My guess would be the kinectless version and one game (Sunset Overdrive or Halo Masterchief Collection) for $399.

No, the average doesn't see it as a negative message. It just got cheaper because it doesn't include Kinect and people are happy about that.

People who wanted a PS3 or 3DS didn't mind a quick price drop, it just improved sales.

derrrr it was, is what it is.. what do you have trouble saying it casue your fav corporation does it.

Sure it does, like crazy gm reabtes on cars it screams you are buying an inferior product.  Now at 5/7k less you accept you are getting a gm and not a honda but at 50 bucks you might as well shell out and buy the better one. 

Of course they did not, there are countless consumers where price is the most imprtant issue.  But they know they are buying inferiority but they have no chocie. 

M$ dropping the price and abandoning the Kinect after saying it was an essential component of the X1 is an act of desperation.  Bundling AAA games with your console is not.  If that were the case, then that makes Nintendo the most desperate videogame hardware company of all time.

well given they lost plenty conosle gens the moniker would fit.

But that does nto take away from the fact that gicing away a free game works damn freaking well.  I dont get why there no Killzone SF bundle for 399. just give a dlc code. 

That part was just unnecesary. Its one thing to sell a $400 console with a $60 game for $450 its another thing to sell a $500 console with a $60 game for $450. If you can't tell the difference then I am really sorry.

On topic, they both will have all sorts of bundles. I don't think that during the holiday season the XB1 being $50 cheaper would make a difference though. I also don't see MS officialy coming out and making another price drop. Two in one year?

I agree, I think this holiday is going to be a blood bath. Microsoft, Sony, and Nintendo are going to be extremely competitive. MS and Nintendo are going to try to at least hold their ground, and Sony is going to go for the fatality. The next six months in fact should be very entertaining here at the vgchartz.

I think you have it all mixed up.

• Adding a popular game, to your SKU, while not changing the price is not desperation, its adding value. Its like increasing the size of your HDD or offering 2 free movie downloads with the SKU without changing the price. 
• Adding a game, while effectively increasing the price of your SKU though also selling both combined for a little less than selling both individually is not desperation, its also just adding value.
• Selling your SKU with a popular game while doing a soft price drop only for that paired SKU(cause you know tahts the only game anyone will buy), is an act of desperation. 

Agree. If XB1 sales in Jan/Feb were strong the TF bundle would have been $550. It's just market pressure and response to try to leverage for penetration. After all they need the numbers to be big to make the big strategy work.

Both Sony and Microsoft employ that mass market strategy, whereas Nintendo usually plays a less volatile role. The U was a combination of a risky high BoM product and underperforming sales that combined to hurt them. I expect them to return to profitability soon though, at a fraction of the sales necessary to Sony/MS big dog approach.