Analyst says Q1 price cut for 360 dicey
If you were one of the fans hoping the Xbox 360 would be cheaper this time around you may have to wait a little longer. According to a Lazard Capital Markets analyst, the prospect that Microsoft may be cutting the price for their console for the Q1 of 2007 is highly unlikely.
This was said in light of Microsoft’s recent announcement of them shifting to a target shipment of 12 million units by this June, as compared to their previously target of 13-15 million consoles.
Lazard’s Colin Sebastian went further on to explain this target reduction may have been done to help Microsoft’s Entertainment and Devices Division, which was previously reported to have lost US$ 289 million during last year’s second quarter.
Lastly, Lazard states that Microsoft may have to cut console prices along with the target reductions, if they wished to minimize the profit losses their reduction may cause. What that means in a nutshell is that while we won’t be seeing any developments soon, they (Microsoft) may be planning one in the long run. Look on the bright side – for one, the console is reasonably priced given the online features it brings to the table. Secondly, it’s not like some titles aren’t getting some serious price reductions among retailers…
Via Next-Gen Biz
If you were one of the fans hoping the Xbox 360 would be cheaper this time around you may have to wait a little longer. According to a Lazard Capital Markets analyst, the prospect that Microsoft may be cutting the price for their console for the Q1 of 2007 is highly unlikely.
This was said in light of Microsoft’s recent announcement of them shifting to a target shipment of 12 million units by this June, as compared to their previously target of 13-15 million consoles.
Lazard’s Colin Sebastian went further on to explain this target reduction may have been done to help Microsoft’s Entertainment and Devices Division, which was previously reported to have lost US$ 289 million during last year’s second quarter.
Lastly, Lazard states that Microsoft may have to cut console prices along with the target reductions, if they wished to minimize the profit losses their reduction may cause. What that means in a nutshell is that while we won’t be seeing any developments soon, they (Microsoft) may be planning one in the long run. Look on the bright side – for one, the console is reasonably priced given the online features it brings to the table. Secondly, it’s not like some titles aren’t getting some serious price reductions among retailers…
Via Next-Gen Biz
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