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Forums - Microsoft - What happens if Microsoft drops the price for the Xbox One to $400?

Xenobot said:

MS will lose money and some people will lose their jobs.

Why do you believe anyone would lose their jobs?

If as a corporation, it's accepted that they will lose money (which they've done with the Xbox 360 and the Xbox), no one would lose their job. 

I agree, they would make less money, and that would change their plans, because I'm sure they have how many consoles they expect to make in the year, how that'll impact their purchasing, and how that could impact their long-term plans, but they could be positive, not necessarily negative.

For example, reducing the price drives up demand, but driving up demand decreases the component cost over time.  Decreasing the component cost increases profit.  The side effect is that you can't drop your price quite as quickly.  So if Microsoft was planning a price drop in 2014, they'd have to wait possibly until 2015. 

But if you're selling more consoles, than it stands to reason that you're selling more software.  If you're selling more software, you're making more money.  Likewise, because Xbox LIVE and PSN both have subscription services, you'll likely see an uptick in Xbox LIVE subscriptions.

Right now the suggestion is that Microsoft will be selling the Xbox One at a profit.  So they're likely not losing money to begin with.  The only question is how much they would lose or how much less they'd be making.



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I assume it would that preorders would really fill out quickly and we would see a more balanced start for the two consoles, with the Xbox one more than likely getting a lead because they showed a stronger line up of launch titles. The PS4 would have to use the now required PS+ for multiplayer to the fullest and give out many free games to keep Sony fans busy while they announce more system-selling titles.

I would also assume that the Xbox one would lose some money on every xbox one sold because of the bundled Kinect 2.0



"Trick shot? The trick is NOT to get shot." - Lucian

Sell more.



Adinnieken said:

What happens to the console race if Microsoft actually drops the price of the Xbox One to $400 without changing any features of the console itself.  In otherwords, no loss of Kinect, it still comes packed-in. 

Let's discuss the hypothetical, that today Microsoft has announced that the Xbox One will be priced at $400, and adjusted accordingly in other markets.  What do you think of this move?


Then it tells me that they were willing to have my arms off at $500



not buying it until that spy cam is gone for good

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I would still be skeptical about their first wave of consoles whether it has similar hardware faults like 360. But nevertheless, it will be able to compete with PS4 then.



Adinnieken said:
kupomogli said:
Then Playstation fans will point out that the PS4 is still 50% more powerful and it's not coming out a year later.

Btw. The PS4 is more powerful and it's not coming out a year later.

Except it isn't.  Right now with the information available, the GPU is 50% more powerful, but there is no current performance metric that has established that the PS4 is 50% more powerful than the Xbox One.  I'm not saying it isn't more powerful, nor am I saying how powerful it is, but there is no performance metric that states that it is 50% more powerful. 

The difference between the Xbox 360's GPU and the PS3's GPU wasn't that the Xbox 360's was 50% more powerful, but rather that the Xbox 360's had features that the PS3's didn't.  At first blush, as many did, they assumed the PS3's GPU was better than the Xbox 360's, but in reality that proved to be false.  Not saying that is necessarily the case this generation, but performance specs don't always mean that much.  I mean, you are talking nanoseconds for a performance increase, not seconds or minutes.  And in all honesty, it's only a performance increase if a developer uses those extra shaders to do the same work as what's being done on the Xbox 360.  If they don't.  If they offer greater fidelity for the Sony console, or use the same number of shaders on both, than there won't be a substantial performance increase.  Though, as suggested, you might see a better image on the PS4.

Shaders aren't necessarily about performance, they're more about fidelity.  If I increase the fidelity of the image the GPU is doing more work, not working more efficiently.  If I spread the same work the Xbox One does over more shaders, than I'm gaining performance but I likely won't gain fidelity.

It's not just GPU that's more powerful.  The GDDR5 is also three times as fast as the DDR3, so 300% and there's the processor which is roughly the same, so estimating that everything is still about 50% more powerful. 

The speed of the GPU isn't going to give a "marginal graphics boost."  That much power is going to either be the same graphics and a higher framerate or better graphics and the same framerate.  Atleast if developers don't push for console parity and don't use any of that power the PS4 has got. 



existenz2 said:

These console launches are the most aggressive I have ever known actually PRIOR to the launch, its getting ridiculous.

 

Can we wait to see the consoles actually out and working and reviewed to make our minds up.

 

If you really want a view now: My opinion of the answer to your question at this point in time is that based on the fact that the PS4 is smaller, considerably more power and more cheaper and doesnt include a camera that can spy on you is that MS will need to drop the xbone much more than $100 and even then I wouldnt buy it.

 

 


ridiculous,.  or ridiculously awesome?  i'm loving watching sony and ms scramble to impress us consumers.



avrwc2 said:

What happens if Microsoft jumps out of bed with NSA and assorted government spooks?

What happens if the spooks actually agree to subsidize the Xbone and Microsoft sells if for $200 with a mandatory enhanced Kinect that not only measures your heatbeat any time you're near it but keeps track of all your conversations, moods, friends, friends of friends... and so forth?

Well, if you're an American (I'm not bothering to check) than you can only be spied upon with a warrant.  If you're from outside of the US, there was never anything preventing interception of communications between the US and foreign interests.  Ever.  In fact, it's been going on since the first intercontinental wires went in.  In fact, every government does it. 

Some more tyrannical governments actively spy on those they don't agree with.

I'm not saying any of this is good.  I'm just saying long before 2001, 9/11, and The US PATRIOT Act intercontinental telecommunications were actively monitored.  Likewise, so were letters. 

What you were appraised of with the NSA leak was that A) It was broadened with the US PATRIOT Act B) the fact that it happens can impact you.

Anyone alive in 2001 knew it would broaden the spying powers, and while some people were foolish to believe it wouldn't, they also knew it would impact them.  Well, maybe those folks outside of the US didn't know how it would impact them, but oh well.

BTW.  Yes, I have opposed the Patriot Act since day one.  I saw it as a huge breach of privacy for short-term knee jerk benefits.  It wasn't necessary, because we knew the 9/11 high-jackers were in the country.  We knew they were learning how to fly as a group.  But when a subordinate told a superior what was going on, they were told it wasn't important.  We had the intelligence gathered, we just didn't act on that intelligence.  Because of that, we decided spying on US citizens was necessary, and it isn't. 

As I like to point out, The US Patriot Act and all the spying the NSA has done didn't stop the Boston Bombing from happening. 

That said, I'm not too worried about being spied upon.  Based on the information I read, the stuff with Skype, which was done before Microsoft bought them, allowed access to chat texts and phone conversations.  Nothing suggested or implied video conversations were.  Since, as far as I'm aware, video is peer to peer in Skype and spread across peers.  I think they cut out the peer spreading, but it's still peer to peer.



phinch1 said:
Adinnieken said:

What happens to the console race if Microsoft actually drops the price of the Xbox One to $400 without changing any features of the console itself.  In otherwords, no loss of Kinect, it still comes packed-in. 

Let's discuss the hypothetical, that today Microsoft has announced that the Xbox One will be priced at $400, and adjusted accordingly in other markets.  What do you think of this move?


Then it tells me that they were willing to have my arms off at $500

I don't understand this at all.