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No significant sales boost despite 360 price cuts, says EEDAR

USD 249 price point expected in time for Project Natal, says analyst

Analyst firm EEDAR has said that the price cuts on the Xbox 360 will not give any significant boost to sales of Microsoft's console this year.

The Xbox 360 Elite dropped in price to USD 299 / EUR 249 / GBP 199 today, and brings the system in-line with the recently lowered PlayStation 3 price point.

"Forecasting for the remainder of the year, EEDAR does not expect the Xbox 360 to see a significant sales lift over last year’s performance despite its price drop for the Xbox 360 Elite system," wrote the company.

"In fact, the consistency of sales would indicate that the USD 299 price point is a sweet spot for the next-generation home consoles."

Jesse Divnich, director of analyst service at EEDAR, said that Microsoft is likely to further lower the price of the Elite console to USD 249 in the next 12 months, in time to offer a USD 299 Xbox complete with the Project Natal technology.

"Over the next year Microsoft will most likely reposition the Xbox 360 Elite model closer to the USD 249 price point to both pressure Sony and attract potential Nintendo Wii consumers.

"From a strategic standpoint this would then allow Microsoft to introduce the new Natal model in 2010/2011 at the USD 299 price point and still have an option for consumers cheaper than the Sony PlayStation 3," he wrote.

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