Posted on July 24, 2008,

Analyst: "Real" Xbox 360 Price Cut is Needed

We all know that the 20GB Xbox 360′s price drop is just artificial — once those units sell through, it’ll be gone, and we’ll be back to the three current price points for the Arcade, Premium and Elite SKUs.

Todd Greenwald, an analyst with Signal Hill, has told investors that the “Xbox 360 needs a real price cut.” This temporary cut isn’t enough to stave off the fierce competition from the Wii and PlayStation 3.

“We remain very sceptical of Microsoft’s pricing strategy and competitive positioning versus the PlayStation 3.

“At USD 349, with a 60GB hard drive, we just don’t think it is a compelling product compared with the PS3 at USD 399 with an 80GB hard drive (along with more processing horsepower, Blu-ray, Wifi, HDMI, and going forward, more exclusive content),” Greenwald said.

“We’d also note that the Xbox 360 has just been surpassed by the Wii in the US, despite Microsoft’s one year head start over Nintendo.

“We do think that the Netflix announcement is a significant addition for Xbox users, though its far more of a positive for Netflix than it is for Microsoft in our opinion,” he said of one of the new features in the ‘new Xbox experience.’

“Sony’s biggest announcement was a strong counter-punch to Microsoft’s USD 50 price cut on the 360.

“We think this should give Sony a leg up versus the 360, along with several exclusive titles like the just-released Metal Gear Solid, LittleBigPlanet, Resistance 2, Killzone 2, Gran Turismo 5, God of War 3, etc.

“Beyond Gears of War 2, Microsoft doesn’t seem to have the same library of exclusive, must-have titles,” he concluded.

Greenwald makes a good point. If Microsoft could drop the price across the board and get the system under or equal to the price of the Wii at $250, it would be an extremely helpful selling point going into this holiday season.

via GamesIndustry.biz

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6 Comments on Analyst: "Real" Xbox 360 Price Cut is Needed

xboxlenny

On July 24, 2008 at 11:02 am

I can agree with him in a way over some of the features the PS3 has that the 360 dont. Blu-ray player alone & Wifi is a must on any internet capable device. I do disagree on Microsoft not having many good games left, they already have way more than PS3 and always have good titles on the way. and as for exclusive content and downloadable content id say Xbox live is far better than sonys PSN now. As a customer, ya a price drop never hurts.

William

On July 24, 2008 at 1:00 pm

instead of a system price cut, we need free XBL for all.

Shadowmancer

On July 24, 2008 at 1:52 pm

Xbox live needs to be free seen wats happened lately with gfwl, it really does need a price drop really as a poor student in the uk with £100 ($200) its impossible to buy 1 however if i was in the us i could get 1 easier.

Shadowmancer

On July 24, 2008 at 1:55 pm

after checking on us prices u guys get these consoles for nothing, here in europe we have to pay twice as much as u guys do i.e. ps3 = $400 in the uk ps3 = £800 sony and microsoft really need to drop their prices in europe really.

Matt

On July 25, 2008 at 2:47 am

I agreed with the guy about everything until the last couple of paragraphs.

MS does actually have quite a few exclusives, including a strangely big one *Cough*Fable 2*Cough*

are you stupid

On July 25, 2008 at 5:18 am

MS aint gna make XBL free thats how they make there money duhhhhhhhh are you stupid? NOOBS