X360 prices quietly cut in Japan - US/EU to follow?

[Joelcool7]

No I highly doubt another price cut is on its way for North America. There are many reasons for the Japanese price cut and not a North American price cut.

Microsoft's X-Box 360 has sold very very poorly in Japan which is one of the most important global markets for gaming products. Infact it is second only to the North American marke. The two highest points in the consoles history (In Japan) came with the launches of BlueDragon and Halo3. BlueDragon boosted hardware sales immensly infact if I remember correctly even stronger then Halo3 recently did. However even after these boosts the hardware continued to out perform even the PlayStation3.

Microsoft dropped the Japanese price earlier this year to match the Nintendo Wii's price point. This however only marginally boosted sales of the hardware. So with Halo3 having just driven hardware sales a little higher I'm betting Microsoft is going to try to turn it around capitalizing on their momentary gains. By initiating a price cut right after Halo3 I think they are trying to over take the PlayStation3's monthly sales or at least come into range of true competition.

Now why won't they make any similiar price cut in North America? Because the North American market remains stable and with Halo3 having just been released the hardware is selling almost in line with Nintendo's Wii. These increased sales don't need any help from a price cut why cut the price if you are turning a bigger profit without the cut?

A price cut next year is again not that likely at least untill fall next year. With Microsoft having a solid line-up for next year (Banjo,HaloWars,Fable2) their shouldn't be any complications in pushing adequate amounts of hardware in North America and Europe.

So why was the price cut made?, it was made to bring the 360 into a more competative position. Better enabling it to compete price wise with Nintendo Wii and giving the current boost in sales another boost. It is only to help Microsoft make gains in the Japanese market a place where Microsoft has realized they need massive help and they need to improve their image in Japan before they launch their next console in a few years!