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

Yeah I just noticed this was an old thread too. Sorry. This site is confusing and i am rather new..



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Failed.

I admit I was too optimist in this prediction.

Xbone needs more than be only $50 cheaper... it needs either to be $100 cheaper ($200 price drop from original price) or have two or three games package being $50 cheaper.

I guessed the Xbox brand was strong enough to hold sales with PS4 being only $50 cheaper... the really surprised me because even $50 cheaper in US ($150 price cut) it can't catch PS4 in sales at original price yet.

Another prediction failed :(



yeah i think 75-100+ is the sweet spot like what we saw during the holidays 280-$320 xb1s vs $400 ps4



                                                             

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Looking at the results of January and February NPD, American consumers still view the PS4 as the console with more value despite being $50 more expensive. Sales performance appears to be dipping a bit this month according to Amazon. Before, the AC bundle usually lingers around at the low teens, but now it has dropped to the low 20s. The MCC bundle is only seeing incremental increases in demand. In contrast, the PS4 has been in the single digits all month.

This tells me that the XB1 needs to be $100 cheaper in order to exceed the PS4's sales performance in the US. However, a pricecut for the PS4 is definitely happening this year due to precedence. If Sony cuts the price to $349, Microsoft needs to cut the price to $249. If the price is cut to $299, then the XB1 needs to be sold at $199. However, even a company with "unlimited" money like Microsoft will not be willing to sacrifice that much revenue and profits. The other problem is that the price can only go down so much. At some point, you can't cut the price anymore meaning that the PS4 and XB1 will be at even ground and we all know that the PS4 easily wins at price parity.



If you're talking USA then yes a $100 price difference would give Xb one the win for the generation, I think. But that means always being $100 cheaper, which means if PS4 cuts to $299 Xb one needs to cut to $199.

Globally, $100 wouldn't cut it. Indeed I don't think there is a realistic price low enough that would cause Xb one to outsell PS4 world wide. And certainly not one that will make it eat up the current gap and pull ahead.

However if MS gave away the Xb one then they would be onto something. How can they give away Xb one?

Buy any 3 MS published games at full price (no revenue to 3rd parties) and get a free Xb one. OR
Buy any 4 MS published Xb one games at full price and a year of XBL gold and get free Xb one + Kinect.

Either or both of these deals for the lifetime of the Xb one. I would go and get an Xb one right now and buy FH2, Ori and the Blind Forest and Sunset Overdrive to score my free Xbox one.

Do it Microsoft, you know you can afford it. It will only cost you about $20Bn over the lifetime of the console, and you can make about 30% of that back with future game sales and live subscritions. So the net cost is only $14Bn. Everyone knows that's just chump change for you. Just think of the benefits that would come with having the top install base console for the generation.



“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell

"When the power of love overcomes the love of power, the world will know peace."

Jimi Hendrix

 

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Aura7541 said:
Looking at the results of January and February NPD, American consumers still view the PS4 as the console with more value despite being $50 more expensive. Sales performance appears to be dipping a bit this month according to Amazon. Before, the AC bundle usually lingers around at the low teens, but now it has dropped to the low 20s. The MCC bundle is only seeing incremental increases in demand. In contrast, the PS4 has been in the single digits all month.

This tells me that the XB1 needs to be $100 cheaper in order to exceed the PS4's sales performance in the US. However, a pricecut for the PS4 is definitely happening this year due to precedence. If Sony cuts the price to $349, Microsoft needs to cut the price to $249. If the price is cut to $299, then the XB1 needs to be sold at $199. However, even a company with "unlimited" money like Microsoft will not be willing to sacrifice that much revenue and profits. The other problem is that the price can only go down so much. At some point, you can't cut the price anymore meaning that the PS4 and XB1 will be at even ground and we all know that the PS4 easily wins at price parity.

 

 

Indeed, indeed. Microsoft cannot really afford to engage a price war. The moment they do that, the moment shareholders will be most displeased. Unless they can break NPD sales records in both November and December, the One does have a shot of winning the US. Even if that does happen, keeping in line with the PS4 for the other ten months is also crucial, but it looks like Microsoft cannot achieve this due towards perception and word of mouth.



" It has never been about acknowledgement when you achieve something. When you are acknowledged, then and only then can you achieve something. Always have your friends first to achieve your goals later." - OnlyForDisplay

Things changed but my thread not so much.

PS4 is officially at $349.

Xbone needs to cut to $299 ASAP.

To sell more in US it needs to reach some crazy levels like $249.