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Interview: Console Cost Cutting

Microsoft has confirmed an Xbox 360 price cut, with Australians now able to buy an Xbox 360 for cheaper than the rampaging market leader - Nintendo's Wii.

From today, the Xbox 360 Arcade costs $349, while the (recommended) Pro version with a 20GB hard drive costs $499 and the Elite, which features a 120GB hard drive, now costs $649.

Weekly hardware sales figures from GfK have shown Xbox 360 has struggled so far in 2008 despite its strong software catalogue. Wii has routinely outsold the 360 by a factor of two to four times, while Sony's more expensive PS3 has also been outselling 360 in most weeks by a small margin.

While Nintendo has ruled out any price cuts for Wii this year, no doubt Microsoft's move will put pressure on Sony Computer Entertainment Australia to cut the PS3's current $699 asking price. But Sony has already announced a major promotion for July, offering free PS3 consoles for the first 35,000 consumers who buy a high-definition Bravia television.

Screen Play spoke to Jeremy Hinton, Xbox Group Product Marketing Manager.

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