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Forums - Microsoft - Is a price drop incoming for the XB1?

 

Is a price drop coming in 2014?

Yes 105 38.18%
 
No 170 61.82%
 
Total:275
Landguy said:
vivster said:
They actually had a real price drop for them since Kinect is less than $100. I don't think they will feel comfortable to pulling down the margin even further.

Business is more important than the console war and business can be good even when the war is lost.

I agree that your thoughts make the most sens for the short term.  The problem is that we learned a lot last generation about how multi player games impact console sales.  If all of my friends have a PS4, I will get one to play the games with them.  THat went a long way for the 360 with it's year headstart on the PS3.

to this and your quote of me...


i've always thought two of the most important selling points what do my friends have and price.  for point point 1,.. the ps4 has a lead but at this point it isn't insurmountable.  it's fairly even at this point especially in the us so overall the point is sort of null.   which too my other point,.. if ms is willing to take a price cut this year i think they can take back the weekly sales in the us.   if you believe vgcz unadjusted numbers it already has.



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Nope. Maybe during the holidays but not right now.



    

NNID: FrequentFlyer54

It will definitely come in the fall. The $399 SKU isn't a price drop.

We will see official or unofficial $349 bundles at minimum. And people, stop calling the $399 XB1 bare console a 'bundle', because it's nothing but an XB1 and a controller. No game, no kinect, no XBLG 1 year card, no nada.

Bundle should infer a piece of major extra hardware and/or an included title.



MS doesn't seem to fond of pricedrops at all, so I think they will wait at least 18 months before doing anything. It would not be a good business move to do it during the Holidays, since there are always deals and bundles then.



Landguy said:
kowenicki said:
Landguy said:

 We all know that if the XB1 gets too much further behind, it will become completely irrelevent in the general publics mind.

We do?

If you say so.

So, are you ssaying that the sales of a product aren't indicative of the publics perception of the product?

As the PS4 has continued to sell more and more, it makes more people aware that it is available and the thing to get.  We have watched how the sales of the XB1 have slowly slid lower and lower since January.

I have an XB1 and am not a hater.  But, the facts are the facts.


wtf do i have to read in this topic?

some people are just so wrong with using strong words.

do u know, what irrelevant is?

 

as example: 

samsung galaxy tabs sold the most

apple ipad sold second best, but got some much more mindshare. u ask about a tablet? ohh year ipad comes first in mind.

microsoft surface sold way ways less than any of those two, but got respectable mindshare. "surface? oh yes i know. the ipad from microsoft with that snap keyboard" they just dont buy it :D

 

as long as we see this kind of threads, xbox (one) is not irrelevent in the general public mind.

as long as some sonyfans give a shit about their biggest competitior ists not irrelevant.

 

 sales wise the xbox one is far away from irrelevant, too

even the wii u ist.

the only consoles being irrelevant sales wise are the ps vita (outside of japan) and the ouya

 

 

on topic:

no pricecut before  fall 2015

we will see bundles and retailer promotions. especially for this holiday season



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We just saw one



XBOX ONE/Wii U/3DS/PC

RIP Iwata 12/6/1959-7/11/2015

Thanks for all the great memories!

I love how people talk like Microsoft is going to close up shop and discontinue the Xbox One. If history is any representation look at the WiiU and the PS3. PS3 had a disastrous first year and we're very much in the midst of a WiiU turnaround 2 years into its life.

MS and their billions of dollars in the bank aren't going away anytime soon with the Xbox business. And you also have to look at the total sales of both Xbox 360 and Xbox One. They're still selling a ridiculous amount of Xbox 360's.



prinz_valium said:
Landguy said:
kowenicki said:
Landguy said:

 We all know that if the XB1 gets too much further behind, it will become completely irrelevent in the general publics mind.

We do?

If you say so.

So, are you ssaying that the sales of a product aren't indicative of the publics perception of the product?

As the PS4 has continued to sell more and more, it makes more people aware that it is available and the thing to get.  We have watched how the sales of the XB1 have slowly slid lower and lower since January.

I have an XB1 and am not a hater.  But, the facts are the facts.


wtf do i have to read in this topic?

some people are just so wrong with using strong words.

do u know, what irrelevent is?

 

as example: 

samsung galaxy tabs sold the most

apple ipad sold second best, but got some much more mindshare. u ask about a tablet? ohh year ipad comes first in mind.

microsoft surface sold way ways less than any of those two, but got respectable mindshare. "surface? oh yes i know. the ipad from microsoft with that snap keyboard" they just dont buy it :D

 

as long as we see this kind of threads, xbox (one) is not irrelevent in the general public mind.

as long as some sonyfans give a shit about their biggest competitior ists not irrelevent.

