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Xbox One Gets Price Cut At Zavvi

Xbox One has been discounted at online retailer Zavvi. There has been no word on an official price-cut from Microsoft, so do treat this as one retailer’s decision for now.

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IanVanCheese1053d ago

They'll be using it as a loss leader, trying to make money back on the games.

Zavvi are going to hell anyway, along with most stores of their ilk like HMV.

Skip_Bayless1053d ago

First it was marked down in Costco. Faltering already indeed..

Chris121053d ago

Costco are a members only discount retailer. Grasping at straws must be a serious hobby.

ZodTheRipper1053d ago

In Germany it's 470€ for a few weeks now. Doesn't seem to help sales though.

TomShoe1053d ago

Yup. I'll wait for a PS4.

Skip_Bayless1053d ago (Edited 1053d ago )

Hey Chris so PS4s are discount at Costco too?

Defense force present indeed .

Withdreday1053d ago

A price cut not even a few months in? Can you spell FLOP?

I know I can.

hellzsupernova1053d ago

It was discounted here as well over the Christmas period at online retailers. Still couldn't beat the ps4 on the top ten sales list

GameSpawn1053d ago

Having worked in retail, you loose money on product that is not moving.

You (the retailer/distributor) have already paid for the console either from a distributor or the manufacturer directly and now you must pay to store that product until the next consumer (another retailer/or the end customer) buys it off your hands.

Generally speaking you are already loosing money toward paying employees and utilities to keep track of the inventory (product) after 3 months of sitting on the shelf. As a retailer/distributor you are presented with an economical quandary:
(1) Pay more money to store the product, thus reducing what is left of your dwindling profit margin
OR
(2) Sacrifice arguably less of your profit margin to move the product you've paid for at a higher market price off you hands so you can buy more at the reduced price

Reason #2 is the reason distributors and retailers will discount things to a point that people THINK they are getting a great deal and the retailer is the one loosing money. In reality you are SAVING the retailer money because they are not stuck with a product they have paid more initially for.

To illustrate better:
$500 (retail product) - Initially Sold to retailer at say $480 a Unit.

Product can now be bought from the distributor at $460 a Unit, BUT you have still not sold through enough to stock back up on the lower priced units because there is a minimum buy amount to get that price. If you buy at the newer price you might overstock to the point were you'll never make the next price drop and risk loosing EVEN more money.

So you take a $10 per unit loss to a sale to move remaining inventory to bring in twice as many units as less cost, but higher potential profit margins that either compensate for the profit loss to the sale or overcompensate with higher overall profits.

You have to think from a MUCH larger perspective to understand this logic, but it is some pretty crafty economics. Basically speaking though for retailers and distributors the larger VOLUME of units you buy up front the bigger a price break you get and the higher your profit margins can be, BUT you need to sell through that volume before the supplier drops the price for everyone and for DAMN sure before the MSRP is dropped - manufacturers and distributors only give SO much price protection when the MSRP drops below the cost you last paid (usually they only extend price protection for the volume of the LAST order NOT what you actually have ON HAND).

Skip_Bayless1053d ago

In other words pretty much common sense and a little job experience. I'm in the process of getting a BS in Business. It's essentially mainly "BS", as I wait a 2 more years until my girlfriend is a resident doctor.

Kavorklestein1053d ago

Don't be retarded. Faltering? Please, it's already sold almost as much as the Wii U, and THAT console has been out for more than a year! Besides, I have read countless times all over the internet, from people of all types of backgrounds, including, parents, casual gamers, hardcore gamers, gaming press, reviewers, video game analysts, and so on, etc.. that people would buy an Xbox one simply if the price
was lower. Now this is not an official price cut, but if it was, and Microsoft was listening to the internet bastards that begged and bitched about it being too expensive, then, suppose those same whiny douchebags actually GOT the price cut, wanna turn around and say the system is in trouble? It's already MS's best selling console for a post-launch timeframe, and it is probably gonna continue to sell well... Your opinion of the machine does not equal the facts/reality of whether or not it will sell enough to stay relevant. Yes, PS4, is selling a large amount MORE consoles, but that doesn't matter, especially this EARLY in the lifecycle. The PS3 sold substantially less units in a 3 month launch window than the xbox one, or the previous 360, and still ended up selling more over it's primary lifespan than the 360.
In short, don't knock a system for selling BETTER than your PREVIOUS favorite, and don't hold deluded judgement and relentlessly bash a console that is doing better than the PS3 did in it's launch, and suffered from lower resolutions and framerates than the 360 when IT came out.
Hypocrisy is not gonna make anyone seem credible when discussing Video game consoles. Let these systems grow, and actually DO something besides exist half as long as a new model of an Ipod or iphone before bashing them to pieces. They both are likely to have many tricks up their sleeves.
I could be wrong, but I'm gonna stay optimistic, instead of dragging down the internet and the human race over some damn electronics....unless you are a time-traveler, you don't know what is really around the corner for these consoles.

