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Forums - Sales Discussion - if Sony drops the price will Microsoft follow?

Protendo said:
At the same price, PS4 will win.

Microsoft has to drop it and lose more money.


Why do you think they are losing money? Were there any reports on this?



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Another strange componet would be what Microsoft could have sold if the console could have maintained a $399 price point. I guess what I want to know is what sales will look like at 299. Because they must go lower in order to have any lasting impact on the gap. The Vita went from 250 to 199. That a 20% drop. For the PS4 that would be an $80 drop.
And so if the Xbox One goes to 299 (it really has to) and the PS4 is 320, what does that play out like? If we are using Sony's playbook then thats what we should expect. Being $20 more expensive than the Xbox One. Suddenly the price difference is completely negligible which will only help Sony.



Teeqoz said:
RenCutypoison said:

PS4 is beasting but given the fall lineup I hardly see it ahead of the Xbone in october/november NPD, pricedrop or not.

So MS doesn't need to follow this year IMO.


October I could understand, due to Halo, but November? Sony has the Battlefront bundle and marketing rights, CoD marketing rights (an the inevitable bundle). If the two consoles are sold at the same price it's gonna be hard for MS to win november.


Marketing rights? They both get the game. Anyone who looks at the games in the store will SEE that both systems have those games. You're putting WAY too much stock in marketing rights imo.



walsufnir said:
Protendo said:
At the same price, PS4 will win.

Microsoft has to drop it and lose more money.


Why do you think they are losing money? Were there any reports on this?


Well, at this point one must imagine that Microsoft has lowered costs, but the cost was understood to be about $375 per unir without Kinect.  Now if the price of production were to fall to sub 299 that would be a substantial decrease in production costs. There is very little to draw on that would lead most to believe that a price cut would result in losing money for Microsoft. 

 

However,  have you noticed that Microsoft has begun introducing higher priced SKUs.  Microsoft is actually trying to make money. I think we will only see them lower prices in response to Sony.



AlfredoTurkey said:
Teeqoz said:


October I could understand, due to Halo, but November? Sony has the Battlefront bundle and marketing rights, CoD marketing rights (an the inevitable bundle). If the two consoles are sold at the same price it's gonna be hard for MS to win november.


Marketing rights? They both get the game. Anyone who looks at the games in the store will SEE that both systems have those games. You're putting WAY too much stock in marketing rights imo.


He is taiking about bundled hardware not software. If you go to GameStop because you saw s commercial for the Darth Vader bundle,  you wont get there and discover an Xbox One Vader bundle.  It literally doesn't exist. 



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CosmicSex said:
walsufnir said:


Why do you think they are losing money? Were there any reports on this?


Well, at this point one must imagine that Microsoft has lowered costs, but the cost was understood to be about $375 per unir without Kinect.  Now if the price of production were to fall to sub 299 that would be a substantial decrease in production costs. There is very little to draw on that would lead most to believe that a price cut would result in losing money for Microsoft. 

 

However,  have you noticed that Microsoft has begun introducing higher priced SKUs.  Microsoft is actually trying to make money. I think we will only see them lower prices in response to Sony.


The estimated cost is already outdated, of course. There were rumors that MS already managed to build the SoC at lower nm's.

Than take a look at the higher priced SKU's - they also include way better value. MS knows that these won't sell that much so they also don't expect them to account for potential losses. They just provide more options to customers.



walsufnir said:
Protendo said:
At the same price, PS4 will win.

Microsoft has to drop it and lose more money.


Why do you think they are losing money? Were there any reports on this?

http://learnbonds.com/122889/microsoft-corporation-msft-loses-money-on-xbox-one-sales/



Ruler said:
walsufnir said:


Why do you think they are losing money? Were there any reports on this?

http://learnbonds.com/122889/microsoft-corporation-msft-loses-money-on-xbox-one-sales/


"impossible", "hide", "VGChartz isn’t the best source for hardware sales data, but we’re going to use it to model some of the numbers as we don’t have the data from Microsoft." "If our numbers are right the gross profit on the Xbox One is $36.50X9.19M=$335M."

They also add in marketing, cost of developing updates and so on so... Yes, thanks for that link but. Well. Basically what they are saying is that because they are hiding actual numbers is why they lose money.



walsufnir said:
Ruler said:

http://learnbonds.com/122889/microsoft-corporation-msft-loses-money-on-xbox-one-sales/


"impossible", "hide", "VGChartz isn’t the best source for hardware sales data, but we’re going to use it to model some of the numbers as we don’t have the data from Microsoft." "If our numbers are right the gross profit on the Xbox One is $36.50X9.19M=$335M."

They also add in marketing, cost of developing updates and so on so... Yes, thanks for that link but. Well. Basically what they are saying is that because they are hiding actual numbers is why they lose money.

http://allthingsd.com/20131126/microsofts-xbox-one-cost-90-more-to-build-than-sonys-ps4-teardown-shows/

Yes they are losing money with each console its a fact the kinect cost them 75$ of their 500$ price tag. The xbox one should cost 425$ but it costs 350$.

Sony made 20$ profit with each console sold from the 400$ price tag and because they scalled down the PS4 to the current CUH 1200 model they should be able to afford a 350$ price tag. 



Ruler said:
walsufnir said:


"impossible", "hide", "VGChartz isn’t the best source for hardware sales data, but we’re going to use it to model some of the numbers as we don’t have the data from Microsoft." "If our numbers are right the gross profit on the Xbox One is $36.50X9.19M=$335M."

They also add in marketing, cost of developing updates and so on so... Yes, thanks for that link but. Well. Basically what they are saying is that because they are hiding actual numbers is why they lose money.

http://allthingsd.com/20131126/microsofts-xbox-one-cost-90-more-to-build-than-sonys-ps4-teardown-shows/

Yes they are losing money with each console its a fact the kinect cost them 75$ of their 500$ price tag. The xbox one should cost 425$ but it costs 350$.

Sony made 20$ profit with each console sold from the 400$ price tag and because they scalled down the PS4 to the current CUH 1200 model they should be able to afford a 350$ price tag. 


"November 26, 2013"