This Changes Everything at Microsoft

By Rick Munarriz – Apr 30, 2013 at 5:31PM

NASDAQ: MSFT

Microsoft

Market Cap

$3,004B

Today's Change

(-1.84%) -$7.57

Current Price

$404.27

Price as of April 18, 2024, 4:00 p.m. ET

A rumored subsidized pricing strategy for the software giant's new Xbox could be a game changer.

Microsoft's (MSFT -1.84%) Xbox is already the country's top seller when it comes to video game consoles, and die-hard gamers will get a glimpse at the software giant's new system on May 21.

After a disappointing debut last year for Nintendo's (NTDOY -0.82%) Wii U and little buzz generated from Sony's (SONY 0.37%) recent PlayStation 4 unveiling event, it's up to Microsoft to turn the fortunes around for a once-booming industry that has suffered three brutal years of declining sales.

An interesting rumor that originated from tech blogger Paul Thurrott is that Microsoft will price the "Xbox 720" at $499 but also offer a $299 subsidized price point for those committing to a $10-a-month subscription plan.

In this video, longtime Fool contributor Rick Munarriz explores the importance of this potential strategy and why it may make a big difference this holiday shopping season.

Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Nintendo and owns shares of Microsoft. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.