ArkkAngel007
Member
I don't understand how the price going back up to $399.99 will suddenly wash away all the gains the system received in November and likely December.
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Xbox One is back at $399. Lineup for crow pie => thataway
- Thread starter Deadly Joker
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Neuromancer
Member
I was wrong but I still think it's dumb. That's the best you're going to get out of me!
AgentP
Thinks mods influence posters politics. Promoted to QAnon Editor.
Wow, they must have just changed it.
It doesn't, but it can and likely will have an affect on future sales.
Edit:fixed typo
Pseudo judo
Member
Why would anyone buy a PS4 now? People buy what they want at a price they can afford. These comments about "waiting another year until MS gets really desperate" are stupid and come from people who clearly have no real interest in the console.
Trust them about what?
ArkkAngel007
Member
Well, obviously future sales won't be as high. Not sure if it warrants some of the reactions here though.
There hasn't been anything on Quantum Break, not even at TGA. So I'm expecting that to be Summer at the earliest.
Promotion/Marketing exclusives they have Evolve, but they'll need to start kicking up the marketing in the next week or so if they want the mindshare for that title. Let alone giving that game mass marketshare in the first place.
Oh please. All the tv ads have made it clear it was temporary. If consumers are ignorant, there isn't anything to be done.
Or is this don't trust thing the same as when Microsoft had to lower the price within a year of the system's life?
Because Sony appears to be supporting their console all year and not just betting on the last quarter? I get your point though. I wouldn't feel good buying a PS4 now knowing that mere weeks ago I could have gotten one with GTA5 and TLOU. Amazon is still selling it for 399 with the free game promo though. That's a good deal imo. So MS and Sony are on equal footing right now in regards to price and included games. I don't think that benefits MS at all.
Deadly Joker
Member
To be clear, I didn't start this thread. One of the mods took my comments from a different thread and started it themselves.
AgentP
Thinks mods influence posters politics. Promoted to QAnon Editor.
He means why would you sit and pass on $349 with two games and possibly more then buy at $399?
The PS4 has been $399 the whole time. So if someone wants to play Bloodborne there is no reason to wait.
Shpeshal Nick
aka Collingwood
Assuming you believe they lost money at $349US. Which I don't think they were.
Yep definitely figured they would go back t normal. They stressed it alot that it was just a "holiday deal"
PS4 did a stealth 350 drop the week leading up to Christmas
PS4 did a stealth 350 drop the week leading up to Christmas
$99 is not gonna happen.
hard drives and bluray don't drop in price like ram and chips do. They alone would cost more than $50.
It was 349.99 with two games...at worst during the Holidays. I'm sure they lost money on consoles' sales.
SmokedMeat
Gamer™
If that's the case then Lord knows how the 360 and PS3 managed without those cheap holiday bundles all those years.
If someone wants the system they'll but it. A difference of $50 isn't going to make people wait a year. Plus you can bet there will be retail offers as always.
Astral Dog
Member
I almost wish i bought that XBone $350 bundle, but i was lacking $100.
Could this make new adopters gun shy the first 9 months of the year? If someone was afraid to pluck down $400 from January to September because they don't know when the next price cut is coming I can see a few waiting till October through December for the best deal as usual. That would make Microsoft have to go all in for the holidays again if Sony is padding their lead during the year.
Unless Microsoft shows their hand at E3. That does give Sony the ability to counter though.
Unless Microsoft shows their hand at E3. That does give Sony the ability to counter though.
Couldn't the same be said about PS4 which was also cheaper during certain weeks this holiday...? But to answer your question, Quantum Break? Forza 6? The witcher bundle? White bundle? Slim version? MS still has a lot of cards to play that can help sell the console.
Also, with it being the holiday time maybe some people just didn't have enough cash to spend on themselves? I don't know.
What? there's still free games bundled so why do you say "without game"? PS4 also went on sale $350 with games(although for a shorter time, going by your logic, surely those that wanted a PS4 would have got it while it was cheaper?), are people not going to buy a PS4 at all next year because it's gone back up in price?
A lot of casual people don't particularly care that PS4 can run some games at a higher resolution. As long as it can run their sports games, cod and they can play with their friends they will be happy.
You make it sound like not one person is going to buy an xbox one until halo5 comes out while PS4 will continue to sell shit loads, which is simply not going to be true. Both consoles will still sell a decent amount, PS4 likely more in the first half of the year, but no need to make it sound like the xbox one is doomed until halo 5 and has no cards left to play.
I'm beginning to think their market strategy was to get a bunch of parents to buy the console because it was cheaper during Xmas in order to get kids playing games on Live so other kids who don't have an XBO will need it to be play with their friends online again. Meaning that if parents buy in now it'll be at the higher price.
Basically the idea that no one would choose another console because they were so invested in LIVE and their friends there- that didn't hold true.
