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Why Microsoft Needs to Keep The XBOX One Price at $349.99

MVGN writes "Currently Microsoft’s latest home console is retailing for $349.99. Ever since the XBOX One has dropped to that aggressive price, the system has been selling out at retail stores across the nation. Every time we enter a retail store, we notice that the system is now sold out and seems to be a general trend since the big price drop."

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Ghost_of_Tsushima1099d ago

They will. If they go back up they'll screw themselves.

freshslicepizza1099d ago

they need to redesign the system, a fresh start so to speak. thats why i think at e3 they will announce a xbox one slim for $299.

BattleTorn1098d ago

I foresee disc-drive-less slims sometime

ABizzel11098d ago

Like I said a while back, it's a bitter-sweet position for MS to be in.

At $350 with 2 games they're going to be competitive in market-share with the PS4 (still losing worldwide, but competitive nonetheless especially in NA where it matters most to Xbox). However, they have to be taking a pretty steep loss on each console sold, so while trolls like Jaba Greenburg are finally coming out of their hut after being mute for over a year, the real story is MS is making up ground in market share, but has lost around one hundred million ($100,000,000) for the month of November alone on hardware.

That's not including all the prior losses they've endured going into this generation, and the poor sales earlier.

However, IMO this was all a needed loss. If they let Sony dominate this generation, then they're back at square one where the original Xbox left off, making Xbox a major NA console, but a niche console worldwide, and giving Sony all the power that the PS2 once had. If that happens Xbox is getting dropped from MS, but hopefully turns into a private company to continue it's success in NA.

So MS made the hard, but right choice IMO, and at this point they can't really go back. I expect an Xbox slim really fast, and as many said at E3 so they can stick with the $350 price for as long as they can. However, it would be wise for them to drop the price back down to $349 sooner such as March once people get their tax return.

It would also be a great time for Nintendo as well, but that's another story.

MS has a long hard road ahead of them this gen, but hopefully things work out for them. If you asked me did I care about MS after their reveal and policies I would have said they can leave the industry for all I care, or spin off Xbox. Ask me now and I still think Xbox would be much better off away from MS directly, with Phil leading and having full creative control, because there's a lot of potential that Xbox can do for PC/Consoles if there weren't all these restrictions placed on it by being directly under MS (fans just want it to stay there because of money, but Xbox doesn't have access to MS billions, they have an quarterly/annual budget just like every other division and every other business).

If Xbox can simply partner with MS, they could built a true PConsole that bridges that gap better than Steambox ever could have (since Valve doesn't have the same mainstream appeal as Xbox), and they could really change the modern day PC for the general consumer by working with MS, Value, and NVIDIA. But that's another day.

kreate1098d ago

I hope price stays at 350 and maybe next black friday price is $299.

Inzo1098d ago

If they keep this price , they screw themselves.

zero_gamer1098d ago

Don't know where you come up with that argument. The console isn't selling at a huge loss, if any at all. Sales have skyrocket since the price drop, and if they increase it back to $400, sales will likely be much closer to where it was before.

If MS cares about console sales, they would just keep it at this price. It would be smart too as it does give it some competitive advantage over the PS4.

miyamoto1098d ago (Edited 1098d ago )

Catch 22?

The ideal thing is make money on hardware and software at the same time.
We all know M$ is not making money on hardware- no money on Kinect 2.0 and no money on Xbox One units due to the $50 price cut, R&D, etc etc but how can they make money on software if they are giving away not one but two or three games for free?

I know M$ can lose billions and not even care for it but still that is mind numbing.

Anyways, more software sales for XB1 more Blu-ray royalties for Sony.
So its a win win.

LOL!
I remember how tons of Xbox fans said Blu-ray is doomed, "we hate Blu-ray", yet look at them now they are playing with Blu-ray as we speak.

Sony launched the PS3 with a winning format Blu-ray!

Letthewookiewin1098d ago (Edited 1098d ago )

It wasn't selling at 400$. Its the budget system at 350$ with 2 games and that is a huge deal to people.

llxKonanxll1099d ago

They need to keep it at that price to be competitive with the Ps4.

raWfodog1098d ago

Agreed. They either need to keep it at $349 OR continue to offer at least one (if not two) free games if they raise the price back to $399. But I think that if they keep it at $349 and continue to gain market share here in the US, then that will force Sony to lower their price for the PS4 to match the XB1 in order to remain competitive.

Either way is good for me. Getting my PS4 this holiday so the XB1 will hopefully still be a very good deal when I'm ready to buy it next year.

MrBeatdown1099d ago

They won't go back up to $400. Calling it a limited time offer is just a ploy to get people to buy now rather than wait.

Come next year, Microsoft will come up with some spin to make it sound like they're keeping the $350 price as a result of listening to their fans.

IWentBrokeForGaming1099d ago

It's "Limited" only to make the end of the year quota!

annoyedgamer1099d ago

This is a common marketing ploy.

Paytaa1099d ago

Microsoft having the $50 price difference is a huge selling point. I love my Xbox One and do prefer it over my PS4 but I won't deny the fact that if they keep it at $400 that it will be a shot in the foot. They have already gathered in a ton of people due to the new price and it'd be in their best interest to keep the price below the PS4 in order to stay competitive. As long as MS can keep the great games coming, keeping the price competitive, and continue with the constant updates I believe they will do just fine even if they sell less than Playstation.

n1kki61099d ago (Edited 1099d ago )

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