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Was The Xbox Price Cut Needed?

Gerson Lehrman Group is wondering if the timing of the Xbox 360 price cut was too early, or if the cut was even necessary. They reason that a cut is needed if your product has something to gain, but with Sony's still-too-expensive console, Nintendo's regardless of the industry sales, Halo 3 and the 360 Elite, Microsoft didn't gain much at all.

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CNIVEK3432d ago (Edited 3432d ago )

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JUSTaGAME3432d ago (Edited 3432d ago )

You're first! Say something!

I don't think it was a "NEED" type of decision that Microsoft was facing when they opted for a price cut.

I think they've gotten console production down to the point where they can honestly AFFORD to cut the price.

Now, I KNOW what has been said about them not turining a profit until next year, but this price cut was just a strategic move to get the consumer familiar with their new price point before the Holiday season.

There will be a TON of deals and bundles flying around when the holiday season arrives, so if the Xbox360 is priced NOW, people will avoid a lot of the confusion, and be able to make an Xbox360 purchase without fear that a new crazy deal will under-cut the one they just made.

Microsoft saw that the PS3 sales were picking up a bit, and decided to halt them in their tracks before they got any momentum. It's all strategy. Kick 'em while they're down.

With the $50 price cut and Halo 3 coming next month, they Xbox360 is GUARANTEED to see a sales spike that will carry them through the Hilodays

gogators3432d ago

price drop. If anything the price drop was meaningless because the drop in price was far too small. I still think it should have been atleast 75 bucks across the board, if not 100.

cloud3603432d ago (Edited 3432d ago )

The Super nintendo came out 2 years after the megadrive.

The mega drive had a big headstart. But the Super nintendo had an excellent opening start. and soon caught up. There was fiece competition and none of the consles won and the war went on for many year (4 years). eventually the Super Nintendo won the war and even in the 32 bit error it was a fierce rival
- Wikipedia

reaperxciv3432d ago

is always good for everyone

BIadestarX3432d ago

It's never too early for a price drop. Besides Microsoft just made it harder for Sony... and proved that they can always drop the price if they wanted to... even after many people though they were not going to do it.. due to the 1.2 Billion bill they had to pay for RROD issues.
I think the price drop did help microsoft... it's the reason why Sony was not able to beat the xbox 360 (NPD) on the month of July. Without this price drop... the PS3 would have taken the month of July.

BLaZiN PRopHeT3432d ago (Edited 3432d ago )

The 360's price drop started on aug 8. so they woulda outsold the ps3 either way. and you figure people would wait untill the price drop with all those rumors but they didnt.

Thump19673432d ago

If they would have made the core 249.99 with memory card,and the premium 299.99 and the Elite at 399 Wii & the PS3 would be buried

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