sales2099 said:
Dr.Henry_Killinger said:
With the Kinect bundled at 399, assuming the Kinect is 75$ (IHS), MS would have to sell 13 million of these SKUs before incuring 1 billion in losses.
50 million SKUs would only be 3 billion in losses, and by that point manufacturing prices would drop significantly.
Considering the fact that the XB1 is first place in software sales, why couldn't that 75$ loss per console easily be made up in the sale of 2-3 games?
Its not only affordable, but easily sustainable especially for MS.
You're the one that made the point about MS throwing their money around to win in a war of attrition, and yet giving away the Kinect is one of the cheapest ways to secure a true advantage against the PS4. Now its simply a matter of preference, doesn't matter how advanced the Kinect 2.0 is when the competition has something that can do the same thing and both are optional anyway.
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$75 in parts doesn't take into account other expenses before a product makes its way to a store shelf. How overly simplistic.
Not only would it put MS in the red, dropping the kinect X1 to $399 globally is a sign of weakness and a very early price cut. This way, it isn't a price cut but more of a lower end sku introduction.
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Except for the fact that the Kinect is included in the primary sku package (till june 9th). Those after manufacture expenses are introduced after the whole package is assembled. So its a perfectly reasonable estimation. Not to mention the Kinect would only get those expenses applied to if it was being sold seperatly.
Of all the things that MS has done to put Xbox in the red, dropping the Kinect is honestly the lesser of said evils. While I agree that the price cut might be seen as a sign of weakness, any of the MS's 180's including the additional SKU could be construed as weakness as well. Dropping the price, can be argued as listening to consumers as well.
However, this way MS pretty much confirms that the Kinect is not essential, and they have yet to provide it much software to give it much standalone value.
Worse yet, now the X1 only really has media features over the PS4, most of which can easily be made up with software. Last gen PS3 barely beat 360 WW because of Japan, and managed to top 360 in ltd in the US for a couple of weeks cause of GTA or something. Thats with selling at 300+ loss until manfacturing costs dropped and a loss most of its life.
X1 doesn't have Japan, and if it can't take a measly 75$ loss until manufacturing costs drop, how are they even trying to catch up in the US?