Basically the idea that no one would choose another console because they were so invested in LIVE and their friends there- that didn't hold true.
the internet is great at overreacting*, but if the Jan numbers and Feb numbers are abysmal, then that feeds the narrative that the Xbox One is inferior to the PS4. This may have a cascading impact, with business and consumer decisions favoring the PS4.
Already, there is some online chatter about the executive shuffle at the Xbox division. Executives leaving a division en masse is never a good thing. At best it means some higher up has found an issue an is fixing it, at worst its a sign of rats fleeing a sinking ship.
*or at the very least highlighting those who specialize in hyperbole.
The price tag.
"Oh, I see that Microsoft lowered the price of the Xbox One to $350 again. How long will it be before they raise the price back up?" etc.
MrMephistoX
Member
Have to agree I only play 3rd party stuff on my PS4 but am having a blast with Halo and still pop in Dead Rising from time to time.
That is not a negative at all. That would just make them buy when they see the price drop. Knowing MS is not kidding when they say it is a temp sale. You know, like all retail promotions.
Iorv3th
Member
Isn't there a time limit you are allowed to have an item on sale or else it technically isn't a sale anymore?
I know at sears when I bought a matress the guy said they have them on sale for two weeks then they switch the matresses out and have those on sale instead because they aren't allowed to claim the items are on sale if they are always that price.
I would think by E3 they might announce a permanent price drop.
I know at sears when I bought a matress the guy said they have them on sale for two weeks then they switch the matresses out and have those on sale instead because they aren't allowed to claim the items are on sale if they are always that price.
I would think by E3 they might announce a permanent price drop.
It means I have no shot at this deal, as I wasn't in a position to spend cash on another system and without a BC path I'm not prepared to trade in my Xbox 360 and lose my digital titles.
shadowsdarknes
Member
Do you realize how many 180s they have done?
No shit people are cautious of anything Microsoft says.
You believe what MS tells you?
Both of them?
Thanks!
I've had Commando on my list for a long while now. I guess it's time to binge on NetFlix.
My favorite big dumb Arnold movie by a long shot.
On topic, I think this is a seriously bad move for MS. But I suppose they are hoping that momentum and word of mouth will leave them better able to sell at a price that I think is too high by $50-$100 bucks.
If you're talking about in comparison to PS4 the answer is the sells dropping back down to where it was before & PS4 selling 100K - 500K more every month world wide.
Yeah but if we go by that then the PS4 still had an advantage in install base. If XBO outsells PS4 in January with its $399 price tag then it means Microsoft's plan worked.
Actually I am thinking that Xbox takes a significant hit in January. After that the sales ratio returns to quite close to what it whas a month after Kinect-drop. A bit worse for Xbox, since it was $349 (or 329) for long enough for people to consider it the standard retail price. Now that it's back to $399, Xbox is going to feel a bit overpriced.
So I am expecting Sony to sell about two or three times what Xbox sells from February on. January is simply going to be a bloodbath.
jhmtehgamr20xx
Banned
This. PS4 didn't take a single hit from XBO's price drop. It's just that the price drop really helped MS.
What I'm thinking is, MS's seen the Nov and Dec. sales numbers, and the gains just weren't big enough to reason keeping it at that price permanently. And I know some people will scoff at that...they did 1.2 million in November. But seeing as they've only got two real markets to compete in, and are still 2nd in their biggest market even after December...for the long-term maybe they just figured the deal wasn't worth keeping.
Now if they did 2-3 million ahead PS4 this holiday, we'd see the deal stick around possibly. But to get 360 numbers this gen they have to be even stronger than 360 was in its strongest markets because they have less markets they're competitive in. A 400-600k holiday sales lead (that doesn't even tie them for the year) is not very competitive at all when you look at it globally or in comparison to 360.
They can always release versions without either of those. Both MS and Sony. They'd pretty much just be precursours for the all-digital boxes both will likely do with their next-gen systems anyway.
In any case, both systems will probably drop to $299 before the holidays.
But...I think Sony will drop their price first
That just sounds like common sense to me tbh.
Not true
If it was $350 this past November, just imagine the fire sale they will have next year, they can't go $350 again, it will go cheaper and hopefully by then they will have more than one game I want.
You know they want to beat Sony, so maybe a Xbox One tomb raider bundle that gives you a date with the Lord croft voice actress who knows
shadowsdarknes
Member
By trading in 20 old 360 games at the Microsoft store, I was able to preorder Mortal Combat X, The Witcher 3, Quantum Break, and Halo 5.
Halo 5 is the only exclusive I want.
And multiplats will be more ideal on PS4.
I'm not sure if Xbox One is worth buying just for Halo 5. I don't want Quantum Break.
SSO might be a good pickup though.
Halo 5 is the only exclusive I want.
And multiplats will be more ideal on PS4.
I'm not sure if Xbox One is worth buying just for Halo 5. I don't want Quantum Break.
SSO might be a good pickup though.
