September 14, 2008

Microsoft's price cut puts Xbox 360 on the top spot in the console market

After observing lower sales for the first six months of 2008,Microsoft Corporation (NASDAQ:MSFT) lowered the price of its Xbox360 consoles and the strategy worked in their favor. The company regained the top spot in the competitive gaming console market replacing Sony Corporation’s (TYO:6758) PS3. On September 12, 2008, Microsoft cut its console price for the second time.


In August, Microsoft sold 195,200 units making it the top seller in USA. It also took the top spot in terms of game software sales. Madden ’09 which was sold with Xbox 360 was sold one million units,Soul Calibur IV sold 174,000 units and Too Human sold 168,200 units.Microsoft’s price cut ranged between $50 and $80 based on the models. Currently, the Xbox360 model cost $199. This is the cheapest next generation gaming console in the market.


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arstechnica.com