Let's just play games, and stop causing food fights in the cafeteria

GadgetGooch1053d ago

A few million sold world wide since launch less than 2 months ago and your trying to say the sales arnt good enough...I love my Xbox one and also like my PS4 I know for a fact the Xbox one will never best the PS4 this gen in sales but that doesn't mean its going to fail either...both consoles will have a long happy life...stop being a bunch of tards and jus enjoy your chosen platform or if ur a proper gamer ud have both :D

Chris121053d ago

Hey Skip, stop being a smart arse and do your research. PS4's have also been discounted at Costco.

http://www.hotukdeals.com/d...

Apology accepted.

+ Show (8) more repliesLast reply 1053d ago
ArronC071053d ago

Zavvi are an online only retailer.

Mr Pumblechook1053d ago (Edited 1053d ago )

Silly story - no offence to the poster. Every time a different retail website varies their price by a small amount are we to see a story about it here?

Although the significance is that the retailer is needing to reduce the price of the XB one and not the PS4.

Evilsnuggle1053d ago (Edited 1052d ago )

anyone buying the xbone they deserve to pay the full price. The kinect is waste of money it no real purpose . It 's a a glorified over sized overpriced remote control and not necessary for gaming. There aren't any games that are improved or need it By kinect And no game on the horizon that Needs a Kincet. Even John Carmack Thinks that kinect is a bad idea it add nothing to a game. M$ should have used the money for Kincet and improve their GPU. I bought the OG xbox and 360 at launch this gen no xbone I might buy a steam machines instead.
Kavorklestein GadgetGooch
I don't think xbone will flop I do think it will be less successful then 360. If you look at the trends The x1 is sell well in the USA less than the PS4 in the usa but not well worldwide. The PS4 is out selling the xBone in Europe 3 to 1 and in the United Kingdom more than 2 to 1. Last gen 360 beat PS3 in the U.K. . If the PS4 continues to outsell X1 3 To 1 and be out sold in the USA it will not be a successful as 360.

+ Show (1) more replyLast reply 1053d ago
Mikelarry1053d ago

tempting.... very tempting indeed

lastofgen1053d ago

I already have the xbox one but a ton of my friends and colleagues at work are just waiting on a cheaper xbox one. But I imagine an official cut won't happen for a while.

djplonker1053d ago

they are lying to you and as soon as they find ps4's your going to be alone :p

(joking)

Death1053d ago

If the console hits its sales targets we won't see a cut soon. It really depends on how aggressive Microsoft wants to be. They are selling quite well at the current price point. It would be interesting to see how an official price cut would affect sales. If they cut the price and didn't see a surge in sales, it would be very embarrasing. A cut prior to the holidays would be ideal if they can wait. The Holidays sales bump would give them the increase in sales needed to justify the cut. Bundled software might be the way to go if they want to increase value without decreasing price. A Titanfall bundle would be good. I expect Infamous to have the same impact on sales that Titanfall would have if bundled with the console. The big difference is Microsoft could use the sales incentive where Sony doesn't need to bundle since demand is still very strong for the console.

Mega241053d ago

I was an owner of the first kinect, it was cool and all but the space it need its too much for some people in apartments, I for one am waiting for a kinectless X1, I specially don't think that the kinect is necessary, Sony managed to make voice commands without the camera, any mic can do voice commands on the ps4, MS needs to drop the kinect and do Commands through the headset.

mcstorm1053d ago

Kinect 2 is a different beast compared to Kinect 1. It needs less space than the 1st one, the voice commands are far better and the tech is completely different to the PS4.

I was not too bothered about the Kinect side of the one but after having my xbox one for a few months now I can say Kinect 2 makes a big difference to the console and the way you use it.

I don't see MS dropping Kinect from the xbox one as it is part of what makes it stand out from the other consoles on the market.

As for zavvi dropping the price to £409 that makes it interesting esp to see why they have done the price drop.

Ripsta7th1053d ago

So we are at Kinect 2.0 and it still doesnt work as good as when it was revealed

ramiuk11052d ago

i got kinect for kid,he was annoyed it didnt work like the video showed lol.
always moaning it not doing what he is doing himself.
it lasted a month or so till he got bored.

infact the only game he enjoyed that responded all time was a kungfu game

jessupj1053d ago

Why don't they just get a cheaper, significantly more powerful PS4?

lastofgen1053d ago

I'm guessing because they prefer the xbox ecosystem and its exclusives?
And most of my friends like to stay within one online network for easy communication/playing.

+ Show (1) more replyLast reply 1052d ago
ALARM-clock1053d ago

It doesn't really look like an official price cut to me, more like a £20 off sale.

Naga1053d ago (Edited 1053d ago )

Right, but a headline like that wouldn't get nearly as many clicks. ;)

XiSasukeUchiha1053d ago

Sad price cut i thought more than 20 pounds MS $$$$$

UbiquitousClam1053d ago

Does it say anywhere in the article that this is an official price cut?

The answer you're looking for is no.

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