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Forums - Sales Discussion - Will the XB1 go back to regular price after the Holiday?

 

Will it?

Yes 183 43.16%
 
NO 241 56.84%
 
Total:424
Normchacho on 11 December 2014
Teeqoz said:
Normchacho said:
Teeqoz said:
Nuvendil said:
Their earnings report is already likely to be abysmal, 


Micrfosofts earnings report is the furthest away from abysmal you'll ever get. Even if they sell ten million consoles at a loss of hundred dollars (both figures are overdoing it a fucking lot) that will only decrease the profit by 1 billion, and Microsoft earns ~6 billion per quarter (three months).

 

OT: It would be suicide for XBO sales if they did.

I never understood this sentiment. Microsoft is a business. If they have a choice to either lose money for the whole division, and maybe be competitive in one market. Or make money as a solid 2nd, they're going to do the latter. At least any savy business would.


But the thing is, they're not loosing 100 dollars per XBO sold, and they're not gonna sell 10 million XBOs in this time period....

More likely they're loosing ~50 dollars per unit, and they'll sell ~5-6 million in while taking that loss (if they continue the pricecut.). That puts us at a loss between 250 and 300 million.

The thing is though, you said theire earnings report is likely to be abysmal. It won't be. I'm not saying that they'll be happy with losing a lot of money on the XBO though.


Umm...I think you might be mixing me up with someone else...I didn't say anything about their earnings report being bad. I just have a feeling that MS will wiegh more than just NA sales when deciding whether to continue the price drop or not.



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tiffac on 11 December 2014

I doubt it, they saw what the price cut can do with aggressive marketing. They will probably keep it as is. It would surprise me, if they don't.



Alby_da_Wolf on 11 December 2014
Landguy said:
Jumpinbeans said:
MSFT can't afford to let the console go back up as sales will tank. They are banking on making money from software/XBoxLive and taking a hit on hardware vs sony making money on both.

You essentially hit it right on the head.

Also, M$ is counting on releasing Windows 10 to the XB1 in 2015.  They have announced that it will also release on PC and Windows Phone in 2015.  So, their plan to have a unified operating system will be complete by the endo of 2015.  Why does this matter?  Well, they will then have platforms available in every part of the home to push not just XBL, but Office and XBox Music/Movies/Games.  THey have already started rolling out package deals to get all of their services bundled together.

So, losing a little money on the console is an acceptable part of ensuring that they gain access to as many homes as possible.

Outside of x86 PC market, people either don't give a crap about OS, or if they do, they prefer iOS or Android, so showing Windows as a main feature could at best not produce any consistent effect or at worst backfire and become a minus instead of a plus.
About price, MS can temporarily rise it after Xmas, then cut it permanently a few months later, with the positive return of a lot of free advertising from the media reporting the news, without negative side effects or with minimal ones, for at least three reasons:
1) after Xmas there will be at least a month of clearance sales, so price will stay at Xmas offer level or even a little bit lower anyway
2) after clearance sales end, sales numbers will drop as usual anyway during the first dead period, a few k more or less then won't make a big difference
3) it's possible that Sony do PS4 first permanent price cut during Q1 or Q2 2015, so quietly transforming XBOne temporary cut into a permanent one would deprive MS of a powerful marketing weapon to counter Sony move, possibly forcing it to make additional offers or a second XBOne price cut just a few months after.



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Sixteenvolt420 on 11 December 2014

If they raise it back up, they're going to go back to not selling many consoles.



DexInDaJungle on 11 December 2014
darkenergy said:
platformmaster918 said:
Wouldn't that be giving a big middle finger to everyone jumping on because of the limited time part? I don't think MS can afford to lose more public perception. They best jack it back up for a couple months at least.

As one of the few people who paid $399(in my case the Sunset Bundle) I am going to say no. Though I admit that at first when Microsoft announced the limited price cut I was a little disappointed... in myself actually because I actually waited until I think the 15th of September, two weeks before it's release, that I preordered it. I didn't cancel my preordered because I didn't really felt like cancelling it XD. Then when I saw how the white xbox keeps selling and selling out I felt glad I didn't do it since I couldn't find the white xbox in some target or Gamestop stores. Also since there is no news or backlash regarding the price cut from early adopters I will assume it won't happen if they permanently keep it  at $349.

Yeah why I would I be upset? I bought the console about a month after launch, I waited to make sure there weren't any glaring issues with the hardware and once I felt secure I purchased it for full price. I in no way feel like Microsoft did me wrong. I made the decision to go out and purchase this console, no one held a gun to my head. I could have easily been one of the million+ who waited a year and then gotten it but I wasn't and so why should I feel like Microsofted fucked me?

