Microsoft Store slashes the price of Xbox One to $449.99 USD

[Zekkyou]

ICStats said:

Zekkyou said:
Well if this becomes an official price cut it confirms to us that MS weren't satisfied with the X1's sales. Still, it's not a huge drop and MS can take the hit with little problem. The hopefully gain in market share will likely offset any loss in the long run anyway.

If they go on to sell 10 million consoles per year, at $50 less that's $500 million lost revenue per year, plus the opportunity cost of bundling the game.

Being able to take the hit thanks to deep pockets, and it being good for the XB business aren't the same.

It is a lot of lost revenue, but i'd say the loss would be smaller than the potential gain. The X1 needs to stay competitive, and a lower price is the best way to achieve that. In the long run that competitive boost would help maintain the brand, while also likely paying itself off with the revenue from extra sales resulting from the cheaper price.

I'd say it's a good move overall.