MS forgo profit with 360 cut
Festive tussle is key
Microsoft won't be making much money on the Xbox 360 console having slashed prices in North America, according to analyst Toan Tran, who says the move is more about market share over the key festive season... at the expense of making cold-hard green-backs.
"Microsoft wants to drum up demand for the holiday. Microsoft’s long-term vision for the Xbox is not to turn a profit today," the Morningstar executive offers.
"It’s a way to get a foothold into people’s living rooms."
The Arcade model is now 199 USD, below the key 200 USD mark at which experts believe sales can really begin to take off. It is also much cheaper than both the PS3 and Wii, presently.
We're hoping for word of a similar cut in Europe soon; Japan already having shed 30% off retail prices.
Source: VG247
