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Xbox Price Cut in Europe
April 18, 2002

In the face of continued sluggish sales of the Xbox in Europe, Microsoft today announced a price cut effective April 26th.  The price of the Xbox will be reduced on that day to €299/Ł199.  A similar price cut was announced for Australia as well, bringing the price of the console there to A$399.  This drop puts the Xbox at the same price point as the PS2, but still Ł50 more than the GameCube.

“We are making a clear statement today – we mean business in Europe,” said Sandy Duncan, Vice President, Xbox Europe. “The phenomenally positive response to Xbox through reviews, awards and game sales has demonstrated that consumers love Xbox. We want to make sure that price is not the obstacle to the Xbox experience.”

Notice that the above quote mentioned nothing about a positive response to the Xbox console itself, hence the price drop in an effort to get it in the hands of more consumers.

“This is a long-term, strategic move that will benefit our retail partners, our third-party publishing partners and ultimately the gamer,” said Duncan. “Xbox has always been amazing value for money, and now it is even more so - we are providing the right console at the right price. The most powerful video game system on earth, and the only one with a built-in hard drive and broadband adapter, is now without a doubt the best value available. The playing field in Europe has been leveled, making it even easier for customers to enjoy the power of Xbox.”

“Xbox enjoyed a great launch in Europe – fantastic product and fantastic games,”
said David Gardner, VP, Electronic Arts. “It’s great they’re making a move that will enable more customers to enjoy Xbox. Plus, this is great for publishers as our games, such as FIFA World Cup 2002 and the Xbox-exclusive Buffy the Vampire Slayer, now have the potential to reach an even wider audience in Europe.”

“This is a great move for Xbox,”
said Lisa Morgan, Commercial Director, The GAME Group plc. “Xbox sales have been good but now there’s an even greater sales potential for us. We will benefit from increased hardware sales, which in turn results in increased peripheral and games sales. Feedback from our customers on Xbox has been extremely positive – if there has been one limiting factor it has been price. We’re glad Microsoft has made an aggressive move to remove the price barrier and put this fantastic console into more European homes in a quicker timeframe. This is going to benefit the industry as well as customers.”

For those consumers who already purchased a Xbox in Europe, Microsoft isn't forgetting about them.  They are eligible to receive a special "Thank You" package from Microsoft.  All those consumers need to do is download from Xbox.com this application form (in Word format), fill it out, and email it to xbox@msdirectservices.com.  They'll in turn receive two Xbox games an a controller absolutely free, essentially making up the difference of what they paid.  Usually companies just pocket the money they've made prior to a price drop, so it's good to see Microsoft making such a move.

 


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