Cutting the price in markets where your product just has zero chance of positive reception/ major sales success isn't more desperate, it's just stupid.

You only cut price in markets where your product is well received, but a lower price would lead to significantly more sales.

UK is the #1 XBOX brand strong hold outside the US from last gen, so this is where such a tactic could have maximum success.

That shows desperation because they shouldn't need to discount in a market that was supposedly their territory.

They need to ditch Kinect2 to really compete with that strategy, and PS4 will still be winning with the more powerful console at same cost.

If they dropped Kinect2 the new price would be 300-350$. If they dropped it to 300$ I would probably get one lol

That's what a desperate company would say. What do you want them to tell you that they are getting wiiu numbers and are happy with it.

For sure, not that EVERYBODY would get one just because of that, but they could certainly sell alot more at the same profit/loss margin.

The more consoles they sell, the more sales they will get off of 1st party exclusives, making it more viable to develop more/ at better quality.

Even if they still don't sell as many as Sony, that seems like the path to a viable generation.

If they get the Xbox One down to 300$ (while the PS4 is still 400$) then the Xbox One will have an excuse to have games of lesser quality. It would be a great deal at that price but for now at 500$ it is the plague to me.

With that said there is nothing MS could do to stop the PS4 from controlling this gen, but they could minimize it doing this.

Ms spins every thing,they don't wanna admit it but the price. Is out of desption

No, no no, I didn't put these bandages on to stop the bleeding. My arm is fine, I just think they look nice.

Why MS, why do you think we're dumb?

Dun dun duuuuuun. They do look nice!

https://edgecastcdn.net/800034/www.perpetualkid.com/productimages/lg/BNDG-1476.jpg

I don't get how people fantasize about XBone dropping in price while acting like PS4 will not also drop in price.

PS4 is more powerful not because Sony massively subsidized it, the tear-down Bills of Material are equivalent:

PS4 costs $18< MSRP to produce, XBone costs $28< MSRP to produce (not including shipping/marketing, and both wholesale for < MSRP)

It's more powerful because it's architecture design allowed a more powerful GPU at equivalent silicon budget.

(Sony did luck out with movement on GDDR memory prices) 

So there is no way MS can achieve that kind of price advantage, which is why I wrote that price PARITY is plausible... (if Kinect2 is ditched)

I can't say this is nothing but "wishful thinking", for which I am not blaming you, but it's just not accurate. As we economists call it, console business is a "sticky price" business, once you lock down a price, you STICK with it for a considerable amount of time, or you lose consumer confidence, and create false expectations. It is never welcome in a firm's pricing decision mechanism and always includes tradeoffs, which are never wanted to exist.

If a company is cutting the price this early in a sticky price market, there is only reason; the demand is not there. I am not saying it is out of desparation, but obviously they thought that the projected boost in demand will more than offset the loss in consumer confidence, which is the tradeoff that never should have been there in the first place.

So making XB1 accessible to more households is an invalid excuse, because if it were the case, it would have been done AT THE BEGINNING. Instead Microsoft chose to price discriminate on the price-insensitive early adopters, and prey on the late comers. BAD DECISION, because this may work in many other sectors, but not in sectors with lots of network externalities such as the console business. Bad rep will only negatively affect them.

Also claiming that XB1 has been selling fairly well is a near sighted perspective, which is not even half true because they sold to an amassed hungry customer base (early adopters) who had been waiting for 7-8 years for this. Such initial sales figure is only good to see the future momentum but otherwise useless to evaluate the expected sales for the console. We have seen this very clearly with the WiiU. When you look at the regions more specifically, you'll realize that XB1 has no chance in Japan, getting beaten up in NA, and a small existence in Europe & the rest of the world. Basically the bulk of their sales will come from a highly diminished US XBox market. What can you expect from that?

When you look at the YEAR TO DATE data from VGChartz, you'll see that XB1 sold 0.5 million versus 1.4 million for PS4 and 0.3 million for WiiU. That is the more realistic picture you should expect! Also for much more thorough analysis, check out the following...

8the Generation Cumulative Market Share Watch

http://gamrconnect.vgchartz.com/thread.php?id=179057&page=1

XB1 vs PS4 Cumulative Market Share Watch

http://gamrconnect.vgchartz.com/thread.php?id=178754&page=1

Sales Estimations for 8th Generation Consoles

http://gamrconnect.vgchartz.com/thread.php?id=178341&page=1