X1: Why not digital downloads instead of pricecuts?

[selnor1983]

Figgycal said:

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?

Kinectless Model? Why?

History has shown us that its normal for a console to get a pricecut in its first 12 months. PS1, PS2, PS3, 360, Xbox, N64, GC etc etc. All pricecut in my country within 12 months.

Kinect will stay. Price cut will happen, this XMAS.