According to the vice president of Microsoft Game Studios, Shane Kim, the Xbox 360 Core system is here to stay.

When asked in a recent interview what the future holds for the Core configuration, Kim said:



There has been much speculation that, with the release of the Elite, the Xbox 360 Premium bundle will move to occupy the market position previously held by the Core system and the Core itself will fall away.

Kim's comments come in the midst of renewed rumours that a price cut is on the way for the 360. Leaked adverts from Wal Mart, Toys 'R Us and indicate that the Premium bundle will shed $50 (£25) from its US price of $399.99 (£197), while a flyer from Circuit City (which leaked news of the PS3 price cut) indicates that the Elite will be reduced by $30 (£15) and the Core's price will drop by $20 (£10).

With the rumours coming from three different sources, it seems unlikely that the reductions come from retailers rather than Microsoft. Comments from Kim, however, suggest otherwise. “For the PS3 I think there's a huge problem”, he said. “To take a price cut this early in the life cycle... what does that say? We have a ton of confidence of the content portfolio of Xbox 360 and Xbox Live and that's why you're not seeing a price reduction from us.”

Kim seems to be sending out mixed signals at the moment, however, having recently said that Microsoft is "working on that area" while discussing cutting prices to attract the casual gamer.

Kim also indicated that the high failure rate for the 360 (which has resulted in Microsoft extending its warranty) might be due to the console being rushed out in 2005. “You know I'm not a hardware guy, and I think it's fine to speculate that it might have contributed to the failure rate”, Kim said. Of course, saying “I think it's fine to speculate” might just be Kim validating our right to have an opinion on the subject. Cheers, Shane.