Microsoft's recent move to reduce Xbox 360 prices across the board may turn out to be especially significant for the console wars. It means that for the key holiday season, the mass-market Xbox 360 Arcade SKU is less expensive than the Wii -- and Wii may see additional challenges from supply constraints. And with both consoles now entering the $200 "inflection point" analysts say has historically helped spread console sales to new audiences, has Xbox 360 opened a competitive gulf over the PlayStation 3?
Wedbush Morgan analyst Michael Pachter tells Gamasutra that, with a little help from correct marketing, Xbox 360 sales stand to lift 20 percent in the Fall-Holiday season over the same period last year. The $199 Arcade SKU in particular is expected to attract more mainstream consumers who are primarily interested in major brand names like EA Sports titles and Tony Hawk.