 

 sales wise the xbox one is far away from irrelevent, too

even the wii u ist.

the only consoles being irrelevent sales wise are the ps vita (outside of japan) and the ouya

 

 

on topic:

no pricecut before  fall 2015

we will see bundles and retailer promotions. especially for this holiday season

 

Apparently, you disagree with me.  :)

It's quite clear that when both the PS4 and XB1 launched, that the XB1 was relevant for the early adopters(I am a launch XB1 owner).  The difference is, the "general public" for the most part it is not.  They buy something when it becomes a cultural phenomenon or when it is so cheap comparitvely they can't resist.  Clearly, the XB1 is not going the cultural phenomenon route, as the PS4 seems to be doing that or at least close to it.  So, the public knowing that something exists, doesn't make it relevant.  It means very little.  What the general public seems to know about the XB1 is that it is expensive and that it is not as good as the PS4.

The XB1 is becoming irrelevant because very few people will buy what is perceived to be an inferior product at the same price as the better product.  So, Microsoft needs to lower their price of the XB1 to overcome this obstacle.



It is near the end of the end....

dangerguy said:
I love how people talk like Microsoft is going to close up shop and discontinue the Xbox One. If history is any representation look at the WiiU and the PS3. PS3 had a disastrous first year and we're very much in the midst of a WiiU turnaround 2 years into its life.

MS and their billions of dollars in the bank aren't going away anytime soon with the Xbox business. And you also have to look at the total sales of both Xbox 360 and Xbox One. They're still selling a ridiculous amount of Xbox 360's.

I agree.  No chance for M$ to jump ship on the XBox business.  THey are focusing the whole company on creating a connected OS structure and XBOX - Music/movies/games etc...  This is a big part in courting the younger audience to stick with them for the long term.  THat is why they bought Nokia's cell phone unit.  THey have to have a foothold in that arena long term.



It is near the end of the end....

Landguy said:
dangerguy said:
I love how people talk like Microsoft is going to close up shop and discontinue the Xbox One. If history is any representation look at the WiiU and the PS3. PS3 had a disastrous first year and we're very much in the midst of a WiiU turnaround 2 years into its life.

MS and their billions of dollars in the bank aren't going away anytime soon with the Xbox business. And you also have to look at the total sales of both Xbox 360 and Xbox One. They're still selling a ridiculous amount of Xbox 360's.

I agree.  No chance for M$ to jump ship on the XBox business.  THey are focusing the whole company on creating a connected OS structure and XBOX - Music/movies/games etc...  This is a big part in courting the younger audience to stick with them for the long term.  THat is why they bought Nokia's cell phone unit.  THey have to have a foothold in that arena long term.

They won't continue to burn cash on Xbox forever. Xbox OG was the foot in the door, 360 was used to grow the brand, and XB1 was intended to dominate the market, and be a paywall to all forms of living room entertainment (and focused advertising using the mandatory Kinect), along with paywalled used-games w/online check. ALL of the XB1 plans have failed.

Terrible sales globally, and virtually dead in Europe : Check

Consumer pushback on paywalls and online checks causing 180s : Check

Removal of Kinect basically stripping it's monetary value in terms of market manipulation/advertising multiplier : Check

XB1 is on track for 35-50M lifetime sales, with no added revnue sreams that they planned on. Remember Zune? I thought so. Microsoft wanted that Apple-like iTunes revenue, and tried until they gave up.

Project Xbox was around 5 to 5.5 billion in the red as of 2012 for the totality of the years from inception, with yearly profits only marginal (at the rate of the last year it would have taken something like 42 or 43 years to make back all of the losses).

Marketing and Develeoping XB1 and Kinect2 probably dumped them another 2 or 3 billion in the red. 360 revenue is decreasing rapidly. A lot of the expenses were wasted. They paid huge for Titanfall + gangantuan marketing on that deal, AND they had to compensate EA for the free copies they packed in to XB1s AND they had to reimburse stores for the $50 discount to try to get them to move AND they had a minimum 1-year agreed manufacturing deal with their Chinese makers to supply the Kinect2 that had to be adjusted after the fact. In electronics manufacturing you have to sign contracts in advance for annual production deals, it's not an a la carte deal unless you want to pay a massively higher rate. That way the mfg is guaranteed its margins, the salaries for the workers, the amortization for the books, have taxes prepared and so on. Reports also emerged that the high initial demand had them in trouble when demand fell off a cliff unexpectedly in 2014, with the supply chain overloaded, and units had to be shipped back to warehouses to be reskinned as Titanfall bundles, and to be stored long-term for the bulk overstock. All of this costs HUGE in this industry.

Microsoft is not dumb on an infinite scale. If they can't see a light at the end of the tunnel which will be worthwhile, they will give it up easily. And there's no plan for the XB1 than can make it a useful resource for them to blow a ton of money on. But, they've already bought the cow, the epic expenses are over with. Odds are what you'll see is minimal maintenance, and a steady drawing down of the expenses until cancellation. Forces within the company and from shareholders have long questioned the financial sanity of endlessly hemmorhaging funds into the effort, but were stayed by the promise that XB1 was supposed to fulfill : a cash printing press in a dominant market stance. The paywalls that were designed to make each unit highly profitable have been stripped, and there's nothing even remotely close to market dominance in XB1's fortunes.

Face it, XB1 is the end for Xbox. As projects complete, the powers that be will continually draw back expenditure until it makes sense to pull the plug.