Early 2007 price cut for 360 "unlikely"

According to an analyst for Lazard Capital Markets, a price cut for the Xbox 360 in early 2007 is "unlikely." One of the primary motivating factors for this is Microsoft's recently revised shipment forecast. After announcing that revenues were up, Microsoft altered its Xbox 360 shipment forecast from 13 to 15 million units to 12 million units by the end of fiscal 2007 -- this works out to approximately 1.5 million consoles by June 30th. With the shipment estimate reduced, it doesn't make sense for Microsoft to cut the 360 price and damage its prospects for profitability. While a price cut is not imminent, the analyst did not rule out the possibility of promotional bundles, though this depends partly on the performance of Sony and Nintendo's new consoles.

So there you have it, don't expect a price cut any time soon.