Sony recently announced the drop in price for its PlayStation 3, and you would think that this has Microsoft worried at losing market share. However, this isn’t the case at all according to Chris Lewis of Microsoft. Lewis said in a recent interview that the company has no plans for a price drop, and cites “value” associated with the Xbox 360 that other consoles aren’t offering.
“We think we offer great value now,” Lewis said. “We have better service provision than anybody. We attach more effectively than anybody. I think Xbox Live’s enviable. What we’ve achieved with Kinect has given us growth that I think others would aspire to at this point in the lifecycle. We’re happy with our position. While we’re not complacent about the competition, I wouldn’t trade places.”
Microsoft has proven its dominance among competitors in the North American market, and Lewis also recently claimed that Xbox Live is one of the determining factors that is making the console a success. Lewis predicts that the Xbox 360’s advantages are many to other consoles, and NPD data supports the console’s growing install base. At this late stage in the game, both Sony and Microsoft are looking to soak up as many consumers as possible during this most profitable time in the production cycle. Retailers have suggested that the recent PS3 price cuts have had a significant impact on the bottom line at retailers, though we’ll need to wait and see what next months sales data notes and whether the price cuts have had their intended effects in key markets.