Rumors are starting to circulate out of Taiwan that Microsoft could be planning to give Sony a big launch surprise – a price cut of up to 100$ a console.
This would put the price of the Pro System console at $299, in comparison with Sony’s $599 and also offer a good price point versus the Wii. The explanation for the potential price cut comes from component makers who are saying that “the total production cost can be reduced by 15-20% due to diminishing costs for most components along with increasing production scales and decreasing defect rates.”
Microsoft has denied the rumors, but they’ve done that before only to turn around and issue a drop. Add to that the fact Microsoft has said in the past that consumers could expect annual price cuts on the machine, and the rumors seem to carry a little more credence.
As the official launches for the PS3 and Wii draw closer, it would make sense for Microsoft to issue a price cut at this time, even if it’s just another small one with a big one to follow some time next year.
If the rumors pan out, the pricing would position Microsoft very well to compete in the market. The pricing structure alone right now gives the Wii a big edge on the general market to capture buyers beyond the “serious” gamers and fans of one console over another. The PS3’s pricing will make it a hard sell for “average” buyers while the 360’s might still be seen as a bit too high.
As it stands right now, it doesn’t look like the PS3 will be much of a factor this holiday season due to anticipated console shortages and the reduced launch numbers, but Wii could be a real factor. A pricing change by even a small amount could make the 360 look even more attractive to buyers.
Whether the drop comes now or sometime next year, a cut doesn’t sound out of the questions for Microsoft, especially since the costs of creating the console are starting to streamline
Log in to comment