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Paris Hilton holds an Xbox 360 goody bag  (Source: MSN Entertainment)
Xbox 360 price drop spurs hardware sales prior to Halo 3 launch

NPD Group released last week its video game sales data for the month of August. To no one’s surprise, the month once again belonged to Nintendo. The Wii and the DS continued to be top sellers, with Nintendo’s home console holding top spot at 403,600 units and the portable selling 383,000 units. 

The big change for August was Microsoft’s surge that put the Xbox 360 past the PS2 and PSP. During the month, the Xbox 360 sold 276,000 units – a considerable jump from July’s 170,000.

Sales of the Xbox 360 were clearly boosted by a price cut of the console enacted by Microsoft on August 8. Retail prices were cut by as much as $50, making the Premium console $349, the Elite at $449 and the Core at $279.

Gamers looking to buy into the Xbox 360’s impressive fall line-up may have found the price drop reason enough to pick up Microsoft’s machine. Madden NFL 08 for Xbox 360, which released mid-August, became the top selling game for the month with 896,600 units, beating the second best-selling PS2 version by over 250,000. 

The anticipated release of Halo 3 is another driver of Xbox 360 sales. Microsoft’s marketing machine is firing in all cylinders, devoting millions of dollars into cross-promotions to reach non-traditional gaming channels. As a first, 7-11 convenience stores are taking pre-orders for Halo 3 and will be selling the game at 12:01 A.M. on September 25. While at 7-11, gamers may also purchase Game Fuel, a limited-time Mountain Dew drink branded with Master Chief.

Sony’s hardware made up the latter half of NPD Groups sales list. The PlayStation 2 remained Sony’s top seller with 202,000 sold. The PSP, even only a month shy of release of the slimmer, lighter hardware managed to move 151,200 units. The PlayStation 3 maintained a second month of six-digit sales, with 130,600 sold.

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RE: 360 outsells PS3 two to one
By afkrotch on 9/20/2007 8:38:06 PM , Rating: 2
Actually, you shouldn't look at the forest while the trees are being planted, as you don't know what's going to happen in the future.

The console wars have barely started. Maybe Nintendo will replace it's Wii in a couple of years with something more updated. Taking an approach more reminiscent of their handhelds. This leads to them selling millions more consoles and games, while making tons of money. With each new Wii revision, it not only supports all the old games, but adds in new features. 1080p, HDMI, Blu-ray, HD-DVD, USB3.0, etc.

Maybe Microsoft will spend billions to snatch exclusives in Japan. This leads to more Japanese buying the console and more Japanese developers jumping onto the 360. Microsoft jumps past 65nm and pushed a new 45nm Xenon and Xenos procs. This alleviates all RROD issues and lowers production costs.

Maybe Sony ends up finding a way to greatly reduce production costs of the PS3 and ends up being able to give a $250 price drop on the machine, putting it well below the Xbox 360 Premium and Elite prices. This leads to 6 million consoles being sold in a couple months and over 15 million in 1/2 a year.

Course, who's to say what will happen. Not me. All I know is that I enjoy games on both my Xbox 360 and PS3. Nothing worthwhile to me for the Wii, so I haven't bothered getting it.

"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation

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