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thismeintiel on 27 May 2014
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MoHasanie said:
Burek said:

This move would offset any potential gains X1 could potentially make in the NA/UK market with the upcoming Kinectless console. Undercutting them by $50 right off the bat, June 10, would kill all of Microsofts momentum, from which it would probably recover either never or at least not until Halo 5/ GeOW4.

Not claiming it will happen 100%, but it would be such a brilliant strategic move, and would provide PS4 another 6-9 months of sales leadership, even with no true exclusives to help them.

Also, I would just leave EU price as is, no need to do it there, as X1 is not a threat anyway.

Yes they could do that, but its still not a smart business decision. MS won't just watch their console fail; they will respond very quickly with a price cut as well. And MS is much more ready to take a loss on the console than Sony. So overall what would that solve? 

You honestly think MS is going to drop the price more than the $100 (albiet without Kinect) they are now?  Highly doubt it.  MS may have a lot of money, but they are hardly in the position to start throwing even more at the Xbox division when they have a few big investors breathing down their neck to drop the brand all together.  Even Gates recently said that if the new CEO decides to spin off the Xbox brand into its own company (where it would either die off without MS's money or be sold to someone else), he wouldn't oppose it.

@ OP

Not sure if they will drop a full $50.  But, I do see them taking a similar kind of loss they were at launch, so maybe a $25 cut to $374.99.  Not only would this not create a huge loss, but it would also negate the One price cut almost completely.