In a move to compete with Sony’s just-introduced, lower-price PlayStation 3 Slim, Microsoft on Thursday announced price cuts on its Xbox 360 video-game consoles. The price cuts set the stage for a console war in the holiday shopping season.
Microsoft is slashing $100 off the price of its Xbox 360 Elite console, which will begin selling for $299.99 on Friday. That puts the Elite in line with Sony’s Slim, but Microsoft didn’t stop there. The software giant is also cutting the price of its Xbox 360 Pro to $249.99 while supplies last and is still offering the Xbox 360 Arcade for $199.
Shane Kim, corporate vice president of strategy and business development for the interactive entertainment business at Microsoft, threw down the gauntlet in Sony’s backyard.
“If you’re looking for deep experiences that don’t require deep pockets, now is the time to purchase an Xbox 360,” Kim said. “We’ve got the best games, a vast library of TV shows and movies, new music experiences, more ways to connect friends and family, and so much more on the horizon, including Project Natal — no controller required.”
Pumping Project Natal
Microsoft is pushing Project Natal as a competitive differentiator beyond price. Any Xbox 360 that consumers buy today will work with Microsoft’s vision of controller-free gaming in the future. Snubbing Nintendo with its popular controllers, Microsoft is aiming to offer a similar experience with no controls. If you see a ball on the screen, for example, you can kick it, hit it, trap it, or catch it. The video game will respond to body movements and voice commands.
“Project Natal seems to be not just a response to Nintendo but an attempt to take gaming to the next level,” said Michael Gartenberg, a vice president at Interpret. “Natal is still more conceptual. It’s not…