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Forums - Microsoft - Who Else Thinks a Xbox One Price Cut is coming in March??

fleischr on 12 February 2014
Machiavellian said:
fleischr said:
Investors don't like it.
Existing XOne owners don't like it.

I think an Xbox 360 price cut is far, far more likely

People that continue to bring the investor part into the mix really show they have no clue about the subject.  These investors have always been there on MS board with no real pull to make any changes within the company because they have less than 1% interest.  These investors are always the ones who are looking to cash and burn for greater dividend on their stocks and care little about long term plans, investment or even position of the company.

There was a push by one large group to get 1% interest in the company and failed, so their words continue to fall on deaf ears.  Hell, there are investors on Sony board that requested them to spin off the PS division, how likely do you think thats going to happen.  People need to stop throwing out the investor part because it has as much weight as a PS fan asking MS to spin off the Xbox division.


By that you mean the board of directors? The board members represent not only their own interests, but those of institutional investors that make up a significant portion of company ownership. That makes up far more than 1% my friend. These are also top-brass in the company -- what they say, do, and think naturally becomes what the rest of the company will say, do, and think. Ballmer was one of the champions of the Xbox brand, but he's no longer CEO.



I predict NX launches in 2017 - not 2016

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TheShape31 on 12 February 2014

They won't sell it at a loss. Late 2014 price drop at the absolute earliest, but more likely next year.



Mr Puggsly on 12 February 2014
FlamingWeazel said:
Heck no, they would lose millions, the last thing they need for a division that is getting pressure to be sold.


360 was apparently profitable in spite of losing billions of dollars on RROD. Safe to presume X1 could make the money back with a $100 price cut.

The PS3 lost a ton of money because they were doing price cuts of $100 year after year... after year.

Anyhow, MS has to save face and wait atleast a year for a price cut. Either that or make a bundle that doesn't include Kinect for $399 and perhaps a game.



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mornelithe on 12 February 2014

It will be difficult for Microsoft to lower the price of the X1, given the pressure they're feeling from investors/shareholders. As it stands now, two of the major shareholders want Microsoft to dump the Xbox division (and Bing, and Surface). I'm not sure the shareholders would be too thrilled to see Microsoft selling X1's at a loss like that.

And as others have pointed out, the X1 isn't exactly floundering. It may not be selling as well as they'd like, and they may not enjoy playing second fiddle to the PS4, but it's still moving units, and has already closed the majority of the gap between itself and the Wii U. Given the stumbles they made out of the gate, things could've been far, far worse.



generic-user-1 on 12 February 2014

they should take the money and buy fifa exclusiv for 2 years, that would make much more inpact in europe and the rest of the world than 50$ less



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Normchacho on 12 February 2014
Landguy said:
Normchacho said:
Untamoi said:
Normchacho said:

People still seems to forget that MS is one of most profitable companies of the world and they still have around 100 billion in cash. Heck, MS makes more money than Google and around as much as Apple. 1 billion loss might be a lot for Sony but it is nothing for MS.

You have to remember that Xbox brand was never profitable during its first 5 years and MS still didn't abandon it (losses were only around 3 billion). And now MS is even more profitable and with more cash than ever.

First off, MS doesn't make "around as much as Apple". Apple pulls in more than twice the revenue MS does and nearly three times the profit. They also don't have anything like $100 billion in cash. The company as a whole has just over $100 billion in total assests as of the end of 2013.

The Xbox brand is still losing money year after year for Microsoft and it doesn't matter if the company is doing well. Shareholders would flip out if MS announced that just after 3 months of being on the market they decided to cut the legs off of the best chance the brand has to finally start making money by going from a small loss to a large one.

Microsoft can't just keep the Xbox brand because they feel like it with no sign of it becoming a profitable venture.


THe Xbox division has been profitable since 2008.  I would have to check the rest of your facts, but based on that alone, I won't bother.


Yes my mistake, but there has been concern about whether MS has been using Android royalties to hide loses in the Xbox division. On top of that the Xbox division is expect to lose over a billion dollars this year even with the 2 billion in profit generated by the royalties.

