Will MS go for Sony's throat at E3 and undercut their PS4 MSRP ?

I mean... The best sale recently was Xbox + TitanFall + 12 months Gold for 450$.
So that's kinda like selling an Xbox One for about 350$...

I could see them dropping it lower than PS4
 
You don't promote value by devaluing your product. I doubt MS wants to under cut the PS4 price and start a price war they won't win. Especially since their system costs more to make and also has the added cost of Kinect.
 
I believe they are capable of doing it but I doubt it. I think it would be something more along the lines of:

Xbox one kinectless bundle - $379-$399

Xbox one with kinect - $450-$499

I could see them also bundling in 6 months of Xbox Live and 1 Game, i.e, titanfall, dead rising, etc.
 
nbnt said:
There's no way MS would do that. They're not in panic mode, the XB1 is selling well. What they they might do, I think, is a kinect-less SKU priced at $400. $350 this soon seems very unlikely to me.
Click to expand...
Hmm... I think the opposite to you.

I'd say they are in panic mode, and to me Kinect-less SKU was be the ultimate in panic mode, whereas you seem to suggest it wouldn't be. They've said time and time again that Kinect is integral to the console.

To me the console being available now in the UK for £80 less than it's original price and including the most anticipated game of the generation with an RRP of £55 for free just 3 months after launch is very much panic stations.

I think they're right to do it, but still panicking in my book.

In regards to an E3 drop - it could be possible. The US hasn't had an official price drop, but retailers have been selling below MSRP, so I can see them announcing a price drop that is in line with those discounted prices, making official what is currently unofficial.
 
If Microsoft cares about the Xbox Division enough to absorb even bigger losses, without the chance to profit in the near future...sure, I guess.
 
KAL2006 said:
Correct me if I'm wrong, but isn't Xbox One more expensive to produce than PS4, even without the Kinect. If so that means PS4 can afford another price drop, but I guess MS can afford to take a loss unlike Sony
Click to expand...

No I seem to remember someone saying that the Kinect is almost as expensive as the console. We also know they're selling at cost or for slight profit (at least for MSRP). It can't cost more than 300.
 
Rolf NB said:
You must realize you're talking on the order of a 1B$+ bath for the rest of 2014 alone.
Click to expand...

Don't MS often spend that sort of money on advertising a new product anyway ?.

Adam_Roman said:
My guess is they'll hold off from it this E3, and in 2015, reveal the brand new Xbox One Slim that's smaller than the PS4, no Kinect, and $350, launching that October with Halo 5. They're gonna hold out at $500 until the Halo fanbase buys in with Halo 2 Anniversary.
Click to expand...

That's a very good plan but they could be way, way behind PS4 by waiting until October 2015 to act.

Do companies actually care where they are in the pecking order in terms of consoles sold or is it all about making money on what you do sell ?. I suppose it's nice to be able to say you are the "market leader".
 
TechnicPuppet said:
It's dead no matter what it does? So bringing out better games at a better price with a better online infrastructure won't change anything? If that's the case the console market is broken.
Click to expand...

Well X360 had all those advantages plus huge head start (one and half years) and it handily lost in Europe. The day Sony announced the price of PS4 and that it cames about same time as Xbone they already won Europe, no matter the price of Xbone. Sure they could make gap smaller (currently... well just visit PAL charts thread once in a while)
 
Dragonborn said:
For the most part yes. Short of halving the price or something extreme like that they are pretty dead no matter what. The Xbox brand has always been incredibly NA dependent. That changed a bit last gen since the 360 came out 18 months earlier at a cheaper price but that didn't happen this time.

You have to understand that the X1 offers nothing that the PS4 does better for less outside NA and to a lesser extent the UK. Not to mention Xbox exclusives tend to also be largely NA focused (shooters and the like).
Click to expand...

You are saying Sony win no matter what. Even if MS has better games, better online better features and is cheaper. That suggests a broken market to me.

PS4 is selling more right now because it deserves to. If that changes I would hope the market adjusts accordingly.
 
TechnicPuppet said:
It's dead no matter what it does? So bringing out better games at a better price with a better online infrastructure won't change anything? If that's the case the console market is broken.
Click to expand...

Just accept that the brand is worthless outside the states and uk, the console market isnt broken, they just prefer playstation.
 
At E3:
Xbox One with Kinect and a game for $399.

This Fall:
Xbox One without Kinect for $299.

Xbox One "Elite" with Kinect and 1TB HDD for $499.
 
Angelus Errare said:
Drop it by $150? That'd be cray.
Click to expand...

