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Angelv577 on 24 January 2014
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Carl2291 said:

Firstly, dont bite at the obvious bait from 2008ProchargedGT.

Now thats out of the way.  

selnor1983 said:

While they are posting record profits I dont think MS will change anything. And Xbox is still profitable since 2008. Not 1 year with non profit since then. I reckon they are happy.


Do you seriously think that Microsoft will be able to hold this pricepoint for over a Year without seeing significant losses in marketshare to both Sony and Nintendo?

Making a ton of money might be good for the books, but its not gonna do anything substantial for your platform when you lose exclusives/support because of sales performance. A $500 console isnt going to survive in the long term when there are options that cost far less that do just as much, if not more for the target audience. Its already starting to lag massively behind in Europe, before we hit a real baseline for sales.

They got away with not doing a mass pricecut with the 360 for a few reasons.

a) Because the primary competition, PS3, was always the more expensive console which means the very similar 360 was a better option for the mass market.
b) Because they launched early into the market and controlled a large chunk of marketshare from the off, meaning devs couldnt afford to miss out on the sales potential available on the platform and thus maintaining support throughout the lifespan of the console.
c) Because Kinect. Kinect prolonged the 360's lifespan by 2-3 Years. On Kinect Year the 360 was up YoY by over 30% and flat the Year after. Before Kinect we saw a drop of almost 10%.

With the Xbox One things arent so clear cut as they were with the 360. Microsoft arent gonna have the same luxuries and the competition this time out is far greater.

This