Xbox 360 Price Cut 'Unlikely' In Early 2007

Following the announcement by Microsoft that the company would cut its Xbox 360 hardware shipment guidance for the 2007 fiscal year, Lazard Capital Markets' Colin Sebastian has commented that a price reduction for the console is "unlikely", at least in early 2007.

In a research note to investors, Sebastian commented on the implications of this announcement, stating, "Based on the company's revised unit guidance and stated focus on segment profitability, we now believe that a price cut on Xbox 360 hardware is unlikely in early 2007."

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CyberSentinel4918d ago (Edited 4918d ago )

..Bill Gates for allowing Sony to regain their endurance. They are staggering on the ropes, will you allow them to regain their breath, by letting the clock run for the remainder of the round, or will you knock your opponent out!? All eyes are on you Bill, do you really want to win???

MicroGamer4918d ago

PS2 was out a year and a half before Sony made their first price cut. I don't remember hearing anyone criticizing them then. Microsoft has made big steps towards cost reducing the 360 already and the new chipmaking process will cut it even more, but they still aren't in profit yet on each console sold. A lot of people think they are making as high as $70 per console now, but remember that a large chunk of the retail price is sellers markup. Even if the markup is only 15% of the retail price on a premium system that's already $60. Marketing and promotion also adds to the cost. Microsoft isn't in a position to do a price cut yet and they don't have to. As long as Nintendo holds the bottom line at $250 and Sony doesn't drop prices, MS can stay where they are.

DJ4918d ago

didn't include the hard drive ($40). And they definitely didn't include the accessories included such as cables, controller, packaging, shipping, etc.

That means that even the core is being sold at a hefty loss, as is the premium sku.

As for Sony, I can't imagine them not dropping the price by $100 in time for the holiday season, especially since they expect to break even by the end of this year.

Marriot VP4918d ago

apparently you don't remember them saying they won't drop the price atleast until mid 2008. And I sympathise, any sooner would be insane business strategy.

What are you so worried about anyways? If you want people to buy a PS3 than you should tell them it's not going to drop it's price for years so they'll give in now.

HaKeRsCanRotINHEL4915d ago

lowers the price of the PS3 ( early 2009 most likely ) Microsoft would be crazy to follow suit.

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