Microsoft holds firm on Xbox 360 pricing
Shane Kim, head of Microsoft Game Studios, says "it's really not about meeting the profitability goals. We feel very confident."
Instead, Microsoft voiced confidence that a slate of upcoming titles targeting both hard-core and casual gamers would be strong enough to give it the lion's share of consumer dollars in the coming months.
"We have no desire, no need, to react to anything the competition has done," Shane Kim, head of Microsoft Game Studios, said in an interview.
"We feel really great about the
On Monday,
That means the machine, which has a 60-gigabyte hard drive and a Blu-ray high-definition DVD player, costs $500, or $20 more than the high-end
Microsoft also has a "premium" Xbox 360 with a 20-gigabyte hard drive that sells for $400, and a "core" version with no hard drive that costs $300.
Sony's cut also came days after Microsoft said the number of broken Xbox 360s was "unacceptable" and that it would book a charge of up to $1.15 billion for repairs and warranty extensions.
Microsoft also said it had shipped 11.6 million consoles worldwide by the end of June, missing its target of 12 million.
In the United States, Microsoft has sold about 5.8 million consoles, compared to 2.8 million for Nintendo's Wii and 1.4 million for the PS3, according to data from NPD Group.
Kim said the decision not to cut prices was unrelated to Microsoft's goal of making the Xbox business profitable in its 2008 fiscal year, which just started.
Since launching the original Xbox in late 2001, Microsoft has spent billions of dollars fighting Sony's dominance in the industry yet has shown little, if any, profit.
"It's really not about meeting the profitability goals. We feel very confident that we'll meet the profit goals with our strategy that is already in place," Kim said.
Kim pointed to a lineup of games coming out later this year, including Microsoft's highly anticipated
"This year, that perfect storm arrives again," Kim said. "And the Xbox 360 is the only platform you'll be able to play all three of those titles on."
Microsoft also hopes to attract more casual gamers with two new casual games for later this year. One is a multiplayer "party game" based on its "Viva Pinata" franchise, and the other is based on the movie trivia board game "Scene It?"
Kim also said the Xbox Live online service, which allows players to compete online and download movies and games, had 7 million users and would expand to 10 million in one year. He said Walt Disney would start making some of its movies available on the service.
"