Dave Horvath
20 Aug 2007 9:00
Following hot on the heels of the U.S. price drop, Microsoft has officially announced the much anticipated European price drop for their Xbox 360. The consoles will drop in price by 50 euros to 349.99 euros, similar to that of the U.s. price drop. Microsoft said in a statement that the lower price for the Xbox 360 for the Premium 20Gb model will be effective August 24th. In addition, the Elite system featuring the 120Gb hard drive and a few other high-definition features will be launched to the tune of 499.99 euros. The unit of which few actually want, the Core which has no hard drive will be cut by 20 euros to 279.99 euros.
These price cuts come just in time to help give Microsoft the much needed edge before the holiday season. With the announcement of the PS3 price drop and the onslaught of sales for the cheaper Nintendo Wii, Microsoft had to do something to gain some exposure for the 2 year old system. Microsoft hopes the price point will help also expand their market beyond its core fan base consisting mostly of young men.
Statistics recorded at the end of June put Microsoft at 5.6 million Xbox 360s sold in the U.S., compared to the 2.8 million Wiis and 1.4 million PS3s. This figure includes the one year head start Microsoft had over the other two competitors.
Microsoft is said to have not yet turned a profit on the Xbox business since it was initially launched in 2001. Its hopes of challenging Sony's dominance in consumer's entertainment centers has been a bold task in which they've seen little return.
Source:
Reuters