GGG writes about how Microsoft raising the Xbox One's price back up $50 in January when their holiday sale is over could be damaging to the platform and why they should just leave the system at its new price.
they might. who knows Microsoft has made its move, now we just need to see what Sony does. @mrbojingles hmm maybe you're right, Sony might not have to do much. but i think Sony will at least push a cheap bundle or something.
But if Microsoft raised price back to $399 in Jan, would Sony have to do anything really? If they did and MS raised it, Sony would have cut their profit margins for a temp boost and no reason really.
I think MS are trying to salvage some name out of this. They are giving it their best shot just to see if they are able to reach #1 sales position during holidays and pat each other on the back and of course to brag after NPD. It just goes to show that MS has no long-term vision. Even with the Spencer in the driving seat. It's one thing to do the most obvious (kill Kinect) but it's totally another to have a long term business strategy that will pay off in.... tada... long term! It will surely have a positive impact at least during the holiday but the holiday season won't last for ever. Then what? What of the 2015? This can't be an annual practice for sure!
It's likely that after this deal expires there will soon be another deal to take it's place.
Desperate Times Call For Desperate Measures. - Chloe from Uncharted 2 Did the PS3, 3DS, Wii U went back to its original price after the pre holiday season price drops ? I thinks Sony is gonna pull a Steve Jobs approach this holiday season and say " We don't ship junk" and "You get what you pay for" stance & will still outsell the Xbox One. PS4 has done so many impossible feats since launch and that is what its all about. Xbox One's sales will cosmetic and will barely scratch PS4's massive install base and public trust. I mean how long will M$ afford to lose millions just to have a wider install base because they already done it with the original Xbox & 360. M$ can outspend Sony 10:1 but what about revenue, profit and income?
The xbone's price drop should be permanent because if it sells a lot for the month of November +December but raised back up in January, who else do you think will buy it now considering that the only reason why it sold more than normal was because it was $50 cheaper?? It's like a double edged sword... And Ms might end up stabbing themselves if they raise the price back up.
Sony wouldn't cut their price. First of all, they are under no pressure to cut price. If their unit sales is below expectations, and Xbox comes ahead, Sony will attempt to bundle it with retail games or PS+ and keep the $350-360 sale price they have had occasionally. zee: This is the long term view! MS is ensuring massive adoption without hitting their long term profit margins too much. The more adoption, the more people will be happy with the console and talking about it to their friends. There has already been a market shift in consumers that own a PS4 either sells it or get a secondary console and talk about their positive experience on places like reddit. There is no reason why MS couldn't cut the price permanently come January or any time after that as production cost goes down. If anything, I think MS is showing that they want to win, and will do everything they can to win. There is a huge difference between the Sony in this position, and the MS in this position. MS is just aggressively pulling ahead really fast in the span of 12 months! This is a well managed division!
@donthate What a load of drivel you have just typed. It's not surprising coming from you. Your comment history shows what you are all about. I have had a PS4 since launch and as of yet don't own any other console. I am thoroughly satisfied with it. Will never sell it. "Microsoft are aggressively pulling ahead" huh? Pulling ahead where? US? Europe? Maybe you are talking about China where the PS4 hasn't even launched? Or maybe it is your imagination.
They already said the deal from November 2nd-January 3rd. Not a permanent price cut.
Not possible to raise the price in this market. That would really hurt the sales.
I don't believe the price will rise again. This is a perfect ploy to see if Sony will take the bait and lower their prices too, at a time when the corporation is losing money in other ventures. MS will say this is only for the holiday season to see if Sony will lower the price too.
After Jan 3 its back up to 400$ so umm yeah?
The post is about whether Microsoft will really go through with that.
I guess it depends on how successful the holidays are... ;)
Lol yes? I can see a scenario where they could maybe extend it but permanently no because MS just like all companies MS wants top dollar.
If Sony keeps the PS4 at 400$ and continue to outsell the Xbox 1 at 350$,Microsoft won't have a choice to keep it at 350$.If they can't outsale the ps4 with a 50$ price advantage, bringing it back to 400$ won't help it out either. I believe it's a tactic used by infomercial "call in the next 2 hours and save an extra 50$"
with all this awesome games (MCC, SSOD, FH2, KI session 2, Ori) ya of course.
If the temporary price drop doesn't get the results that Microsoft wants, I think the price will remain at $349.
its pretty desperate though isnt it. within a year its had £129 price cut in UK and now it even includes the latest game. so u would add another £40 onto that price cut to giver an accurate price. it was £429 with no game at launch and now its £299 with a game. surely MS cant be making nything at that price? unless kinect really did cost £200 to produce like they claimed before launch
Probably at the point where they'd rather lose money on consoles in order to have more chance at making it back via software.
disagrees for stating a fact,gotta love this site
I vote no. We know that even at the same price, PS4 dominates, so what motivation do they have to restore the price?
