taxes in Europe than in the states and you can probably figure out yourself if MS makes a profit in Europe when all shops start selling the Arcade at $199 (and all shops want to make a small profit on that $199 final price). My best guess is MS hopes that Arcade buyers will see the need to buy a (way overpriced) HD for their gadget sooner or later. If too many people replace their RROD-endangered old XBox360s with a new Arcade model and simply swap harddisks, then MS quarterly reports (Entertainment division) might turn rather reddish pretty fast...(not that Bill & cohorts cared, they have all the money to sink into the XBox gadgets).

 

 

You know when the E&D division of MS just closed a few months ago a profitable year while the ps3 is sinking all profits coming from the ps2 and psp, statements like that make you look, at the very least, funny.