Microsofts price cut this year will be 25% in the U.S.A? ($150, $225, $300)

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NJ5 said:

Slimebeast said:

NJ5 said:
I am 50/50 split between you being right and the price cuts being a bit bigger (something like $130/$200/$270).

 

But why would MS make a drastic price drop like that all of a sudden? All the X360 price drops so far have been small, both in Europe and NA, the X360 is selling well and no one (at least not you NJ5) believes in a heavy PS3 price drop.

I don't think it's very drastic. The 360 launched in late 2005 for $300/$400, halving the price after 4 years doesn't sound very extreme.

For comparison, if Sony dropped PS3's price to $300 at the same time, they would have halved the price after just 3 years (even less than that in Europe).

 

The key factor here will be the warranty costs. If they really have the RROD/E74 expenses under control then that kind of price cut could well be possible. I personally think that Microsoft wanted to implement last years price cut in 2007 to coincide with Halo 3, but the $1billion RROD charge prevented it.