According to Microsoft, the Xbox 360 will launch at $299, with a
premium version shipping at $399. The $299 version will not ship with a
hard drive, and the $399 version will include a 20 GB
hard drive, a wireless controller, headset, Ethernet cable and wireless
remote control. This pricing move was expected. While the Xbox 360 will
definitely cost more the produce, the price point is low enough to
appeal to the public. Furthermore, the premium version will not be
required for any games, as Microsoft has reportedly told developers not
the count on a hard drive for all games.
This price point could be very dangerous for Sony. If Sony prices their
system at $399, as it is widely suspected, consumers will gravitate
towards the cheaper Xbox. While there might be some consumers that
think the Xbox is inferior because of a lower price, most consumers are
price conscious, and will favor the Xbox over the PS3
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