Alby_da_Wolf said:
Landguy said:
Jumpinbeans said:
MSFT can't afford to let the console go back up as sales will tank. They are banking on making money from software/XBoxLive and taking a hit on hardware vs sony making money on both. |
You essentially hit it right on the head.
Also, M$ is counting on releasing Windows 10 to the XB1 in 2015. They have announced that it will also release on PC and Windows Phone in 2015. So, their plan to have a unified operating system will be complete by the endo of 2015. Why does this matter? Well, they will then have platforms available in every part of the home to push not just XBL, but Office and XBox Music/Movies/Games. THey have already started rolling out package deals to get all of their services bundled together.
So, losing a little money on the console is an acceptable part of ensuring that they gain access to as many homes as possible.
|
Outside of x86 PC market, people either don't give a crap about OS, or if they do, they prefer iOS or Android, so showing Windows as a main feature could at best not produce any consistent effect or at worst backfire and become a minus instead of a plus.
About price, MS can temporarily rise it after Xmas, then cut it permanently a few months later, with the positive return of a lot of free advertising from the media reporting the news, without negative side effects or with minimal ones, for at least three reasons:
1) after Xmas there will be at least a month of clearance sales, so price will stay at Xmas offer level or even a little bit lower anyway
2) after clearance sales end, sales numbers will drop as usual anyway during the first dead period, a few k more or less then won't make a big difference
3) it's possible that Sony do PS4 first permanent price cut during Q1 or Q2 2015, so quietly transforming XBOne temporary cut into a permanent one would deprive MS of a powerful marketing weapon to counter Sony move, possibly forcing it to make additional offers or a second XBOne price cut just a few months after.
|
Your thoughts on #3 make the most sense for them moving the price back up.
Still, most consumers will assume that the price going back to $399 will only be temporary. Thus, they will not buy the console and wait. In the meantime, M$ misses out on the opportunity of having the person sign up for XBL and start the closck on that subscription. Also, they miss out on a possible game sale or 2 from that buyer. Like others have said, I believe that if SOny matches the price in 4-6 months time, M$ will just drop theirs again $50 and get the same advantage again. If M$ doesn't drop another $50 to stay lower than Sony, they will have constant bundle deals that equal the same thing.
