Microsoft: Console Sweet Spot is $199, but No 360 Price Drop

In order to rule this console generation, Microsoft believes that it needs to start emulating some of Nintendo's tactics. "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," said Microsoft marketing VP Peter Moore. To help expand the demographic, select Xbox 360 marketing will take a more family friendly approach releasing more family games and redoing retail displays to emphasize games aimed at children.

Microsoft also may do something about the price. While applauding Nintendo's strategy with the Wii, David Hufford, a director of Xbox product management, noted that Microsoft may be looking at a price below $200, as Hufford says, "We are well aware that the sweet spot of the market is really 199 bucks." However, Hufford's comments shouldn't be taken as any immediate signal of a price drop: "With Xbox 360s selling well at their current price point, Elites selling out at $479, and an insanely great portfolio of games in the market, there's no reason to announce any kind of price drop anytime soon."

News source: DailyTech

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