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Microsoft plans on slashing 360 to "mass market price point"

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Hot on the heels of Sony's well received PS3 price drop and various rumors to this effect, Microsoft's Shane Kim has admitted in an interview that Microsoft needs to cut the 360's price to lure casual gamer types that are currently falling for the Wii. "We need to compete effectively for that customer and part of that is getting to the mass market price point for the console," said Kim. "We definitely are working on that area." He also mentioned that no such announcement will be made at E3, and there's always that hairy little problem of "profitability" that Microsoft's games unit has contended with for ages. Luckily, that new Falcon chipset should ease the pain a little bit. Kim also mentioned in the interview that Microsoft "feels very good with where we are at right now," and doesn't feel the heat from Sony's price cut, but we'll see how long that optimism lasts.

[Thanks, Robert W]

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