Microsoft knows a sweet deal when they see one (update)

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If you’ve suffered from the sticker-shock blues of wanting an Xbox 360, but were leaning more towards the Wii due to the price factor, then help could be right around the corner. That is, if the group project manager at Microsoft has anything to say about it. 

Speaking to Bloomberg, David Hufford made it known that the guys behind the Xbox brand are anything but ignorant to the fact that the much talked about $199 price point is the sweet spot that all console makers should strive for. As you can see, Nintendo was the inspiration for this quote:

“When Mom walks into the store and sees she can get a console with a game for USD 250, she sees it as a USD 300 value. They’ve done a good job.”

Don’t let this fool you into thinking that the guys at Microsoft are only concerned with attracting new customers by way of price cuts. They are still feeling the sting of being pinned by Sony’s dominance last generation, and are feeling optimistic about making the necessary changes to make the Xbox 360 the only console you’ll need for a long time. Just how do they plan on going about doing this? Through a renewed marketing push, and games that target families as well as the hardcore audience. If you have any doubt about Microsoft’s newfound focus, look no further than the words of Peter Moore.

“If we don’t make that move, make it early and expand our demographic, we will wind up in the same place as with Xbox 1, a solid business with 25 million people. What I need is a solid business with 90 million people.”

Since nothing has been officially announced concerning a definite price cut by Microsoft, we can only  take quotes like the one above with an approving nod at this time. However, it’s hard not to notice that the top selling console is considerably cheaper than the competition, and how the most expensive one seems to be doing the worst.

Keeping in mind that it’s a combination of price, a deep library of exciting games, and an abundant supply of consoles that makes the definite difference in the long run, it’s still a bit early to call this one just yet.  However, that doesn’t mean that Sony and Microsoft shouldn’t heed the lesson that Nintendo (unlike the GameCube scenario of a few years ago) has laughed all the way to the bank with. You just can’t give enough credit to a good bargain — especially when it’s fun.

[Update: Well, it looks like David feels we all jumped the gun on this one. Here’s the official response from his blog:

I spoke to Bloomberg nearly two months ago and we were talking about NPD data that had just been released, and chatting generally about price points of consoles in the market. The comment, which is accurately reported, unfortunately has now been taken way out of context and being reported as if I am signaling a price drop. I was not, I am not.

With Xbox 360s selling well at their current price point, Elites selling out at $479, and an insanely great portfolio of games in the market, there’s no reason to announce any kind of price drop anytime soon.

Thanks to dvddesign for showing us this tidbit.]


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