Xbox One: Will We See A Price Cut Before Launch?

Being the cheaper priced console and no DRM or used game restrictions has given the PS4 the advantage. Since then, Microsoft has reversed the restrictions which has lead the console receiving more pre-orders.

[mushroomwig]

No, perhaps after the first year but definitely not before launch or any time after. I think Microsoft feel like they've compromised enough for the moment.

[s8anicslayer]

I have to agree with you on that, but knowing microsoft they will sacrifice their first born for an edge and never count them out from doing anything!

[darthv72]

is more than just the obvious in what it comes with. Its also related to manufacturing costs. Right now it looks like the xb1 board layout is designed in such a way to keep heat from being an issue.

As time goes on, die sizes shrink, they could stack chips to reduce traces between components resulting in a cheaper production cost. Then that would likely lead to a price reduction.

What i find interesting is how both the xb1 and ps4 use similar component designs but the ps4 shell can accommodate an internalized power supply and the xb1 uses an external one.

Im sure we will get analysis on the heat produced by each unit once they are released. you would think an internal power supply produces its own heat on top of the chips themselves so the smaller shell of the PS4 must be very well ventilated.

The xb1 shell looks to be well ventilated too.

[HammadTheBeast]

Well considering half the box is a vent I'd hope so.

[Calvin_ISA]

And considering it has a power brick, as well as being way bulkier than the PS4, it better not have overheating issues. That will be the last nail in the X1's coffin.

[GameSpawn]

@darthv72

Remember Sony is a hardware manufacturer first and foremost. Sony has access to resources that allow them to make use of higher quality components and manufacturing processes than Microsoft can ever hope to have.

If you don't believe me, look up images of all the Xbox, PS2, 360, and PS3 motherboards and compare them side by side. Sony's boards are manufactured very visibly with much more quality. They use smaller, higher quality capacitors that not only save space, but also generate MUCH less heat leaving room for other components such as the power supply. Again they can due this because of their place in the hardware industry and the relationships they have with part suppliers (remember some of these components can be used in other electronics they make beyond the PS4 - so they can buy in larger cheaper per unit volumes and still make use of it all).

Microsoft does not have access to these resources. Hence why all their designs use ginormous, cheap capacitors that you normally see in cheap desktop PCs. It's all Microsoft can afford until the cost of manufacturing reduces due to produced volume (aka the more you produce and sell the more you can afford smaller more expensive components while reducing or maintaining the overall cost of manufacturing - be it smaller caps or smaller CPU and GPU dies).

Frankly this has been an advantage Sony has always had over Nintendo, Microsoft, and Sega. Remember the ONLY reason the PlayStation exists is because it was commissioned by Nintendo, until they back stabbed Sony and voided their contract to later have Philips help them make a system (a project that lead to the GameCube).

http://en.wikipedia.org/wik...

The original PlayStation was a hybrid of what we know as the PlayStation today with an SNES.

[malokevi]

No chance of a price cut. $500 dollars is reasonable, considering last-gen launch prices.

I think the PS4 is under-priced, if anything. MS should not have to sacrifice just because Sony is doing so. People will see the value and purchase accordingly.

[MasterCornholio]

Are you angry that Sony managed to undercut the XBOX One by a 100€?

Sony isnt sacrificing anything to release the console at that price since it has more powerful hardware than the XBOX One.

[the_espresso_kid]

Yeah $399 is a great value for the ps4. It's got some great specs and a strong launch lineup. I even got to see watchdogs, the division and destiny running on it at E3.

[malokevi]

@MasterCornholio

Am I angry? lol. Do I sound angry? Asking me that question, you sure do... As the pot said to the kettle.

Since I'm getting a PS4 this holiday, I'm not exactly angry about the price. In fact, I couldn't be happier. Saves me from having to buy two $600 consoles this holiday.

I think the value for the PS4 is incredible... I simply said that its under-priced. As in, if anyone is getting ripped off, its Sony. Doesn't seem bad for any consumer.

MS could easily offer the same price point... but they would undoubtedly be sacrificing massive amounts of revenue, and personally, I don't think that's even remotely necessary. They are offering an amazing package for $500. Can you think of any other piece of consumer electronics that offers so much value for such a menial price tag?

