TechSpot - PC Technology News and Analysis

Around a year ago, rumors ran rampant that Microsoft may have been planning a price cut for the Xbox 360. Particularly with new consoles around the corner, it made sense. At the time, the rumor was debunked and since then Microsoft has been tight-lipped about any potential drops in the console's cost. Could that be changing? The absolutely phenomenal success of the Wii at such a low price point has made it a much bigger threat to the 360 than the PS3 is, despite the 360's flexibility. It seems that Microsoft will now begin taking after Nintendo a bit, and shift some of their marketing focus to target groups they largely have ignored up until now in their games division, such as young children. The move, says Peter Moore of Microsoft, isn't a necessary one, merely a very beneficial one:

``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,'' said Peter Moore, a vice president who oversees the Xbox. ``What I need is a solid business with 90 million people.''
On top of that, the price of the 360 is still a barricade for them. Like Sony, they lose with every unit sold due to hardware costs. The gap is less than compared to the PS3, however, and is closing. Apparently, they may soon reach a point where the hardware costs dip below the retail cost, letting them make a profit on it: a perfect point to drop the price.

They are still not commenting on such a move, however. It's an interesting article and interesting speculation. If polling sites like Nexgenwars are to be believed, the Wii already has 7.5 million consoles sold compared to the Xbox 360's 11 million, with the gap closing fast. A price drop might be just the thing for them to storm ahead once again.