Is $199 the sweet spot for Xbox 360?

According to Microsoft, the answer is yes. They acknowledged today that they were "well aware" of the magic $199 price point for console sales, blaming much of the Wii’s current market dominance on it’s proximity to the $200 level. A $199 Xbox 360, especially in time for the ’07 holiday season, doesn’t seem out of the question, especially with the Elite holding down the top end of the spectrum. The question is, would a $199 price tag make it that much more appealing? We have a hunch that the answer is yes, but the only way to know for sure is if Redmond actually puts their "sweet spot" theory to the test.

[Via Crunch Gear]

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