Business Approach Comparison Sony PS4 and Microsoft Xbox

[Rangers]

I cant believe discussion over Uk cut/Titanfall pack-in on a certain forum has degenerated into bickering over how MS screwed early adopters with these moves and are thus, yet again, evil and bad

People really will bitch about Microsoft for anything. If they gave away a free car with every Xbox people would whine it's not their favorite color. Certain people want to have a field day mocking Xbox for selling poorly and gloat over the competition, then criticize them some more when MS makes moves to address the situation.

Does the bundle not release until the 14th? If so, that seems pretty stupid. It's almost 3 weeks away. During which time there's little reason to buy an Xbox.

Edit: going by Amazon.com's listing, appears to release March 11 (I guess that should be obvious).

They should have waited another week or two to announce? I wonder if these things are impossible to hide a certain amount before release though, since they have to ship into the channel and stuff and leaks would happen.

Then again I seem to recall slim 360 announced one e3 and going on sale almost immediately. Although it may have been a week or two before it hit brick and mortar.

 

[wco81]

Is this the earliest price cut in a console after launch in history?

 

[BRiT]

Is this the earliest price cut in a console after launch in history?

Maybe, but its also supposedly the first/most profitable console from a hardware cost to price perspective. The previous gens the hardware was sold at a loss. So even with a price cut they're still making more money than the consoles before them.

 

[dobwal]

I feel bad for all the XB1 premium price owners...

I guess MS is feeling the heat from all sides (Sony, investors, gamers, etc...).

Why? If you buy a console anywhere near launch you can pretty much expect that 80% of the eventual owners will have bought the console cheaper than you.

Let's see if the number of posts from disgruntled early adopters will out weigh the number posts that insinuates this move will create a bunch of disgruntled owners.

 

[DrJay24]

I'm not expecting to see the PS4 drop in three month, probably not even 12.

 

[dobwal]

I'm not expecting to see the PS4 drop in three month, probably not even 12.

Yeah the 360 managed almost 2 years before the premium saw a price cut, while the Wii went even longer. Might as well make it profitable unless the xb1 becomes a stronger competitor.

 

[zed]

I cant believe discussion over Uk cut/Titanfall pack-in on a certain forum has degenerated into bickering over how MS screwed early adopters with these moves and are thus, yet again, evil and bad

Often what happens is company X gives away free software to the early adopters
eg 3DS (from wiki)

The Nintendo 3DS was first released in Japan on February 26, 2011, and worldwide beginning in March 2011.[19][20] Less than six months later on July 28, 2011, Nintendo announced a significant price reduction from US$249 to US$169 amid disappointing launch sales.[21] The company offered ten free Nintendo Entertainment System games and ten free Game Boy Advance games from the Nintendo eShop to consumers who bought the system at the original launch price

I assume MS will do something similar

 

[BoardBonobo]

Often what happens is company X gives away free software to the early adopters
eg 3DS (from wiki)

I assume MS will do something similar

This is why I'm wondering how much cash MS are willing to burn just to buy themselves back into an even keel. It could get quite expensive quite quickly for them.

 

[DuckThor Evil]

This price cut is too small to warrant any sort of refund to the previous owners. Had they shaved off £100, things would be different.

 

[BoardBonobo]

But the price cut and Titanfall for free is almost a £100. Its still a bitter pill to swallow for the early adopters.

 

[DuckThor Evil]

I doubt it's that bitter to the ones who have the system, and didn't most of the pre-orders in UK come with a game also. Amazon.uk has the Fifa bundle for £429 even now. I personally don't value a bundled digital game even close to a £70.

 

[-tkf-]

But the price cut and Titanfall for free is almost a £100. Its still a bitter pill to swallow for the early adopters.

Wasn't there a free game with day one editions? I know i was promised one when day one arrives here.

I don't see the big issue with this, the titan is a limited offer, we are used to that kind of promotion. It's the price reduction that is permanent.

I must admit that I am very tempted by this offer, the regional lock down has sidelined me.