Also, I don't regret paying what I did at the time. I got enough hours out of my xbox one this last year to justify the purchase, my only regret would be the launch games I chose.



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DexInDaJungle on 11 December 2014
kowenicki said:
platformmaster918 said:
kowenicki said:
platformmaster918 said:
Wouldn't that be giving a big middle finger to everyone jumping on because of the limited time part? I don't think MS can afford to lose more public perception. They best jack it back up for a couple months at least.


why?

OT

silly if it does...

because they bought it thinking the price would go back up so possibly would have held off till $300

Right. So they will be mad because the still got it cheaper, but a bit earlier? 

Reaching.  Nobdy will be mad.

 


Pay $30 more to get it 2-3 months earlier, most people see that as a victory to be honest lol



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Landguy on 11 December 2014
Alby_da_Wolf said:
Landguy said:
Jumpinbeans said:
MSFT can't afford to let the console go back up as sales will tank. They are banking on making money from software/XBoxLive and taking a hit on hardware vs sony making money on both.

You essentially hit it right on the head.

Also, M$ is counting on releasing Windows 10 to the XB1 in 2015.  They have announced that it will also release on PC and Windows Phone in 2015.  So, their plan to have a unified operating system will be complete by the endo of 2015.  Why does this matter?  Well, they will then have platforms available in every part of the home to push not just XBL, but Office and XBox Music/Movies/Games.  THey have already started rolling out package deals to get all of their services bundled together.

So, losing a little money on the console is an acceptable part of ensuring that they gain access to as many homes as possible.

Outside of x86 PC market, people either don't give a crap about OS, or if they do, they prefer iOS or Android, so showing Windows as a main feature could at best not produce any consistent effect or at worst backfire and become a minus instead of a plus.
About price, MS can temporarily rise it after Xmas, then cut it permanently a few months later, with the positive return of a lot of free advertising from the media reporting the news, without negative side effects or with minimal ones, for at least three reasons:
1) after Xmas there will be at least a month of clearance sales, so price will stay at Xmas offer level or even a little bit lower anyway
2) after clearance sales end, sales numbers will drop as usual anyway during the first dead period, a few k more or less then won't make a big difference
3) it's possible that Sony do PS4 first permanent price cut during Q1 or Q2 2015, so quietly transforming XBOne temporary cut into a permanent one would deprive MS of a powerful marketing weapon to counter Sony move, possibly forcing it to make additional offers or a second XBOne price cut just a few months after.

Your thoughts on #3 make the most sense for them moving the price back up.

Still, most consumers will assume that the price going back to $399 will only be temporary.  Thus, they will not buy the console and wait.  In the meantime, M$ misses out on the opportunity of having the person sign up for XBL and start the closck on that subscription.  Also, they miss out on a possible game sale or 2 from that buyer.  Like others have said, I believe that if SOny matches the price in 4-6 months time, M$ will just drop theirs again $50 and get the same advantage again.  If M$ doesn't drop another $50 to stay lower than Sony, they will have constant bundle deals that equal the same thing.



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platformmaster918 on 11 December 2014
Justagamer said:
I don't expect them to raise it back up to 399.... and I also don't think anyone who bought it at the supposed temporary price will be mad about it for not going back up... that makes no sense whatsoever. Raising the price back up would be the dumbest thing they could ever do.

so they can just outright lie in every ad that said it was just for the holidays?  No negativity towards being lied to to the face?  I guess Xbox fans are used to it after Kinect being integral and no used games and 24 hour internet being great for consumers.




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Justagamer on 11 December 2014
platformmaster918 said:
Justagamer said:
I don't expect them to raise it back up to 399.... and I also don't think anyone who bought it at the supposed temporary price will be mad about it for not going back up... that makes no sense whatsoever. Raising the price back up would be the dumbest thing they could ever do.

so they can just outright lie in every ad that said it was just for the holidays?  No negativity towards being lied to to the face?  I guess Xbox fans are used to it after Kinect being integral and no used games and 24 hour internet being great for consumers.


Sooo..... you would only feel justified in your purchase price, if it is temporary? That just makes no sense whatsoever. If the price was good enough to make you buy it, then buy it. It's stupid to think that I will be mad, as I bought the ass creed bundle, if they don't raise the price back up.... I don't care! I got a good deal. So did millions of others! If it remains low, then millions more will get a great deal! What's to get mad over? Seriously.... what.