Microsoft Cuts Price of Top-End Xbox 360 as Industry Prepares for Busy Autumn Season

Strategic Insights -

The move aims to consolidate Microsoft's lead over Sony in the current generation of games consoles, with a price cut on its top-end Xbox 360 matching a similar move by Sony last week. The cuts come at the start of the busy autumn season, which accounts for nearly two-thirds of annual console purchases, and are expected to enable Microsoft to maintain its advantage over Sony in what has been a weak year for the industry.

Key Takeaways:

  • Microsoft has sold 30 million Xbox 360s since 2005, while Sony has sold slightly less than 24 million PlayStation 3 consoles.
  • The latest price cuts will reduce the price of the top-of-the-line Xbox 360 Elite by $100 in the US, €50 in Europe, and £30 in the UK.
  • The Xbox 360 Elite is now priced at €249.99 in Europe, against €299 for the new PS3 Slim, and €203 for the Wii.
  • Analysts say Microsoft's online service for its console is stronger than Sony's, and its Halo franchise has been more successful than Sony's in-house games division.
  • The price cuts are aimed at maintaining momentum in the usually lucrative autumn season, which accounts for nearly two-thirds of annual console purchases.

Statistics:

  • 30 million Xbox 360s sold since 2005
  • 24 million PlayStation 3 consoles sold since 2006
  • 50 million Wii consoles sold globally
  • 30% fewer sales for the PS3 in the first half of 2009 compared to the Xbox 360
  • €30 price reduction in the UK for the Xbox 360 Elite
  • €50 price reduction in Europe for the Xbox 360 Elite

Sources:

  • Richard Waters in San Francisco and Maija Palmer in London (original article not explicitly detailed, implying it's the same publication)
  • Bloomberg, Microsoft, Xbox, Sony, Gartner