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After Microsoft’s
aggressive price cuts in Japan
that saw its entry level Arcade machine drop below the price of Nintendo’s rival Wii console, leading games industry analysts are predicting that price cuts are now sure to come in North America.
Edge Online reports that both Lazard Capital’s Colin Sebastian and Wedbush Morgan’s Michael Pachter agree that this strategy is probable.
We believe the Japan announcement is a likely precursor to more aggressive pricing of the Xbox 360 in the US,” Sebastian stated. We continue to expect a lower $199 price point on the base Arcade SKU (below the $249 Wii price point), as well as lower $299 and $399 prices for the 60GB and 120GB versions, respectively.”
Pachter has also echoed these sentiments: Due to the relatively stagnant demand for Xbox 360, we may see additional price cuts for this system before the holidays. We note recent speculation of Xbox 360 price cuts on September 7, with the Arcade going to $199 from $279, the Pro going to $299 from $349, and the Elite going to $399 from $449.”
