In the space of one week the Xbox One has seen four price drops in the European region; one so far declared as made in error. With Gamescom 2014 looming, are these drops indicative of a larger price drop?
It was a price cut? I thought it was just a cheaper option that came without Kinect. Price cut would imply that the original $500 Kinect version permanently dropped in price as well, no?
There were more prices cuts than the non-kinect version ;). All good - cheaper for Christmas is a fine idea.
I can tell you the most likely reasons this is happening. There is a big conference coming soon and Amazon or other retailers have a bit of stock that needs moving. Cutting the price before the conference means they can shift more units. After the conference the price will go back to normal as, usually, following these events the buzz generated increases and Amazon is likely to push more unitz This is just a simple case of Amazon trying to push units (hence the countries it has happened in). Signs from Microsoft say they wouldn't do this.
price cut? i don't think they can afford another epic fail, especially after they lost half a billion in the last quarter.
While another price cut would be great for consumers, it would be a TERRIBLE PR move. The internet would eat MS alive
They made 900 million in the division for the end of the fiscal year which was just released.
If it gets really cheap I might buy one to play Halo
@BiggerBoss You are right MS is between a rock and a hard place. If they keep current pricing sales continue to lag if they drop price their image suffers.
@abzddine MS profited $6.5 billion last quarter and $22 billion last fiscal year. If you are going to poo poo someone's financials you should look in the mirror at Sony's as they have been in the red fiscally for at least the last 7 years, and by big numbers too
I doubt it. It would be great for the holiday sales, and all 3 manufactures should be able to drop price at this point if they wanted to. However, I think they want to have their full worldwide launch at a $400 price point for maximum Day 1 profit, then have a price drop Spring 2015 ($349) when their big guns start rolling out.
I don't think it's coming here in Canada. I just got a bunch of emails from retailers offering 3 launch titles for $99 and a Forza+Ryse kinect bundle for $499. Either way it's evidence that the retailer and MS are trying very very hard to move the xbones. What was it MS said last gen when the PS3 cut it's price after about a year? Something like "when you cut price that early it sign of failure? Or something like this. But this gen they termed their unbundling/price cut as "options" and "value". I honestly think the next price cut by MS is met with a price cut or better bundles by Sony.
When will they make a discless X One? I would buy that for halo and forza, 350, but matching the PS4 makes it not worth it. Not to mention the size, taking out the drive might make it not so bulky
Microsoft's entire profit and the Xbox division's profit is being confused here.
Amazon have cut the price of the Kinect inclusive bundle in Italy, France and Germany. And sometime last week Microsoft cut the price of the Kinect-free bundle in Spain, but then said they made a mistake. Seems suspect, don't you think?
I doubt Microsoft will do a price cut, it'll upset a lot of customers. I recon if this should ever happen, that it'll only be after the XB1 was released on all countries.
they stopped making them at one point because they had so much stock in storage.u can still get the titanfall bundle in laods of shops in UK(available for around £375).
There haven't been any xbox or ps4 price cuts yet. new skus are not price cuts. Retailer sale prices are not price cuts.
I suspect a 360 and PS3 price drop to be a more likely scenario. There is still steam left in them, particularly in the PS3's case, and while there may be some wiggle room on current gen, I doubt they'd do the price drop thing within the first year. Although, it has happened, I just don't see it as necessary since the consoles are selling well overall, just one poorly compared to the other, but well on it's own.
Yeah the Kinectless version version was technically a price cut.. They cannot cut it again so soon as it would look to the mass market like they are in trouble. It would hurt stocks and MS care more about stock and investors than the average consumer.
It was not technically a price cut. They removed the Kinect camera, selling the console for $399. They provided a cheaper option by removing a piece of hardware that some people were hesitant in paying for that was mandatory. That's like saying if Sony sold a PS4 SKU with a camera in it as an option now and people are saying "Sony raised their price." No, they offered another option, a different package. Also, they will not cut prices in America, the console doubled in sales the month they sold the kinectless console.
MS is already loosing lots of money on X1 hardware, price cut might be not be an option anytime soon.
Lol disagrees , it's a fact MS have lost loads of money on the xbone so far , there report said over 400 million. Just because you don't like what this guy says doesn't mean it's wrong.
They made 900 million on sales of 9 billion. Revenue was increased for the year by 3.2 billion, but the cost of revenue also increased which is where people are coming up with this 400 million figure. Take a look at the financial statement yourself so you can stop spreading misinformation.
@death Didn't Microsoft just release a statement saying they lost nearly half a billion in the xbox division?
Here you go fellas, to clear up the misinformation: http://www.winbeta.org/news... MS actually gained revenue this year compared to last.
The trap is in the words chosen to announce the revenue. They speak of xbox plateform not xbox one. If revenue has increased is because of the sales of the 360. That's why they announced they sold more the numbers of consoles sold, xbox one and 360 together. If they would announced the numbers just by console the picture would be different.