Many people think the new Kinect costs around $100 to include, so by removing it they would only be cutting the price by $50 which seems far less crazy. Undercutting the competition this early would be an extremely aggressive move though esp if it was combined with a marketing blitz and if anyone can afford to do it out of the big three console makers it's MS.
 
TechnicPuppet said:
It's dead no matter what it does? So bringing out better games at a better price with a better online infrastructure won't change anything? If that's the case the console market is broken.
Click to expand...

What did releasing a bunch of exclusives in the last few years, PS+, and other things do for the PS3 in the US/UK?
TechnicPuppet said:
Their exclusives aren't as popular
Click to expand...

wut? Are people seriously still rolling with the misconception of MS exclusives selling more than Sony exclusives?
 
$399 core pack with no Kinect
$499 elite pack with Kinect and Forza/Titanfall

Seems likely. That, or they revisit the subscription model they tested with the $99 Xbox 360. Wasn't that really popular? They should revisit that.
 
TechnicPuppet said:
You are saying Sony win no matter what. Even if MS has better games, better online better features and is cheaper. That suggests a broken market to me.

PS4 is selling more right now because it deserves to. If that changes I would hope the market adjusts accordingly.
Click to expand...

It's not a broken market, Sony simply offers a better product to a global audience. That's not to say the X1 is bad, certainly in NA and the UK it's good but that's about as far as the Xbox brand goes

I think this is why some people don't understand that even parity in NA will mean a massive decline in install base
 
It would only make sense if the XBOne was selling badly, which it isn't. It's just not selling the best.

Second place doesn't mean you just start burning money.
 
TechnicPuppet said:
You are saying Sony win no matter what. Even if MS has better games, better online better features and is cheaper. That suggests a broken market to me.

PS4 is selling more right now because it deserves to. If that changes I would hope the market adjusts accordingly.
Click to expand...

Most of these ideas on how Microsoft could retake the throne simply assume that Sony does absolutely nothing. That's just not how it works.

PS4 has already established itself as the lead platform for the generation. Third-party relations are not going to dry up and they have a stable of first-party devs Microsoft can only dream of. Who's to say Sony isn't going to kick massive ass with their games lineup as they have been doing over the last 4-5 years?

Microsoft dropping the price by an insane 150$ would, at best, lead to Sony dropping the PS4 by 50$. Where would that leave Microsoft then, all things being equal?
 
TechnicPuppet said:
The OP said will MS make the XB1 cheaper.
Click to expand...

And I'm saying it won't be terribly worthwhile for them to undercut the PS4, because then Sony will just undercut them again.

Then MS will be left with a less desirable console for consumers that they're losing even more money on, whilst Sony continue to reap the benefits of being the cheaper, more powerful system.
 
Price wars wont solve anything for MS, certainly not while they have Kinect bundled.

Sony could drop the PS4 price for NA only, so far they simply didn't need it to beat the XO, they didn't even bundled any game for free with the system yet.

It actually makes sense for Sony (if they have stock to justify it),to cut the price in NA, $349 without anything bundled, not that much of an improvement but they get the bragging rights and neutralize any future MS announcement.
 
My gut tells me that they'll try to do a better job of justifying Kinect before dropping the price below the PS4. I definitely think a price drop is coming, though, and soon. But with Mattrick gone, who knows. Maybe they'll change focus stop putting energy into Kinect.
 
I'll believe a $150 price drop when I see it. Don't see it coming but I guess we'll know if MS is desperate enough or not after we know the effects titanfall plus the glut of discounts so far have have had on xbone sales.
 
Even a kinectless One for $350 is a weaker system with a weaker lineup of games coming.
Add to that how much more Plus offers from Gold.

I don't think that'll "go for Sony's throat" or anything like that.

At best that'd help them remain almost as competitive while going against everything they've worked for forcing kinect in the first place.

Tallshortman said:
I'll believe a $150 price drop when I see it. Don't see it coming but I guess we'll know if MS is desperate enough or not after we know the effects titanfall plus the glut of discounts so far have have had on xbone sales.
Click to expand...

I'll admit the $450 Titanfall bundle with a year of live is a solid deal.
I still just think the PS4 is a better one.

I think they can exist comfortably in second but they seem too far gone for first. I mean, AA batteries? In 2014? They've made some crazy decisions this generation.
 
They shouldn't, they're never going to gain sales parity so they shouldn't be chasing it, but will they? probably.

As is the norm in the games industry companies just aren't happy with making some money, they want all the money. Microsoft didn't put put out the Xbox one to be a distant second, they wanted TV TV TV and Kinect to try to rope the casuals and to keep their 360 "gamer" userbase, and to lead.

