DJEVOLVE said:
Last gen they sold for a loss right away, So did PS3 and many platforms before. This is nothing new. Xbox could sell one game and a XBox live subscription and boom they are profitable. They also included Titanfall for free which is a unofficial price drop. They will drop price in the fall. By then the xbox cost should have dropped a little. You act as if this is not possible, it's very possible. Not only that, I think they will be profitable soon after this drop. As a whole it's better then losing market share, This stops game sales and many other things. So the price drop is just a drop in the bucket amoung many other things. If I was them i would sell the Titanfall bundle until fall, then drop $100 in price. Titanfall needs a Xbox Live subscription to play. So this will push profit. |
The difference this time is that MS isn't the newbie trying to get a foothold in the market, and neither is it looking like achieving substantial gen on gen growth. Those were the reasons team Xbox could justify selling hardware at a loss to the Xbox sceptics at MS. This time around, shrinking market share PLUS selling at a loss just wouldn't cut it with the internal opponents to Xbox. The Xbox team are in a bind. Lose money and gain a bit of market share (let's face it they won't gain all that much) or keep selling at a profit and rely on later affordable price drops to gain more sales, but still keep losing ground to PS4?
MS screwed up with Xb one. They made a product the market largely doesn't want. They thought they could find some TV watching blue ocean which seems not to exist. Their vision was all wrong. PS4 will always be more powerful and except for brief periods PS4 will also almost always be cheaper, and PS4 will normally have the better looking and performing multiplatform games. Even ditching Kinect doesn't really put Xb one on the level with PS4. It will always be in PS4's rear view mirror. But becomming more price competetive might stop PS4 getting above (or staying above) 50%. PS4 still has to outpace Wiibone to the tune of 3.5 million units, which will take a while to do. And while I don't see either of the trailing consoles suddenly becomming the generation leader, one or both might do something which stops PS4 getting to that 50%.
I think PS4 will get mid to high 40% market share in the long run.
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