Microsoft will cut the price of its Xbox game console to $149 next week, according to an analyst covering the market.
Piper Jaffray analyst Tony Gikas wrote in a research note that Microsoft will introduce the widely expected price cut on Tuesday, shaving $30 off the current Xbox price tag of $179.
But that's still $20 above where the Xbox price needs to be in order to build sales momentum and boost the console's user base, Gikas wrote on Friday.
"Xbox management must be under pressure to limit losses on its Xbox hardware system," he wrote. "We think the $149 price point is a risky undertaking that will limit unit sales without additional promotions or killer applications to drive interest. We had been expecting the $129 price point to drive hardware and ultimately software sales during the next 12 months. We doubt a $149 price point will be enough to drive (2004) hardware unit sales above 2003 levels."
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Mar 27, 2004, 07:38 AM
