Print 25 comment(s) - last by silversound.. on Sep 2 at 12:07 PM

Microsoft announces Xbox 360 price cuts in Japan

According to a Reuters article, Microsoft Corp will slash the price of its Xbox 360 game console in Japan by about 30 percent. This will make the Xbox 360 cheaper than the Nintendo Wii and Sony Corp's PlayStation 3.

Microsoft will lower the price of the Xbox 360 Arcade model by 8,000 yen ($73.92) to 19,800 yen. The Arcade model does not come equipped with a hard drive and is the least expensive of the three Xbox 360 models.

The new price will make that model cheaper than the Nintendo Wii which sells for about 25,000 yen, and the PlayStation 3, which sells for 39,800 yen. Microsoft will also reduce the price of two higher models with hard drives by 5,000-8,000 yen, according to the Reuters article. The price cut will take effect on September 11.

The Xbox 360 has struggled in the Japanese market, with 684,695 units sold so far in Japan against the Wii's 6.67 million and PS3's 2.32 million, according to game magazine publisher Enterbrain.

Microsoft’s fortunes have begun to change recently with the Xbox 360 outselling the PS3 in Japan in weekly sales for the week ended August 10. The boost in sales was attributed to the Xbox 360 exclusive "Tales of Vesperia" role-playing game from Namco Bandai

Microsoft recently cut the price of its best-selling Xbox 360 Pro model game console with a 20 gigabyte hard drive to $299 from $349 in the United States. 

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RE: Thats already the case in the UK
By daftrok on 9/1/2008 2:30:45 PM , Rating: 0
You're comparing retail to manufacturing. It may cost US $14 to buy but for Microsoft to MAKE it is probably around a dollar or two. So they can sell 10 million consoles and "lose" around 20 million. Not bad considering it is a multi-billion dollar corporation. And since Hard Drives are on the cheap side too, their losses would be minimal. Thrhoughout this whole year the PS3 has been catching up to the 360 in all frontiers (and surpassing in others). There used to be a 9 million console gap between the two and now there is less than 5 and a 1/2. If the PS3 cuts its costs again ($299 for 80 GB, $399 for 160 GB) in the holiday season Microsoft will be in serious trouble.

RE: Thats already the case in the UK
By daftrok on 9/1/08, Rating: 0
By neothe0ne on 9/1/2008 4:38:05 PM , Rating: 3
VGChartz is bullshit. They modify their statistics AFTER other people's records come out (NPD) WITHOUT notifying anyone or stating anywhere that they changed their numbers. In the past, they've also released sales figures for games which haven't been released due to being delayed...

RE: Thats already the case in the UK
By StevoLincolnite on 9/1/2008 2:58:29 PM , Rating: 2
Microsoft is still a company, if they can save a few cents by cutting a corner and ultimately achieve it's main goal of: Making more money, don't you think they will?

By theapparition on 9/2/2008 8:07:52 AM , Rating: 2
The flaw in your logic is that you're forgetting scale.

Put quite simply, would you rather sell 10 units at $1 profit, or 100 units at $.25 profit? In the end, you make more by selling with less profit, if your new price point can generate sales, that is.

Another factor, is game and online sales. With more consoles on the street, that means more game sales. Sales of the games is where the real profit is.

"People Don't Respect Confidentiality in This Industry" -- Sony Computer Entertainment of America President and CEO Jack Tretton
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