Greenwald "very sceptical" of 360 E3 price adjustment

Signal Hill's Todd Greenwald has issued a damning statement on Microsoft's E3 360 price adjustment today, saying that it's not enough to differentiate the machine from PlayStation 3 in the US.

"We remain very sceptical of Microsoft's pricing strategy and competitive positioning versus the PlayStation 3," said the analyst in a research note.

"At $349, with a 60Gb hard drive, we just don't think it is a compelling product compared with the PS3 at $399 with an 80Gb hard drive (along with more processing horsepower, Blu-ray, Wifi, HDMI, and going forward, more exclusive content)," he offered.

"We'd also note that the Xbox 360 has just been surpassed by the Wii in the US, despite Microsoft's one year head start over Nintendo.

"We do think that the Netflix announcement is a significant addition for Xbox users, though its far more of a positive for Netflix than it is for Microsoft in our opinion."

Microsoft dropped the price of the 20Gb US 360 SKU and announced a new, 60Gb machine just before E3 last week.