I think that one reason to see the price drop as tactical rather than strategic is the timing. Now any effect it had on sales was obscured by the normal holiday sales bump. If MS wanted to see the effect of pricing to sales, they would have made this move in April or May.
Instead, they went for absolute maximum impact, combining everything they could: two of their largest franchises, low price, bundles, holiday, and I would guess that they spent a lot on marketing, too. They were desperate to win November and December, and were ready to sacrifice everything they had.
The price cut was a play for market share. It paid off in November, and will likely pay off in December as well. Microsoft can 'cruise' at $399 so long as the PS4 stays at the same price-point.
The question right now is how much of a hit did the devices division take for the price cut. If it was an insubstantial loss then Microsoft will have no problem re-introducing the $329.99 price when the PS4 gets its first price drop. If it was a substantial loss then Microsoft will have to figure out another way to react when the PS4 gets its price drop. In any case, 2015 is shaping up to be an exciting year at retail!
Let's wait for the December numbers. The November results were very strong for the Xbox One, so if December follows suit, we might see a different sales outcome (month-to-month) in 2015. The results might not be as predictable as you think.
The question right now is how much of a hit did the devices division take for the price cut. If it was an insubstantial loss then Microsoft will have no problem re-introducing the $329.99 price when the PS4 gets its first price drop. If it was a substantial loss then Microsoft will have to figure out another way to react when the PS4 gets its price drop. In any case, 2015 is shaping up to be an exciting year at retail!
Let's wait for the December numbers. The November results were very strong for the Xbox One, so if December follows suit, we might see a different sales outcome (month-to-month) in 2015. The results might not be as predictable as you think.
Karak
Member
It would be weird as Christmas sales have happened since...well forever on many products and they all sell throughout the year anyway. Also since many people are giving gifts during Christmas many people probably don't have the spare money to buy themselves consoles and will end up buying them throughout the year. Pretty much like any other product that goes on sale ever in the Holiday season. Though more money is spent many times its hard to cash cow yourself the money of an entire console and have to wait even if it is a hundred or more extra.
Maybe for an Xbox One with no games $349 isn't losing much money, but I guarantee paying Ubisoft for each Unity AND ACIV packed into each console certainly cost a bit of money and would then cause each sale to be a loss.
In willing to bet Microsoft has thought things through. Slim XBO by next holiday is likely IMO. It works give them more room for price cute.
That's why it's hilarious, because some people don't believe anything now after everything that's happened. I'm pretty sure I remember them stating this drop was temporary for the holidays, and them moving the price back to normal isn't surprising. There's no reason to believe they wouldn't when you think about it. It makes sense.
This is the big quarter, and they were aggressive with their price cut, the bundling of games, and their marketing. It all came together and it allowed them to make a significant impact. They've diminished the lead the PS4 had, but also it's about creating something positive for the brand coming out of the biggest period of the year. It will help with their messaging moving forward. With this period over, we're now entering the smaller months.
They could leave the price where it is, in which case there is no guarantee that they'll consistently outsell the PS4 over the next eight to nine months before the next holiday quarter, and the difference would likely be neglible if they did. Bear in mind they can't be as aggressive with their marketing and promotion efforts all year round. There's a method to the madness. Not to mention, I'm sure they have their concerns about setting certain expectations. They have to think long-term, and I'm pretty sure they'll be expecting a little more from SCE at the end of 2015. So if they keep this strategy now, what about at the end of this year? How do they make it seem like they've made as much of a big impact?
They've created some positive momentum for the Xbox One, and they'll likely ride out a few months before announcing a permanent price drop later. This is what I'm assuming their plan is. From there, it'll be interesting to see how aggressive they end up becoming in the holiday quarter of 2015 against SCE this year. I'd probably be surprised if they repeated a similar strategy since I don't think it'll quite as effective in 2015 due to various reasons. Instead, I feel it'd be smarter for them to make a more aggressive and permanent price cut (more than $50) and then just run with that starting September.
Besides, we also don't know the numbers which is the most important part of this all. I'd imagine it makes sense from that perspective to pull back a little for now. They don't have anything to lose really.
Forsaken82
Member
I don't understand who thought it wouldn't happen... MS themselves said that the 349.99 was a limited time offer lol
So "affect" wasn't a typo?
You wont be saying that after this year
This. He'll be looking at nothing but multiplat games for the next 6 months or so, especially when you can already play superior multiplats on either PS4 or on PC.
Crayon
Member
But I didn't believe them. So now I'm wrong.
it sold shit in 2014 before October anyway, so MS may have predicted they won't lose much in the early months - at least to get them through to E3 or whenever their official price cut kicks in. If they're going to $299 then it makes a bigger splash if they start from $399. Plus they may want to counter if Sony do a $100 cut to $299. If they are already at $349 and 'only' cut $50, the consumer response may be poor.
Basically, put everything into winning Nov/Dec, then willing to fuck themselves for the first half of this year in order to get themselves in a position to have a 'real' price cut in the fall
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