| Augen said: That seems at odds with their pricing then. We all know Microsoft is a massive company and could could billions on Xbox over course of a generation and still be well into the black overall. A $499 system is not a strategy to achieve market share, especially when most reports indicate they make a small profit on each system. A $399 would show desire for market share, a $299 would show that is their only concern. I think there is pressure on the division now to not be a loss leader or they would have adjusted pricing before launch. |
All these rumors about splitting probably aren't far from truth if they start losing money. They are trying to reach a more sustainable model (Sony is too, Nintendo always played like that but they chose to use weak consoles instead of simply doing better hardware projects like the others).
Anyway, I don't expect a price cut before E3, they will wait for the games. I believe the UK bundle is a test to see if it will solve the problem. If it doesn't impact sales, it's better to stay as it is and make a profit than simply throwing money for nothing.
