Microsoft say "No Price Drop for the Xbox 360"

TOKYO, Jul 09, 2007 -- Microsoft has no plans to cut the Japanese prices of its Xbox 360 video game console, the head of the U.S. software maker's Japan subsidiary said Monday.

Darren Huston, Microsoft Corp. corporate vice president, said he believes Xbox 360 prices in Japan are "very competitive." He told reporters at a Tokyo hotel the Japan price is below the U.S. price.

Xbox 360, which competes against PlayStation 3 from Japanese electronics and entertainment company Sony Corp., sells for about 38,000 yen (US$300; euro220) in Japan, and US$399.99 in the U.S. The PS3 costs about 59,000 yen (US$480; euro350) in Japan.

Microsoft said last week it's spending US$1 billion to repair problems with the Xbox 360, including those sold in Japan.

Huston said Microsoft has boosted its image in Japan, the company's biggest market outside the U.S., over the last three years, but needs to do more to enhance its corporate business and expand network-related services for the home.

Microsoft will boost employment in Japan by 400 people, or 17 percent, of today's 2,300 people to beef up operations, including quality controls, he said.

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