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Landguy said:
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My theory is that M$ is not scared at all. They are making a simple tactical move to enhance the value proposition of their product in the marketplace. They recognize that even with a very successful launch, the even much better launch of the PS4 has created enough media and internet attention has swayed the publics perception of the XB1. They are closing the gap on price to reduce that as a factor in the buying decision of the consumer. M$ knows like most everyone here that they can't concede significant market share to Sony in the US and UK. I still think they really had no plan to launch this last fall, but were forced to go to not get too far behind the PS4. I think it worked in the US and UK. They will launch in other countries this fall and see the same middling sales as in previous generations.

As far as people saying the XB1 has no value at $450? That is rather absurd at this point. Clearly, the XB1($450 - the $60 game included) with Kinect in the box at essentially the same price as the PS4 is a equal if not better value. Of course, the naysayers will exclaim that "I don't want Kinect!". Funny how the PS4 camera is such a hot seller then??? That's the same as someone saying "I don't want a funny light on my controller, so it's not worth it!". Not every feature in or on a system will be used by all or even the majority. That doesn't take away that capability or function or the technical cost of having it. Clearly, this argument comes from the sheer shock that M$ has already essentially price matched the PS4 in 4 short months.

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@top - i think they can be both scared and tactical.  I think MS believes in the idea that late adopters purchases decision is heavily influenced but the answer to the question "what system do my friends have".  between 360 and xbone i think it shows that MS is willing to invest heavily in the early days nowing that those investments pay off not just in the short term but also the long term.

had ps4 flopped or even just did "average" i don't think MS would care about xbone's current performance.   ~4.5M at the end of march isn't too bad.  but i think MS knows that a 2.5M unit lead for ps4 at the end of march can easily turn into a 20, 50, maybe even 100M lead at the end of the generation due to bascially what you said,..  market perception.

 

@bottom - just remember, that while the ps4 camera as a "hot item" it is only selling to 15% of the userbase meaning 85% of the user base doesn't want it enough to play even $60 for it.  it's that 85% you hear complaining and unlike that $0.10 LED on a ps4 controller the kinect is expensive.  i mean, that LED can't be increasing the price of the console when both controllers retail for the same price.