Xbox prices come down as Wii sales zoom up

GOOD news for those who always wanted an Xbox but couldn’t afford it — the product may soon be cheaper.

Microsoft Corporation, the creators of the Xbox 360 console, yesterday announced its intention to slash prices to catch up with Nintendo Wii sales.

Shane Kim, vice president of Microsoft Game Studios, said the price cut could help give an advantage to the product over its rivals. Speaking at the launch of the Electronic Entertainments Expo (E3) in California, Mr Kim said: “We need to compete effectively for customers and part of that is getting to have an affordable price range for all ages,” he said.

A spokesperson for Xbox Microsoft Ireland said it is yet to confirm when this will happen in Ireland.

“So far the price has remained the same as there’s been no need to drop prices in Ireland. Sales have been steady and Nintendo Wii has so far not been seen as a direct competitor for us,” said Nicola Watkins.

Game, one of the main providers of electronic entertainment in Ireland, is certain sales will improve if prices drop.

“The Xbox already provides a substantial part of our sales but we’ll see that jump if they drop the price,” said commercial manager, Allen Wilson.

“We can only predict the success of the product post-Christmas sales, but so far it is behind the Playstation 3 (PS3) and the Nintendo Wii, but they are different products in comparison.”

“Technically you would expect the price to drop as the life cycle gets older — they become cheaper to manufacture.

“But it’s not a question of the Xbox going out of fashion — it’s got another four or five years of shelf life.

The Xbox core system costs €299, while the premium system will set you back €399.

Entertainment and devices Manager for Microsoft Ireland, Orla Sheridan defends the Xbox for holding its ground so far, two generations ahead of its competition.

“When Christmas comes, Xbox 360 will be entering its third generation of sales while the PS3 and Wii are only in their first. But we did better than our competitors did if you compare the launch figures,” said Ms Sheridan.

“A drop in prices is only being considered because we’re always looking at the market and how we can adapt it.”

The move for a price reduction has come as Microsoft has seen a drop in trading so far this year.