At the Tokyo Game Show that week, one of the primary goals of entertainment companies is to show off the latest alternate realities for game players to lose themselves in. Such escapism is understandable, given the sickly state of the real world’s financial institutions. But lurking in the shadows like a Ninja is the question of whether gamers will be able to afford new hardware and software during the upcoming holiday season.

Microsoft, the manufacturer of the Xbox and Xbox 360, may be particularly well-positioned to weather the economic storm. At the beginning of September, the company slashed prices on its consoles. The low-end Xbox 360 Arcade now costs just $199, the Xbox 360 costs $299, and the Xbox 360 Elite rings in at $399.

“We are thrilled to be the first next-generation console on the market to reach $199, a price that invites everyone to enjoy Xbox 360,” said Don Mattrick, senior vice president of the interactive entertainment business at Microsoft. “The majority of consumers produce the

decision to buy consoles once the price falls to that mark, making that an fundamental milestone for consumers and the industry.”

Chasing Nintendo

Sales of both the Microsoft Xbox 360 line and the Sony PlayStation 3 lag well behind the popular Nintendo Wii. The Nintendo PlayStation DS plus enjoys a solid lead by Sony’s PlayStation Portable, although that trend has slowed or even reversed recently in Japan.

Nintendo is not at the Tokyo Game Show — an event it routinely skips. Its two rivals, however, are taking full advantage of the opportunity to showcase new offerings.

Both Microsoft and Sony are unveiling virtual environments that gamers can explore with custom-designed avatars. Microsoft’s New Xbox Experience, due in mid-November, and Sony’s Home virtual world, scheduled to launch for the holidays, are designed to compete avatar-to-avatar with Nintendo’s popular Mii…

Original post by Mike

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