Microsoft slashing price of Xbox 360 model

June 27, 2008 Microsoft would not comment, but a major retailer, which requested anonymity, said the price move will come before the major video game trade show, E3, which runs July 15-17 in Los Angeles. David Cole, president of the market research firm DFC Intelligence, suggested a move by Microsoft had been expected, adding that he didn't think this cut would trigger an immediate spike in Xbox 360 hardware sales. While Sony could be pondering its own price cut, the consumer electronics giant did note recently in an annual report that the PlayStation 3 has cost the company $3.3 billion since its late 2006 launch because of a strategic decision to sell the system for less than it costs to make.

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