Could this be the reason why Microsoft hasn't dropped the 360's price much?

[Mikewarrior]

Over 1 Billion in losses due to failed Hardware that is essentially Microsoft's fault?

On another related note - I really dislike Shane Kim, & Microsoft keeps showing how to fail at selling systems to the masses...

A session with Shane Kim
...On the subject of a possible price drop this Holiday season, Kim indicated that while Microsoft is always looking for ways to be more competitive, and in time, inevitable, there are many factors that go into the decision to lower the console’s price – and at this time, or for the Holiday season, the stars just aren’t aligned for that to happen.

Someone else said... Wait so MS is going to stick with the current price for the rest of the year? WTF! That cinches it, MS officially deserves to lose the console war. Half of the reason the Wii is selling the best is because it's the least expensive console on the market. The fact that MS isn't already undercutting the Wii with a $199 Arcade system is beyond asinine. So either Kim's outright lying or MS really is run by complete fools now...

http://forum.teamxbox.com/showpost.p...8&postcount=69

Yep... That's exactly how I feel.

[CrazyCougar]

Why drop the price when you are still outselling the PS3? And neither the PS3 NOR the 360 will ever undercut the Wii. The Wii will be in demand and sell no matter what the price of the next gen systems.

If the PS3 drops its price in the fall as expected, I could see MS making another price cut if they start to lose sales to the PS3. Neither company is conerned with the Wii as its a totally different genre of system altogether. They know that battle is not going to be won. The war is between Sony and Microsoft.

[Mikewarrior]

So far this year the Ps3 is outselling the 360 & really bad if you count the rest of the world. The 360 launched 1 year earlier than the Ps3 & the Ps3 has Blu-Ray, yet the 20 Gig 360 PRO is only $50 cheaper than Ps3’s 40 Gig SKU.

[Steeps5]

I think that everything mikewarrior posts is pro-PS3.

But I guess I could agree with the hardware failures and the price not dropping because of it.

[CrazyCougar]

I think that everything mikewarrior posts is pro-PS3.

Yeah, pretty much.

Anyhow, the PS3 only outsold the 360 due to a mysterious console shortage in January, February and part of March.

[tsrdawg]

This is not a PS3 fanboy issue...I'm totally anti-Sony but their product IS much more reliable...this is a depreciation/design defects issue...I'm disappointed that there has only been a 12% price drop in 2.5 years...I'm amazed at the smugness of MS...the console has a 33% failure rate - we are expected to spend almost 400 bux for chitty reliability? Oh, that 3 year warranty only entices me to hold on to my scrill.

Xbox1, with superior reliability, dropped 50% within 18 months after release...

I dont care who outsells who...I'm a consumer expecting to get what I pay for...I will not settle for precarious reliability or an overpriced HD...

I will delay buying an xbox 2 until the price is right..until then,
I 'm happy playin Halo MP, nfl 2k5, DOA3, baseball stars.

[CrazyCougar]

TSR, I am not for one minute saying that MS doesnt have a problem with their design/manufacturing. I for one know that all too well having gone through multiple 360's myself. But the bottom line is, the 360 is a better system when it comes to software and online capability. But again, why drop a price when you are still selling systems like crazy.

Blu-Ray? For me, thats not a selling point at all. DVD's look just fine in my opinion. I supported neither HD-DVD or Blu-Ray with my money. I dont need BluRay nor do most of the general conumer public.

[wicked_d365]

I've got to go with Crazy on this one, why drop if your still selling. But, the blu-ray is why the PS3 is selling more right now, My boss bought a PS3 just because of it, he dosen't and won't own a game.
MS only dropped the price of the XB1 because Sony had just started turning a profit on the PS2 when the Xbox was released, so Sony dropped the price, MS followed.
I'm not gonna lie, I was gonna buy a PS3 before my 360 because of the price, and Blu-Ray, but I stumbled upon my Elite on craigslist.

[David Creech]

There also is a bit of a critical difference in how the two companies do business. Microsoft is committed to making a profit from the gaming branch of their company, while Sony sees it as a loss leader. MS sells the console at a profit, when comparing what it costs to manufacture and the wholesale price. Sony sells the PS3 at a price significantly lower than cost, primarily because of the cost of the Blue Ray laser.

Frankly, I would rather make $50 mil and be #2 than lose $50 mil and be #1. Not that MS is making money yet, but at least they are trying. Whose stock would you rather own? MS, every time.

[WynnFire]

f*ck Teamxbox. I stopped going to their site years ago.

[CrazyCougar]

Hahahaha, the good ole TXB vs XBA days. I remember them well.

[CrackinBacks]

Agree with MikeWarrior...except when comparing Xbox to Wii, that's comparing apples to oranges. Wii is NOT a true next-gen High Def console. M$ and Sony are competing for the same gamers, but the Wii is a niche console, that is more oriented to getting new consumers into gaming. While M$ could drop the price of the Arcade bundle, they don't really need to. Their biggest failure was to realize what could fail in the system over the long run, which to me, means they really didn't do enough testing of their products.