Quite a few people are predicting price cuts for Microsoft products today. After Codemasters went on record predicting a price cut for Kinect early next year, industry analyst Michael Pachter predicted a price cut for the newly launched Xbox 360 S early next year.
The redesigned console was launched last month by Microsoft, and it led to the system experiencing stupendous success worldwide, with the Xbox 360 being propelled to the top of the hardware charts worldwide, even Japan.
However, the announcement of the new Xbox 360 S Arcade, which has the same functionality as the existing model, only with matte black finish and reduced 4GB of internal storage, retailing at $199, gives Microsoft significant head room to reduce the price of the system next year.
“The new arcade SKU is very attractive at $199, and suggests that the standard SKU at $299 is very profitable, giving Microsoft room to cut price on the more expensive SKU,” Pachter said, explaining his stance to CVG
“I don’t expect that until next year, but think pricing on the new arcade SKU is a signal that price is coming down next year.”
Of course, a price cut could help Microsoft sustain the kind of success the new model has been experiencing.