MS needs to cut the price of the Xbox 360!

[NightDragon83]

S.T.A.G.E. said:

greenmedic88 said:
I don't think they need to cut price to *compete* with the Wii U barring the odd chance that it actually ends up retailing for less than $399, which I'm fully convinced Nintendo can do and still keep each unit sold profitable.

Otherwise, I see no reason for MS to cut prices until after they announce the Xbox 3 at which point, sales of the 360 are likely to take quite a bit of a nosedive once potential buyers new to the platform are aware that a replacement is incoming. Significantly lower prices across the board would help alleviate some of the sales drop offs, at least as far as numbers shipped/sold go (but not overall revenue).

So, it's in MS' best interests to hold off finalized announcements of the Xbox 3 for as long as possible, as in the E3 before launch (summer '13 announcement, winter '13 release).

I think MS is pushing it as far as price is concered.  It doesnt seem to like cutting price if they see theres money that can be taken out you. Sony got near the end of their gen timetable and ready to launch the next tech they the price of the PS2 was nearly $99. By the time PS3 came out the PS2 was any mans game and Sony continued to enjoy profit off of that whilst the PS3 price was so high. They need to cut the Arcade 360 and drop the price being that they are in their seventh year. They've only cut the 360 $100 in price in seven years. They are definitely riding profit hand over fist like the Wii did because the tech is so damn old and doing consumers zero favors.

Can't really compare this gen to last in terms of pricing, especially with Sony.  PS2 was much cheaper to manufacture, all things considered, and it launched at half the price the PS3 did.  Also, when the PS2 finally hit $99, that was after several years of being the WW market leader and a major hardware revision (PS2 Slim) that cut costs even more, and that was still 1/3 its launch price.  The equivalent price point for the PS3 at this point in its life would be $199, which Sony had just barely flirted with over the holiday shopping season.  It'll prolly hit that point permanently sometime this year, but not before M$ drops their price.

As for M$... as long as a console is selling well, there's no need to drop the price just yet, because that's just more money in their pockets.  And the reason they've "only" cut the price $100 so far is because #1 the system has consistently sold well in its primary market every year since release, and #2 there have been so many hardware revisions with upgraded HDDs and motherboards, and now built-in WiFi over the years, going from just a 20 GB HDD for $399 at launch to now a 250GB HDD plus WiFi and 2 games for $299.  Thats a pretty damn good bargain over what consumers were originally offered, especially now that you can install games to reduce wear and tear on the system.