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Will MS go for Sony's throat at E3 and undercut their PS4 MSRP ?

gtj1092

Member
What I don't get is this. Let's say that retailers are dumping the price because the Xbox One is not selling and taking up inventory and is clogging the system. We then have a Supervisor at Best Buy stating that it is the case that inventory is dead and it is not moving so they are going to dump the price and take a hit on it to get rid of it.

Now if your were a business person and you bought a ton of product and it does not sell and clogs up your stock rooms to the degree that you are taking a loss on said product, just because you want to get rid of it, would you buy more of them from the manufacturer?

That is what is odd about some of these people claiming this. If you buy a product for a National retailer to have in all of your stores across the country and that product does not sell and is causing a clog in the system and you take such drastic measures to mark it down, wouldn't you let's say put that in your weekly circular to get the word out? Anyone else find it odd that this has not happened?

And back to my other point, if the Xbox One is such a piece of shit and it sells like shit and you as a retailer are taking a loss on the unit, then why on earth would you, as a retailer go out and buy a shit load of Titanfall bundles to have in your stores? Why would you place even more orders of the standard edition to have in your stores if it is selling so poorly and you are taking a loss on it?

Can anyone explain this to me? It makes no business sense to buy more of the same product and then invest in buying into another of the same product with a game if it is doing so poorly?

MS reimburses them. They have faith that MS will market and try and sell the product. MS shows good faith by doing bundles and doing temporary sales. And X1 isn't necessarily doing poorly in America and the UK but when you consider they are producing nearly 1 million a month and only two markets sell large volumes of XB1s they need incentives to get retailers to continue purchase more in spite of their shelves being full of them. One way to do that is lowering the price of previously shipped units or offering a discount on new inventory.


Speaking of which...



What the heck...biggest game of the year (so far) and its getting discounted sales so quickly.

Can't speak for anywhere else but my local Walmart got at least twice as many xb1 titanfall copies as infamous. Today there is one copy of infamous left and quite a few copies of titanfall left even though it has sold more than infamous. I just think the game got a huge initial shipment.
 
That's quite a title.

Image.ashx

I seem to be catching some heat for the title, it was my bad. Go for the throat indicates finishing off a weak opponent but I just meant it in the sense of MS being super aggressive.

Before I'm accused any more of looking at things from a pro MS perspective let me say the only current gen system I don't own is XBone. I just think it's super interesting to see how MS react to Sony's early dominance in the future.
 

Mr. X

Member
MS should drop the price of Gold or put a year of Gold with each new XBone.

And the expression in the OP is being used wrong, Sony has the upper hand and can for the throat.
 

Lorul2

Member
My guess a $299 Xbox one "core" with 2TB green HD; no blue ray; Kinect is now an add on; and Xbox live gold free for the first month. Stores get to sell download codes; but current Xbox one and blue ray games will be a thing of the past. That is probably the reason why they are trying to clear stock now.
 

Vire

Member
My guess a $299 Xbox one "core" with 2gb green HD; no blue ray; Kinect is now an add on; and Xbox live gold free for the first month. Stores get to sell download codes; but current Xbox one and blue ray games will be a thing of the past. Thats why they are trying to clear stock now.

A $200 price cut less than a year after launch?

I really want some of what GAF is smoking.
 
Xbox One without a kinect costs more to manufacture than a PS4. No way are they going to undercut them on price.

At best they'll keep Kinect and price it at parity with PS4, taking a minor hit on the hardware.
 
already basically have in the UK.

There is no way the X1 can go back up to MSRP after knocking £80 off and bundling a free game.

I can see it going back to £379 but no higher.
 

Rolf NB

Member
My guess a $299 Xbox one "core" with 2gb green HD; no blue ray; Kinect is now an add on; and Xbox live gold free for the first month. Stores get to sell download codes; but current Xbox one and blue ray games will be a thing of the past. Thats why they are trying to clear stock now.
Can you say that again please?
 

Principate

Saint Titanfall
it happened with the ps3 though

PS3 was like $200 more expensive for a non gimped version, it kind of had to, to compete.

XB1 could probably compete by just price matching with a bundle say Titanfall.

Like I said before it's certainly working in the UK so far since it's outselling the PS4 on Amazon (at least right now). Which is like the first time ever.
 

Vire

Member
Is the Xbox One really getting beat that badly where it would need such a drastic price cut?

Isn't there like only 2 million units difference worldwide? Doesn't really seem like enough to hit the panic button just yet.
 
Like I said before it's certainly working in the UK so far since it's outselling the PS4 on Amazon (at least right now). Which is like the first time ever.

Well, damn. I checked there like two days ago and the PS4 was far ahead--and now it's behind.

