E3: Xbox 360 price drop for Christmas '07?

July 13th, 2007, 18:10 Posted By: Shrygue

via Computer and Video Games


It's speculated that winter '07 may see the first price cut for Xbox 360.

Microsoft Game Studios' corporate vice president Shane Kim has spoken of the need for Microsoft to steer toward a mass-market price for its console and how it's extremely important for Xbox 360 to win this Christmas, 1UP reports.

Speaking about the mass-market price sweet spot, Kim said that previously a considerable percentage of overall business has occurred when consoles have hit $199 or below, but added that what's happened historically won't necessarily dictate mass-market pricing today.

"If you look back in history - again, it's not just going to follow what's in history - in some cases, 75 to 80 percent of the business gets done $199 and below. So, we're not quite there yet", Kim said.

"I think that number can change over time because of inflation, greater capabilities; what we can do what Xbox 360, even the core system, is far beyond what you could do before in previous generations. Who knows? Maybe $249 will be a mass-market price point - but historically, $199 has been when you're talking a PlayStation 2-like install base. 80 percent of the business gets done at $199 and below. We're like the other guys, right?"

Kim went on to explain that Microsoft is trying to drive costs out of the system as much as possible "so we can hit those price points."

Earlier this week reports hit that Microsoft's production cost initiative with Xbox 360 has been codenamed Falcon, with a revised model said to feature new central and graphics processors that are manufactured in a 65-nanometer production process (as opposed to the older 90-nanometer processors in current models).

When asked whether Microsoft is going to move toward a mass-market price with Xbox 360 this year, Kim replied, "Stay tuned".

So, ah, stay tuned.

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