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Analyst: Microsoft to join Sony in price cuts

updated 02:15 pm EDT, Mon July 9, 2007

Microsoft to cut prices?

Microsoft is about to follow Sony's lead in cutting the costs of its consoles, says one analyst. Michael Pachter of Wedbush Morgan is predicting that the "Core" Xbox 360 will be reduced to $249 from $299, while the Premium will slide from $399 to $349, and the recently launched Elite will drop from $479 to $399.

Pachter observes that if the cuts do happen, they will not be altruistic, but rather a direct response to both internal problems and Sony's tactics. "Last week," he says, "Microsoft announced a slight Xbox 360 shipment shortfall and we do not believe that the company is prepared to allow Sony to erode its pricing advantage." By contrast, the reduced price of the 60GB PS3 is $500.

Silent in the struggle is Nintendo, whose Wii console has enjoyed a price advantage since its November launch. The system costs $250 at retail, and partly because of this has been the best-selling of the "next-gen" consoles. Pachter believes that as a result, neither the Wii nor the company's DS handheld will be reduced in price in the immediate future. [via GamesIndustry]




by MacNN Staff

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