Summary
As anticipated, Microsoft turned to the easy and short term solution to increase its market share - reducing prices although a cold financial analysis cannot let it do so. The timing for the price cut was chosen to meet the "back to school" last sales round and to build expectation for the Xmas season. Not sure whether this is the magic cure for the X360.
Analysis
As anticipated, Microsoft turned to the easy and short term solution to increase its market share - reducing prices although a cold financial analysis cannot let it do so.
Instead, it should asks itself what brought Nintendo to be much more successful. and the answer is business model and contents. What gamers want to see is not a state of the art machine but contents that will attract them to the game machines for hours and hours.
The timing for the price cut was chosen to meet the "back to school" last sales round and to build expectation for the Xmas season.
Not sure whether this is the magic cure for the X360.