Wonder if that'll push MS to get the price down to $400 on the Titanfall bundle here sooner rather than later (i.e. at E3 or after).
 

N.Domixis

Banned
Is the Xbox One really getting beat that badly where it would need such a drastic price cut?

Isn't there like only 2 million units difference worldwide? Doesn't really seem like enough to hit the panic button just yet.

its getting close to 3 million.
 

A_Gorilla

Banned
Is the Xbox One really getting beat that badly where it would need such a drastic price cut?

Isn't there like only 2 million units difference worldwide? Doesn't really seem like enough to hit the panic button just yet.

Tell that to MS.
 
Well, damn. I checked there like two days ago and the PS4 was far ahead--and now it's behind.

Wonder if that'll push MS to get the price down to $400 on the Titanfall bundle here sooner rather than later (i.e. at E3 or after).

Check the April Best Seller's instead of just hourly

April's Bestsellers

It should be curious where they both sit at the end of the month
 
When you're not market leader, and you undercut the competition's price, thats not really going 'at the the throat', yes?

More like, going for the ankles.

Edit: I believe, instead of price cutting, they'll continue to bundle a game with each console, maybe sell the boxes cheaper to retailers and let them decide how to price it, like how they seem to be doing now.
 

HMC

Member
XB1 is selling well, even in the face of stronger, cheaper competition...no need to panic. I'd much rather see MS allocate resources to beefing up it's 1st party and exclusive library, and focus on rewarding their own brand loyal base, rather than blow millions trying to chase the PS4 white whale.

You made the mistake of trying to emulate the Wii fad, stop following trends. Stop paying attention to the butthurt PS3 throng. Box owners buy ridiculous amounts of software. Give it to us. Leave conole warz to console warriorz.
 

Freeman

Banned
My guess a $299 Xbox one "core" with 2gb green HD; no blue ray; Kinect is now an add on; and Xbox live gold free for the first month. Stores get to sell download codes; but current Xbox one and blue ray games will be a thing of the past. Thats why they are trying to clear stock now.
What? What would you even do with it something like that?
 
I think, sooner rather than later, MS is going to have to give up on the premise of requiring Gold for simple media apps/services.

The small and cheap TV media box market is about to blow up. Amazon just released the Fire TV, Google is coming out with Android TV, Chromecast is already out and amazing. Add to that fact that more services are starting to go the "cheap monthly fee" route for streaming content.

I honestly think it really hurts Microsoft when they're advertising the XB1 as "The All in One" solution to your media habits, and then require another $60 yearly fee on top of the $500 box and $10-$15 monthly fees for the services themselves. We've always known it was dumb, but more of the public will be made aware of just how dumb it is, when you can buy a $35 Chromecast dongle and stream literally anything from the internet to your TV. It's an idea that's quickly going from, "They're being greedy" to "This practice will seriously inhibit consumers from choosing their platform".
 
I can't seem to find any total number of sales aside from that bologna site VG charts.

Can someone point me in the right direction? I know March NPD should be hitting soon.

7 million vs 4 million is a good estimate.

PS4 is basically doing close to double the performance world wide
 
I can't seem to find any total number of sales aside from that bologna site VG charts.

Can someone point me in the right direction? I know March NPD should be hitting soon.

The last WW numbers from MS that we have is Dec. 31st of last year

If you would like I could link to a couple posts I've made that try to estimate XB1 LTD up until now

I would say at absolute best MS is at around 4.5M and it's not impossible for Sony to be breaching 7.5M PS4 sales although I expect both LTD's to be lower than that

A 3M difference isn't entirely unrealistic
 

AmyS

Member
No, it's still the Wii>>360>PS3 in terms of sales

True, and I think both the 360 and the PS3 will each surpass Wii's 100M install base before MS and Sony quit manufacturing their old consoles,. I don't think that will happen before the the start of 2017 at the soonest, and perhaps not until their next gen systems arrive in late 2018 or 2019.

There's still several pricecuts that will happen for both the 360 and the PS3 over the next couple years which will drive each of them over Wii's 100M
 
My guess a $299 Xbox one "core" with 2gb green HD; no blue ray; Kinect is now an add on; and Xbox live gold free for the first month. Stores get to sell download codes; but current Xbox one and blue ray games will be a thing of the past. Thats why they are trying to clear stock now.

Most insane idea so far in this thread. Why would MS split their user base into those who can buy discs and those who can't? That people can go to walmart, see Titanfall for X1, buy it but not be able to play it on their X1? No way
 
Is the Xbox One really getting beat that badly where it would need such a drastic price cut?

Isn't there like only 2 million units difference worldwide? Doesn't really seem like enough to hit the panic button just yet.

