Signal Hill analyst Todd Greenwald has said that "Xbox 360 needs a real price cut" in his latest note to investors.

Microsoft dropped the price of the 20GB console in the US by USD 50 last week prior to E3, but Greenwald believes the company needs to do more in the face of competition from the PlayStation 3 and Nintendo's Wii.

"We remain very sceptical of Microsoft's pricing strategy and competitive positioning versus the PlayStation 3.

"At USD 349, with a 60GB hard drive, we just don't think it is a compelling product compared with the PS3 at USD 399 with an 80GB hard drive (along with more processing horsepower, Blu-ray, Wifi, HDMI, and going forward, more exclusive content)," he offered.

"We'd also note that the Xbox 360 has just been surpassed by the Wii in the US, despite Microsoft's one year head start over Nintendo.

View: Games Industry


There are 15 additional comments
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Quote this comment Reply to this comment #1 Posted by thealexweb on 21 Jul 2008 - 18:15
Come Xbox you can do better than that.
(1 reply) Quote this comment Reply to this comment #2 Posted by WelshBluebird on 21 Jul 2008 - 18:18
considering the latest NPD figures, I would agree that it needs a proper price cut.
Quote this comment #2.1 Posted by GP007 on 21 Jul 2008 - 21:15
It'll probably get a "proper" price cut once the older 20GB models are gone. Then the newer 60GB and the elite will probably see a real $50 price drop.

But we're talking probably Nov at best? Or whenever the 20GB SKU's are done.
Quote this comment Reply to this comment #3 Posted by Ayepecks on 21 Jul 2008 - 18:20
Edit: Nevermind.
Quote this comment Reply to this comment #4 Posted by Boz on 21 Jul 2008 - 19:07
Wii is not really a competitor and PS3 is still way behind so there's no real urgency.. Essentially Microsoft can bury Sony anytime they want but WHY? They can still milk some prices until they really feel the heat.
(3 replies) Quote this comment Reply to this comment #5 Posted by Halfalive on 21 Jul 2008 - 21:41
We'd also note that the Xbox 360 has just been surpassed by the Wii in the US, despite Microsoft's one year head start over Nintendo.

Did Nintendo surpass Microsoft's install base? Cause I thought they were surpassing them in current sales.. And 50 dollars off sounds like a good price drop to me. Wish they would drop the price on the Elite..
Quote this comment #5.1 Posted by Swordnyx on 23 Jul 2008 - 01:46
Yes the install base was passed.. but the overall demand of the Wii is going pfffft.
Quote this comment #5.2 Posted by tiddlie on 23 Jul 2008 - 10:42
Is the Wii considered a serious competitor to Microsoft and Sony, or is it considered something you'd generally purchase AS WELL as Xbox / PS3?

Just curious what people think about the actual significance of Wii's install base going above Xbox?
Quote this comment #5.3 Posted by HawkMan on 23 Jul 2008 - 16:54
(tiddlie said @ #5.2)
Is the Wii considered a serious competitor to Microsoft and Sony, or is it considered something you'd generally purchase AS WELL as Xbox / PS3?

Just curious what people think about the actual significance of Wii's install base going above Xbox?


The Wii is generally considered an addon, somethign peopel buy in addition to a PS3 or 360, for those few casual games it offers. It's also somethign that's quite evident when you look at the attach numbers, the Wii is barely pushign any software sales at all outside it's top titles. and the analysis that have been done among the peopel buying it shows that compared to 360 and PS'3 it's barely being used.

it's an item peopel buy because everyone has one and it's fun for a few hours. I wonder what the 360's push into casual gaming will do to it.
(1 reply) Quote this comment Reply to this comment #6 Posted by Kirkburn on 22 Jul 2008 - 00:13
I'm confused - why did they signal HDMI as a benefit of the Playstation 3? The Xbox 360 also has that. Also, more exclusives? I thought the Xbox was rivalling the PS3 in that now...
Quote this comment #6.1 Posted by jstillion on 22 Jul 2008 - 17:35
PS3 launched with HDMI standard, Xbox360 added that feature latter after a rev or two of it's hardware.
(1 reply) Quote this comment Reply to this comment #7 Posted by nmesisca on 22 Jul 2008 - 16:11
"..and going forward, more exclusive content"
going forward seems to be the key words for anything PS3 related.
It is indeed very much... future.. oriented..

Quote this comment #7.1 Posted by HawkMan on 23 Jul 2008 - 16:51
and by the same logic, the 360 is also getting more exclusives at the same time so his whole argument falls apart.
Quote this comment Reply to this comment #8 Posted by Magallanes on 23 Jul 2008 - 13:28
No matter the price but you can't sell a product infinitively without adding (real) new features.

Anyways, analyst are quite amusing, using a few numbers (and in some case is forged information) they can determine the future of a whole business.
Quote this comment Reply to this comment #9 Posted by HawkMan on 23 Jul 2008 - 16:50
Heh, his "analysis" of why the 360 needs a price cuts reads like a bad uninformed PS3 fanboy rant.

Hey lets list all the marginally good things about the PS3, and not mention any of the things the 360 does better or why it's better that it doesn't have all the stuff the PS3 has included inlcuded as standard...

sheesh. Maybe they just ran out of any real reasons why the 360 actually needs a price cut. I don't get the prices he lists anyway since I just upgraded to an elite and paid less for that than I would have had to for ANY PS3. and goign on witht he list of included stuff, it also came with a headset and HDMI cable :p
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