MS has actually put me off buying an XB1 (again). I want one and was about to buy the Sunset Overdrive bundle, then I heard they were dropping the price another $50 in the US only. The US already gets the console $100 cheaper than us in Australia, now they're getting it $150 cheaper? If they decide to cut out the favouritism and give the rest of the world a similar Christmas deal I will get on board, otherwise I will wait for further price drops.
well they're trying to get the US market back as it was their stronghold last gen. PS4 and X1 in the US market is now farely close and MS wants to win that market back before any other as its the biggest spenders and consumers.
Yep, seems like MS have at least temporarily given up on the rest of the world outside of the US. I guess they are discouraged by the coparitively low sales. It's a shame, if they had just been fair and provided a similar deal elsewhere I'm sure they would have seen a sales boost.
Agree!Europe and other countrys is paying for the price drop in US it seems;i already have an Xboxone brought it second hand new + kinect and 2 games for 250€ but if i where in the look for a Xboxone at the moment in EU or other countrys other than US i would not buy the Xboxone at the price Microsoft is selling no way.. its overpriced!
Nice to see someone else who has good sense. Sounds like you got a great deal.
But they knocked off $50 back in March when titanfall launched and even gave the game away for free. That didn't win them npd. Then last month on Destiny week they had that free game promotion for any game when you bought an Xbox. That didn't win them npd. When they axed the Kinect and introduced the $399 model that didn't win them npd. These were all three very big promotions that should have won them at least one npd by now but has not. And I don't see any reason why this current promotion will either as Microsoft has pretty much thrown everything plus the kitchen sink to try to get a win this year and has failed at every attempt. So I vote no they'll leave it and start fresh next year to see if that helps. No Kinect, $150 off from its launch price, should help it have a much better 2015. And of course halo 5.
Everything that has happened with the One since launch has gone back on MS's "Next-Gen" vision... Why can't I have Kinect bundled for $350, Kinect was the entire consoles sale pitch... anyway I view their desperation of tactics as what puts me off on putting it next to my PS4! The time I ever truly will consider getting a One is when Gears of War launches IF it looks good & actually has a good story which it has been lacking... Lost a lot of faith after Judgement. I expect a cheap Gears bundle with a Limited Edition Gears console... Not saying it's a definate sell for me, but if done right! I could cave in... Until then... Literally NOTHING yet has enticed me in the slightest!
No way will they raise the price, that's madness. They just want people to think they have to buy now or miss out. Either they will say the sale was so good they're making it permanent, or it will be bad and they'll realise they can't raise it again. Either way the price stays.
I've made the same analysis, and it's all turn out to how good they behave this holidays season!!
It think the price will return to normal like they said it would. This may be a first for game consoles, but it isn't the first time there has been a temporary sale on an item... this is just an attempt to give fence sitters a push over the edge...
But you realise console gamers are fair savvy consumers? They know their products and they do their research. If they drop the price for a couple months they will get a small surge for those months, but then they will get stagnant sales for the next 6 months while everyone waits for the inevitable price drop. No, MS are painting themselves into a corner with this "temporary"price drop. My meaning is they will have no choice but to extend it whether the results are good or bad. If they're REALLY bad we may even see a further drop by March, but only if they're really bad.
Sales numbers were bound to be fairly good without the price drop, considering sales have been improving, and the holiday season is upon us. There are those who are sitting on the fence about xb1 would will decide to jump that's to the price cut, knowing its temporary. Then there are those who will decide to wait and hope for further drops. Those folks are taking a gamble, that may not neccisarily pay off. That doesn't make them savy. I mean what are the chances that they'll get a better deal in the spring, than $50 off PLUS whatever Black Friday sales their are. Microsoft isn't painting themselves into a corner . They are capitalizing on folks intent on spending now, rather than later. If they can convince enough people to spend now, then it would lessen the impact of slower sales later, when the price goes back up. This isn't the first time there's been a "limited time offer".
They should keep it at $349 after sale and I have feeling that it will.
Every single attempt has failed so far. I doubt this price cut will do any difference. The PS4 will come at top on the holidays. Share Play is a game changer feature that will give the PS4 more advantage.
I honestly don't see how Share Play is a "game changer", neat feature but not a game changer. Also, at the above comments about these how these moves by MS are "desperate", I must ask what do you expect them to do? It seems that no matter what move MS makes, you idiots take issue with it.
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