E3 07: Analysts expect 360 price cut

Sony has made the first price drop in the new generation of console wars, and industry watchers think it might be time for Microsoft to answer.

Lazard Capital Markets' Colin Sebastian, Wedbush Morgan Securities' Michael Pachter, Oppenheimer's Shawn Milne, and Nollenberger Capital Partners' Todd Greenwald all brought up the possibility of an Xbox 360 price cut, but they differed on how much the cut would be and when it would be revealed.

Pachter suggested Microsoft would cut the price of the Elite model of Xbox 360 from $479 to $399, with the Pro and Core packages shedding $50 each, to $349 and $249, respectively.

"On balance, we think that the lower $499 price point for the PS3 60GB model offers consumers a compelling value compared to the current $479 price point for the Xbox 360 Elite model," Pachter wrote. "While the Elite has a 120GB hard drive and HDMI cables, it does not have WiFi built in nor does it offer Blu-ray playback capability, with both standard features for the PS3. Similarly, we think that the $499 PS3 compares quite favorably with the $399 Pro 360 model, which has only a 20GB hard drive and no HDMI output. Because of this favorable comparison, we believe that Microsoft is all but compelled to cut prices, and we think the price cuts will come no later than at Microsoft's Tuesday night press conference."

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TheExecutive4025d ago (Edited 4025d ago )

I have to disagree, I just dont think that we will see a price drop from MS at E3. Of course, I could be wrong, but so could they. I just think we would have heard about it by now. I kinda hope im wrong cuz i need another one and this would be a great reason to get one.

genix134025d ago

I don't think they'll do a price drop considering the recent $1,000,000,000 they spent on extending the warranty and dealling with the ring issue. It would just cost too much money, even for MS.

SofaKingReetodded4025d ago

Sony saw MS take a $1billion hit for their rushed to market console and now have driven the knife in deeper by in turn dropping the PS3 price.
THIS IS THE ONLY REASON THEY DID IT, remember only two weeks ago a Sony big-wig stated emphatically that there were no plans for a price cut.

lol, it's good to see Sony being aggressive in driving these hacks out of the console market.

aiphanes4025d ago

They will probably annouce a price drop before the Halo 3 release in september...i would got with a $50 drop on all xbox SKUs if i was a betting man...

caseobeers4025d ago

i would like to see the elite dropped to $400 the premire to $350 and the core to $200 because when you buy a core the majority of the people will buy the 20 gig hd and not a memory card

the worst4025d ago

who cares 360 price cut thats only good news
for the people waiting for there repaired 360
to get back the only people buy 360 is people who
own 1 already

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