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Forums - Sales Discussion - I Believe Xbox One Needs A Mininum $150 Pricecut To Be Competitive Again (I Eat That Crow)

ethomaz on 25 October 2014
Turkish said:

No, Xbone needs to cost 299USD/EUR to be competitive. At 399 PS4 still manages to do 540k and Xbone 282k in US(think about the situation in Europe and elsewhere), and most of the PS4 consoles were sold at 449 with Destiny while Microsoft gave it away for free as part of the promotion.

So Xbone 299 dollars and it will start damaging PS4 I expect.

I agree... the Kinectless version... the full Kinect Xbone needs to be priced since release at $350 to be competitive.



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ethomaz on 25 October 2014

Dark_Feanor said:

It didn´t hurt at the time and don´t hurt now or any time you revive it again.

You don´t get boring at repeating yourself again and again. And is now recicling your old threads as if anything has shown to prove your point.

You massage the numbers and interpretation to fit your agenda. You can´t even define what is competitive.

Ohhhhh you really did a good job now making a description of yourself.

Can I ask something to you? Why did you come here? Because you cleary don't like to see some truth about your loved brand... it is like a child that go outside and come back crying to his mother that others guys said things that he didn't like.



BHR-3 on 25 October 2014

believe ive have been saying this on here earlier this yr multiple times in other threads prior to this thread being made that it has to be below ps4s price to sell on par or better

but now that we are a bit further in the yr i dont think that XB1 will ever sell competitively to the PS4 WW for a meaningful time no matter what the price is



                                                             

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Dark_Feanor on 25 October 2014
ethomaz said:

Ohhhhh you really did a good job now making a description of yourself.

Can I ask something to you? Why did you come here? Because you cleary don't like to see some truth about your loved brand... it is like a child that go outside and come back crying to his mother that others guys said things that he didn't like.


If I continue the argument we will both get banned.

Have fun and vote 45 tomorow.



ethomaz on 25 October 2014
BHR-3 said:
believe ive have been saying this on here earlier this yr multiple times in other threads prior to this thread being made that it has to be below ps4s price to sell on par or better

but now that we are a bit further in the yr i dont think that XB1 will ever sell competitively to the PS4 WW for a meaningful time no matter what the price is

That's because they didn't dropped the price yet... they changed the package to remove the Kinect with a new price point.

The original Kinect package needed to drop below PS4... yeap $350... to make some changes in the consumer purchase.

That is what I believe based in the actual situation.



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ethomaz on 25 October 2014

Dark_Feanor said:

If I continue the argument we will both get banned.

Have fun and vote 45 tomorow.

I won't vote tomorrow because my voter registration is for Santa Albertina (really small city of SP state) and I'm in Standby of the work due financial close... so I can't travel.

I will justify.



Aura7541 on 25 October 2014

Oh wow, this was from the beginning of March and before Titanfall, too. Seriously, Ethomaz, how did you do that? o.O

Though I'm kinda with Turkish here. I don't think reducing the price to $350 is enough. It needs to be docked down to $300.



Nicklesbe on 25 October 2014

*Edit. Sorry Dark or anyone that was offended by what was originally here. It was a line in jest that attempted to illustrate that I believed Ethomaz prediction was correct, while someone else who disagreed with him was not so much. In retrospect it was distasteful and rude so I apologize. 

Nice prediction. I think they will be competitive in the future tho with more games. Tho seeing as quality seems to be dropping(at least from 3rd party..I'm looking at ubisoft) That seems more and more unlikely. Phil has a good head on his shoulders most of the time tho, so he may right the ship. If ps4 does a price drop as or before quality games hit the market I doubt games will be enough. If that happens I think they would need a $75 - $125 price drop to even it out again.

 

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Intrinsic on 26 October 2014
Shadow1980 said:

Europe serves as a test case for massively undercutting the competition in terms of pricing. It took MS dropping the standard 60GB 360 SKU to £169/€239 over the course of three price cuts just to make it remotely competitive to the PS3 in Europe. When the 360 was reduced to that price, the PS3 cost £299/€399, thus making the 60GB 360 less than 60% the PS3's then-current price.

So, if MS was able to similarly undercut the PS4 by dropping the XBO to $250/£220/€250, it would boost sales considerably. However, there's some obstacles to that. First off, there would probably be a lot of opposition from within MS themselves to such a massive price cut. Xbox has been such a money sink for them that I think an extreme price cut (we're talking a 37.5% price cut, which would be one of the biggest individual price cuts ever) would not be well received by investors. The biggest price drop I can see happening is to $300/£260/€300. This would provide a good boost as well. Of course, this will probably not close the gap with the PS4 in the U.S., nor will it make it a major sales presence in continental Europe. It might only provide a 50% boost to baseline sales at most. The reason why it won't close the gap in the U.S. is because I expect that if MS issues a price cut first, Sony will immediately answer back with one of their own.

I think the most likely scenario is that the PS4 and XBO retain price parity with each other throughout the entire generation. Both systems should get good boosts from a 25% reduction in price next year, but proportionally I think their sales will remain about the same.

EDIT: I see that this thread was created back in March and ethomaz was thinking of MS dropping the original XBO+Kinect SKU to $350. I missed that. Well, I still stand by my argument that we won't be seeing MS massively undercutting Sony, and that any price cuts they issues will be answered immediately and proportionally by Sony, thus maintaining price parity for the whole generation.

MS has two problems when it comes to cutting their price. First, unlike the PS360 gen, sony could never really cut their price by much cause the console remained too expensive to make throughout the course of the generation. So MS could always be "cheaper" than the PS3. This gen is not like that. The PS4 was making a profit on each box sold from day one (more or less) and that profit s growing. So as you said, sony is more in a position to match any price cut that MS does.

Second issue is that a price cut won't really work in their avour with the PS4 selling so well. If the XB1 is averaging 250k sales per month and the PS4 is averaging 500K a month, even while technically being more expensive than an XB1 now. Forcing sonys hand and making them drop the price to $300 just to match them would only mean that the sales of the PS4 will accelerate. Putting sony in a position where they are selling around 750k-1M per month while MS sells 350k-500k. so instead of the gap growing by only 250k each month you now have a situation wher eits growing by 500k. Thats all round bad for MS.



Burek on 26 October 2014

It was a great prediction by Ethomaz at that point in time, but I think the price needs to be much much lower than that.
As we all know, price is not 95% of XOne's problems.

The week of Destiny, you could buy an XOne bundled with a game, and pick up an extra game (usually Destiny) for $399. That's a console and 2 free games.
At the same time, PS4 Destiny bundle made you pay extra for that game on top of the console.
That is almost a 3 game difference - $170 - and still majority of people decided that PS4 is a better value. People obviously don't want to buy XOne just at any price, as they know PS4 will always be better.

So, if we know that people are willing to pay an extra $170 for PS4 being a superior product, the only way to entice them to buy an inferior product is to sell it for $229 or less.
When price reaches that target, only then can Microsoft hope to even have a chance of competing in sales.