So they're probably going to try to and cut further, i dont see it working, the PS4 has the lead, has the better first party studios, the better performing mutiplats has a current broader offering between AAA, F2P and indie games, a price cut might help, but lacking in every other area compared to the PS4 isnt easily fixed.

The should realise where they are, sell it as is, give people some value out of the Kinect they bundled in with some games and try to take back their previous gen strong holds in the UK and US over time, with a strong first party offering.
 
I expect MS to ride out Kinect for at least for a bit longer, Kinectless XB1 will only get announced a month prior to to release.

I expect
Xbox One, Kinect and Sunset OverDrive bundle for Q3 for $500



Then Xbox One, No Kinect Halo 2 bundle for fall for $399, and Kinect bundle price dropped to $469.
 
Vashetti said:
And I'm saying it won't be terribly worthwhile for them to undercut the PS4, because then Sony will just undercut them again.

Then MS will be left with a less desirable console for consumers that they're losing even more money on, whilst Sony continue to reap the benefits of being the cheaper, more powerful system.
Click to expand...

How will it be cheaper?
 
Apophis2036 said:
Many people think the new Kinect costs around $100 to include, so by removing it they would only be cutting the price by $50 which seems far less crazy. Undercutting the competition this early would be an extremely aggressive move though esp if it was combined with a marketing blitz and if anyone can afford to do it out of the big three console makers it's MS.
Click to expand...

The issue with relying on hardware price to sell consoles is that this advantage may be only temporary.

Lets say MS drops Kinect and sells the system for $349. Great, now they are cheaper than the PS4. Until Sony decides to under cut them to $299 and then they are in the same position. The PS4 was designed with fast price drops in mind. Now whether Sony does it is another question but the option is there. It's a dangerous game to try and win on price alone when your system is the higher priced one.

We don't have March NPD numbers yet. It is possible TitanFall bundle at $449 will keep MS competitive.
 
Apophis2036 said:
Many people think the new Kinect costs around $100 to include, so by removing it they would only be cutting the price by $50 which seems far less crazy. Undercutting the competition this early would be an extremely aggressive move though esp if it was combined with a marketing blitz and if anyone can afford to do it out of the big three console makers it's MS.
Click to expand...

Kinect wasn't free to make. MS needs to recoup the money they spent on R&D, it doesn't work that way dude

Mrbob said:
The issue with relying on hardware price to sell consoles is that this advantage may be only temporary.

Lets say MS drops Kinect and sells the system for $349. Great, now they are cheaper than the PS4. Until Sony decides to under cut them to $299 and then they are in the same position. The PS4 was designed with fast price drops in mind. Now whether Sony does it is another question but the option is there. It's a dangerous game to try and win on price alone when your system is the higher priced one.

We don't have March NPD numbers yet. It is possible TitanFall bundle at $449 will keep MS competitive.
Click to expand...

I think Sony is going to do nothing. They're just going to wait and see what MS does and undercut them when necessary.

TechnicPuppet said:
How will it be cheaper?
Click to expand...

Sony can also lower the price, that's how
 
TechnicPuppet said:
How will it be cheaper?
Click to expand...

I give up trying to explain this to you.

This is you right now:

lala.gif
 
I doubt we'll see a price drop before Halo. It's their biggest franchise and it carries a lot of weight. I think they'll try and capitalize on this first before considering dropping the price or making any outstanding changes.
 
There are two sides to every price drop. Yes it will help with price sensitive customers, but an extreme drop sends a message that the product isn't as good as originally promised.

If you launch in November with a product that is $100 more than your competitor, and by E3 in June you price cut to be cheaper than your competitor then you are a serious messaging problem.

I think the march and April NPD numbers will be give is a very good indication. We are seeing more and more deals popup with bundled games, and store specific price drops. If these don't help the xbone now, further aggressive drops may not either.
 
Hex said:
I am sure that they thought that they were being clever at the last E3 also.
They can "go for the throat" all that they want, but they do not know what Sony will do so they can guess and do what they will do but Sony will also be formulating plans also and not standing idle.
There are stockholders to answer to and this is a long race, not a sprint.
Nintendo also will have something to say as much as people want to dismiss them.
Armchair analysts are an odd
read: sad
bunch.
Click to expand...

Your post read like an armchair analyst.
 
why does everyone chain of thinking regarding MS options is to possibly remove the kinect. Give it a rest, kinect will not get removed.

MS might go after sony at E3 but removing kinect to reduce the price will never be one.
 
I really don't see them officially cutting the price until later next year. They'll want to Maximize profits with Halo right around the corner I feel like. Unless it really is just a definitive halo 2 edition.
 
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