Microsoft announced yesterday that it has dropped the price of its Xbox 360 considerably in Japan to help fend off Nintendo and Sony and try to cement itself in the single country that has practically forgotten about Microsoft all these years.
According to the company, the Xbox 360 Arcade will cost just $183--less than the Wii and Playstation 3--and 120GB model will come down to $368 from $442.
Bringing the Xbox 360 down to $183 is an important move for Microsoft. It not only brings it down to that magic price point where the mainstream would finally take notice, but it gives Microsoft a much-needed competitive advantage over Sony and Nintendo--pricing.
And while that sort of move was needed in Japan because Microsoft is so far behind, I think it needs to do that worldwide. As it stands, Nintendo still reigns supreme in the video game market and Sony is gaining ground much faster than Microsoft is willing to admit.
With that in mind, I simply don't see how Microsoft can gain ground in the U.S. and Europe without dropping the price of its Xbox 360 to a more suitable level that would appeal to the mainstream. At this point, pricing is the only way to differentiate the Xbox 360.… Read more