[Avenger1980]

http://www.ibtimes.com/articles/2007...-shipments.htm

By Thomas Fredrickson
Posted 26 January 2007 @ 06:11 pm EST

Microsoft (Nasdaq: MSFT) slashed the shipments forecast of its Xbox 360 video game console yesterday, in a move some analysts believe will pave way for a future price cut and even an updated version of the game system.

Chief Financial Officer Chris Liddell said on Thursday that Microsoft aims to ship a total of 12 million of its game consoles by June 30 of this, the end of its fiscal year. This is down from a previous 13 to 15 million units target, but some industry observers feel the Redmond, Wash.-based firm is winding down inventories for an upcoming price cut.

"We assume roughly a $100 price cut with the premium unit selling for $299 versus $399 previously," said Rick Sherlund, research analyst for Goldman Sachs.

"With Sony likely delivering enough consoles to meet demand by the June quarter," he explains, "this would seem to be an appropriate time for Microsoft to move down the price curve and benefit from the elasticity of demand."

Also, with Microsoft's smash hit Halo 3 likely to begin shipping in September, Sherlund feels the software giant can still "become profitable in this quarter even with this price reduction."

Microsoft's latest game console made its debut in November 2005, roughly a year ahead of next-generation machines from rivals Sony Corp. and Nintendo Co. Ltd. Since then it has sold over 10 million units, executives said yesterday.

Citigroup's Brent Thill believes that the firm may be lowering its shipments as it makes way for a revision of the game system, which may come this year. Thill believes the new design will be a revised motherboard design, HDMI ports for high-definition video, and 120 GB of storage - 6 times more than its current capacity.

Not all industry experts agree, however.

"A hardware refresh may be in order later this year, but more to cost-reduce the
console rather than adding more parts, " commented Paul McNealy of American Technology Research.

Microsoft's Entertainment and Devices division, the group responsible for the Xbox projects, contributed 21 percent towards the software company's $2.68 billion for the quarter.

Shares of Microsoft closed slightly up on the Nasdaq Stock Market today, rising 0.56 percent, or $0.17 to $30.60.

[explosive]

good shit, a $100 dollar price cut is going to fuck up sony big time

[fourchamberz]

i don't own either console because I was waiting for the price cut. But seeing that the XBOX might be lowered..maybe it's worth waiting especially for the HD upgrade.

[tinobar]

good i havent even played xbox 360 and ps3 i did not even know it was out till like a month afterward's they are not even on my radar yet not on till they cut the price on them ho's

[BrokenFace]

Really hope this is accurate. The current price is the only reason I haven't bothered picking up the 360.

[whiteb3lte]

Bill Gates plays for keeps he will do anything in his power to be number 1. Alot of the 360 parts are easily available and easily produced. The PS3 with the Cell proccessor is very hard to produce and the costs are very high on the production side. I went to Gamestop they had a PS3 60gb for $599.99 I asked what good games I could get (He named 2 (I'm sick of Doom style games). I have been pondering the 360 for a while but FPS games aren't that fun to me anymore. I will wait and see .......

[evil_glove]

that would be great. i think it's time to update from mt atari 2600, but who wants to pay those rediculous prices

[HuFlungPu]

I'd stick with the 360... PS3 still WAY overpriced....

[Oeshon]

good move by xbox360, they are going to really hamner home the sales in 07.

nintendo should consider a pricedrop aswell, they can easily afford it

[hughesfan20]

The Wii's are still selling like hot cakes at the stores around here, go Nintendo! Plenty of 360's sitting there though.