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Old Jul 11, 2007, 07:38 AM   #1
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No Xbox 360 Price Cut, New Model Announced

Microsoft makes no moves to the Xbox 360 price, but instead announced a new Halo-themed console.

On Thursday, Microsoft stunned the industry by announcing that it would extend the warranty on Xbox 360s afflicted with the Red Ring of Death (RROD) to three years following DailyTech’s report on Xbox 360 failure rates. On Tuesday night, the spotlight is once again on Microsoft with it hosting the first big press conference at this year’s slimmed-down E3.

Following Sony’s big announcement of the PlayStation 3 price drop, many turned their eyes over to Microsoft to see if it would respond with a price reduction of its own. Wedbush Morgan Securities analyst Michael Pachter even went as far as to tell clients that he is expecting Microsoft to drop the price of the Xbox 360 console across all its product line. Pachter believes that the 60GB PS3, at $499, represents a favorable comparison against the Xbox 360, and that Microsoft will drop the price to widen the gap.

Unfortunately, for those hoping that the analyst’s prophecy would turn out to be true, Microsoft did nothing to the price of its latest consoles. This effectively puts the 60GB PlayStation 3 console, along with its Blu-ray Disc playing capabilities, $20 apart from the HDMI-capable Xbox 360 Elite. In the Canadian market, the Xbox 360 Elite and the 60GB PS3 will share the exact same $549 price tag, giving consumers more to think about than just their wallets.


Source: DailyTech
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