Analysts bet on 360 price cut

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."

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shikwan5244d ago

And this will be the final blow that kills Sony.

Syko5244d ago

Sony's gotta know this is coming sooner rather than later and I don't see how they can't be ready for this. However what they will do is a mystery to even the biggest Fanboys. I do think this is a crippling blow to Sony if they don't have a solid plan in place for this. I just don't even know what they could do to counter this move.

power0919995244d ago

lower the price on the PS3. It is the ONLY way they can counter a price drop on the 360.

This MAY be possible since production has incresed on BR. Sony will continue to lose money, but not in addition.

I just can't see how ANY game/movie releases can keep Sony alive when this happends.

Needless to say it's going to be interesting.

beans5244d ago

Well since I gave my 360 to my baby brother for christmas a price cut would be nice since im picking up a new one! The only problem is that I will be picking up one in Feburary and a price cut might not be available until later this year!

Scrumptious5244d ago

will have reduced production costs per unit enough to eat more money on the PS3. Keep in mind they still have lost millions on research and developement of the console engineering. They said tey would stay within $300 of the 360, but I don't think it;s possible.

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