Report: 360 price drop "a ways off"

Next-generation gaming consoles offer upgraded graphics, PC-like multimedia features, and...hefty price tags. With the PlayStation 3 and Wii launching next month, some have assumed that Microsoft will bolster its yearlong head start in the market with a price drop for the Xbox 360.

According to an article in the Seattle Post-Intelligencer, Microsoft has no plans to drop the price of its new console anytime soon. Citing the higher price of its main competitor, the $499/$599 PlayStation 3, and the fact that Microsoft still loses money on the console, the Seattle PI says gamers will have "to wait awhile for a price cut."

The prospects of an early price drop aren't unsubstantiated. Six months after the original Xbox was launched, Microsoft cut the system's price by a third, going from $299 to $199 in an effort to match Sony's pricing moves. At that time, the PlayStation 2 had been on the market for about a year and a half.

However, roles have been reversed this time around as the Xbox 360 was the first system out of the gate last November, giving Microsoft the option of holding onto its original price point longer.

When asked about a price drop for the Xbox 360, a Microsoft rep would only say, "We have no announcements at this time."