Microsoft will cut the Xbox 360 price by $50 in August. With several largely anticipated games coming soon, Xbox 360 sales will see major changes.

As expected, Microsoft refuses to acknowledge the price cut. The Hollywood Reporter contacted a Microsoft spokesperson about the price change. “We have no announcements to make on pricing at this time. While price matters,” says the spokeswoman, ”content is king. And no other system is offering all the games people want to play this holiday at a better price than Xbox 360″

Noticing a similar effect when Sony dropped prices, increasing sales by 135%, Michael Goodman, director of digital entertainment at Yankee Group, suggests that while the price change would boost Microsoft sales for a while, it will not dent the current market leader, Nintendo. However, Goodman fails to recognize that the console’s biggest title has yet to be released, and will be released very soon after the price drop.

The August 8th price cut comes right before the release of several anticipated titles: BioShock, Madden ‘08, and, most importantly, Halo 3. So far many Halo fans have yet to buy the next generation console as the newest Halo game, Halo 2, plays on the original Xbox. But Bungie’s biggest game is bound to bring a multitude of Halo fans across to the next generation side.

With production rates growing strong, the oldest member in the next generation console war, Microsoft, is less likely to experience console shortages this holiday season.

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Related:

August 8, 2007: Microsoft will make announcement (about Xbox 360?)

Wal-Mart: $349 for an Xbox 360?

$50 Xbox 360 price cut is official

Microsoft dropping Xbox 360 Core?

Slimmer, cooler, better Sony PS3 destined for August

Stumble It! Tips N4G

Entry was posted on Wednesday, July 25th, 2007 at 11:38 am under Wii, Xbox 360.

Read more entries by Danny Mendez.