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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.

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mushroomwig1089d ago

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.

s8anicslayer1089d ago

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!

darthv721089d ago

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.

HammadTheBeast1089d ago

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

Calvin_ISA1089d ago

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.

GameSpawn1089d ago

@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.

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malokevi1089d ago

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.

MasterCornholio1089d ago

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_kid1089d ago

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.

malokevi1089d ago (Edited 1089d ago )

@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.

SpitFireAce851089d ago

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.

malokevi1089d ago (Edited 1089d ago )

@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.

medman1089d ago

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.

malokevi1089d ago (Edited 1089d ago )

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.

N2NOther1089d ago (Edited 1089d ago )

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.

malokevi1089d ago (Edited 1089d ago )

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.

+ Show (7) more repliesLast reply 1089d ago
Cmk01211089d ago

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.

avengers19781089d ago

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.

medman1089d ago

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.

kneon1089d ago

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.

lilbrat231089d ago

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

greenlantern28141089d ago

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.

Masterdon1089d ago SpamShow
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Ashlen1089d ago

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.

Crazay1089d ago

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.

Ashlen1089d ago (Edited 1089d ago )

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.

Rusty5151089d ago

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

AngelicIceDiamond1089d ago (Edited 1089d ago )

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.

Cmk01211089d ago

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

Crazay1089d ago

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.

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