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Forums - Microsoft Discussion - Is a price cut enough?

Why are people making it sound like the X1 is bombing? It's doing pretty good. Not PS4 good but still good nonetheless.



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The system was forced launch. PS also. They both are selling good-great. It's not bad at all. These systems probably should've released Spring 2014.



scat398 said:

As many of you may know I'm a pretty big MS guy, so the NPD numbers are clearly disappointing.  The $499 price tag is obviously a problem but is it fair to say that probably wont be enough.  

In addition to a price cut MS is going to need to go on the offensive, public firings of department heads and recruitment of well estabished game makers positioned at high leveles in the xbox division.  Gamers clearly have lost confidence in MS and if you want regain confidence you need to make sure heads roll.

what do you guys think?  I know we have a lot of sony fans on this site but lets try and keep the comments constructive and not a flame war, in fact I'd like to hear from some of the bigger sony fans on this site about what MS could do to improve its reputation. 

Well there's nothing else they can really do. To me there's two big problems, lack of power, and price. They cant do anything about the former in hardware now. They can release more optimized SDK's (Rebellion confirmed), lower OS reservations wherever possible (thuway rumored) and just generally take steps to get the most possible out of the hardware that's there. So they need to do that and seem to be.

 

Second is price, and I think it is a huge factor. We cant say "price cut wont work" until they try it. They need to cut to 399, and see how sales at that price looks, before proceeding.

 

The next interesting questions is whether they keep Kinect with that price cut or not. 399 with or without Kinect?

 

People dont like to hear this but it is fact, the XBO minus Kinect should be MUCH cheaper to produce than PS4, because it uses DDR3 instead of GDDR5. As such, they can cut to 299 WAY before Sony can profitably, only IF they ditch expensive Kinect, though.

 

So that's an option somewhere down the line if they get really desperate. Maybe a no disc drive, and of course no Kinect, SKU for 299?

 

Other than those there's really nothing they can do. That and hope people like the upcoming software like Quantum Break.



They need to build up their first party by opening or buying at least another 4 to 5 good size studios along with dramatically expanding the number of second party exclusives in development. It's going to take many exclusives and some well-placed price cuts to make the Xbox One competitive.



Nah, price cut + renewed marketing campaign + couple big exclusives released around the same time.



 

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I think it would be the right move to get things to pick up more, but it is still selling more than x360 and that wasnt a bad seller. They should act quickly and not wait a long ass time like sony did with the ps3.



 

I don't think they will price cut it. It's sellint at cost price, cutting US$ 100 will put them in the red and impact the division profit and, by current numbers, wouldn't give them the first place.

Besides that, PS4 production costs will get lower fast since the key part is the GDDR5 memory that will get cheaper with mass production (both for PS4 and high-end GPUs with lots of memory). XBO has to cut costs on its big APU and that takes way more time.

One thing I can call right now, the way it is, sales difference will get bigger. The early adopters that bought all these units are less price oriented. The majority of the market is.



allblue said:
From a PC gamer perspective, let me ease your worries OP. Microsoft has money to buy Sony a hundred fold if they wish to. Above all, with all that drama, 100 price tag and power difference, PS4 should be selling 3-4 times x1 which it is not.

Come Halo, Gears, Titan Fall, a lot more microsoft aggressive exclusive grabs will even see x1 overtake PS4. At the end of the gen, x1 will sell 80-90% of PS4 numbers.

Bet on it.

Unfortunetly MS lack enough morons in its ranks to ever do that, thus negating your pointless make MS fans feelz better casue PS4 is annihilating the X1 in its home market post.

 Quoting for a LULZ and future thread bump.



You have toe valuate Microsoft's goals. If they want profitability then they can be content being a solid second and count their money. if they want market share then a price cut this Summer or Fall would help them in that, particularly in the US.

Right now I would guess Microsoft is fine with the situation, the console is selling well despite headwinds some of us thought it faced. The issue in perception is PS4 is doing so well that it is distorting expectations. I would venture Microsoft was happy with last generation never having much hope of catching Nintendo they are content to count their profits for next seven years.

We may be witnessing the end of heavy loss leading like the PS3 endured as companies rather sell X and make money each than 1.5X and lose money on each. I do not think any of the three is losing money (if they are, barely) and easily make up for it with a peripheral, subscription or few games.



MS has games, that's clearly not the reason they need propaganda and lots of it just like Sony did they lied to the gamers that the Ps4 didn't have drm and 180 before they went public, Ms needs to price cut $100 but keep kinect for added value. They can recover with Xbl subs,