There are many people who are waiting for the price drop on X1 believe it or not. And there are those who chose PS4 over X1 because of teh $100 difference so yeah. Pricing is really important and X1 is getting beaten badly WORLDWIDE, but not in the US. PS4 and X1 are pretty much neck and neck here.
 

artist

Banned
I already own an Xbone but it's sitting in a box, most likely I'll sell it.

At $199 price point minus the Kinect is when I'll get in, given all the crap that MS has pulled.
 
XB1 is selling well, even in the face of stronger, cheaper competition...no need to panic. I'd much rather see MS allocate resources to beefing up it's 1st party and exclusive library, and focus on rewarding their own brand loyal base, rather than blow millions trying to chase the PS4 white whale.

You made the mistake of trying to emulate the Wii fad, stop following trends. Stop paying attention to the butthurt PS3 throng. Box owners buy ridiculous amounts of software. Give it to us. Leave conole warz to console warriorz.

I'm not entirely sure what this even means...
 
XB1 is selling well, even in the face of stronger, cheaper competition...no need to panic. I'd much rather see MS allocate resources to beefing up it's 1st party and exclusive library, and focus on rewarding their own brand loyal base, rather than blow millions trying to chase the PS4 white whale.

You made the mistake of trying to emulate the Wii fad, stop following trends. Stop paying attention to the butthurt PS3 throng. Box owners buy ridiculous amounts of software. Give it to us. Leave conole warz to console warriorz.

Not sure if its selling well since they keep doing these deals and stealth price cuts. Clearly they want to move more. if it wasnt for those deals who knows where they will be.
 
XB1 is selling well, even in the face of stronger, cheaper competition...no need to panic. I'd much rather see MS allocate resources to beefing up it's 1st party and exclusive library, and focus on rewarding their own brand loyal base, rather than blow millions trying to chase the PS4 white whale.

You made the mistake of trying to emulate the Wii fad, stop following trends. Stop paying attention to the butthurt PS3 throng. Box owners buy ridiculous amounts of software. Give it to us. Leave conole warz to console warriorz.

Wow.
 
There are many people who are waiting for the price drop on X1 believe it or not. And there are those who chose PS4 over X1 because of teh $100 difference so yeah. Pricing is really important and X1 is getting beaten badly WORLDWIDE, but not in the US. PS4 and X1 are pretty much neck and neck here.

US LTD we actually have

PS4: 2.54 million
XBO: 2.22 million

PS4 is ~15% ahead of XB1 in MS's strongest territory

That difference of ~320K or so in the US is embarrassing to MS considering what happened last gen

360: 41.2 million
PS3: 25.7 million

MS sold over 50% of their WW install base in the US and are now losing in that market, that's bad

The price cut only came into effect recently and XB1 did abysmally before that. That's why I mentioned hourly which is in itself a feat considering XB1 rankings.

That's true enough which is why I think it'll be interesting to see the relative standing at the end of the month on there when the price cut will have had times to take affect
 
I can't see a real undercutting. That would be a pretty major loss for them, wouldn't it? What I could see them doing is say, every XB1 comes with 6 months - 1 year of Live, and a voucher for any retail game that you want. Or some combination of maybe $50 off the price and you get a download code for a AAA game.
 

Biker19

Banned
I think, sooner rather than later, MS is going to have to give up on the premise of requiring Gold for simple media apps/services.

The small and cheap TV media box market is about to blow up. Amazon just released the Fire TV, Google is coming out with Android TV, Chromecast is already out and amazing. Add to that fact that more services are starting to go the "cheap monthly fee" route for streaming content.

I honestly think it really hurts Microsoft when they're advertising the XB1 as "The All in One" solution to your media habits, and then require another $60 yearly fee on top of the $500 box and $10-$15 monthly fees for the services themselves. We've always known it was dumb, but more of the public will be made aware of just how dumb it is, when you can buy a $35 Chromecast dongle and stream literally anything from the internet to your TV. It's an idea that's quickly going from, "They're being greedy" to "This practice will seriously inhibit consumers from choosing their platform".

I agree: The $500 price tag, along with the $60 XBL Gold subscription just to access features that are free everywhere else (including on Wii, Wii U, PS3, & PS4) as well as with the additional fees is what will really hurt Microsoft on that part. Consumers will see no reason to buy the Xbox One for TV stuff when they can buy something like the Fire TV, Android TV, Chromecast, etc. for much more cheaper & have all the apps, etc. that they want without a subscription.
 

Vire

Member
The last WW numbers from MS that we have is Dec. 31st of last year

If you would like I could link to a couple posts I've made that try to estimate XB1 LTD up until now

I would say at absolute best MS is at around 4.5M and it's not impossible for Sony to be breaching 7.5M PS4 sales although I expect both LTD's to be lower than that

A 3M difference isn't entirely unrealistic
Gracias, I'll take your word for it.

