Susan Arendt
Culture

Microsoft: $199 is Market's Sweet Spot

Microsoft doesn’t want the 360 following in the original Xbox’s footsteps, appealing only to hardcore gamers. Peter Moore put it like this: 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 […]

Xbox360
Microsoft doesn't want the 360 following in the original Xbox's footsteps, appealing only to hardcore gamers. Peter Moore put it like this:

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.

To win over a larger audience, Bloomberg figures that the company might bring the console's price closer to what David Hufford, director of
Xbox product management, refers to as the "sweet spot":

We are well aware that the sweet spot of the market is really 199 bucks. [Wii makes a] strong value proposition. When mom walks into the store and sees she can get a console with a game for $250, she sees it as a $300 value. They've done a good job.

UBS AG analyst Heather Bellini expects a price cut as soon as September.

Microsoft Adds Xbox Games, May Cut Price to Woo Moms From Wii [Bloomberg]