Several comments from Microsoft executives has exposed Microsoft's plans to follow Nintendo's lead in expanding console market beyond hardcore gamers as well as its more reasonable pricing.
"If we don't make that move, make it early and expand our demographic, we will wind up in the same place as with Xbox 1, a solid business with 25 million people", said Peter Moore, a vice president who oversees the Xbox. "What I need is a solid business with 90 million people", he added.
It's not a secret that Microsoft loses money on every Xbox it sells. In the fiscal year that ended June 30, Microsoft lost $1.26 billion on Xbox 360 sales of $4.26 billion. Microsoft says that it will turn profitable in the year that starts July 1. With a strong Christmas games lineup, analysts expect Microsoft to utilize the production cost reduction into price cuts to maximize Christmas games sales.
"We are well aware that the sweet spot of the market is really 199 bucks", said David Hufford director of Xbox product management. Hufford then complimented Wii's price of $250, saying that "When mom walks into the store and sees she can get a console with a game for $250, she sees it as a $300 value. They've done a good job".
However, all Microsoft executives refused to officially confirm Xbox 360 price cuts or give more details about their non-hardcore-gamer plans other than claiming that "Guitar Hero II is popular with female users"!
