No Discount For Xbox 360

No Discount For Xbox 360



No Discount For Xbox 360
For the past weeks, there were talks that Microsoft is​ going to​ take advantage of​ the holiday season to​ offset the launch of​ the PS3 from Sony .​
It was speculated that there would be Xbox 360 price slash .​
As a​ result, most gamers waited for the price slash and the PS3's release before deciding which console to​ get .​
However, to​ the disappointment of​ everyone, John Porcaro, US Microsoft's PR guy recently came out with a​ statement from the MS bigwigs that there would be no price slash for the newest Xbox model.
Quite understandably, since Xbox 360 is​ already selling at​ half the value of​ the new Sony console .​
The cheaper Nintendo Wii targets a​ different gaming audience so Microsoft does not consider it​ as​ a​ threat .​
Also, perhaps, there is​ some truth in​ what the UBS analysts predicted last year .​
According to​ UBS analysts, Microsoft subsidizes the cost of​ their new console by $75 .​
This is​ the reason they are able to​ sell for a​ lower price .​
Some rumors even persist that other than the subsidized $75, Microsoft is​ losing as​ much as​ $100 per console .​
This is​ due to​ Microsoft's inability to​ produce their own core manufacturing systems .​
They get the parts of​ their core hardware still from Intel and NVIDIA which require them to​ pay royalties.
To add insult to​ injury, the company is​ reported to​ be still suffering from losses incurred from Xbox sales .​
They reportedly used the same subsidy system for the older Microsoft console .​
The math goes pretty bad for Microsoft since the consoles have high production costs but are only sold at​ a​ meager price .​
Microsoft neither confirm nor deny these reports but they report that they have hit their mark for the year.
It is​ not a​ mystery how Microsoft was able to​ survive the losses .​
The company sells different console accessories and do effective marketing .​
Statistics reveal that most Microsoft console users have at​ least one accessory for enhancement of​ the game experience .​
Let's not even talk about the games .​
Most analysts suggest that the bulk of​ the gains Microsoft received this year was from the sales of​ game titles .​
With a​ new title release almost every month and DRM protection, games are mostly bought and owned individually .​
The games do not cost much when taken individually; the cost only becomes staggering when you think about the accumulated price .​
Microsoft gains from all these.
Regarding Xbox 360 price slash, I​ think that consumers can still hope .​
The holiday market is​ a​ big one .​
It is​ also the time when people are more generous to​ themselves and others .​
Microsoft and their new Xbox would have trouble resisting an​ opportunity such as​ this .​
Sony is​ pushing for a​ close to​ $600 price, and though expensive, there is​ somebody out there who would buy it .​
The holidays are times of​ giving and sharing, isn't it? But if​ the consumer is​ faced with a​ more difficult choice, say, three Xbox 360s for one PS3, the balance usually tips to​ the more economical side .​
Same quality, cheaper price, more people can enjoy it .​
That is​ what you call spreading holiday cheer.




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