Xbox regional director for Australia and New Zealand David McLean said reduced manufacturing costs were the reason for dropping the Xbox 360's price. McLean stated the price drop positions the Pro system favourably against the PlayStation 3 whilst the Core's pricepoint allows the console to compete in the casual market.
"I think you'll see, on a games point of view, we're well ahead (of the PS3). And now once again we're offering all of these experiences at a really affordable price. So I think we will do really well during the holiday period against PlayStation," McLean said. "Our strategy was always to focus on the core and serious gamers. We think we've done a great job there, and the numbers support that. What we now need to do is start thinking about broadening our strategy, and this price movement is a component of that strategy."
McLean reaffirmed the Xbox Core would be sticking around as well. "There are no plans to discontinue the Core SKU. We've actually seen over the last few months that the Core has started to grow in terms of sales. We're pretty pleased with the momentum that's been building on the Core, and it's still important for us to provide that level of choice to the customer. We have no intention of discontinuing the Core at this point. Furthermore, this price adjustment and some of things we're planning to do with the product over the holidays will make it a more significant part of the business," he stated.
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