Lower price and targeting the console at the family group is key to lifting Xbox 360 success above that of Xbox.
Speaking to Bloomberg, group product manger David Hufford has revealed that Microsoft is well aware of the price at which the Xbox 360 will begin to be an attractive proposition for the family audience.
We are well aware that the sweet spot of the market is really 199 bucks," said Hufford. "When Mom walks into the store and sees she can get a console with a game for USD 250, she sees it as a USD 300 value. They've done a good job."
However, if the Xbox 360 is to compete in the same segment as the Wii, a price cut is only half of the puzzle. New family orientated titles and a strong marketing push will be just as important.
"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 Xbox boss Peter Moore. "What I need is a solid business with 90 million people."
Institutional Investor's analyst Heather Bellini estimates that Microsoft could make a price cut to the console as early as September, ensuring they have enough consoles in the market to drive huge sales of the biggest titles.
"If they really are going to have a good Christmas games line-up, then they just have to have the largest number of boxes out there so that they sell the largest number of games," said Bellini.
The latter half of 2007 will see the release of numerous blockbuster Xbox 360 titles from Microsoft, including Halo 3, Project Gotham Racing 4 and Mass Effect.
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