Featured Articles

Nvidia GTX 980 reviewed

Nvidia GTX 980 reviewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
Nvidia adjusts GTX 980 and GTX 970 pricing

Nvidia adjusts GTX 980 and GTX 970 pricing

It appears that Nvidia has been feeling the pulse of the market and took some note from comments regarding the original…

More...
iPhone 6 and 6 Plus reviews are up and they are good

iPhone 6 and 6 Plus reviews are up and they are good

Apple is dancing the same dance year after year. It releases the iPhone and two days before they start shipping it…

More...
Amazon announces three new tablets

Amazon announces three new tablets

Amazon has just released three new tablets starting with the $99 priced 6-inch Kindle Fire HD6. This is a 6-inch tablet…

More...
PowerColor TurboDuo R9 285 reviewed

PowerColor TurboDuo R9 285 reviewed

Today we will take a look at the PowerColor TurboDuo Radeon R9 285. The card is based on AMD’s new…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Monday, 08 September 2008 06:09

Xbox 360 price drop draws reaction

Written by David Stellmack

Image

Next chapter in the price war is starting

As we predicted the Xbox 360 price drops are now in full effect and they are drawing at least some reaction from the Sony and Nintendo camps as the holiday season continues to draw closer.

While it is too early to see what impact the price drops have on actual sales, it is obvious that both Sony and Nintendo did expect Microsoft to make this move to take the pricing war to them this holiday season. The most important thing to note is that with the price drop on the Xbox 360 Arcade system to $199, Microsoft is now the cheapest of all three console vendors heading into the holiday season. The $199 price tag is especially significant to Nintendo who was the low price leader with the Wii.

Several analysts are predicting that Microsoft could enjoy as much as a 20 percent boost in sales this holiday season due to the price drop. Of course, many of the consumers looking to buy in at the $199 price level are more concerned with the major titles and primarily sports titles which are an area where Microsoft does enjoy a bit of a lead over the competition at the moment.

Sony does not see the price cut as a big deal, as they are heading into the holiday season. While they have admitted that they do expect Microsoft to see a bump in sales because of the price cut, they do not think the sales numbers will be sustainable over the entire holiday season. Sony will continue to stress their Blu-ray drive and several titles that they have in their lineup for the holiday season as their primary weapons to counter Microsoft.

Nintendo, on the other hand, is working hard to make sure that they have enough consoles ready to meet the expected demand for the upcoming holiday season. The unexpected popularity of the Wii has kept Nintendo on its toes to continue to pump out enough consoles to meet demand. However. the fact is that we believe that because of the lower price of the Xbox 360 Arcade system, those buying a console as a gift might be drawn to the lower price of the Xbox 360 and elect to substitute it for a Wii.

We do still expect sales of consoles to be brisk this holiday season, and while Sony is not talking about a $50 price cut right now, we do think that if they are losing too much ground going into the final months of the holiday season as they may have no choice but to slash prices. U.S. inventories of the console systems will be tight this holiday season as a whole, because companies continue to send bigger amounts of their inventory outside the U.S. because of the weak dollar.

Last modified on Monday, 08 September 2008 14:04

David Stellmack

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments