07-12-2007, 07:36 PM
Quote:
Around noon today, John Davison and I sat down with Shane Kim, corporate VP at Microsoft Game Studios, this afternoon to chat about the company's presence at this year's E3 and press him on what Microsoft's planning going forward. The entire interview will be running soon on 1UP, but we couldn't help but share some today.
A number of people have asked Microsoft for a response to the PlayStation 3 price drop, but, more importantly, when is Microsoft planning the same thing? Kim doesn't spell out a price drop in 2007, but he said this holiday is very important for Xbox 360 to win and they need to move towards a mass market price; Kim admits $300 and $350 aren't mass market. Sounds like it's coming soon.
1UP: What is the mass market price and when will Xbox 360 achieve that?
Shane Kim: If you look back in history - again, it's not just going to follow what's in history - in some cases, 75-80% of the business gets done $199 and below. So, we're not quite there yet. I think that number can change over time because of inflation, greater capabilities; what we can do what Xbox 360, even the core system, is far beyond what you could do before in previous generations. Who knows? Maybe $249 will be a mass market price point, but historically $199 has been when you're talking a PlayStation 2-like install base. 80% of the business gets done at $199 and below. We're like the other guys, right?
We're trying to drive costs out of the system as much as possible so we can hit those price points. We're a little closer than Sony is with PlayStation 3, thankfully, but we're all trying to get that magic price point.
Are you going to move towards that in 07?
Kim: Stay tuned. We didn't announce anything here, didn't feel the need to. July is a very odd time to announce a price reduction. I'm not even sure Sony announced a price reduction, anyways [Editor's Note: Kim is pointing to the fact that PS3 launched with $499 and $599 SKU, removed the $499 version and then will reintroduce it in August], but we don't feel the need to do it here at E3.
A number of people have asked Microsoft for a response to the PlayStation 3 price drop, but, more importantly, when is Microsoft planning the same thing? Kim doesn't spell out a price drop in 2007, but he said this holiday is very important for Xbox 360 to win and they need to move towards a mass market price; Kim admits $300 and $350 aren't mass market. Sounds like it's coming soon.
1UP: What is the mass market price and when will Xbox 360 achieve that?
Shane Kim: If you look back in history - again, it's not just going to follow what's in history - in some cases, 75-80% of the business gets done $199 and below. So, we're not quite there yet. I think that number can change over time because of inflation, greater capabilities; what we can do what Xbox 360, even the core system, is far beyond what you could do before in previous generations. Who knows? Maybe $249 will be a mass market price point, but historically $199 has been when you're talking a PlayStation 2-like install base. 80% of the business gets done at $199 and below. We're like the other guys, right?
We're trying to drive costs out of the system as much as possible so we can hit those price points. We're a little closer than Sony is with PlayStation 3, thankfully, but we're all trying to get that magic price point.
Are you going to move towards that in 07?
Kim: Stay tuned. We didn't announce anything here, didn't feel the need to. July is a very odd time to announce a price reduction. I'm not even sure Sony announced a price reduction, anyways [Editor's Note: Kim is pointing to the fact that PS3 launched with $499 and $599 SKU, removed the $499 version and then will reintroduce it in August], but we don't feel the need to do it here at E3.
http://www.1up.com/do/newsStory?cId=3161223
i predict it happens this holiday season. most likely the week of Thanksgiving. 
(bad pun)
coulda got another game