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.”

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Meltic2181d ago ShowReplies(4)
SteamPowered2181d ago

Makes sense. The loss on hardware just wouldnt be made up by games. There simply isnt enough X1 exclusives to really make consumers come running.

Excalibur2181d ago (Edited 2181d ago )

In my opinion there is no current exclusives that would make me want to drop $500.00 or even $400.00 for that matter.

Not only that, 95% of everything currently released could be played on the 360 so..

And before someone jumps in and says "yeah but the graphics are better on the Xbox one than the 360".

Don't go there, I don't know how many times I've heard the Xbox One defenders say graphics and frame rates don't matter when comparing the xbox One to the PS4 so save it.

BTW this is exactly what I'm talking about, there is not that huge of a difference that would make me want to spend an extra $400.00- $500.00 right now, I'm playing Thief on my 360 and I'm good with it.

SteamPowered2181d ago

Ex, youre absolutely right. The X1 would almost have to be cheaper than PS4 right now. Say what you will, PS4 has the better version of multiplats right now.
And the 360 is still going strong. MS hasnt come close to dropping support for it.
In the end, Microsoft hasnt really made X1 a must-have yet.

sentury1112181d ago

There is a difference in comparing last gen with current. So far the games on both consoles are near identical to the naked eye.

djplonker2181d ago (Edited 2181d ago )

Ugh why is losing money on a console so strange to microsoft it is the main rule of console manufacturing... take a hit on the hardware and make it back from the software unless said manufacturer is exceptionally greedy!

Godmars2902181d ago

For one thing with the first Xbox they made a massive mistake. Leased rather than bought key parts. Couldn't change anything in regards production and lost money on every system sold.

Then with the 360 there was the RRoD and the costs to cover it.

Now there's the XB1 which has the Albatross which is Kinect around its neck. Which is likely why its $100 more but less powerful than the PS4. Even if MS drops Kinet and lowers the price, that's a lot of R&D money gone. Along with most if not all of their remaining strategy for this gen.

djplonker2181d ago (Edited 2181d ago )

Well said bubbled up!

And even if they do take the kinect out and lose that r&d money there is still the weaker hardware problem because of the kinect... the next few months will be interesting...

Excalibur2181d ago (Edited 2181d ago )

“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.”

Not if they released a Kinect-less version.

I keep hearing the argument over and over that without Kinect the Xbox One would be just like the PS4, please tell me what Kinect 2.0 adds to the system?
A way to turn your system on without a remote?
A way to switch blades without a remote?
Really? Are you really holding on to the notion that waving your arms around is somehow easier than using your finger to press a button?

Well Kincet 2.0 has Voice controls too!
Ahh.... yeah, you can do the same thing with a headset.

Face it, Kinect is a gimmick, if you like that gimmick that's fine but don't force it on the rest of us.

Keep defending that anchor called Kinect and it will drag your system down even further into murky waters.

No1up2181d ago

Excus me sir, kinect allows me to yell at my TV several time to turn off... The general rule of thumb is yell xbox off 3 to 4 times... Do you know how much stress can be released by yelling?

rdgneoz32181d ago

Especially if you have a significant other or small children in the house, yelling at 2 am is such a stress relief.

SteamPowered2181d ago

Or waving like the Village People at a Pride Parade just to get the kinect to notice your gesture controls? Its a great shoulder workout.

Kidmyst2181d ago

Kinect free bundle and move the features from behind the paywall to match how Sony has it and it'll help turn things around a bit. If you buy a console just to want to stream movies and TV and play a game now and then, it doesn't make sense to buy the console that makes you pay to access the streaming features and have a camera that won't be used.

BladerunnerZX2181d ago

Kidmyst that is the most logical statement I think I have EVER seen on this site.

You may be a genius , bubbles for you.

AngelicIceDiamond2181d ago (Edited 2181d ago )

@Excalibur Well that kind of comment is usually made by someone who's never used Kinect in first place so you can't talk about the experience.

And this is coming from someone who absolutely did not buy Kinect 1.0 simply because I didn't care about Kinect gaming. (and didn't wanna spend the money)

If I wanted to use Kinect it would be for navigation and voice not for gaming, that's not my thing at all.

AS for an Xbox with out Kinect?

I already stated why it wouldn't make sense. Why would MS sell Kinect by itself for 200 to maybe 250$ standalone? Kinect 1.0 isn't selling as nearly as much as it was how would Kinct 2.0 fair with a higher price?

I can't see consumers buying X1 for 400 then buying Kinect for 200$ more hell no.

Kinect's not going anywhere MS will cut the price with Kinect in it they spent stupid amounts of money on Kinect 2.0 so its not happening now lets move on.

Excalibur2181d ago (Edited 2181d ago )


I have a Kinect for my 360, My Gf bought it because she wanted to do her exercise program, we also played the sports game that came with it, it was entertaining for about 5 minutes and then it became a nick nack dust collector, I don't need nor do I want another.

If you don't believe me go under my account and you will see the various Kinect achievements I have.

Why o why2181d ago (Edited 2181d ago )

Fall further behind or take the hit in attempt to keep up. If I suggest the third option ill be set upon by angry wolves

*cough*ditch kinect*cough*

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