Yeah this makes no sense unless they are looking to lose a bunch of money for the next year, assuming this is with the kinect. Even without the kinect it will cost them and the kinect is the xbox 1 as far as I can tell. Unless sales suck for MS for a couple of quarters they won't give up the standard kinect or take a substantial loss. MS is gonna sell a bunch of these things no need to panic.
- Status
Yeah this makes no sense unless they are looking to lose a bunch of money for the next year, assuming this is with the kinect. Even without the kinect it will cost them and the kinect is the xbox 1 as far as I can tell. Unless sales suck for MS for a couple of quarters they won't give up the standard kinect or take a substantial loss. MS is gonna sell a bunch of these things no need to panic.
never said it is real,just reporting the news
Heh.
Major Nelson says the info is fake.
http://www.reddit.com/r/xboxone/com...ill_reintroduce_the_xbox_one_at_press/cbdlts3
(Who knows if this is real or not. Even if Mr. PR Man is saying it's fake)
Makes me laugh.
First rumors talk about yield issues.
Then they talk about ms having less systems this year than sony.
After that came the news that ms sold out of preorders.
Now they are reducing the price of the console.
If its sold out for $500 why loose the $100 per unit they would orginaly make on the system .
It doesnt make any business sense at all. It be cheaper for them to throw in gokdies like a wired head set than drop system cost
First rumors talk about yield issues.
Then they talk about ms having less systems this year than sony.
After that came the news that ms sold out of preorders.
Now they are reducing the price of the console.
If its sold out for $500 why loose the $100 per unit they would orginaly make on the system .
It doesnt make any business sense at all. It be cheaper for them to throw in gokdies like a wired head set than drop system cost
but of course, not nearly as effective.
anyway, interesting reply comment in that reddit link
But more effective at what ?
If you make 1m units at launch and 1m are sold out , what do you gain by making them $100 less ?
Its better to save a price drop until they have them sitting on shelves.
Oh well 21 days left till gamescon !!!
While I don't disagree about your idea on keeping the price high, you can gain something by dropping the price: good publicity & more market demand. Some companies can get away with selling their products at a premium. I think MS thought they could, but right now they have a less capable machine(hardware wise) with a peripheral that a lot of hardcore gamers are not interested in. The pill is a little bit hard to swallow especially after the botched launch. Pricing isn't always about the bottom line. Financially it makes sense to keep selling them at $500 if they are all sold out. However, eventually that demand will wane & then they'll have a harder time moving the product. I think if MS feels that they will need to drop the price within 6-8 months of launch they might decide to drop it at launch instead. Better to keep demand strong than for it to fizzle out because everybody is waiting for the price drop.
Do I see a $100 price drop happening? Not really. I do think they need to do something to show some good will. They've listened to a lot of negative feedback & if they don't do something about the value proposition, then I think the public will just think they're not listening again. Personally I wished they would drop the price cause I would probably buy one then. But if they did, then they would also have to adjust their 360 pricing too, probably more so than they originally planned. I really see them adding more value instead. Adding the headset is one possibility, adding a free Gold subscription is another or maybe even a rechargeable battery pack. There's a lot of ways they could make the $500 price more attractive. Too bad it won't be any better than just dropping the base price though.
Tommy McClain
Which should be about....January
I strongly doubt this is true (the website itself scream "never heard of it") but the buzz around this purported drop+relaunch (positive and some negative too), coupled with the DRM reversal, would be tremendous.
Anyways say what you will about MS but they never lack headlines or dominating the conversation.
But they are selling. They sold out of day one editions and a lot of sites took preorders for more normal consoles. If they are supply limited then its not going to help them to lower the price.
Which should be about....January
I strongly doubt this is true (the website itself scream "never heard of it") but the buzz around this purported drop+relaunch (positive and some negative too), coupled with the DRM reversal, would be tremendous.
Anyways say what you will about MS but they never lack headlines or dominating the conversation.
January ? I don't think so , I'm thinking they will start to have trouble in the summer.
Then again we really don't know much about titles beyond a few . They could have a good line up of games for the first year that will carry them through for the first year or so.
I would just assume for Ms that its a bit silly to drop now before anything is sold.
