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Analysts: MS needs to issue a 'real' 360 price cut

Hot on the heels of Microsoft's "mock" price cut where they slashed the price of the 20GB HDD Xbox 360s to $299, only to replace the $349 SKU with a 60GB HDD, Signal Hill analyst Todd Greenwald is demanding a true 360 price cut to stay competitive with the Playstation 3.

"We remain very sceptical [sic] of Microsoft's pricing strategy and competitive positioning versus the PlayStation 3", Greenwald recently told investors saying that "at USD 349, with a 60GB hard drive, we just don't think it is a compelling product compared with the PS3 at USD 399 with an 80GB hard drive (along with more processing horsepower, Blu-ray, Wifi, HDMI, and going forward, more exclusive content)." Greenwald further picked apart Microsoft's E3 strategy mentioning that "Sony's biggest announcement was a strong counter-punch to Microsoft's USD 50 price cut on the 360", adding that "beyond Gears of War 2, Microsoft doesn't seem to have the same library of exclusive, must-have titles."

While we don't agree with Greenwald when it comes to the Xbox 360 lacking "must-have titles" or being less of a gaming powerhouse, we tend to agree that Microsoft missed an opportunity with their console pricing. Clearancing out the 20GB HDD models is fine by us, but we truly think a price drop across all models would have helped team Microsoft stay competitive with Sony and Nintendo. Especially in Europe. What say you fellow fanboys? Will a 360 price drop be necessary going into the holidays or will the 360's games library and content partnerships be enough to win the 2008 console war?

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