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News
Microsoft Cuts Xbox Price in Europe
Thursday, March 13th, 2008 at 4:00 PM - by John Martellaro
Microsoft has cut the price of the Xbox 360 significantly in Europe, bringing the price below the Wii, according to Gaming Insider on Friday. The conventional wisdom is that the move is intended to blunt the recent surge in PS3 sales.
The price cut could boost sales by 20 percent, according to an unnamed analyst.
NPD numbers show that January was the first month since the beginning of the game console wars that the PS3 outsold the Xbox 360. That may have been due to supply problems that Microsoft has been experiencing.
Shankar Gupta noted that many have been expecting a reduced price in the U.S. as well.
A big advantage that the PS3 now enjoys is the built-in Blu-ray player. Microsoft, now without an HD disc for the Xbox, is likely seeking to dilute that advantage of the PS3 with the price cuts.
Mr. Gupta noted that Sony could counter by lowering the price of the PS3 as well.
iPO notes that if Microsoft sought and was denied a Blu-ray license for the Xbox by Sony, it could explain Microsoft’s strategy: denial of talks, lowering the Xbox price, and focusing on Internet downloads of movies.
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