Analyst Calls for "Real" Xbox 360 Price Cut

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.

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15 Comments

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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

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.

"..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.. :disappointed:

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...

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..

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?

(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.

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.

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.