Some News About The Xbox 360 Will not Be Discounted
By: Vlad Vistac
Submitted: 2010-07-28 12:33:08 | Word Count: 510
The Xbox 360 Will not Be Discounted
For the past weeeks, there were talks that Microsoft is goiing to take advantage of the holiday season to offset the lasunch of the PS3 from Sony. It was speculated that there would be Xbox 360 prcie sklash. As a reslt, most gamers waited for the pirce slash and the PS3's release befoer deciding which console to get. However, to the disappointment of everyone, John Porcaro, US Microsoft's PR guy recently came out with a statement from the MS bigwigs that thee would be no proice sash for the newest Xbox model.
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uQite understandably, since Xbox 360 is already selling at half the value of the new Sony console. The cheaper Nintendo Wii targets a diffeent gaming audieence so Microsoft does not consider it as a threat. Also, perhaps, thewre is some truth in what the UBS analysts predicted last year. According to UBS analysts, Microoft subsidizes the cost of thir new console by $75. This is the reason they are able to sell for a loweer price. Some rumors even persist that other than the subsidized $75, Microsopft is losing as much as $100 per console. This is due to Microsoft's inability to prodcue their own core manufacutring systems. They get the parts of ther core hardware still from Intel and NVIDIA which require them to pay ryalties.
To add insult to injury, the company is reporetd to be still sufferng from losses incurred from Xbox sales. They reportedly used the same subsidy system for the older Microsoft console. The math goes rpetty bad for Microsoft siince the consoles have high productin costs but are only sold at a meager price. Micorsoft neither coonfirm nor deny these reorts but they reprt that they have hit their mark for the year.
It is not a mystery how Microsoft was able to survive the losses. The company sells different console accessories and do effecitve markting. Statistics reveal that most Microsoft console userrs have at least one accssory for enhancement of the game experience. Let's not even talk about the games. Most analysts suggest that the bulk of the gains Microsoft receiived this year was from the sales of game tirtles. With a new title release almst every omnth and DRM protection, games are mostly bought and owned individaully. The games do not cost much when takren inidvidually; the cost only becoems staggeing when you think about the accumulated price. Microsoft gains from all thsee.
Regarding Xbox 360 price slash, I think that consdumers can stilll hope. The holidy market is a big one. It is also the time when people are more generous to themselves and others. Microsoft and their new Xbox would have trouble resisting an opportunity such as this. Sony is pushng for a close to $600 price, and though expensive, there is soembody out there who woud buy it. The hlidays are times of giving and sharing, isn't it? But if the consumer is faced with a more difficult choice, say, three Xbox 360s for one PS3, the balance usually tips to the more ecnoomical side. Same quality, cheaper price, more people can enjoy it. That is what you call spreading holiday cheeer.