If they have trouble down the line they can allways do something like Nintendo did with the 3ds
My initial guess has always been they drop price in fall 2014, and possibly then only if they feel threatened.
They probably view Jan-Sep 2014 sales as relatively unimportant. Easily written off in the big picture.
It's an incredibly unaggressive and rather disappointing strategy, but it's microsoft. The company that pulls in 60 dollars a year subscription fee ($300 per console over 5 years) from half it's console owners, yet prices that hardware at exactly the same level as the competition.
They probably view Jan-Sep 2014 sales as relatively unimportant. Easily written off in the big picture.
It's an incredibly unaggressive and rather disappointing strategy, but it's microsoft. The company that pulls in 60 dollars a year subscription fee ($300 per console over 5 years) from half it's console owners, yet prices that hardware at exactly the same level as the competition.
Johnny Awesome
Veteran
MS is fine at $500 for now. IMO they have a solid value proposition.
They might hit the same brick wall they've encountered with Surface sales with regards to attracting a none die hard core market.
They may be selling, but I don't think they will be selling as many as they think they should. Especially in the U.S. where they dominated with the 360. I think pre-orders would have exceeded PS4, but they're not. I think if they don't sell just as many or more than PS4 they will drop the price regardless if they are supply limited or not.
I think they will have problems come March, but won't know until April for sure. Will probably see retailer price drops or value add-ins around then & then a price drop in May or June. Anybody who thinks MS has a good value proposition at $500 against a $400 PS4 is deluding themselves & I'm a Xbox fanboy.
Tommy McClain
Nah. Everyone already had an ipad. This is different.
Silent_Buddha
Legend
There's a rather large difference between entering a market with entrenched players (Android and iOS devices) and entering a market where you are one of the two market leaders (home consoles).
The Surface launch was synonymous with the launch of Xbox versus PS2. Going against the entrenched market leader. And it's quite possible it could take them just as long or longer (5+ years) to get significant traction in that market.
It'd be closer to say that the Xbox 4 might have initial sales performance similar to the PS3. If that turns out to be the case, then we'd likely see a price cut in fall of 2014. Personally, I expect it to do relatively better than PS3 did in relation to X360. This being due to PS4 not having nearly a 1 year lead over the competition as the X360 had. Combine that with multiplatform games not looking or performing significantly worse in the first year or two as PS3 did. Although there's a chance that later in the generation PS4 multiplats might perform or look better (a reversal of the PS3/X360 trend).
Regards,
SB
Agree. $500 is not good value for the 90% of people that will be buying launch consoles to play Madden, BF4, and COD. MS has not shown a "killer app" that requires Kinect. I think a pre-launch relaunch is a smart idea. I think its suicide to charge a premium without showing a premium experience. Xbox1/kinect is PS3/Bluray all over again, only a bit worse. Launch availability will not be the issue it was in past, due to the mature tech in these machines. Both companies will be cranking them out pretty quickly.
My gut says MS underestimated hardcore backlash and assumed they would get good early adopter/hardcore support to lead them into their casual consumer based strategy. The surveys and numbers are probably painting a bleaker picture.
The thing that is derailing the whole strategy is the casual go for two things. 1) Fads. Im sorry wii, as far as the casuals are concerned, was a fad despite what hardcore nintendo fans would have you believe. 2) Monkey See buyers. they buy what everyone else is buying. Back to early adopters.
My opinion, MS is chasing a ghost demographic based on 2008 market data. Casuals are on facebook and ipads now, Its a cart before the horse strategy and they're starting to see it.
Somewhat tangential conversation, but one of the primary problems with Surface is that the [Marketplace] app-ecosystem is pretty terrible in comparison to entrenched offerings, especially for RT. If they make marketplace apps available across XBOX One and Windows 8 then they can leverage both to build the ecosystem quicker which will help the visibility of all the platforms.
Don't think so. Personally I think a lot of this is guided by the more recent 2010 launch of Kinect, with reports of becoming "the fastest selling consumer device" still ringing loudly in their ears. To that point, its the reason I have a pre-order on Xbox One rather than PS4.
(Well, that and my Gamerscore!
)- Status
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