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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By robinthakur on 9/2/2008 5:18:50 AM , Rating: 2
I don't really see the multiple SKU's as being that much of a problem here. Its not like most people aren't used to a choice with most things they buy and somehow can't handle deciding. If in doubt they'll buy the cheapest SKU.
The problem is that the cheapest SKU limits MS profit through barebones break-even hardware (which they might end up paying to replace/repair due to defects) and limits their access to paid for content on marketplace, assuming these buyers never pick up a ridiculously priced hard disk.

I don't think anyone in the thinking world thinks Microsoft is seriously going to get any tangible foothold in Japan despite throwing pretty much everything they've got at it. This will be the same for the next XBox if MS even chooses to go after Japan again. To me, the revelation this generation is that a console can fail abysmally in Japan but still be relatively successful in other territories, which hasn't really happened before.

I think that as long as the PS3 SKU's all come with hard disks then they fulfill their raison d'etre namely being a PS3 games player and networked media centre. Anyone that buys one who isn't technically up on every single little change wants it to do those functions first and foremost. Still I think that its too late for Sony in this generation now. The smell of failure is hard to remove once its gotten hold.

Those that bleat on about the Wii, get a freakin clue. Why Should Nintendo change the SKU/add another SKU/release an updated version when this version is STILL sold out everywhere you look and massively outselling its competitors? Even the *games* are sold out currently like Mario Kart, Wii Fit etc despite being launched in early summer. Nintendo is beating its own financial projections currently, and do you know many other comapnies in the current climate who are? With those numbers, the only changes Nintendo will conceivably make is adding DVD playback (unlikely as customers apparently don't particularly want it) or giving a choice of colours.

Note that I picked up all three consoles and currently play none of them :)

“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads
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