I'll save you the trouble of checking the rest of my facts, the links for them are here:

Apple 2013 revenue and profit: http://venturebeat.com/2013/10/28/apples-170-billion-2013-amazing-and-amazingly-forgettable/

Microsoft 2012 profit, revenue, assests, market value:  http://www.forbes.com/global2000/list/#page:1_sort:0_direction:asc_search:microsoft_filter:All%20industries_filter:All%20countries_filter:All%20states

Apple 2012 profit, revenue, assests, market value: http://www.forbes.com/global2000/list/#page:1_sort:0_direction:asc_search:Apple_filter:All%20industries_filter:All%20countries_filter:All%20states

Microsoft total assests: https://www.microsoft.com/investor/EarningsAndFinancials/Financials/FY14/Q2/BalanceSheets.aspx

Feel free to let me know if I missed anything.



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I bet that on launch the Nintendo Switch will have no built in in-game voice chat. He bets that it will. The winner gets six months of avatar control over the other user.

Machiavellian on 12 February 2014
fleischr said:
Machiavellian said:
fleischr said:
Investors don't like it.
Existing XOne owners don't like it.

I think an Xbox 360 price cut is far, far more likely

People that continue to bring the investor part into the mix really show they have no clue about the subject.  These investors have always been there on MS board with no real pull to make any changes within the company because they have less than 1% interest.  These investors are always the ones who are looking to cash and burn for greater dividend on their stocks and care little about long term plans, investment or even position of the company.

There was a push by one large group to get 1% interest in the company and failed, so their words continue to fall on deaf ears.  Hell, there are investors on Sony board that requested them to spin off the PS division, how likely do you think thats going to happen.  People need to stop throwing out the investor part because it has as much weight as a PS fan asking MS to spin off the Xbox division.


By that you mean the board of directors? The board members represent not only their own interests, but those of institutional investors that make up a significant portion of company ownership. That makes up far more than 1% my friend. These are also top-brass in the company -- what they say, do, and think naturally becomes what the rest of the company will say, do, and think. Ballmer was one of the champions of the Xbox brand, but he's no longer CEO.

Yes, I mean the board and yes, the amount of investor that can make any significant change at MS is less than 1% ownership of stocks which means those investors that want to spin off the Xbox division has no voting chance to make it happen.  When have MS moved based on investors whims.  As another person already stated, its the CEO that runs the company so unless there is some significant change in MS, nothing probably will change for the Xbox division.



Hornet303 on 12 February 2014

Doubtful they will cut price. Most likely make more official bundles. Xbone + 1 game = 500, before they take a hit on profit.



Marks on 12 February 2014

I just wish they'd come out with a Kinect-free model for $400...I'm not asking for a price cut here, just no $100 accessory I'll never use.

I will never buy an Xbox One until I can get one without Kinect for the same price or cheaper than a PS4.



fleischr on 12 February 2014
Machiavellian said:
fleischr said:
Machiavellian said:
fleischr said:
Investors don't like it.
Existing XOne owners don't like it.

I think an Xbox 360 price cut is far, far more likely

People that continue to bring the investor part into the mix really show they have no clue about the subject.  These investors have always been there on MS board with no real pull to make any changes within the company because they have less than 1% interest.  These investors are always the ones who are looking to cash and burn for greater dividend on their stocks and care little about long term plans, investment or even position of the company.

There was a push by one large group to get 1% interest in the company and failed, so their words continue to fall on deaf ears.  Hell, there are investors on Sony board that requested them to spin off the PS division, how likely do you think thats going to happen.  People need to stop throwing out the investor part because it has as much weight as a PS fan asking MS to spin off the Xbox division.


By that you mean the board of directors? The board members represent not only their own interests, but those of institutional investors that make up a significant portion of company ownership. That makes up far more than 1% my friend. These are also top-brass in the company -- what they say, do, and think naturally becomes what the rest of the company will say, do, and think. Ballmer was one of the champions of the Xbox brand, but he's no longer CEO.

Yes, I mean the board and yes, the amount of investor that can make any significant change at MS is less than 1% ownership of stocks which means those investors that want to spin off the Xbox division has no voting chance to make it happen.  When have MS moved based on investors whims.  As another person already stated, its the CEO that runs the company so unless there is some significant change in MS, nothing probably will change for the Xbox division.

The people who own the company and lead the company, run the company. Who else do you think runs the company?

Activist investors and board members can make Microsoft sell the Xbox brand if they wanted to bad enough. The business case for it is actually compelling enough for a majority of investors and board of directors to do so. Not saying it will happen, but it's not as unlikely as you might think.



I predict NX launches in 2017 - not 2016