I wonder how the Xbox 360 price cut will impact this since it is now the least expensive console option in Europe. I would expect Nintendo (at least) and Sony (possibly) to follow suit. Especially since much of this price cut is more of a currency correction than a real reduction.
I honestly think that Microsoft can be competitive in North America (but will drop below first) and can battle in Europe (Sony's strongest market). But it is a non-entity in Japan. So having to essentially write off 15 percent of the game market means it cannot "win" (as in place first).
Furthermore, I am not sure what is still out there to sell the system. There is no Halo 3 to be published and the system has been out for three holiday seasons in its North American base (about 2-1/2 years total). So unless it can reach a mass market price ($150-$200 with a HD), there is a declining market for its great variety of games.
I also did not address the RRoD which hurts its reputation and sales potential. But that problem may be on its way to resolution.
In closing, there is too much money to be made to give away XBL. And skews tend to increase as systems age -- so one skew is doubtful.
Mike from Morgantown
 I am Mario.I like to jump around, and would lead a fairly serene and aimless existence if it weren't for my friends always getting into trouble. I love to help out, even when it puts me at risk. I seem to make friends with people who just can't stay out of trouble. Wii Friend Code: 1624 6601 1126 1492 NNID: Mike_INTV |
