SEATTLE -- Microsoft Corp., in a move to court the mass market with its videogame products, plans to sharply cut the price of its Xbox 360 game consoles--including offering its least expensive model at $199.
The price cuts, effective Sept. 5, signal an increasing aggressiveness by Microsoft of Redmond, Wash., to boost sales of the Xbox 360 before the crucial holiday shopping season. The price cut in its low-end console, which had been priced at $279, marks the first time that one of the latest generations of consoles from game makers has fallen below $200.
Aaron Greenberg, director of product management for Xbox 360 and Xbox Live, said three-quarters of sales for game consoles historically have occurred after hardware makers dropped the prices of their machines below that mark. - Wall Street Journal
This is absolutely nuts in a great sort of way for Microsoft. I remember just a few years ago when the PS2 was over $200.