eva01beserk said:
sabvre42 said:
Probably. XB1 stands zero chance toe to toe with the ps4, and the holidays are all that matter obviously!
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Thats another thing. Where they to do that this year, after doing the same this year, they will be publicly admiting they dont stand a chance and that the x1 is inferior too ps4 and needs to cost less. The xbox division prbably ate a bunch of losses last year, this year, they might have to eat even more.
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It's not an admission of inferiority of the product, just inferiority of the brand. When a brand has less consumer appeal than a competitor it needs to try to attract sales by being appealing in different ways. One of the most important ways to appeal to the consumer when you are the less popular brand is to sell at a lower price. That is quite sustainable if you can sell at a profit at the lower price. The big question is whether Xb one can be profitable at $300 without there being another cycle of production cost reduction (Xb one slim). If a $50 price drop is a flat $50 loss (i.e. $350 is exactly break even, or a slight loss right now), then it's going to be difficult to be able to push that price cut button. However, I don't see any way around it for MS. If PS4 dops $50 in the USA (and a comparable amount elswhere in the west), then MS will have to respond with a $50 drop. If they don't maintain a price advantage throughout the main selling years of the generation Xb one's LTD potential will fall well short of 50 million IMO. It's far from certain that it will even make 50 million at this point.
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