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Puppyroach said:

Yeah, I was thinking about the price of X1 and the ever ending discussion about it being 100$ than PS4. Well, I assume MS will lower the price within a year or so but then I had this idea: Wouldn´t it me smarter of them to sell the console at the same retail prices but include more and more digital downloads in the price?

Since all games that are released, also gets a release digitally, they could, instead of lowering the price by 50$, include a download code for one game digitally. The buyer can download any game he/she wishes. This has alot of benefits:

+ Being able to download ANY game of your choosing when buying an X1 is a way to quickly get more people into digital downloads, where the margin of profit on every game is bigger.

+ It doesn´t cost MS as much including a game, instead of lowering prices.

+ Imagine them "lowering" the price of the console by 100$. Instead they add the perceived value of two free games of your choosing which makes the overall package that more interesting.

The downsida I see initially is that people are simpleminded when it comes to consoles and look at the retail price first, added games second. A price of 399$ is looked upon as a lower price than a console for 499$ including two free games of your choosing.

But what do you guys think of this business modell? would it work?

You're describing a Console and gift card bundle which isn't uncommon for stores to do. People prefer actual price cuts to bundles.

Also a price drop within a year? How about just a Kinect-less model?