Why ditch kinnect? It is what sets Xbox one apart from PS4. You just want the same systems? Ilike that each system has their own selling point.

Think Sony will have another price cut wave come fall 2014

12 GB PS3, $149
160/250/500 GB PS3 $199
500GB PS4 $349
New 1TB PS4 $399

Xbox as well:
Kinect Xbox One: $399
New Kinectless Xbox One :$299
Xbox 360 : $149

Are you sure you meant to reply to me? Because I agree with everything you said.

I'm just asking why everyone is saying that they need to drop kinect to drop the price. If cornered by Sony I think they are very well capable of dropping the price by $100 without sacrificing kinect for it.

I don't see MS cutting the price by that much.

That is an extremely optimistic price point for Xbox One. I think a price cut in the neighborhood of $25-50 is more likely. I'm rather certain that MS no longer wants Xbox to be a loss leader if they can avoid -- especially under the direction of a new CEO very much under pressure to deliver shareholder value.

Microsoft lied about the Xbox not being able to work without the Kinect in the first place. Microsoft then admitted it wasn't true and said the Kinect is still essential so they still bundled it. This confused gaming reporters (seriously, you can look this up). Soon after everyone finds out the Kinect works but still wasn't essential enough to bundled. Microsoft didn't need to force that upon consumers. I think they are just trying to profit on the hardware and then they'll drop it. They don't trust consumers to willingly accept the second iteration od the Kinect so they are creating artificial demand. America is their home turf and if the Xbox One drops in price it will sell like hot cakes. The Xbox One hardware will not profit faster than the Kinect will. They will drop the Kinect. They will have to if staying in the race with Sony is important to them and from their actions thats definitely the case.

That doesn't factor in marketing, distribution and warehousing costs. As well as the R&D costs. As always, the Xbox loses MS money and no one seems to notice.

I only agree on distribution costs, rest doesn't make a single xbox more expensive

Again everything you said is correct but if they drop the price without dropping kinect they will be in a much better position.

If they drop kinect this will have at least 2 adverse effects. First the kinect might not be a $100 dollar value but it has some value and it is one of the few things giving the X1 an edge against the PS4. If they drop kinect and the price to PS4 levels their console will be under a lot more scrutiny for having even less to stand out and 2 consoles for the same price are easier to compare. You don't need to do much research to see that the PS4 is the better value even with the same price.

Second they will once again confuse the customers. Even though it is out in the open that X1 works fine without kinect it would be mixed messages again after they advertised it so heavily with the kinect. A lot of the advertised functions of the X1 wouldn't work without kinect.

Then again the dropped price will probably make up for those two.

I don't know why people are worried about whether Microsoft or Sony is making $5 or losing $5 on each console manufactured right now, as though they didn't have other costs involved. With shipping and advertising costs, both are losing a good deal of money per unit. That's actually alright, though, as no one expects them to turn a profit right away. As long as sales are strong, the outlook is good.

Personally, if turnover is good until the end of the year, I don't see Microsoft going with a price cut yet. I think it's more likely that they'll go with their traditional holiday instant rebates program. A price cut would just keep them in the red that much longer. I can't see them being fine with that unless sales are sluggish.

Sony will go even longer, especially if they hold the most market-share.

Part of me thinks the last-gen dog-fighting is going to be less severe this gen, with both Sony and Microsoft trying harder to turn a profit from their gaming divisions.