You OK with that, bud? No need to get your knickers all twisted... we don't all pick sides.

[SpitFireAce85]

The reason the xb1 is $100 more expensive is kinect2 something that most hardcore gamers don't care for something M$ is forcing on gamers.If your to lazy to get up and turn ur console on and use your controller you need some help.

[malokevi]

@spitfire

Are you too lazy to walk to to the store... or do you drive because its convenient?

What a weak, half-baked argument. If you could turn on the console using nothing but your mind, the Sony faithful would find something to complain about.

Now, if you could turn on your PS4 with your mind... yay! Sony, you're my hero!!

rofl. Way to take a good thing and make it bad.

Cynicism in its purest form. All you fanboys are good for.

Besides, I wouldn't chalk the $100 dollar price difference to Kinect alone. Though I'm sure that's a huge part of it, there is probably a value equation at work that takes everything into account... components, features, peripherals, services, manufacturing costs... its silly to make it so black/white.

[medman]

Malokevi, what Sony has done is price the PS4 closer to their actual cost for the unit which means they will not make a ton from unit sales per say, but they hope to make that back on PsPlus and other avenues. They will make less per console than Microsoft, but will probably sell more units thereby ensuring a larger install base which will allow them to recoup money via other avenues in the near future. Microsoft, on the other hand, is pricing their console to make more profit up front, with a risk that consumers (especially casual consumers) will balk at the price and steer clear of the console until it sees a price reduction. I don't think the 499 price for the Xbox One is outrageous, but Sony is making them look ridiculous by comparison by having a substantially more powerful console at 100 dollars less. I say substantial, because according to the published specs, it will mean a 33 percent difference (or more) in raw power between the two systems, and if the rumors that Microsoft is having to underclock their unit due to overheating issues are true, that figure could get even larger. Better hope those clouds Microsoft keeps talking about are not thunderclouds, or it could get ugly.

[malokevi]

I agree with pretty much everything you say.

Though, I don't think you should speak in certainties about who is making money... if anybody. I expect that neither company will make a dime off these consoles for the first little while.

MS is cutting their losses, where as Sony is deepening them in order to get their install base up nice and early so that they can pump out hardware/services and draw in the devs.

At the end of the day I don't think it's going to matter much. Both are relatively affordable, both will fly off the shelves, and both will be phenomenal.

As far as console power, yes, the published specs favor Sony. I think the down-clock rumor has long since been dismissed, though. In any case, the difference for the first few years of this generation will be non-existant. Developers simply don't have the expertise or experience to take full advantage of the power behind either of these consoles.

Assuming the PS4 is more powerful (I'm not completely convinced yet... things just don't line up, right now. I'm taking a wait and see on this.) and the Xbox One's cloud infrastructure truly is as capable as has been touted, I can see things going in either direction as this generation progresses. There is ample room for growth in both cases, but I think that MS has a history/reputation for pushing online console gaming forward, and that down the line the cloud may prove to be an incredible service that allows devs to push software beyond what the PS4 is capable of without such robust cloud support.

In the end, its all speculation, but that is my rational. There really is no deciding any "victor", at this point, and to say that either company has anything in the bag is nothing short of ridiculous. There are so many factors to consider, so many as-of-yet unknown variables... so many different ways for developers to leverage the technologies at hand.

Good time to be a gamer, anyways.

[N2NOther]

So PS4 is "under-priced" and people will see the value and purchase accordingly? Judging from the tone of your post I am assuming you're an Xbox One proponent. And if so, did you read what you said before you clicked "Add reply "

Edit- nevermind. Not to self. Read all comments before replying. Lol. See that? Irony.

[malokevi]

Value is subjective. I never intended to favor the Xbox. People will judge accordingly, nobody ever said to what end. Personally, I think Sony has got it locked this holiday. Not to say that both consoles won't see wonderful sales. That much is already evident.

Check your own biases before you point the finger.

Edit: and maybe im guilty of the same thing... =s I do like the brand.

[dfire1212]

Lol

[Cmk0121]

agreed, this is just a stupid article, both companies are set to lose some money in the beginning of the life cycles already as always with consoles they wont do price cut to make it even larger.

