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I Believe Xbox One Needs A Mininum $150 Pricecut To Be Competitive Again (I Eat That Crow)

Forums - Sales Discussion - I Believe Xbox One Needs A Mininum $150 Pricecut To Be Competitive Again (I Eat That Crow)

thismeintiel said:
Hibern81 said:
... And for those talking about a Ps4 price cut, dream on.

Why would you say that?  PS4 is 100% going to get a price cut next year.  Probably by $50.  And if the One's pricecut this year actually does something, they may drop by $20-$30 this year.


Supply and demand dictate otherwise. Though I was speaking mostly for this year, I'm sure a price drop for 2015 will happen sooner or later. I'm betting on the later end of the spectrum. 



"Games are a trigger for adults to again become primitive, primal, as a way of thinking and remembering. An adult is a child who has more ethics and morals, that's all. When I am a child, creating, I am not creating a game. I am in the game. The game is not for children, it is for me. It is for an adult who still has a character of a child."

 

Shigeru Miyamoto

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I don't agree.

A $399 MSRP would put it on par with the PS4, even if it was untethered from Kinect. Technically, the consumer would still be buying a slightly lower spec console, but that's not as important as the library of titles, particularly the exclusives.

It's a bit ridiculous to think that MS would have to resort to dumping the XB1 at $350 to make it competitive.

Maybe to Playstation brand fans who want to pick up one on the cheap as a secondary console, but if consumers are only choosing one without any sort of brand favoritism, a $399 MSRP will simply have them comparing platform exclusives and features. Value-wise they would be perceived very equally.



BeElite said:
Cj2i3 said:
Toss that Kinect in the garbage, cut that baby to 350 and watch Xbone's fly off the shelf.


add some exclusives and yep.

Ps4 already proved that you don't need exclusives to sell consoles, unless people really are buying the PS4 for Knack and Killzone.

 

guess I could add change that marketing strategy to captivate gamers rather than captivating a demographic which doesn't buy consoles in the first place.



$100 - with a promotion saying that they have killer instincts as a free game.



Landguy said:

I agree with this.  Dollar value match to PS4 is all it really needs.  The $50 price drop and a game would make it cost the same as PS4.  The demand that the PS4 sees today are mostly early adopeters which put a lot more value into the specs.  The people buying after the first 6 months are the casuals.  They care a lot less about the minor changes in resolution, if the gameplay is good.

That's why I expect the US to see a price drop at the end of April or sometime in May.  They will pack in the Kinect Sports Rivals and claim a parity in cost.

As far as dropping Kinect in 2014, NO WAY.  If all of the pack ins and advertising promos with retailers fail this year, they will have to drop Kinect in April or May of 2015.

I'm listening the early addopter talk since last year or demand will drop after that... in the reallity the causals already are buying PS4.



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Hibern81 said:
thismeintiel said:
Hibern81 said:
... And for those talking about a Ps4 price cut, dream on.

Why would you say that?  PS4 is 100% going to get a price cut next year.  Probably by $50.  And if the One's pricecut this year actually does something, they may drop by $20-$30 this year.


Supply and demand dictate otherwise. Though I was speaking mostly for this year, I'm sure a price drop for 2015 will happen sooner or later. I'm betting on the later end of the spectrum. 

We'll most likely see a PS4 price drop when Sony releases a re-engineered SKU with a significantly lower BoM. The first update, which I'm sure is already well along the way in the design process, will be an invisible update and we probably won't see a redesigned PS4 (with a new external appearance for marketing purposes) until late 2015. That would be the ideal time for a significant price cut. 

This could change if MS drops price to $399 prematurely, but my guess is that neither company really wants to get into a price war where both are cutting profit margins to regain parity. 

So, not much point in little $20-30 price cuts. We would more likely see limited edition bundles at current prices before that happens. $50 is generally when most consumers will be swayed to buy earlier when starting with a $400 item. A $100 price cut from a $400 MSRP would result in more impulse buys from holdout consumers. 



mii-gamer said:
$100 - with a promotion saying that they have killer instincts as a free game.

KI is free... it is not a hardware seller game.



Hibern81 said:
thismeintiel said:
Hibern81 said:
... And for those talking about a Ps4 price cut, dream on.

Why would you say that?  PS4 is 100% going to get a price cut next year.  Probably by $50.  And if the One's pricecut this year actually does something, they may drop by $20-$30 this year.


Supply and demand dictate otherwise. Though I was speaking mostly for this year, I'm sure a price drop for 2015 will happen sooner or later. I'm betting on the later end of the spectrum. 

Ok, lol.  I don't think anyone really mentioned a price cut this year, so it seemed like you were saying it wouldn't get one next year.  Glad we cleared that up.



greenmedic88 said:
I don't agree.

A $399 MSRP would put it on par with the PS4, even if it was untethered from Kinect. Technically, the consumer would still be buying a slightly lower spec console, but that's not as important as the library of titles, particularly the exclusives.

It's a bit ridiculous to think that MS would have to resort to dumping the XB1 at $350 to make it competitive.

Maybe to Playstation brand fans who want to pick up one on the cheap as a secondary console, but if consumers are only choosing one without any sort of brand favoritism, a $399 MSRP will simply have them comparing platform exclusives and features. Value-wise they would be perceived very equally.

This is true if MS didn't damaged the brand and the console was launched with price parity.

Now they need to be cheaper to sell close to PS4.



ethomaz said:

The PS4 sales are strong... Xbone have a already know weaker hardware... so how much MS needs to make it competitive and at least sells on pair with PS4?

In my opinion MS needs at least cut the $150 of the console to make it sells close to PS4 numbers.

I believe too a $200 will start a domination in Xbone favor.

It is easy to see that... $350 is the minumin price that will make the consumer choose a weaker machine... $300 will be the obious choice even for me a PS fanbody.

What did you think guys?

I'm not saying MS will do that becuase the APU itself is already more expensive than PS4's APU and there is the Kinect... so I don't believe MS will cut that much but if they did then Xbone will be a hot product like PS4.

$300 ($200 pricecut) will be gamer changer... MS will close and change the gap to it favor in less than a year... after that just increase the gap.

I can be wrong too

I agree with you.