No price cut for Xbox 360 this year

Microsoft has once again denied that there are any plans to cut the price of the Xbox 360 - at least, not before the end of 2006.

Rumours of a cut began to emerge as early as May, resurfacing in June and July - but each time, MS dismissed them. However, in August, the price of the Core system did drop from GBP 209 to GBP 199, with retailers claiming the initiative was driven by Microsoft and vice versa.

There has recently been speculation that a price cut could be on the way in time for Christmas, in a bid to give the Xbox 360 an extra boost as the Nintendo Wii hits shelves worldwide and the PS3 arrives in the US and Japan.

But speaking to SeattlePI.com, a spokesperson said there are "no plans to adjust the price of the Xbox 360 this year".

It would seem that the company is sticking to its guns for the time being, with more than 6 million consoles sold and a year's head start over Sony and Nintendo. There's also the fact that the PS3 has been delayed in Europe until March, giving Microsoft even more time to establish a healthy installed base over here.

Analysts speaking to SeattlePI.com agreed that a price cut for 360 is unlikely in the near future, with Wedbush Morgan's Michael Pachter explaining that the price gap between Xbox 360 and PlayStation 3 gives Microsoft "the luxury of waiting".

Microsoft would be stupid not to at least drop the price $50. Yeah the ps3 is more expensive already, but if they were to drop the price it would make the 360 look like a much better buy. I think that if Microsoft was really smart they would stop making core packs, drop the premium pack to $300, and release a pack that came with the HD-DVD player for like $450.

I do plan on buying a 360 Premium pack this holiday season, but I am going to wait for it to drop in price or come with a game or two. If i was going to pay $400 for one, I would have just bought it soon after launch last year.