MS releases Xbox One S All Digital edition (No Optical Drive)

Discussion in 'Console Industry' started by mrcorbo, Nov 18, 2018.

  1. McHuj

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    Leaked price seems high.
     
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  2. Jay

    Jay
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    What would you say would be reasonable price?
    I expected it to come in around $30-50 cheaper than 1S, so pretty much where I expected.
     
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  3. Shifty Geezer

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    If the drive costs $50 and that's the only thing different, then $50 less RRP seems on the money. Are you thinking MS would be more loss-leading as they'll make way more back on software sales? I guess it'd be nice to see a super-slim, at a really low cost and somewhat subsidised for mainstream adoption, perhaps with 1 or 2 months Game Pass, but I also guess MS aren't willing to shell out on that expense when it's a bit of a gamble.
     
  4. ToTTenTranz

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  5. BRiT

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    That's the source linked to from the previous Digital Foundry post ( well WinFuture.de ).
     
  6. MrFox

    MrFox Deludedly Fantastic
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    Testing the waters before next gen. They did say that what google is doing proves their plan is the correct one. Whatever their plan. Google goes everything streaming exclusively. Gaas only.

    I am still puzzled by their UHD drive being put in their lowest sku.

    Plans change and all that....
     
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  7. BRiT

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    At the time of release it likely helped the One S move more units than it would have on it's own.

    However now adays with physical media on the downturn its higher cost might be more of a detriment.
     
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  8. Pixel

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    I wouldn't be surprised if the high price is reflective of higher retail margins on this discless SKU. Maybe retailers make more than the typical $5-15 or whatever paltry amount they normally make since this console risks breaking their business model. Retailers may only be willing to stock it if they make higher margins on the hardware, since this can pull people away from buying new & used physical games which they rely on to pay wages and keep the lights on. I wouldn't be surprised if Microsoft is even taking a loss (or a larger loss than the standard One S) so that the retailers get higher margins, so that they'll be willing to place orders for these and put them on store shelves and sell them at MSRP.
     
    #228 Pixel, Apr 14, 2019
    Last edited: Apr 14, 2019
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  9. McHuj

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    I just think that for the Xbox to get a boost in sales it needs a sub $199 price. There are sales and bundles that already reach that price so I'm not sure why anyone would pick the SKU over the disc based one. It doesn't really offer a great price nor a really sleek form factor. ('m actually surprised that in year 6 of the consoles, neither one has a $199 MSRP.)
     
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  10. BRiT

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    Just wait to see the official US price and what MS can hit when it goes on sale. No sense comparing unannounced third-place markets MSRP to US Sales.
     
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  11. Jay

    Jay
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    So your comparing MSRP to price you pay at shop including sales?
    I can see why you think it's not a good price then.
    I'm comparing like for like, I don't know exactly what it will generally cost to buy.
    Although I'm expecting the gap to be similar to what 1S MSRP to actual retail cost is though.
     
  12. Riddlewire

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    Who is the customer for this?
    Someone whose Xbox One or Xbox One S broke and the warranty period is over?
    An Xbox fan with an excess of disposable income who just wants to own all versions of Xbox hardware?
    A PC gamer who has never tried an Xbox and wants to see if it might suit him?

    Whether the price is too high or perfectly set, I just can't think of the type of person who, this late in the 8th generation, has a desire or need for such a product.
     
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  13. BRiT

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    Robots. Robot Overlords.
     
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  14. MrFox

    MrFox Deludedly Fantastic
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    A better form factor could make it a very good second room console, for those who are full digital anyway.

    For price, just don't see it unless they really take a loss, because full digital and subs tend to cost a lot over time , even if the subs bring a lot of value. Low income gamers, who wait until the end of a generation for the lowest price of entry, are into used games, bargain bins, and borrowing. We're talking about the remaining gamers for which 299 was too much and even 199 during BF was also too much. There's nothing left, that well is dry.
     
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  15. mrcorbo

    mrcorbo Foo Fighter
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    It's a test. How many people care enough about having a disc drive in the console to pay more for it? What are the purchasing behaviors of people who are willing to go all digital? Can a 2-Year hardware payoff plan + services contract be a viable alternative to the current model of buying the console outright? IMO, this SKU could help to answer those questions and the answers to those questions will be useful to have when rolling out the next gen.

    I suspect that the reason they didn't change much else about the console is that they have limited ambitions for it. It's possible that all they changed for this SKU was to remove the optical drive and make a new case shell. Pretty low stakes if it fails to sell. Just junk the slot-less cases add a drive and turn them into regular 1S's. OTOH, if it does sell well, ramping up production can be done by doing the opposite.
     
    #235 mrcorbo, Apr 14, 2019
    Last edited: Apr 14, 2019
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  16. Shifty Geezer

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    MS already tested that with 360, no?
     
  17. mrcorbo

    mrcorbo Foo Fighter
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    They're doing it right now. But, it's always been done small scale. At some point I expect them to make this more widely available and to start actively promoting it (commercials, etc.). That goes hand in hand with scraping the bottom of the barrel with hardware cost. It's $22/month right now. How low can they go? How low before people start really biting on it?
     
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  18. ToTTenTranz

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    The underdog needs as much upper hands as it can get.
     
  19. iroboto

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    Having more SKUs should have an impact on costs though. You’re bound to get weird inventory issues resulting in more loss especially in the position MS is in.

    To me. SAD makes the most sense if 1S is completely removed. Leaving the UHD with 1X only.
    The SAD will support 4K streaming etc. Basically replace the 1S entirely. So they stop manufacturing that.
    The 1X holds its position as the premium model.
     
  20. MrFox

    MrFox Deludedly Fantastic
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    With the number of different skus for bundles which is basically artwork on the box and content of the drive, it's already a lot of inventory managing, probably not a big deal to have one more. Having some consumers buying the discless model by mistake might be a bigger hassle for retailers though. Have you ever tried to ask a question at gamestop? I swear those teenagers don't speak any languages, they just learned by sound the text about warranty and promotions, you can't interrupt them either, the tape just keeps playing.
     
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