Microsoft will cut the U.S. price of its Xbox 360 gaming console by $50, from $349 to $299, according to The Wall Street Journal. The company has already slashed the price by $50 in New Zealand and Australia, and U.S. gaming blogs have been predicting a similar move to boost sales.
The software giant could not immediately be reached for comment, but the Journal cited people familiar with the matter in reporting that Microsoft will reduce the price for the version of the Xbox 360 with a 20GB hard drive as early as Sunday. In fact, the Journal said the lower-priced console is expected to be widely advertised in Sunday advertisements for electronics stores.
A Summer Sales Boost
Michael Cai, a video-game analyst at Parks Associates, said the price cut could lead to a summer sales boost. Microsoft, he said, needed to stimulate gamer interest in the console, and now is the right time for a price cut.
Ironically, although the video-game industry is reporting one of its strongest sales periods in history, Cai said Grand Theft Auto IV didn't do much to help console sales. NPD Group reports game sales in May climbed 41 percent to $537 million. Launches of highly anticipated titles like Guitar Hero, GTA IV and Wii Fit have been a boon to the industry.
"GTA IV didn't help much and there isn't a killer game on the horizon -- no pun intended," Cai quipped. Parks Associates' study of 2,000 U.S. Internet gamers, Electronic Gaming in the Digital Home II, reports that consumers interested in buying a console are more interested in Nintendo's Wii and Sony's PlayStation 3 than the Xbox 360. Among those who intend to purchase a console, 38 percent ranked Wii as their No. 1 choice, followed by PS3 at 31 percent, and Xbox 360 at 19...

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