Microsoft (MSFT) is cutting the price of its most popular version of the Xbox 360 by $50 to $349. Sales of the game console have been weak as the Nintendo Wii continues to whip both Xbox and Sony’s (SNE) PS3. Sony also recently dropped its price.
Microsoft’s game unit continues to lose money, and dropping its price will not help that. It needs some hot games to increase demand for the console. Its own Halo 3 may do that, but another critical game, Take-Two’s (TTWO) "Grand Theft Auto" has been delayed, which hurts the chances of sales of the Xbox picking up anytime soon.
Douglas A. McIntyre