Yeah, I guess if the PS4 doubles the Xbox One's WW sales by the time E3 rolls around, that's definitely cause for concern and worthy of a significant price drop.
 
Is the Xbox One really getting beat that badly where it would need such a drastic price cut?

Isn't there like only 2 million units difference worldwide? Doesn't really seem like enough to hit the panic button just yet.

It's not so much the hard number of 2-3M right now, but rather the trend and what that trend means in the long term.

At the end of 2013, the gap was 1.2M (3M for X1 vs 4.2M for PS4).

Since then, that gap has more than doubled, perhaps even close to tripled (~4M X1 vs ~7M PS4 is the most realistic estimate). If that trend continues, we'll be looking a massive, massive difference in marketshare as the gen goes on. MS is doing everything they can to stop that trend and swing market perception back in favour of their product.

Between just the two systems released last year (not including WiiU), X1 accounts for roughy 36% of the marketshare while PS4 accounts for roughly 63%. That's a pretty bad beating.
 

Vire

Member
It's not so much the hard number of 2-3M right now, but rather the trend and what that trend means in the long term.

At the end of 2013, the gap was 1.2M (3M for X1 vs 4.2M for PS4).

Since then, that gap has more than doubled, perhaps even close to tripled (~4M X1 vs ~7M PS4 is the most realistic estimate). If that trend continues, we'll be looking a massive, massive difference in marketshare as the gen goes on. MS is doing everything they can to stop that trend and swing market perception back in favour of their product.

Between just the two systems released last year (not including WiiU), X1 accounts for roughy 36% of the marketshare while PS4 accounts for roughly 63%. That's a pretty bad beating.
I agree, a trend that continues to follow that path is unsustainable and extremely worrying for Microsoft. With that being said, do those numbers account for any potential bolstering in hardware sales that would narrow the gap considerably from Titanfall releasing?

Or did Titanfall not give the push they were expecting? (I don't have the numbers).
 

Slashlen

Member
Or did Titanfall not give the push they were expecting? (I don't have the numbers).

We don't have numbers yet, but the general assumption is that if Titanfall had saved the day then all of these bundles/discounts wouldn't have happened. Since they did, it's believed that Titanfall did not give the needed push.
 
I agree, a trend that continues to follow that path is unattainable and extremely worrying for Microsoft. With that being said, do those numbers account for any potential bolstering in hardware sales that would narrow the gap considerably from Titanfall releasing?

Or did Titanfall not give the push they were expecting? (I don't have the numbers).

We'll know come NPD, a gauge of what that 'potential' amounted to.

But it seems that from the charts at least... only 2 countries are really benefiting from any kind of potential boost, which is US/UK. Other regional charts tracking game sales show that Titanfall hasn't become their miracle saviour. Even if those 2 are the key regions, they alone will find it challenging to close that gap in a large manner.

And even then, the fact that stock availability + inFamous ( a game that sold only about half of Titanfall ) can push PS4 sales above the Xbox One in UK, even after pricecuts on the latter... means that PS4 is not weakening its momentum in the least, even in the face of competition.
 
I agree, a trend that continues to follow that path is unattainable and extremely worrying for Microsoft. With that being said, do those numbers account for any potential bolstering in hardware sales that would narrow the gap considerably from Titanfall releasing?

Or did Titanfall not give the push they were expecting? (I don't have the numbers).

I don't have numbers either, but the gap would have likely actually gotten bigger, not smaller during Titanfall's release. Titanfall most likely just slowed down how fast the gap has been growing, but didn't reduce it.

It's a given that Titanfall caused the X1 to outsell the PS4 in NA and the UK. But even with that, X1 would still be getting outsold in terms of total global on a weekly basis (X1 is getting absolutely obliterated in Europe and the rest of the world and PS4 also has Japan to give a boost to its overall global number).

Just completely pulling fictional numbers out of my ass for illustrative purposes, a pre-Titanfall global weekly total might have looked something like this: PS4: 120K, X1 85K. Titanfall release week might have looked like this: PS4 120K, X1 105K (with X1 handily outselling PS4 in the US and UK). So it would boost sales for the system, but it would still be outsold and the gap would still continue grow, just at a slower pace. That's just my take on it anyways. We'll know more when there are hard global (not NPD) numbers released.
 

Biker19

Banned
Agree, people thinking they will cut it to $350 are delusional, $50 at the most.

And even then at $450, it still won't do much, considering that between $400 to $450 are nowhere near the mass-market price levels. $350 & below are.

Microsoft's gonna have to do more than a $100 price drop, but they're not going to risk taking a bigger loss in profit like Sony did with PS3.
 
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