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Forums - Microsoft - Microsoft says Xbox One price cuts are not out of desperation

mutantsushi on 26 February 2014
vivster said:
Just out of curiosity, are there other possible reasons to drop the price of a product than wanting it to sell more?

They're not REALLY desperate, they're just trying to LOOK desperate...

EDIT: of course, corporate desperation can be a good thing for consumers...



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rolltide101x on 26 February 2014
mutantsushi said:
rolltide101x said:

If they get the Xbox One down to 300$ (while the PS4 is still 400$)...

XBone is not remotely that much cheaper to produce than PS4, not even including Kinect.

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

Any price cuts beyond dropping Kinect2 will be largely due to cost decreaeses in manufacturing,

which are nearly identical for both OEMs considering they have the same CPU/GPU supplier withequivalent die size (XBone slightly larger AFAIK).

PS4 is more powerful not because Sony massively subsidized it, but because it's 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)

Yep just found a new source saying Kinect costs roughly 75$ to produce. If Xbox One does not take a price advantage at some point then it is pretty much hopeless for them. I guess Sony will have the price advantage all the way as the price of GDDR5 ram goes down and the fact that Sony is better at manipulating hardware than MS

http://www.neowin.net/news/ihs-xbox-one-costs-microsoft-471-to-build-with-console-kinect-and-controller

 

MS must have done a terrible job designing this thing. Ive been thinking this time Kinect2 costs more than that.



JazzB1987 on 26 February 2014

Bill Clinton said
he never had sex with Monica even tho he had! As all politicians he and his staff just wanted to fool the people. This time they completely failed.

Sony said
Online on PS4 costs money because its so expensive ROFL. Even tho they just want to have control over a games online to shut it down and force people to migrate to the next installment of a series.
Thats also the reason why they and most console devs decided to NOT have player hosted servers (like on PC) on purpose.
Player hosted servers for everyone/people playing with friends only and official servers for people that want tournaments etc would have made the online fee an obvious lie. They even said that one of their biggest mistakes last gen was to not have an online fee.



So what?

People say alot of things ;)



badgenome on 26 February 2014



mutantsushi on 26 February 2014
rolltide101x said:

Yep just found a new source saying Kinect costs roughly 75$ to produce. If Xbox One does not take a price advantage at some point then it is pretty much hopeless for them. I guess Sony will have the price advantage all the way as the price of GDDR5 ram goes down and the fact that Sony is better at manipulating hardware than MS

Right, as I edited into that post after you saw it, the total subsidy for both consoles (including Kinect2) is practically equivalent:

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

PS4 is 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)

Sony also now owns a chip factory they bought for cheap (the one producing for Wii U, in fact),

plus they probably are the largest GDDR purchaser (8GB/console), so should be getting the best volume discounts on GDDR.



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rolltide101x on 26 February 2014
JazzB1987 said:
Bill Clinton said
he never had sex with Monica even tho he had! As all politicians he and his staff just wanted to fool the people. This time they completely failed.

Sony said
Online on PS4 costs money because its so expensive ROFL. Even tho they just want to have control over a games online to shut it down and force people to migrate to the next installment of a series.
Thats also the reason why they and most console devs decided to NOT have player hosted servers (like on PC) on purpose.
Player hosted servers for everyone/people playing with friends only and official servers for people that want tournaments etc would have made the online fee an obvious lie. They even said that one of their biggest mistakes last gen was to not have an online fee.



So what?

People say alot of things ;)


Eh.... So they are supposed to pay to keep servers online for games that are no longer making money indefinetly? Somebody did not go to Business 101 lol



rolltide101x on 26 February 2014
mutantsushi said:
rolltide101x said:

Yep just found a new source saying Kinect costs roughly 75$ to produce. If Xbox One does not take a price advantage at some point then it is pretty much hopeless for them. I guess Sony will have the price advantage all the way as the price of GDDR5 ram goes down and the fact that Sony is better at manipulating hardware than MS

Right, as I edited into that post after you saw it, the total subsidy for both consoles (including Kinect2) is practically equivalent:

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

PS4 is 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)

Sony also now owns a chip factory they bought for cheap (the one producing for Wii U, in fact),

plus they probably are the largest GDDR purchaser (8GB/console), so should be getting the best volume discounts on GDDR.

Is that factory still making anything for the Wii U? I remember reading about that 4-6 months ago



mutantsushi on 26 February 2014

JazzB1987 said:

Sony said Online on PS4 costs money because its so expensive ROFL.

Even tho they just want to have control over a games online to shut it down and force people to migrate to the next installment of a series.
Thats also the reason why they and most console devs decided to NOT have player hosted servers (like on PC) on purpose.

Uh, Sony may not be a saint, and you may like player-hosted games, but that is incoherent. 

Sony doesn't have control over how long 3rd parties leave game servers running,

those 3rd parties will shut them down whenever they deem it expedient to, Sony simply charges them a fee for hosting like any other server host.

How Sony runs servers for 1st party games has nothing to with PS+ as a whole.  Sony in fact allows Free To Play games outside of PS+ paywall, unlike MS,



mutantsushi on 26 February 2014
rolltide101x said:
mutantsushi said:

Sony also now owns a chip factory they bought for cheap (the one producing for Wii U, in fact)

Is that factory still making anything for the Wii U? I remember reading about that 4-6 months ago

I'm sure all the factory contracts (including Wii U)will be fulfilled, Sony will just use the capacity when it opens up.



Normchacho on 26 February 2014
badgenome said:


That is...the perfect gif. Because the PS4 is now the top selling 8th gen console (The King) and that scene pretty well describes both the start of the gen, and MS attitude toward it.



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