The ideal price for a video game console is $199, says Microsoft, and Wall Street analysts believe the company will slash the price of the Xbox 360 this holiday season in order to approach that price. One of the company’s group product managers admitted that it was “well aware” of the magical number and attributed much of the Nintendo Wii’s success to its low price (and not its games or funky controller?).

Microsoft will also focus more of its energies (read: money) trying to woo the family market, a slice of the population is has thus far ignored, Viva Piñata notwithstanding. It seems Redmond doesn’t want the same 25 million Xbox 1 customers to be the only Xbox 360 customers.

So I guess the question is, Is $199 really the sweet spot when it comes to video game systems? Personally, I didn’t buy an Xbox 1 until it hit that price (and then I promptly modded it) and I’m not even considering buying a PS3 or 360 right now.

Hufford “well aware” of ideal price for family consumer [GameIndustry.biz]