[avengers1978]

Not gonna happen, first price drop will be a year later if they don't sell... If they do sell then they will keep it at that price for a while longer.

[medman]

Yeah, I doubt to see a price cut within the first year. That would be an astounding admission of failure on Microsoft's part and would no doubt piss off early adopters. They will wait and see how many suckers they can soak at 499 before dropping the price.

[kneon]

An early price cut could very well be seen as an admission of failure. So they would have to balance out the risks of cutting early. Will they gain more sales or will the price cut reflect badly on the product and it's long term viability?

If people see it as an act of desperation then it would hurt more than it would help.

[lilbrat23]

I also believe MS stated after the switch on Used games that the price will stay the same.

[greenlantern2814]

no way. if they dropped the price before launch it might as well come with a statement from ms: "we never really believed in this system but please buy it"
first price cut around holiday next year. but sony will counter to stay lower in price.

[Ashlen]

A price cut would be a huge pain for retailers that are taking pre-orders. It seems unlikely to happen before launch. Maybe for the holidays but my guess is MS will want to do at least one holiday at this price.

[Crazay]

I can't see how it would be that much a pain in the ass for retailers. They change the amount in the Database, and the people who paid in full up front get refunded or they get told they can apply that amount to anything else they may be interested in. The people who have only put down the bare minimum, are non the wiser and they end up paying less when it's go time.

Either way I can;t see it as much of a pain to the retailers.

[Ashlen]

You can't imagine how many people would be contacting customer support after a change like this?

It may seem like a simple thing but it's not and there will always be mistakes. I'm not saying it would be impossible, I'm just saying most retailers would probably prefer not to deal with it. Especially places that have taken full payment in cash.

Edited to add:

Retailers don't pay $499 they sign deals to buy in bulk at negotiated rates. MS would have to renegotiate every existing deal.

[Rusty515]

They'll probably put it out there and see how it sells first.

[AngelicIceDiamond]

No, MS will not change the price. They will next year if the price is not favorable.

Imo what I think is keeping the price at 500$ is Kinect and Skype integration, free access.

@CM lol yeah they do. They have a money tree when it comes to Tablets and phones every year but that money tree dies when it comes to game consoles, its dumb. Last I check consoles don't get released yearly, instead they get released roughly 7 to 10 years down the line.

So there's no excuse for not owning a game console that does roughly the same stuff your new Tablet can do.

[Cmk0121]

people pay more for tablets that last longer but complain about the price of the X1, just dont get it LOL

[nick309]

Humanity at its best.

[Crazay]

Probably not. It would be nice but I think it's pretty unlikely and they're continue to spin it as a "we include Kinect" kinda justification.

[fattyuk]

Don't be stupid.

no.

[MasterCornholio]

The only way that they can reduce the price right before launch is by removing Kinect from the system but i doubt that will happen.

[OC_MurphysLaw]

No, I think they will test the waters at $500 and see how things play out year 1. If they are really struggling they will cut price but I imagine if they are close to similar numbers to the Xbox 360 they will stay the course.

[supraking951]

I see a launch delay before price cut before launch happening first. Just wait...

[RM-TatoTiburon]

i hope so or al least include a game

[S2Killinit]

I think Microsoft will cut their price really fast, we are talking maybe two to three months after release.

[tigertron]

I won't rule it out, because Nintendo did a price cut just before the Gamecube came out to £129, and Microsoft even cut the price of the Xbox a couple of weeks after it came out.

So if not before, we could see a price drop just after, but they probably won't to be honest as it's bundled with Kinect.

[TheRealHeisenberg]

I hope both the Xbox One and PS4 have their prices cut to $300.00 USD or less. I can wait.

[Smoovekid]

They spent $700m in R&D for Kinect so it would be stupid to take it out to cut costs.

[monkey48]

Don Mattrick if he stayed with Xbox: "If you can't afford an Xbox one, we have another product for you; it's called an Xbox 360."

[MadMen]

We will see an alternate sku.

Or a subscription bundle.

[Sayai jin]

No. They need to make another sku without Kinect (I know it was made for it) and price it at $399.

