Never a simplistic answer that really cant be summed up in a single selection.
1. Reach, 'nuff said
- short term increase in sales and lots of profit but will not maintain long term sales or growth
2. Natal (Wii is going down!)
- Natal is the longer term motivational component to drive interest for the next 2 years until a new xbox is released. MS will need two generations of this product to create a standard for motion control. This will be a base component of any new xbox product.
3. Price cut
- price cut by itself will mean very little but coupled with a slim(or new redesigned model) and Natal will allow for new packages with new capabilities at the same or lower prices. MS must add value at a slightly lower cost than its competitor to keep consumer perceived value in check. Profit margins will always be a key factor in MSs pricing from this point forward.
4. Slim model
- a new model is almost required to allow for Natal bundles at same or better price and still make good profits and motivate new and existing owners to buy xboxes. MS will want to try and ride a similar wave as what the competitor did.
IMO
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