Published:
08-Mar-08
Microsoft is cutting the price of Xbox 360 console hardware across EMEA territories. The changes in console RRP came into effect on March 10 and are as follows:
Xbox 360 Elite (120GB HDD)
þ449 to þ369
£299 to £259
Xbox 360 Pro (20GB HDD)
þ349 to þ269
£250 £199
Xbox 360 Arcade (no HDD)
þ279 to þ199
£199 to £159
Microsoft has emphasised that the price cuts are part of its ongoing strategy to broaden the audience of Xbox 360 customers. Microsoft's EMEA team believe that it has satiated the European market for hardcore gamers and that it is now appropriate to lower prices in an attempt to appeal to demographics other than the core gamer.
Our take...
Microsoft hopes that consumers prove price sensitive in their choice of games platforms however hardware pricing is only one component of the factors which influence consumer's games hardware purchasing decisions. Consumers are also influenced by other factors such as games library, backwards compatibility with a legacy platform and a platform's perceived brand values. While Microsoft has proactively published more mass market oriented games recently (eg, popular movie quiz game Scene It; Viva Pinata Party Animals) and has offered a 'Core' (since rebranded 'Arcade') SKU targeting a more casual, mass market gamer since launch there is yet to emerge any evidence that the platform is resonating with a broader demographic. Screen Digest believes that a more consistent and ongoing marketing campaign is needed especially in Southern Europe, where the PlayStation brand is well entrenched, and where Nintendo has been making significant inroads with both the DS and Wii.
These price cuts have been factored into Games Intelligence forecasts for some time. Screen Digest will continue to monitor the impact of Microsoft's strategy closely.
