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Forums - Microsoft Discussion - Xbox One Titanfall Bundle £349.99!!!

starcraft on 10 April 2014
drkohler said:
starcraft said:
wary-wallaroo said:

Might as well wait, with all these price cuts, this one price cut it'll likely go lower eventually, after quite some time.

They must have millions of X1s sitting on shelves still. They shipped 3.9 million by the end of Dec. Which means they barely sold through their Dec. stock. Assuming production of 1 million a month, there's 3 million X1s in warehouses and on shelves.

No wonder there's been so many desperate prices still well above the PS4 and what's worse therefore entirely predictable is, Ps4 is still selling better.

At this point, no one will buy an X1 at full price. MS will have to continue eating the loss by adding a game for free, or continue taking a hit with these price cuts making a small profit on hardware. Surely not what they wished for, but I can't say they didn't deserve it. 

Fixed that right up for you, don't mention it!

Better fix your train of thoughts than miscorrecting other people's posts.

It is perfectly obvious that someone (be that MS alone or resellers) are losing a shitton of money in the UK for every XBox One sold.

I know you don't like it but let's just throw in some numbers:

350 pounds includes VAT (-20%) + store margins (anyone's guess for UK, -15%?) + free Titanfall game (-$10?) + massive advertising (-$? per sold XBox One, in Spain we had 20mil euros for <(?)100000 units sold, so -$250 per unit!) and you can easily see that somebody IS losing quite a lot of money.

Store margins on consoles are tiny, in the range of 5% if they are lucky often.  The titanfall download code would cost less than a dollar to print on a card.  

Neither Microsoft or Sony cost assessments ever include overheads like advertising.  Breakdowns showed MS making a profit at launch, that will now have increased.

So no...it isn't easy to see anything.



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

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wary-wallaroo on 10 April 2014
starcraft said:
wary-wallaroo said:
starcraft said:
wary-wallaroo said:

Microsoft has made one price cut in one country.  That was a 25 pound cut in the UK.

Sony has also been bundling games, in almost all countries.  Is it your sense that that is desperate?

In this instance, a retailer has made a discount off their own bat, and clearly feels that with software purchased alongside the console they will still make money.

Opinion is fine, and you're welcome too it.  But much of your post was just factually inaccurate.

No, Sony has bundled games but, if you check, you'll realize that Sony bundles games but the bundle ends up costing the same as the PS4 + Game. This is in stark comparison to MS who are throwing in Titanfall/Forza completely for free (as in, the bundle will cost the same as just the console). 

So, unless I'm missing something, they're not nearly the same thing.

Actually, you will find that in a great many countries Sony have included Infamous: Second Son or Knack in their bundle - same goes with Killzone - for the equivelant price.

I will assume given you did not raise it again that you acknowledge that Microsoft hasn't actually cut prices anywhere but the UK.


Any source on that? Every bundle I've seen for PS4 is just the game thrown  in and the price raised so you end up paying maybe a few bucks less.

 

And I edited my post, sorry. I said that it's not just UK, there were $50 price cuts in March in the US in pretty much every retailer. You really think MS wasn't behind that? Of course they were. Heck, you could find an X1 Titanfall bundle for $400 a few times (though those were pricing mistakes).  

My point is, MS is loosing money by throwing in a game, loosing money by issuing price cuts, no doubt pouring millions and millions in advertisement, and they're still behind in every single region and getting destroyed WW. I very much doubt they're happy about that. 

 

And yes, breakdowns showed they were making a profit (at their original base price), but come on dude, I can't be any clearer. Throwing in TF for free and taking these price cuts no doubt means they're no long profitable. 



drkohler on 10 April 2014
starcraft said:

Store margins on consoles are tiny, in the range of 5% if they are lucky often.  The titanfall download code would cost less than a dollar to print on a card.  

I actually KNOW what the store margins are in several European countries. It is NOWHERE what you write here. And are you really suggesting that Respawn/EA would simply look aside when MS gives away for free THEIR game? What a strange idea..



starcraft on 10 April 2014
wary-wallaroo said:
starcraft said:
wary-wallaroo said:

Actually, you will find that in a great many countries Sony have included Infamous: Second Son or Knack in their bundle - same goes with Killzone - for the equivelant price.

I will assume given you did not raise it again that you acknowledge that Microsoft hasn't actually cut prices anywhere but the UK.


Any source on that? Every bundle I've seen for PS4 is just the game thrown  in and the price raised so you end up paying maybe a few bucks less.

And I edited my post, sorry. I said that it's not just UK, there were $50 price cuts in March in the US in pretty much every retailer. You really think MS wasn't behind that? Of course they were. Heck, you could find an X1 Titanfall bundle for $400 a few times (though those were pricing mistakes).  

My point is, MS is loosing money by throwing in a game, loosing money by issuing price cuts, no doubt pouring millions and millions in advertisement, and they're still behind in every single region and getting destroyed WW. I very much doubt they're happy about that. 

Here in Australia I got a PS4 gifted for $570 (RRP $550) including Infamous? Fair point though, there was a $20 rise, so I will give you that.

Let me be clear what I am saying.  MSRP remains exactly the same in every country except the UK as it was at launch.  Retailers compete with each other, this is a good thing.  It does not mean Microsoft is losing money. It certainly does not mean they are desperate.

