No "Real" Pricecut ???

[thx1139]

scat398 said:
For the OP I think understand what you are talking about with price cuts . As far as I'm concerned The 360 cut the price of the elite from $399 to $299, but the base entry level for a 360 remained $199 so the entry level price has not changed, and that of course is the type of price cut that generates large sales, like the Sony dropping it's entry level price from $399 to $299 this year and MS dropping it's entry level price from $299 to $199 last year.

When someone says no "real" price cut they are referring to the lack of entry level price cutting by MS this year. I think we should ask MS if they thought the price drop this year for the elite from $399 to $299 was a price cut, becuase I'm pretty sure they would classify it as such, I'm sure Ms would have been happy to keep the Elite at $399, that thing was a cash cow.

Theoritically the Elite was a cash cow at $399. Yet in reality all indications were that it didnt sell much.  You also had the problem that the best selling SKU was the Pro and it had a HDD that cost more than the Elites HDD. So the thing was that Sony was about to release the slim with 120GB and to compete MS couldnt have a similiar unit cost $100 more.  So since the Elite cost less to produce than the Pro they dropped the Pro and replaced it with the Elite.  Since most consumers were ignoring the Elite anyway this was a phantom price reduction.