Xbox 360 Price Cut Coming?
3
November 27th, 2006
There have been several rumors during the past few months about a possible price cut on the Xbox 360. But Microsoft has always dismissed all rumors, saying there will be no price cuts, period. Now Microsoft boss Robbie Bach has openly stated that a price cut would be needed to better compete with Sony’s PlayStation 3. In an interview with A+E Interactive, Bach said,
Because we were out there first, we have a bigger installed base of consoles. We can drive down the manufacturing curve sooner and faster. And because we designed a box that was fundamentally easier to manage on costs, we’re going to have that advantage.
He continued,
You have to ask the question, over the life cycle, who has the cost advantage? Who can price most effectively? Who can reach the price points quicker? That has a huge impact on what gets driven.
It was recently reported that Xbox 360 manufacturing costs have dropped 40% since the beginning, and that Microsoft is actually making money on each console sold. We’ll have to wait and see if that translates into price cuts any time soon.
Read (A+E Interactive)
Uncategorized