Price Cut for Xbox 360 in the Works?

The Xbox 360 is heavily-rumored to be receiving a price cut during the spring. Naturally, Microsoft is denying all reports of it happening. Whether or not the Xbox 360 is receiving one may be up in the air, but it is a fact that it badly needs one.

The biggest proponent of this is the sales number in North America. While they aren't necessarily sluggish, the sales are below the Nintendo Wii and Playstation 3 in 2008. The stigma of being in last place could have a potentially damaging long-term effect.

While the Nintendo Wii has been outselling the Xbox 360 since forever, the real surprise is the Playstation 3. Generally dead last in terms of sales, the Playstation 3 is quickly gaining momentum with Blu-ray winning the high-definition format war and a slew of hotly anticipated games. It seems like the situation was reversed from last year for Sony and Microsoft.

North America is, by far, the most popular territory for the Xbox 360. Elsewhere around the world, the Xbox 360 is barely a blimp on the radar. If it weren't for North America, Microsoft could be in really big trouble about now. Even with the domestic success, the Xbox 360 is being outsold worldwide. Now that it is being outsold in North America as well, Microsoft's system may be due for a price cut.

Microsoft has been blaming the low sales on the constraints of supplies. That is particularly interesting, considering the fact that the Xbox 360 has been out for more than three years. Maybe Microsoft is planning a hardware revision for its system in preparation for a future price drop?

A hardware revision is also needed to further reduce the number of hardware problems. A big sigma already attached to Microsoft's system is the infamous "Red Ring of Death." Unless it has been reduced significantly and there is a massive recall, that stigma will be a thorn in the side for Microsoft and the Xbox 360 for a long, long time.