Well said, BG. There's a reason they didn't single out the XB1, but instead said "platform," which would include Live, the 360, and other such things along with the new console.
Again Microsoft's overall profit is being confused with the Xbox division's profit.
yes in germany the kinect version will drop from 500 to 430Euros.
Well, yes. That is exactly what it is. However, it's a lot easier saying "price drop" than saying "the entry price for buying the XB1 is now lower than it was at launch." when anyone says price drop that's obviously what they mean. No use to argue semantics.
Soon the Next Gen (can we still call them Next Gen if they are already here?)consoles will be cheaper than Current Gen consoles. :)
wishful thinking but unlikely :D
They probably won't be as cheap as the last gen consoles right now for another 6 or 7 years lol
Highly doubt this generation will last that long.
PS4 and Xbox One are Current Gen consoles.
Someone told a joke and everyone took it seriously! What else is new on N4G? -_-
Still going with PS4
Cool story. No one cares.
I do. The more the merrier.
I do too. Wise choice stanr.
You seem to care enough to comment
You and the rest of the world's gamer population with some intelligence.
*claps* good for u little buddy!
@ stanr smart man!
Don't really need a price cut, especially here in Canada. Xbox One is actually cheaper here since the PS4 got bumped to $450
Yes it's cheaper but it doesn't seem to be doing them any good. Looking at amazon canada there are ps4s in positions 2, 4 and 28 for sales so far in 2014. Xb1 are at 54 and 64. It gets even worse if you look at the current ranking, ps4 at #4 while xb1 is at 139 and 236. Surprisingly Ouya was number one, though from the comments it seems most people are buying it as a media box.
cheap means nothing. WiiU cheaper than both and been out longer!
Won't be surprising at all
Hey...whatever is good for gamers!
If Microsoft were to scrap the pay wall for online gaming, then I would jump on board and pick up an Xbox One the very next day. They could offer Games with Gold as a value added subscription, just like PS+ is on PS3, and then of course EA Access is there as an additional option. If they were to do this, things would swing heavily in their favour very quickly. PS3 was great value, and if Xbox One could replicate that, I would consider this generation to be saved. I think that Microsoft has lost enough ground to Sony that this could surely be on the table during board meetings over at Xbox. Give people free access, and then all you have to do is sell the hardware, and sell compelling software, and then you have a PS3 type of situation.
I think they would lose more money by dropping the subscription for XBL then they would by cutting the price of the console... It won't take long for them to be able to cut costs on the hardware manufacturing side, so dropping the price of the console at retail would only be a temporary loss in money... Losing the money they charge for XBL is forever......unless they pull another 180 later on down the road...
Unlike when the PS3 launched, I haven't heard of Microsoft losing money on the production of the Xbox One, so they should be good there. In terms of losing money on the mandatory subscription, they would still make money from Games with Gold just like Sony and PS+, and I'm sure Microsoft gets some kind of a cut from EA Access, Netflix and whatever other subscription services they offer on Xbox One. People will buy the subscriptions if they see value for their money. Also, if people understand that online doesn't require a subscription, Microsoft would gain more in sales, and in turn, they would sell more software, and possible more optional subscriptions. Remember also, when you sell more consoles, then you sell more extra controllers, larger hard drives, headsets for voice chat, Kinect Sensors and on and on. So there you have not only an increase in software sales, but also a sales increase in peripherals, which I'm sure nets them quite a bit of money. Just to compare the last generation consoles, Xbox 360 had a pay wall, while PS3 didn't. Xbox Live had a total of 48 Million accounts by the time Xbox One launched, while the PS3 had 110 million accounts. Not ever Xbox Live account had an Xbox Live Gold subscription. Look at how much faster the PS3 sold over the Xbox 360, selling more consoles while being on the market for a full year less. You might ask how there were only 48 million Live accounts with 80 million consoles sold, and the reason is because of the hardware failure rate. When you look at lifetime software sales between the PS3 and Xbox 360, you look at the one year head start that the 360 had over the PS3, the fact that most of the time multi-platform games were better on the 360, and you look at the massive amount of marketing that Microsoft put behind the 360 and their biggest games, the 360 didn't sell all that much more than the PS3. To date, Xbox 360 has sold 898 million software units versus PS3's 836 million software units. Everyone was always complaining about Sony's poor marketing or complete lack thereof, and yet look at what they accomplished. Just my opinion, but I think there's a case to be made.
