Microsoft decision could lead to extending lead in race to capture market share; $100 reduction not unthinkable, says one.
This Nevada town, where betting and speculation are the norm, is an appropriate place for talk of a price cut to the Xbox 360 to find traction.
Yesterday, two analysts spoke of a possible announcement from Microsoft. Michael Goodman of the Yankee Group went so far as to consider a $100 price drop for the one-year-old+ console--a doubling of the traditional $50 reduction.
In a morning note to investors, Lazard Capital Markets analyst Colin Sebastian hedged his bets, declining to speculate on an exact figure a price cut could take, but he did introduce the topic.
Pegging his theory on the dual combination of greater production efficiencies and component cost reductions for the console, as well as a shift of the platform to a more mass-market consumer audience, he said a price drop in 2007 was a "possibility."