txrattlesnake said:
Is it really a win for Microsoft if at the end they have to bring the Arcade down to $100 to guarantee a win? I don't think that would look too good to their investors.
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Wow... you really fail so hard at analyzing. The Wii hadn't had a single price drop in its entire 3 year life span while the 360 and PS3 each had a handful. Then it only had to cut $50 to boost demand again.
And you say the Wii cutting price $50 would mess up their handheld pricing structure? What about the PS3 cutting $50 which you think would be all too easy? That'd make it equal to a PSP Go.... totally messing up their handhelds.
Also, to your last statement, Microsofts console costs a lot less than a PS3 to produce. They could easily afford another $50 cut now to take back sales over the PS3. And if in the end they have to cut the arcade to $100 in a few years (since Natal and "Sphere" will interupt price reductions for a good year or so), it would still be a win for Microsoft because they would have been profitable on the Xbox brand now and outsold their main target achieving their goal. Making next gen a heck of a lot easier, especially if Natal takes off like it seems it will. Their "NextBox with Natal+" would have all the audiences covered from the start and a higher last gen userbase to draw on than the PS4. That seems like a very nice place for investors to be in. Oh and really, who invests in MS for their console market anyways? No one, so stop your bull crap. They invest because of the MS Software business stronghold.
EDIT after seeing your reply: And no, MS is not losing money on either 360 SKU at this point.... Unlike Sony, I hear