Microsoft might progressively cut prices of Xbox 360 consoles

Microsoft might progressively cut prices of Xbox 360 consoles

Microsoft is due to launch their next generation gaming console Xbox 360 later this year and they have priced the units pretty high compared to the current generation machines. Microsoft has priced Xbox 360 at USD 299 and USD 399 for the two variants they would be launching in the market. The one costing USD 299 is a no-frills edition and would just have the console. The USD 399 version would be the one expected to be the bestseller and features lots of extra goodies including an external hard drive.

With just two months remaining for the launch, the company has already started to plan their strategy for the months following the launch. A senior Microsoft representative speculated that the company might introduce progressive price cuts after the initial launch to bring it closer to the current standards of pricing for these gaming consoles.

Todd Holmdahl, corporate vice president of the Xbox product group was speaking to a media group when he said: “We will wind up cost-reducing the product every year.” Rumors in the market claim that Sony’s Playstation 3 would be so expensive for the company that Microsoft would have a price benefit on manufacturing of at least USD 100. This gives the company enough flexibility on pricing their consoles competitively as the market heats up next year.