E3 2007: Microsoft: Price cut? So what?

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Sony has played some very strong cards from their hand this week, announcing new titles yesterday and and a price cut for their flagship console on Monday, but as Sony shaves off $100 from the PlayStation 3’s price, Microsoft shrugs its shoulders and calmly goes about their business … or so they say.

Sony’s price drop was met with a “Spartan Green” special edition Xbox 360, but no mention of any kind of price reduction. The Independent says that Microsoft’s decision to maintain its current pricing has something to do with the company missing the target of 12 million consoles shipped by the end of last month, racking up 11.6 million so far. Some analysts think that the refusal to come down in price could reflect the company’s desire to turn a profit on their games division, but they’re playing it cool now.

Shane Kim, the head of Microsoft Games Studios, said: “We have no desire, no need, to react to anything the competition has done … We feel really great about the Xbox 360 right now.”

They must be banking on upcoming blockbusters like Halo 3 and Grand Theft Auto, as these would definitely fall under the classification of “system sellers.” Microsoft really has nothing to gain with a price cut at this time, and they know that they still hold some really good cards in their hand. We’re just surprised that no one has played the “we’re still cheaper” card yet.

[via The Independent ]


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