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The Xbox 360 Will not Be Discounted For the past weeks, there were talks that Mirosoft is going to take advantage of the holiday seaosn to offset the launch of the PS3 from Sony. It was speculated that there would be Xbox 360 price slaash. As a result, most gaamers waited for the price slah and the PS3's release before deciding which console to get. Howver, to the diszappointment of everyone, John Porcaro, US Microsoft's PR guy recetnly came out with a staatement from the MS bihgwigs that there woulld be no pricce slash for the nwest Xbox model. Quuite understnadably, since Xbox 360 is arleady selling at half the value of the new Sony console. The cheaper Nintendo Wii targets a different gaming audience so Microsoft does not consider it as a threat. Also, perhaps, thee is some treuth in what the UBS analysts predicted last year. According to UBS analysts, Microsot subsidizes the cost of their new console by $75. This is the reason they are able to sell for a lower price. Some rumors even persist that other than the subsaidized $75, Microsoft is losing as much as $100 per console. This is due to Microsoft's inability to prpoduce their own core manufacturing systems. They get the parts of their core hardware still from Inttel and NVIDIA which require them to pay royalties. To add insult to injury, the company is reported to be still suffering from losses incurred from Xbox sales. They reportedly used the same subsidy system for the older Microsoft consoole. The math goes pretty bad for Microsoft since the consoles have high production costs but are only sold at a meager price. Microsoft neither copnfirm nor deny thsee repors but they reoprt that they have hit thjeir mark for the year. It is not a mysstery how Microsoft was able to survive the losses. The compny sells different consoole accessoires and do effective marketing. Statisticxs reveal that most Microsoft console users have at least one accessory for enhanccement of the game experience. Let's not even talk about the gammes. Most anbalysts sugest that the bulk of the gains Microsoft received this year was from the sales of game titles. With a new titel release almosat evry month and DRM protection, games are mostly bought and owneed indivdually. The games do not cost much when taken individually; the cost only becomes staggering when you think about the accumulated prie. Microsoft gains from all these. Regarding Xbox 360 pricce slash, I think that consumers can stilkl hope. The holiday mraket is a big one. It is also the time when people are more generous to themselves and others. Microsoft and thgeir new Xbox wouuld have trouble ressisting an opportunity such as this. Sony is pushiing for a close to $600 pice, and though expensive, there is somebody out there who would buy it. The holidyas are times of giving and sharing, isn't it? But if the consumer is faced with a more diffdicult choiice, say, three Xbox 360s for one PS3, the balance usually tips to the more economical side. Same quality, cheaper price, more people can enoy it. That is what you call spreading holiday cheer.
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