Here’s why an Xbox One price cut would be a huge mistake

Now that the Xbox One has fallen firmly into second place as the PlayStation 4 continues on its tour of world domination, fans of the Microsoft console are looking for answers. The $100 price difference between the consoles has clearly been a factor, but the wave of negative PR that surrounded the announcement of the Xbox One hasn’t helped either. How can Microsoft turn this console generation around before it completely loses momentum? Is it already time for price drop?

Not according to Forbes contributor Erik Kain:

“Cutting the price of the Xbox One this early into the console’s life-cycle would be a mistake,” says Kain. “If Microsoft slashes the price of its system from $499 to match Sony’s $399 PS4, the tech giant would lose money—quite a bit of money—on each unit sold.”