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Microsoft launches cheaper Xbox 360 in Japan

by Poonam Wadhwani - September 9, 2006 - 0 comments

In an attempt to distinguish itself from the crowded gaming device market, Microsoft Corp. is planning to introduce a cheaper version of its Xbox 360 game console in Japan. The software giant’s plan to roll out the cheaper device in Japan is scheduled for November 2nd, a week before Sony Corp. releases the PlayStation 3.

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[quote=Poonam Wadhwani]<div class="flexinode-body flexinode-1"><div class="flexinode-textarea-1"><div class="form-item">
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 <p>In an attempt to distinguish itself from the crowded gaming device market, Microsoft Corp. is planning to introduce a cheaper version of its Xbox 360 game console in Japan. The software giant’s plan to roll out the cheaper device in Japan is scheduled for November 2nd, a week before Sony Corp. releases the PlayStation 3.</p>
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 <img alt="Microsoft launches cheaper Xbox 360 in Japan" src="http://www.themoneytimes.com/filess/XBOX_sm.jpg" /><br /><a href="http://www.themoneytimes.com/filess/XBOX.jpg">Get original file (6KB)</a>
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 <label>Full Article: </label>
 <p>Microsoft’s plan has come as a step of a move to boost sales during the Christmas shopping season.</p>
<p>In an e-mailed statement the Redmond based software major notified that the cheaper Xbox 360 core system will retail for 29,800 yen (US$256) and will not have several components such as the hard-disk drive, headset and some other accessories that come with the full 39,785 yen system currently available in other markets. The cheaper version’s cost is just half the price of the Sony’s PlayStation 3.</p>
<p>Microsoft will also provide two free games for a limited period to attract potential buyers. The games are “PGR 3 - Project Gotham Racing 3” and “Ninety-Nine Nights (N3).” These games and three other titles will also be released on the same day under the banner “Xbox 360 Platinum Collection” for 2,800 yen, a competitive price compared to games for the rival PlayStation.</p>
<p>The software company said it will sell a 20-gigabyte hard-disk drive, which is essential to save progress in games, separately for 9,500 yen. And, comparatively, Sony intends to charge at least $499 for a PS3 with the same hard-disk space, and Nintendo's will price its Wii, scheduled for release in the fourth quarter, at no more than $250. </p>
<p>Microsoft will continue to retail the Xbox 360 full version, which also includes a 20GB hard-disk drive, wireless controller, remote control, high-definition analog cable and Ethernet cable. </p>
<p>This move will definitely help Microsoft to overcome Sony's dominance in the world's second-largest video-game market, as sales of Xbox 360 consoles trail the PlayStation 2 by 124-to-1 in Japan.  Sony already halved its PS3 shipment targets for the U.S. and Japan to 2 million by March from its original target of 4 million.</p>
<p>That cheaper console could increase pressure on Sony, which is looking to ship 1.2 million PS3s in Japan this year, with 100,000 machines shipped on the first day. At the same time, Microsoft intends to ship 10 million Xbox 360s before PS3 is released Nov. 11.</p>
<p>However, a few market analysts state the Microsoft’s move not effective. David Gibson, an analyst at Macquarie Securities Ltd. in Tokyo, who covers Sony, said, “The Xbox 360 has barely sold in Japan and I really can't imagine that doing a cut-down version is a solution,” adding that “Software is the key determinant and the right products are not there” for Microsoft. </p>
<p>Nintendo’s roll out of Wii console will stir the competition in the Japan market. That system is due on sale sometime between October and December and is likely to cost around the same as the Xbox 360 core system.</p>
<p>Sony shares sank 0.4% to 4,950 yen, and Nintendo lost 0.1% to 23,250 yen today in Tokyo, compared with a 0.2% decline in the benchmark Nikkei 225 Stock Average.</p>
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