[Funantic1]

I think we could see a price cut with the X1 or some type of upgrade to the hardware. It'll be smart not to reveal that now. Plus maybe they'll drop the Kinect now that Walter B. Jones is trying to pass a bill concerning privacy issues.

[PSN_ZeroOnyx]

There is no time to change hardware without a lengthy delay. And admission the X1 sucked.

[Funantic1]

The X1 will at least see a memory boost. They reportedly have reached 192GB/s of bandwidth so far which is much better than the 168GB/s they had at first. That's because of the 32MB ESRAM recovering bandwidth. Plus the X1 can use their CPU for texturing instead of their GPU. The PS4 doesn't use this technique and so far have reached 176GB/s of bandwidth. But we have plenty of time to at least see improvements from both companies by optimizing.

[nnodley]

Wow funantic1 you really are talking BS. Oh digital foundry reported that an anonymous dev reported MS just now discovered they could get more out of their memory 4 months before release. SURE THEY DID. The 192GB/s is pure BS and not one person knows how they got to that number, not even digital foundry knew how they did. They just took their word for it and made an article. Also DF even let slip on twitter that Microsoft, not a dev, didn't tell them how they got to the 192GB/s leading many to believe it was actually MS who told them the new theoretical bandwidth. Funny that when people do try to figure out MS's magical mathematics the numbers funnily enough line up exactly for a 50MHZ downclock. Something is fishy about the numbers and many people can see right through MS's BS ever since their reveal.

Also, I would love to see the source that said the X1 CPU can be used for texturing. All I know is that CPU's load the textures onto RAM. I guess if you can't give a legitimate source for that claim then I will take every one of your post from here on out with a grain of salt. Maybe you just can't live with the fact that PS4 is more powerful than X1.

[PSN_ZeroOnyx]

@funantic1

Here is a digital foundry tweet quote for you:

Digital Foundry (@digitalfoundry) tweeted at 7:10 AM on Sat, Jun 29, 2013:
@FutureKick No, people are suggesting that GPU has been downclocked to 750MHz, but it hasn't. 88% more is combining read/write at same time

But it can read or write but not both at the same time.

[maniacmayhem]

They should have went with the original rumors of having two sku's. Why they went with the more expensive one in this day and age is beyond rational thought.

[xReDeMpTiOnx]

Highly doubt it considering a few things.

- the 180 on drm and always online has left them to recode the x1 so they are already working hard to make it more consumer friendly

- they are having overheating issues with the x1 so I doubt a price cut is coming as their plate is already full.

[ziggurcat]

no.

the only way that would happen is if they drop mandatory kinect, and offer a SKU without the camera peripheral.

[kewlkat007]

Neither company will be making a dime on these hardware...Software is where the money is and other added revenue streams...

[solidworm]

Yeh, they might as well give the console away rather than taking a $300 loss on it.

[Agent_hitman]

Price cut for X1?, that's too early imo.. But if they want to gain an edge in the 1st year of the console wars, they'd probably do that.. We know MS, people..

[fsfsxii]

To anyone who think they will reduce the price for the console before it launches: Dream on

[nnodley]

MS exec #1: Guys were way below PS4 in preorders and we have done a full 180 on pretty much all our features. Should we drop kinect and lower the price to $399 so we don't get destroyed this christmas?

MS exec #2: No if we do that it will just show the consumers that we don't have confidence in our own console. And I told you guys dropping DRM wouldn't help preorders. :-P

Don Mattrick(before he left): No screw you exec 2 were dropping the price and kinect and going to secretly put DRM back in. Just another way to screw over our loyal fans and potential customers.

[NeoTribe]

More sony dominace? Not surprising.

[Mister_G]

Maybe. MS are super rich anyway, they can afford it :)

[mewhy32]

Even if they priced the xbone the same as PS4 i wouldn't take it. Less power and a spy camera....NOPE.

[Kidmyst]

After MSFT did a 180 I put in a pre-order for a Day one console but debate on canceling and waiting to see what stories come out. Just have a hard time lately with MSFT since they flip flopped so much. Could buy one and then kisk myslef later as MSFT floods us with Ads, adds new parameters or something. Or the opposite and they got a clue. Also considering now how the PS3 with bought and free PSplus games keep me so busy, I don't remember the last time I fired up the 360.