When will the Wii catchup with the Xbox360 in h/w sales ??

[Zapp Brannigan]

The 65 nm chips will be used for a revamped 360 later in 2007. This will save Microsoft about $50 per 360, so we could expect a price Xbox cut of in the region of $50-$100.

One of the reasons why the Wii sells a lot more then the 360 is that it is much cheaper. Once the price differential is reduced, the Wii sales volumes advantage will also reduce.

Another factor is that half current XBox 360 owners did not own the original Xbox. There are still 10 million Xbox users yet to upgrade, many of whom are Halo fans.

If the price cut occurs around the time of the Halo3 launch, sales of the 360 could soar dramaticaly. For this reason I think that the Wii wont catch the 360 until early 2008.