Microsoft: 199 dollars is the ideal console price

Posted Jun 8, 2007 at 4:14AM by QJ Staff Listed in: Xbox 360 Tags: Albert Penello, Microsoft, Peter Moore
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Xbox 360's target market... - Image 1Speaking to Bloomberg, Microsoft group product manager David Hufford noted that Microsoft is aware of the "sweet spot" when it comes to console pricing. He said: "We are well aware that the sweet spot of the market is really 199 bucks"

This is in light of the revealed plans of the company to present a more family-oriented marketing push for their Xbox 360 console. This strategy is the one that Nintendo's Wii is using at the moment.

As for Microsoft's take on Nintendo's "let's target moms" strategy, Hufford  says: "When Mom walks into the store and sees she can get a console with a game for US$ 250, she sees it as a US$ 300 value. They've done a good job."

Microsoft has attempted to expand its user base before, and despite Viva Pinata's less than stellar performance, Microsoft seems quite determined to expand their user-base. It was reported that UBS AG Analyst Heather Bellini expects an Xbox 360 price cut come the holidays and that this may help Microsoft woo mothers who are looking to get games for their children.

As to how this strategy will benefit the 360, Microsoft boss Peter Moore notes that expanding their user base is important to them. "If we don't make that move, make it early and expand our demographic, we will wind up in the same place as with Xbox 1, a solid business with 25 million people... What I need is a solid business with 90 million people," he says.

Other Microsoft execs have supported that sentiment, Albert Penello, director of Xbox global platform marketing has even said: "If you don't start building that content and reputation it never comes. I don't want to be pigeonholed as a hard-core machine."

Having said all that, it must be noted that Microsoft claims that they are winning over the female demographic with their title, Guitar Hero 2. Will that in tandem with a possible price cut help win over mothers and families and help grow the Xbox 360's user base? Supporters of the console certainly hope.

 
 
 

Comments [refresh]

by Xsux - 2007-06-08 03:19
» Failure?

FAILURE!!!1

by Demonz - 2007-06-08 04:18
» MS Could Win

If Microsoft eliminates the core, put the premium bundle at $200.00 bucks and the Elite to $300.00 that will make a strong impact in the holiday season, imaging a father or mom deciding between a $250.00 Wii or a $200.00 Xbox 360.

At this moment the sole reason I see for the succes of the Wii in no-hardcore gamers is the price. And to that you add the motion sensor MS is working for the objects and you can see this can be a good strategy. In this generation the system to beat is not the PS3 is the Nintendo Wii, and is good to see MS going in that direction.

by aaaaaa - 2007-06-08 05:05
» PS3Fanboy

I will buy an elite if this happens! Good job MS im not a real fanboy but just want some good fu*ckin games!

by . - 2007-06-08 06:55
» watever

im not complaining, i have my 360 and i bought it knowing they would support the hardcore fanbase. as long as they dont loose sight of their real supporters then i could care less about whether or not they expand their market

by f-u-c-k U.P.S - 2007-06-08 07:13
» I'ts all about FED-X B-I-T-C-H

I sold my 360 for the wii n got a 2007 gamecube with motion sencors glued 2 the damn thing, Now i sold it for a 360elite!!!!!! Halo here I come......again...lol



U.S$200.00 bucks!!!!!! No way in hell is the ps3 giving the 360 competition.....WoW who would have thought Nintendo would surpass Sony's ps3...lmmfao but s-h-y-t happens "IM" laughin. 360 wins, wii in second, and ps3 is bankrupt.......

by darkgeekrocker - 2007-06-08 08:06
» i like

how many 360 fans are so happy for this, copying the wii makes yall happy i guess... but oh when the ps3 copies the wii you bash it...anyway i hope you like more little kids yelling across xbox live in gears of war, well worth the 5 bucks a month...its rare for me to bash on the 360 but when i see so many ignorent 360 owners in one place, i cant help myself...anyway since their trying to get the family involved, i would love to see family based game exclusives (meaning at most T and the least E on ratings), if any, in the reply to my comment...if not well its just showing me more little kids will be on xbox live.

by senjutsu - 2007-06-08 09:59
» ideal console price is ... free

But The best for us (buyers) and for them (sellers) is surely the price they pay the console (higher then righ tnow) since it's gonna drop non-stop since they produce it for less each half a year. So at the start, the consoles would cost a LOT, but the game would cost less (less royalties to pay since the console is not a loss anymore). Then, after a years or two, the consoles sells well since the price have dropped a lot, and after 3-4 years, the console cost under 100$



Right now, the consoles rarely cost under 100$, even after a while, since they wanna make some money while they can to launch another console (like the ps3, it costed billions to launch, but just before that, they prepared and did billions with the ps2).

by darkgeekrocker - 2007-06-08 10:38
» wtf?

it says i am logged in as AoxomamoxoA...oh well it will pass i bet

by a - 2007-06-08 11:44
» ...

way to steal and not credit Tim Buckley's art.

by minck - 2007-06-08 13:32
» genius

i hope that m$ does this if it happens i am defentately sure that i am gonna get a xbox 360

by ahgadhkgdaf - 2007-06-08 13:43
» haahah you a$$

ps3 could cost 4,000,000 dollars and xbox 200 and i would buy ps3 360 blowssssss ps3's home mercs you all motha truckassss ahahahahahah

by Xbox is the best - 2007-06-08 16:44
» another

yet another reason 360 is going to beat ps3 this gen

by jew - 2007-06-08 17:39
» Okay...

You want some good fu*king games and you have a PS3... Odd...

by CheWu - 2007-06-08 23:23
» : /

hahaha!

by iop - 2007-06-09 05:18
» Forza 2

Forza 2 has shot to number 1 in USA and Europe, sales of the 360 are up, and sales of the PS3 are down if MS drop their prices it could be over for the PS3.

by ert - 2007-06-09 07:19
» £60 at that price with games like Forza 2 and Gears will win

360 will win if MS make the move..

by julien - 2007-06-09 10:07
» ya, haha

And why dont they just give them away! FOR FREE!!! That way there will be even more xbox 360 owners!

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