Console Wars: The Effect Of Price Cuts On The Xbox 360, Wii, and PS3

While the Nintendo Wii continues to have a stranglehold on console sales, both worldwide and in the United States, the Xbox 360 and PS3 are battling it out for the the second place position for year-to-date sales. Just a little over two months ago , Sony announced that they would be slashing the price of their game console, the PS3, to $299. Microsoft quickly followed suit, and in just ten days dropped the price of their most expensive console, the Xbox 360 Elite, to $299. Nintendo, who has sold nearly double the number of consoles worldwide as these two, decided to lower the price of the Wii on September 27th to $199: this was the first time since its inception that the Wii has had a price cut. All three console manufacturers hoped that the decrease in price would help them to increase sales and finish the year on a strong note. The results have been mixed: while all three consoles have seen an increase in sales, the PS3 has seen astonishing growth in the US and abroad, and has wrestled the second-place position in worldwide YTD sales from the 360. As for the Xbox, even in its upgraded Elite form it has seen only minimal gains since the price drop.