@battleaxe What you propose is madness. Interesting fact but Sony went from earning millions to billions from plus by making it compulsory for online play. Also, despite have more general accounts, the plus adoption was a lot less than the Live adoption (hence the big increase in money). Microsoft would be a fool to get rid of that as their biggest earner is live (since the profit of a system is marginal). All you have to do is look at Sony last generation to see the impact not charging had. Sure more systems were pushed at a higher price range but the amount of money that made was a lot less. Microsoft could afford to spend billions on timed exclusivity and they showed that by throwing money all over the place. Charging for live is vital. Putting apps behind the paywall isnt
@Battle To put it in another perspective, assuming that every single person on XBL got it at discount for $30, 48 million subscribers makes up over 1.4 billion dollars a year. Granted we can say not all of them were gold accounts, but even still, that's a huge amount of money to give up. Even assuming they break even on the hardware, they'd have to sell 5 games per year per person to make up that loss of revenue from XBL being free. Then to make up the other revenue from the games they'd lose going towards that, they'd have to sell additional games to cover marketing, production, distribution, and general costs, etc. It's not going to happen, because as it stands, XBL is a steady revenue stream, whereas game purchases can be fickle.
That wouldn't work because the margins on selling consoles is low. Their bread and butter is Live subscriptions. If they can keep you subscribed for 8 years, they would effective cover the entire cost of manufacturing and then some.
good cuz they will ;)
HAHA remove the subscription charge and still give you games for gold for free?? @battleaxe??? Some people really need to think before they type.. That would NEVER happen as that truly is throwing money away.
When you are falling behind sometimes you need drastic measures to catch up again. Never say never.
Who said anything about giving Games with Gold away for free?
It's very possible... The PS4 has been dominating them in sales...
Possible? Yes. Likely? No. There plenty of reasons why they don't want to cut right now which I could list but a couple are the fact they are already losing money on each box so a another $50 price cut would be madness. Also lowering price might hurt 360 sales something they also do not want to do even though they seem to have stopped supporting it.
Eh. You gotta look at it through a financial stance. The PS4 is selling great, but because the PS4 is selling well doesn't mean the X1 is selling poorly. It's simply just not selling as well. MS will be looking at their numbers and will see if the console is meeting their expectations or not. The Kinectless Xbox one is a good start and I think once we see Halo, Gears, and Quantum Break come out, the numbers will increase. The PS4 is just breaking all kinds of records, so it makes it look like the X1 must be failing. When in reality, it's still higher in sales at release to now then the Xbox 360 was in the same respected time last gen.
I'm tired of them saying it got a price cut. It didn't. A price cut would have been if it had gone to 399 and kept the Kinect. It got a new SKU, missing a 100 dollar item. Technically the Xbone is the same price as it always was. They should make it $349 :)
They still did it to lower the price though so the console could compete better with the PS4. Whether you like it or not they removed Kinect to drop the price. Or did you forget about how Microsoft said that Kinect was essential to the system and that they would never remove it from the package because it provided more value to consumers than the PS4. "They should make it $349 :)" I agree with you that a weaker console should be priced cheaper. The one of the issues that the Xbox One has is that the PS4 is more powerful yet it carrys the same price tag.
A price drop means you get the same product for less money. They removed a hundred dollar camera and made the product 399. That's not a PRICE DROP. You pay less, and you get less. The 499 model with the Kinect included is still being produced and sold... at 499.
Just to play devils advocate...the PS4 has already had a price drop too than. They had a pre-release price drop when they decided to remove their camera and MSRP $399.99
@slape "They had a pre-release price drop when they decided to remove their camera and MSRP $399.99" Nope Sony already stated that they were always aiming for a 399$ price point for the system with or without the camera. The executives removed the camera because they didn't to take a huge hit with the console at launch. With the way the PS4 is selling I'm pretty sure they are happy for doing that. http://www.vg247.com/2013/0... “Designing PS4 was all about learning lessons from PS3 – ease of development and the cost of the system is a big part of it,” he said. “We always wanted to hit $399 and we designed the system and carefully chose out of all the potential inclusions of the core hardware components and we made a system that we could sell for $399."
@Master http://www.nowgamer.com/new... and even if the article you posted is correct...all that means is they decided to go a head and take the camera and still charge the same amount.. as I said, just playing devils advocate
Show me where it says a price cut is the same exact product for less. If they cut the price, they cut the price. No need to get all worked up because they cut the price of the xb1.
@BX81 It's implied brother. Come on now, you know this. It's like a car. You see a fully loaded Honda Civic at the dealership. Moon roof, leather seats, top electronics, heated seats, etc. Then, Honda releases a Civc LX package for a few thousand cheaper. Sure, the exterior looks the same and the engine is the same. Yet, you're missing the moon roof, leather seats, heated seats, nicer electronics inside, etc. Both are available for sale, you would call that cheaper model a price cut? No, it's another OPTION. A price cut would be if the Xbox One was 499 with the kinect and they permanently lowered the price to 399. They are still selling the kinect X1 for 499, they just offered a lesser package (ie model, just like the civic). The Xbox 360 did this last gen. with the Xbox 360 Pro and the Xbox 360 Arcade models.