Make it easier to buy a cheaper X1 for the people who wants one.

Getting a few reports about this thread.

The next person to take the flaming too far will get a mean mod look, and maybe more!

The last thing that I would want to happen is a price war b/w Sony and MS, that's the perfect storm for a Gaming Crash.
These price cuts can't be permanent, they would incur a massive loss until the manufacturing costs catch up with the retail. Cheapest XB1 will probably be in summer with 400$ + Kinect at walmart or something

Desperate can come across much harsher than it needs to be, but I agree with his point. Less then a month ago the system was $500 with no bundled content. Upon Titanfall's release it became $500 with a game. About a week after that it became $450 with a game. Now this time it's $450 with a game and a year of GOLD.  Cutting out the cost of bundled items, in the US the XBONE has gone $500, $440, $390, and now $330. That averages to about a $40 drop every week. It's also a 34% drop, which is bigger and sooner than the 3DS's first year reduction. This move is great for gamers and probably the correct thing for Microsoft to do, but it's a desperate move.

It seems the threat of outsourcing the XBox part has evaporated with the recent reorganisations so it is clear that MS can afford massive losses as long as they can "borrow" the money from other parts without outcries from said divisions (there is this $2b/yr licencing rumour that would keep the division in the black alone). It is also clear that Sony needs every $ they can get so there won't be a price war (the PS3s over here have been selling at full 2012 msrp for ages now, right now it's almost $200 more than X360s). Sony will simply hope there is enough momentum gained now to be on equal grounds sales numbers wise, despite massive price reductions.

Ignoring the semantics, this just is not accurate.

All last generation we heard about 'adding value' instead of simply cutting price.  The console sold 4 million in short order at $500.  Then MS cut the price $50 to better compete with Sony, having collected the gravy for as long as tenable at a higher price point.

Desperation is defined as feeling a sense of despair and helplessness. It leads to decisions that could be 'inappropriate to those in a rational frame of mind (Wiki reference).'  Nothing about these actions even vaguely fit that definition.  Unless it is your argument that cutting $50 off the price was irrational from either a business or public relations standpoint, it is time to put this argument to bed.

I might add that in the vast majority of territory's where the X1 has been released, there has been no price cut at all.  Hardly the actions of a company in the midst of 'despair and helplessness.'

Well I can't talk about every single country where Xbone is launched but...

US = Price Cut (Not Official but you know it is a price cut)
UK = Price Cut (Official)

These are the two big territories...

Brazil = Price Cut (I need to check if official but it dropped from 2200 to 1900)

Well I will check later but I'm sure others territories get the same deal/price cut than US/UK.

I won't call desperation but it is a forced move... MS didn't want to do that for sure but sales are sales and they need that.

My understanding is that Brazil has received a pricing adjustment due to preferential taxation arrangements Microsoft has arranged with the government.

No company wants to drop a price, ever.  Every Sony and Microsoft price cut on any console ever has been a 'forced move' by that logic.  The fact that anyone has even uttered the word 'desperation' indicates a fundamental misunderstanding of the meaning of the word.

Well, I'm going to have to say that it's pretty obvious that Titanfall didn't give them the HW boost they were looking for. Either that, or maybe it gave them a decent boost, but then sales dropped like a rock. Going by Amazon and Gamestop's online charts throughout the weeks, it's probably a little of both. I do know that today I saw a sign on the Xbox section in Electronics, as well as on the entrance door, of Walmart advertising the new $449 price. So ~4-4 1/2 months after the launch of the console. I'm pretty sure that sets the record for quickest pricecut. Wonder if they will do an Ambassador program like Nintendo did for the 3DS, which was out ~2 months longer when it was cut. Seems like the right thing to do.

The most alarming thing is they're giving away Gold which is their big money maker. I can see $399.99 with a year of Gold by E3 and $399.99 with a second controller, game, and Gold by Christmas.