Report: Price Cuts Ahoy!
Microsoft may be the first to start a price war by the end of the summer. Nollenberger Capital Partners analyst Todd Greenwald tells GameDaily BIZ that he thinks MS will slash the 360's price (all SKUs) by $50. PS3, PS2 and PSP price cuts are likely to follow. More within...Price cuts – it's the topic everyone seems to be speculating about, especially with regards to the $600 PS3. Nollenberger Capital Partners analyst Todd Greenwald has thrown his two cents in, predicting not only a price cut on PS3 this year, but also Xbox 360, PS2, and PSP. Nintendo hardware was not mentioned, but considering the rate at which the DS and Wii are both selling Mario and crew certainly don't need to slash the price on those platforms.
Greenwald expects that Microsoft will actually make the first move by the end of the summer. He believes that a $50 price cut on the 360 is on the way (across all SKUs), making the Xbox 360 Core SKU the exact same price as the Wii and the Pro SKU only $100 more than the Wii – potentially a more compelling value. "I don't think it would impact profitability much, as the component costs must have come down quite a bit by now (been in production for 18 months)," Greenwald commented to GameDaily BIZ. "Plus, they will make a lot of money off of Halo 3, obviously, and more and more software royalties as the installed base keeps growing."
Read the full article here...James Brightman
May 25, 2007
Source:
GameDaily