JULY 5, 2007 • Microsoft Games Studios announces that it will launch its black Xbox 360 Elite in Japan on Oct. 1 for will sell for ¥47,800 yen ($390). The unit sells for $479 in theU.S.”The decision on the pricing was based on the situation in the Japanese market,” Company spokesman Jun Yoshihara said inTokyo. “We are not satisfied with our position inJapanand working to improve it.”

Impact: Clearly Microsoft has a long uphill climb inJapan.  The launch of the Elite at a relatively competitive price shows the company is not giving up.  However, DFC has consistently forecasted that the Xbox 360 will not be a major competitive factor in Japan.