Originally Posted by Arwin
I just want to add that I think it's a shame that it's not possible to have at least a semi-intelligent discussion on the price of a console in the context of market forces. It's not like Microsoft would have done anything with its pricing if there hadn't been any competition. But it's clearly not possible, and that makes me sad.
To be fair the most popular verison of the system has only recieved 1 price cut of $50 since it launched in 2005. We were getting close to the start of its fourth year on the market. I think even without competition it would require a price drop of almost any product as its basicly exhausted the user base willing to pay x amount of money. When taken on the whole the 360 average price went up since launch and they have been able to do a good job of maintaining system value with refreshes of the system while still driving generaly higher % of sales over the same time last year I believe. If rumors of a new xbox coming before 2011 they really need to start to change the price or they would be forced to drasticly cut later in its life cycle and risk to many price cuts in a short time. The 360 should move to $200 its an advantage of being first and lacking a hardrive and next gen optical unit. Through hardrive additions they are still able to maintain higher p rice points and the highest sku announced (god knows there may only be more skus ) and on sale is still at the original launch price point of the 360.
When compared to ms's last console they are doing much better than they were. Last gen they were forced very quickly to shave off $100 a little over 6 months after launch and lost money on each console sold through the end of the generation. No matter where the 360 goes from here 2nd place ,1st place , 3rd place this is really a sucess story for ms when compared to the xbox .