Tatung Company, a long established manufacturer of electric home appliances in Taiwan, has offered a package including an Xbox 360 Premium edition console plus a software game for sale through its 3C retail chain in Taiwan, at NT$9,999 (US$305), much lower than prices available at other retail channels. Microsoft Taiwan has responded saying it is going to negotiate with Tatung to stop the price-cut competition.
An Xbox 360 console, wireless controller and four games currently sells at about NT$13,900 at other retail chains or stores, and Microsoft will offer an Xbox 360 console together with a wireless controller and the game Gears of War for sale at NT$13,980 at the Taipei Game Show 2007 scheduled for February 8-12, according to industry sources.
Microsoft Taiwan clarified that Tatung's price cut is a sales promotion organized purely by the retail chain, stating that Microsoft does not plan to lower Xbox 360 retail prices in the Taiwan market for the time being.
Tatung emphasized that it had no intension of disturbing the market balance, adding that the price cut was arranged to clean its Xbox 360 inventory as well as promote sales of other 3C products. The price cut resulted in sales of over 200 packages over the February 3-4 weekend, industry sources indicated.