Goshoo

Microsoft's Xbox 360 Is Looking Good

I think it would seem a little desperate if Microsoft cut the price of the 360 again. They had substantial price cuts less than 12 months ago. I am not sure why Microsoft thinks the only way to sell the 360 is if it is the cheapest thing on the market. In my mind, yet another price cut will devalue the perception of the system in the mind of the consumer. It's a dangerous game to play, particularly if you take into account the fact that the Xbox division has lost a lot of money since the last price cut. It's time for Microsoft to hold its ground.

How Many Xbox 360 Units Will Microsoft Ship in Q4?

This analysis is a little off. It is widely viewed that Microsoft stuffed the retail channel in Q4(calendar) 2006. Q1 and Q2 of 2007 saw combined shipments of 1.2 million which was a 2.3 million drop from Q1 and Q2 of 2006. Microsoft only shipped 4.3 million in Q4 of 2007 which was a 100k fewer consoles than the year prior.

Microsoft is averaging less than 5k consoles weekly in Japan. Do you really think it is likely that they will be able to move 9 million consoles in Japan alone? They are trending for 100k consoles in Japan this quarter.

If you follow Microsoft's shipment history, it is likely that Microsoft will ship between 5 - 5.2 million consoles in Q4 of 2008.