If they would only be open about it, it would be much much easier.

 

[Rangers]

Often what happens is company X gives away free software to the early adopters
eg 3DS (from wiki)

I assume MS will do something similar

Huge difference there. $80 worldwide vs what, 30 pounds in only UK (so far)? Not only a dollar difference, but almost one third of the price in 3DS case (32%). Even a $100 XBO cut=20%.

I guess maybe if MS does cut more substantially before mid-May then, (6 months) they will likely have to give away some free software to placate buyers.

 

[holsty101]

... During which time there's little reason to buy an Xbox.

Price cut starts on Feb 28th.

 

[Rangers]

Price cut starts on Feb 28th.

Even so, the point is if you get Titanfall for free starting the 11th (somebody said 14th so maybe that's UK?) there's no point before then.

Even though it's only 3 days difference though I guess the 11th is more palatable.

 

[Jogi]

So it is true that Elop will be boss of Devices and Studios..(inc. Xbox division) time to jump..

 

[Rangers]

So it is true that Elop will be boss of Devices and Studios..(inc. Xbox division) time to jump..

Xbox is doomed...time # 1 billion this time it's really real

 

[Shifty Geezer]

I cant believe discussion over Uk cut/Titanfall pack-in on a certain forum has degenerated into bickering over how MS screwed early adopters with these moves and are thus, yet again, evil and bad

Well you would though. If you've spent £70 over the odds to get a console and game only for someone else to get it for that £70 cheaper, you'd be right pissed. And this isn't a reduction enabled by a technology advance, but just a ticket drop on the existing offering. It's a 'damned if you do, damned if you don't' situation and would never pan out well for MS, but I wouldn't expect many to just accept it happily without grumbling, regardless of the company. eg. Sony offer the same sort of price drop and deal, you'll get the same angry reaction from early adopters. There was an article I saw a while back from an indie developer saying he'd never offer his titles on sale because that's just screwing over the early adopters. Okay, I think that ignores the value in having the product longer, but it shows there's at least a philosophy out there of showing support towards one's earliest, arguably most important customers.

Is this the earliest price cut in a console after launch in history?

The original Xbox was £100 overpriced in Europe. It received a £100 price cut within six weeks. It was accompanied with 'thank you' package for existing owners who paid full price of two games and a controller.
http://news.bbc.co.uk/1/hi/entertainment/1936791.stm

 

[liolio]

I've to say that MSFT is not really on a streak when it comes to communicating, Elop could be a great guy but what he stated about the Xbox business I wonder if it could have an impact on early adopters view of the system. I suspect early adopters know about his views, his track record with Nokia, etc. Not really reassuring.

Though I think he is one that could push good initiatives. From my pov now that the Xbox uses again X86 MSFT is going through great lengths (with the XB1) to provide a service to costumers they might be able to provide through an exiting product more relevant to their bottom line.
For the ref MSFT just cut the license fee OEM pay for Windows 8 by 70% for devices that sell below 250$. THey also lowered the memory requirement for Windows 8 to 1GB which make me really wonder about the 3Gb memory reservation on both the ps4 and XB1.

I don't think he will be the guy to "fold" at the first difficulty (in case xb1 situation would get tough), though I don't see him let turn the division into a money pit either. I could see him make a bold move if things get wrong and easy fixes don't make it.

 

[Ike Turner]

I've to say that MSFT is not really on a streak when it comes to communicating, Elop could be a great guy but what he stated about the Xbox business I wonder if it could have an impact on early adopters view of the system. I suspect early adopters know about his views, his track record with Nokia, etc. Not really reassuring. .

Elop NEVER stated anything in relation to Xbox. What you are referring to is nothing more than a rumor originating from Bloomberg which was shot down by MS rather quickly and comically:

"We appreciate Bloomberg's foray into fiction and look forward to future episodes."

But... let's continue to propagate fiction because Elop and MS are the obvious creations of Satan...
Elop is IMO the right guy for this division.