I am quite sure that Microsoft wishes they were ahead of Sony.  But at the end of the day, they have very strong sales with the most expensive console on the market.  People saying they are desperate (or worse, with a poster in here suggesting MS might be about to axe their Xbox Division) quite often have an agenda to push - that is more focused on dumping on the console they didn't buy than it is actually understanding MS's market position. 

If that isn't you though, I apologise.



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

wary-wallaroo on 10 April 2014
drkohler said:
starcraft said:

Store margins on consoles are tiny, in the range of 5% if they are lucky often.  The titanfall download code would cost less than a dollar to print on a card.  

I actually KNOW what the store margins are in several European countries. It is NOWHERE what you write here. And are you really suggesting that Respawn/EA would simply look aside when MS gives away for free THEIR game? What a strange idea..

I'm guessing maybe he thinks Titanfall is an MS game? I don't know man. 



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starcraft on 10 April 2014
drkohler said:
starcraft said:

Store margins on consoles are tiny, in the range of 5% if they are lucky often.  The titanfall download code would cost less than a dollar to print on a card.  

I actually KNOW what the store margins are in several European countries. It is NOWHERE what you write here. And are you really suggesting that Respawn/EA would simply look aside when MS gives away for free THEIR game? What a strange idea..

What are they then? My understanding is that they are and have always been extremely slim, with margins made up on software.

And no, I am not suggesting that at all.  But I think it likely that deals were sorted out between EA and MS on the Titanfall issue long before the console launched...



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

drkohler on 10 April 2014
starcraft said:
drkohler said:

I actually KNOW what the store margins are in several European countries. It is NOWHERE what you write here. And are you really suggesting that Respawn/EA would simply look aside when MS gives away for free THEIR game? What a strange idea..

What are they then? My understanding is that they are and have always been extremely slim, with margins made up on software.

And no, I am not suggesting that at all.  But I think it likely that deals were sorted out between EA and MS on the Titanfall issue long before the console launched...

Of course store margins are confidential and I know people who have been severly disciplined for talking about it, so you are never going to see me quote numbers (although you can google-find general numbers for consumer goods of the same "size"). And it is highly doubtful MS and EA made any deals for freebies for a key software barely after its release. Such deals are very common once the software goes into its "second life" (basically when the publisher has made enough money so that he doesn't want to be bothered any more with the whole manufacturing/distribution chain. Then we actually talk about dimes or dollars at most. There are companies who live entirely from this, "Green Pepper" in Germany for example).



starcraft on 10 April 2014
drkohler said:
starcraft said:
drkohler said:

I actually KNOW what the store margins are in several European countries. It is NOWHERE what you write here. And are you really suggesting that Respawn/EA would simply look aside when MS gives away for free THEIR game? What a strange idea..

What are they then? My understanding is that they are and have always been extremely slim, with margins made up on software.

And no, I am not suggesting that at all.  But I think it likely that deals were sorted out between EA and MS on the Titanfall issue long before the console launched...

Of course store margins are confidential and I know people who have been severly disciplined for talking about it, so you are never going to see me quote numbers (although you can google-find general numbers for consumer goods of the same "size"). And it is highly doubtful MS and EA made any deals for freebies for a key software barely after its release. Such deals are very common once the software goes into its "second life" (basically when the publisher has made enough money so that he doesn't want to be bothered any more with the whole manufacturing/distribution chain. Then we actually talk about dimes or dollars at most. There are companies who live entirely from this, "Green Pepper" in Germany for example).

We're on a forum behind pseudonyms mate, I am sure you can share if you wish too.

The deal between MS and EA has been the source of speculation for some time.  It has always been intended as a tentpole release for Microsoft, speculation on these forum have had them paying millions for exclusivity!  In that sense I am sure there was a cost, but applying it individually to unit costs is difficult, even if we were privy to the details.

The second life you refer too is common - but situations like this (with a major third party exclusive where money has clearly changed hands in advance) are different.



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

sully1311 on 11 April 2014
starcraft said:
drkohler said:
starcraft said:

Store margins on consoles are tiny, in the range of 5% if they are lucky often.  The titanfall download code would cost less than a dollar to print on a card.  

I actually KNOW what the store margins are in several European countries. It is NOWHERE what you write here. And are you really suggesting that Respawn/EA would simply look aside when MS gives away for free THEIR game? What a strange idea..

What are they then? My understanding is that they are and have always been extremely slim, with margins made up on software.

And no, I am not suggesting that at all.  But I think it likely that deals were sorted out between EA and MS on the Titanfall issue long before the console launched...

They are around what you said Starcraft. Both consoles have 7-10% margin at a nationwide retailer in the UK. 



starcraft on 11 April 2014
sully1311 said:
starcraft said:
drkohler said:
starcraft said:

Store margins on consoles are tiny, in the range of 5% if they are lucky often.  The titanfall download code would cost less than a dollar to print on a card.  

I actually KNOW what the store margins are in several European countries. It is NOWHERE what you write here. And are you really suggesting that Respawn/EA would simply look aside when MS gives away for free THEIR game? What a strange idea..

What are they then? My understanding is that they are and have always been extremely slim, with margins made up on software.

And no, I am not suggesting that at all.  But I think it likely that deals were sorted out between EA and MS on the Titanfall issue long before the console launched...

They are around what you said Starcraft. Both consoles have 7-10% margin at a nationwide retailer in the UK.

Yes that was my understanding.

Software and accessories is where the retail margin is at.



starcraft - Playing Games = FUN, Talking about Games = SERIOUS