But also kinda crazy because MS will be wiping out their profits. It's unsustainable as such - they can't keep their prices notably lower than Sony, unless Sony are charging $5 more per game license than MS ($12 vs. MS's $7 or whatever).
All purpose sales and sales rumors/anecdotes thread next gen+
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Not knowing Bestbuy/GameStop numbers as of now, there is some evidence these discounted XB1 titles have been doing very well on Amazon. I'm pretty sure these titles have been in the top 100 for more than three weeks now. Mind you there are more titles, these are just the ones that come to mind.
I can't say for sure Shifty... but if MS is doing that (taking the hit), then they have the war-chest on doing so, more so than Sony. Then question becomes; "Are hardware sales growing (more) or just software attachment to the current base?".
War chest to achieve what? What's the point of being number 1 console if you don't make nay money from it? If it had an alternative strategy element, like each sale of an XB1 ended up being a convert to Windows mobile...meh, what's 80+ million mobile phones over a few years worth? If it would establish MS's content portal ahead of all the others, but it won't because, again, it's a tiny drop in the ocean.
I agree with you...
MS, it's executives have mentioned on more than one occasion that they "plan to win"... how they go about it, I don't know. Outside of bundle-bundle-bundle, freebies (live) and whatever else... it seems plausible MS would take hit on software on growing its install base... for how long, I can't say.
One has to wonder; "how big is MS ego (not wanting egg on their face)?".
Accounting will take things such as revaluation (expectations for a product having a lower value over time) or potentially even inventory write downs into account. So a retailer may have already accounted for these factors in previous quarters knowing that stock will be discounted later - in effect they could have internally "paid" of the expected devaluation of the product in prior quarters such that when they do sell it at a discounted price its not actually accounted for as a loss in that quarter.
Dave, but does this create a "fair and competitive" playing field?
Sure, customers will see the value in cheaper software and the overall value of owning the system with the cheaper library (owning more games).
But, IMHO this is somewhat unfair advantage based on poor sales. If MS is taking the brunt, then thats fair and competitive... if the retailer is taking the brunt, and charging full price for PS4 titles, then that's not fair. You're essentially charging more for the system that is selling better...
Don't get me wrong, I love when companies are being competitive... but not on the backs of others.
Welcome to the free market economy, welcome to supply and demand, welcome to capitalism.
Yeah. But don't forget welfare...
Maintaining the same license fee as Sony doesn't make them any money if XB1 titles don't sell.
They can simply make license fees a percentage of the software sales prices and work with pubs and retailers so that XB1 software can be efficiently reach price points that drive sales. A million in sales at $60 MSRP with a $7 license fees versus 2 million at $30 MSRP and a $3.50 fee provides the same licensing revenue.
Exhausting the demand at $60 and then quickly and efficiently moving to price points with untapped demand is probably more profitable than sitting at $60 until Sony games move down in price.
I doubt MS has to do with it. Also correct me if I'm wrong but Amazon is pretty much the one doing these sales. Directly after I got my XOne which was about two months ago I was in Wal Mart and surprised to see COD Ghosts still selling for 59.96. When it was available on Amazon for ~20. But I expect more people will buy the WM route than Amazon.
It seems to be only on these 3 older games, AC IV, COD Ghosts, and BF4, too. They're probably not accounting for a ton of sales. It's not like new games (that will make up lions share of sales) are getting discounted from $59 on X1.
It's not unfair to anybody imo. Only a (small) benefit to X1 owners. Who could be argued to be getting the inferior versions anyway. Maybe it's 1080P tax
The government may be taxing per pixel Anyways I picked both BF4 and COD up for cheap so I support it. I guess that's the perks of buying the less wanted system. Since I got Titanfall and Forza free as well, I have paid about $21 total for 4 games so far, not bad
Of course, I am not greatly interested in any of these titles, but then again there isn't much out yet to interest me.Amazon notes today, Madden XOne console has risen to #13, truly surprised to see it go that high even on release day. It may help X1 hardware sales then. Watch Dogs for 35.99 has propelled PS4 version to #1 and X1 version to #5.
UK charts gave us splits on Diablo 3. Overall it doesn't seem to sell that well though. The Xone version was 3rd behind TLOUR (in it's 4th week), and TLOUR sold around half Titanfall in it's launch week. Just to show that overall Diablo doesn't seem to have done that great
I mentioned a couple pages back that I thought reducing the ceiling on software prices could help and I think it would be smart to do so. Targeting day one digital would keep much of that revenue with MS and the publisher rather than 3rd parties and middle men. Sony could look into doing the same of course.
djskribbles
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It will no doubt help, but I dunno by how much. Currently ranked 87th in the month of August. The kinectless SKU dropped 2 spots from July, but that doesn't really tell us much
I've said before that August might be a slow month, but it was actually a pretty decent month for software (Madden, Diablo III, Metro Redux, Infamous First Light). Plus people might be buying systems in late August to prepare for Destiny. I think both systems will have a pretty decent month for hardware sales. September should be very good for PS4.
D
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So instead of their guaranteed licensing fee Microsoft get a percentage cut of whatever the retailer managed unload stock at. I'm not sure that's good for the platform holder, nor is sale price being tied to an arbitrary cut for platform holders good for retailer freedom (for pricing) and probably not consumers either.
Sounds a bit complicated to implement too.
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Silent_Buddha
Legend
What does that even mean? Sony and Microsoft are in this to make money. Nothing more, nothing less. Is it fair that Progresso Soup in the local supermarket goes on sale more often than the premium Campbell soups (as opposed to their condensed soups)?
Fair is meaningless. Welfare is just...WTF?
On second thought, don't try to explain that.
Regards,
SB
I didn't know but apparently Amazon is also currently giving $35 credit with the Madden Xbox. So really a pretty good deal for effectively $365 for the X1 and a game (if you care about Madden, I dont). But it's come a long way from the initial $499 with no game. The 35 credit probably explains why it's shot up the charts, #11 currently. Offer is through August 30th.
Edit: It looks like as usual they're matching another retailer, in this case Target giving a $35 gift card with purchase of Madden Bundle.
Looking at the PS4 listing I guess Amazon isn't doing the free Infamous and 3 months PS+ promotion anymore, for comparison.
djskribbles
Legend
I can add 999 to my cart.
*facepalm* Why is the consumer welfare always taken out of the equation is beyond me.
Was it ever? I never heard of this.
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Deleted member 11852
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So it is, good grief! Due back in stock in 2 days though!
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