The Choice is easy?

Today Microsoft announced they are cutting the price of the Xbox 360 Elite to $299, signaling the beginning of a mini price war. The announcement comes on the heals of Sony’s PS3 price cut a week ago in Cologne, Germany.  Effective Friday August 28, the $100 price cut puts the PS3 slim and Xbox 360 in a position to vie for gamers this holiday season and marks the first time this console cycle that gamers will be able to choose between equally priced consoles. As part of the price cut, however, Microsoft will no longer offer an HDMI cable. Online play remains free on the PS3 and $50/year on Xbox Live.  360 slim rumors were denied.

Xbox 360 Offering

Microsoft may have lowered the price of the Xbox 360 Elite, but in the process also cut one important value item out of the mix. Buyers will no longer receive an HDMI cable. Given a high retail value, HDMI cables carry high accessory profit margins, creating an add-on easy way to cut the price. In terms of game compatibility, however, the Xbox 360 remains stronger than PS3.

Commentary

Sales from here on out are a clear indicator of console entertainment value. Its probably safe to say the 360 will continue to out perform the PS3 slim both in terms of games, movies, and overall community. The best online gaming is not free. The Xbox Live Arcade, Netflix streaming video, and well-connected community system makes it a stronger offering and one that should continue to resonate well with both casual and dedicated gamers alike. Furthermore, Nintendo has a ripe opportunity to capitalize on the tusstle. However, Wii gamers are not the droids were looking for.