- A purported Kmart ad began tearing through the Internet last week, showing a "new low price" of $299 for the 20GB Xbox 360 Pro model, and a July 6 shelf date. Such a price tag suggests a $50 price drop for the Xbox 360 model even before the E3 Media and Business Summit, taking place a week later. While Microsoft won't confirm the price drop, gaming sites are abuzz with speculation.
Now, five top industry analysts have told Next-Gen that they believe an Xbox 360 price drop is not only imminent, but likely required if Microsoft intends to fend off competition from rival PS3.
"We believe Sony will be forced to follow suit [with their own price cut], although we suspect they may wait a little bit," said Arvind Bhatia
with Stern Agee. "A price cut sometime between July and September is possible [for PS3]."
A price cut would expectedly increase the PS3's installed base, and create an opportunity to sell more high-margin software to offset hardware losses. But still, a reactive PS3 price cut may go against the PlayStation businesses' recently restated "profitability first" mantra. For now, Sony will wait and see how an Xbox 360 price cut will affect PS3 sales and share, says Lazard Capital Markets' Colin Sebastian
"In the event of decelerating PS3 unit sales trends, we...