Who Else Thinks a Xbox One Price Cut is coming in March??

[Normchacho]

Untamoi said:

Normchacho said:
Nope, not a chance.

It cost MS $471 to make the Xbox One. A $100 price drop would put them in a huge hole and would certainly piss off anyone who bought an Xbox One before the price drop. It would be really difficult to justify a price drop this early especially when they no idea what it would do to market share.

Dropping the price would only cause more financial damage to a division that the investors already want sold.

People still seems to forget that MS is one of most profitable companies of the world and they still have around 100 billion in cash. Heck, MS makes more money than Google and around as much as Apple. 1 billion loss might be a lot for Sony but it is nothing for MS.

You have to remember that Xbox brand was never profitable during its first 5 years and MS still didn't abandon it (losses were only around 3 billion). And now MS is even more profitable and with more cash than ever.

First off, MS doesn't make "around as much as Apple". Apple pulls in more than twice the revenue MS does and nearly three times the profit. They also don't have anything like $100 billion in cash. The company as a whole has just over $100 billion in total assests as of the end of 2013.

The Xbox brand is still losing money year after year for Microsoft and it doesn't matter if the company is doing well. Shareholders would flip out if MS announced that just after 3 months of being on the market they decided to cut the legs off of the best chance the brand has to finally start making money by going from a small loss to a large one.

Microsoft can't just keep the Xbox brand because they feel like it with no sign of it becoming a profitable venture.