Microsoft: 199 dollars is the ideal console price

Speaking to Bloomberg, Microsoft group product manager David Hufford noted that Microsoft is aware of the “sweet spot” when it comes to console pricing. He said: “We are well aware that the sweet spot of the market is really 199 bucks”

This is in light of the revealed plans of the company to present a more family-oriented marketing push for their Xbox 360 console. This strategy is the one that Nintendo’s Wii is using at the moment.

As for Microsoft’s take on Nintendo’s “let’s target moms” strategy, Hufford  says: “When Mom walks into the store and sees she can get a console with a game for US$ 250, she sees it as a US$ 300 value. They’ve done a good job.”

Microsoft has attempted to expand its user base before, and despite Viva Pinata’s less than stellar performance, Microsoft seems quite determined to expand their user-base. It was reported that UBS AG Analyst Heather Bellini expects an Xbox 360 price cut come the holidays and that this may help Microsoft woo mothers who are looking to get games for their children.

As to how this strategy will benefit the 360, Microsoft boss Peter Moore notes that expanding their user base is important to them. “If we don’t make that move, make it early and expand our demographic, we will wind up in the same place as with Xbox 1, a solid business with 25 million people… What I need is a solid business with 90 million people,” he says.

Other Microsoft execs have supported that sentiment, Albert Penello, director of Xbox global platform marketing has even said: “If you don’t start building that content and reputation it never comes. I don’t want to be pigeonholed as a hard-core machine.”

Having said all that, it must be noted that Microsoft claims that they are winning over the female demographic with their title, Guitar Hero 2. Will that in tandem with a possible price cut help win over mothers and families and help grow the Xbox 360’s user base? Supporters of the console certainly hope.

Speaking to Bloomberg, Microsoft group product manager David Hufford noted that Microsoft is aware of the “sweet spot” when it comes to console pricing. He said: “We are well aware that the sweet spot of the market is really 199 bucks”

This is in light of the revealed plans of the company to present a more family-oriented marketing push for their Xbox 360 console. This strategy is the one that Nintendo’s Wii is using at the moment.

As for Microsoft’s take on Nintendo’s “let’s target moms” strategy, Hufford  says: “When Mom walks into the store and sees she can get a console with a game for US$ 250, she sees it as a US$ 300 value. They’ve done a good job.”

Microsoft has attempted to expand its user base before, and despite Viva Pinata’s less than stellar performance, Microsoft seems quite determined to expand their user-base. It was reported that UBS AG Analyst Heather Bellini expects an Xbox 360 price cut come the holidays and that this may help Microsoft woo mothers who are looking to get games for their children.

As to how this strategy will benefit the 360, Microsoft boss Peter Moore notes that expanding their user base is important to them. “If we don’t make that move, make it early and expand our demographic, we will wind up in the same place as with Xbox 1, a solid business with 25 million people… What I need is a solid business with 90 million people,” he says.

Other Microsoft execs have supported that sentiment, Albert Penello, director of Xbox global platform marketing has even said: “If you don’t start building that content and reputation it never comes. I don’t want to be pigeonholed as a hard-core machine.”

Having said all that, it must be noted that Microsoft claims that they are winning over the female demographic with their title, Guitar Hero 2. Will that in tandem with a possible price cut help win over mothers and families and help grow the Xbox 360’s user base? Supporters of the console certainly hope.