Three new posts each day, and officially I start with what I think should be Microsoft's answer to Sony cutting the price on the PS3. If you guys want to read more on the new posting schedule, click here.
Microsoft's console is the cheaper of the two heavyweights, and surely that has helped them in sales. They make up for lost profits through Xbox Live anyway. But with the consoles traditionally priced similar, does Microsoft need to drop the Xbox 360's price? One answer: yes.
It's a fairly simple concept. The cheaper something is, the more likely a consumer will buy it. Sony is grinning because Microsoft has failed to capitalize on the prime opportunity. The current console generation is nearing the end of its lifespan, therefore both companies should have been hinting at a price cut earlier. Personally, I would have announced the news at E3 and not after Gamescom, unless Sony is trying to persuade interested buyers into possibly getting PS3 exclusives later this year instead of the hotly-anticipated Gears of War 3 coming in a month. Going by that, the timeline seems suitable.
But Microsoft's nonsensical actions will cost them sales. The sales race is remarkably close, and M$ is probably looking to come out on top once the generation ends. The company will need to make a decision before Christmas on the future state of its console price-wise. Perhaps even considering to drop the price to play online as well. The smartest marketing move, however, would be to announce a price drop on September 20 or shortly after, as to not hinder hype and to exploit further the console's biggest exclusive this year.
Microsoft has shot themselves in the foot. In this very corporate game of console chess, it's Microsoft's move now.
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