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Xbox One price cut to £399 in the UK, includes free copy of Titanfall

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dose

Member
It basically has price parity with PS4 now
It really doesn't. You need Xbox Gold membership to actually play Titanfall, which means about another £30 on top again. It effectively means you're getting a 'free' game for your £429.
 

Miles X

Member
Me too man, me t-



...

Like you then??

"Microsoft has announced quarterly revenue of $20.49 billion for the quarter ended March 31, 2013. The Entertainment and Devices Division, which encompass Xbox 360 figures, posted revenue of $2.53 billion, an increase of 56% from the prior year period. Xbox LIVE now has over 46 million members worldwide, an 18% increase from the prior year period. "

http://www.vg247.com/2013/04/18/mic...sion-posts-revenue-of-2-53-billion-up-56-yoy/

That's one quarter.
 
XB180 in crisis mode. They had to do this though to have any chance. Sorry early adopters. By early adopters I mean people who bought in within 3 months of launch.

Actually if you are still within the time frame to return your xbo, it makes all kinds of sense to do so now.
 

Jburton

Banned
You read the link, they're talking about Q4 alone, not the entire year.



Most years? Have you even bothered to do the calculations or research?



Wow at you people that can't read. They made $20 something bill PROFIT last year, not Revenue. Revenue is like $70B something a year. Xbox made $10b profit and probably $1b or less profit.


So it made MS less than a billion in profit, compared to $10b in revenue?



Compared to the return they get from Office and Enterprise it's nothing.
 
How much is the price cut decision driven by Xbox One's current sales performance in the UK?

It's not driven necessarily by our sales performance. In fact, we're very happy with our sales performance. Xbox One has been the most successful Xbox launch we've ever done. I think we've seen both consoles be very successful in the UK commercially. I think that's great for the industry.

But this is an announcement that's linked to giving the best possible value we can to our fans. The reason we're doing this now is because Titanfall is coming and it seems like the right moment in time to offer an improved price point with the inclusion of the hottest game.

"Best possible value for our fans" is contingent on recent low performances.

If Xbox One was outperforming PS4 in the UK at the moment, there would be no need for this price drop.
 
Most(?) of us Europeans got a FIFA14 code with the console, though.

yep to some people this is only £30 price drop if they don't care about Titanfall .
If the biggest IP in EU did not really have much effect i wonder how much people think a online only game going to help .
And if Sony make the infamous cheaper they back in trouble .
 

RaikuHebi

Banned
It really doesn't. You need Xbox Gold membership to actually play Titanfall, which means about another £30 on top again. It effectively means you're getting a 'free' game for your £429.
Good point. I take back my earlier comment in the thread. Unless it's a physical copy and can be traded in.
 

Miles X

Member
So it made MS less than a billion in profit, compared to $10b in revenue?



Compared to the return they get from Office and Enterprise it's nothing.

Damn, I bet MS are really kicking themselves expecting such a high margin on video games ... I have absolutely no idea what your point is? You think they should pack it in because it isn't doing as well as office and windows? I guess Sony should pack in Playstation then because it doesn't do nearly as well as their Insurance division.

There are many reasons MS continue with Xbox, it was never going to be a big earner and they knew that.
 

Chobel

Member
You ignoring everyone else saying the same thing as me? Ofcourse you are!

Everyone else? So some posters here are everyone? lol.

I got both Fifa and Forza 5 free with my D1 console, why should i be mad? lol

You're free to feel however you like. But just because you're not mad about it doesn't mean everybody else should feel like you.
 

Skeff

Member
Like you then??

"Microsoft has announced quarterly revenue of $20.49 billion for the quarter ended March 31, 2013. The Entertainment and Devices Division, which encompass Xbox 360 figures, posted revenue of $2.53 billion, an increase of 56% from the prior year period. Xbox LIVE now has over 46 million members worldwide, an 18% increase from the prior year period. "

http://www.vg247.com/2013/04/18/mic...sion-posts-revenue-of-2-53-billion-up-56-yoy/

That's one quarter.

But you said most years? that proves that MS had 2.53m revenue in a quarter, which was up 56% YOY. So if we assume all quarters are the same (they're not) then they post 10.12bn in revenue that year and the year before thanks to the 56% growth would have only been 6.48bn in revenue.

Also your looking at what would be considered the best financial year for a console, which is when they are at their install base peak (80 million 360's which are now being replaced by PS4's)

I don't doubt Xbox has brought in 10bn in a financial year as revenue, but to claim it has done so consistently and to imply that automatically makes it a profitable venture or even a good return on investment is a stretch.
 

kmax

Member
6d4d2acb4f7ef8aa743c2b5617bf7644.gif


That price bomba.

Now we're talking, MS. That's how you compete.
 

JPHJ

Neo Member
Wonder if and when sony will move in the uk. Not that they need to but to be proactive after ps4 is finally in stock in a few months maybe could we see it come down a bit to remain a bit of a gap between them? After all 350 quid is is still more than US price even after taxes etc. But with the momentum, big games and VR coming ps4 will still dominate. Just if they can afford to and want to really hurt Microsoft a small cut wouldn't hurt.

Given Microsoft's PR I expect Sony follow suit.....

Infamaous Second Son, The Order 1886, Watchdogs and Destiny. The PS4 is the ONLY place to play all of these titles.
 

Skeff

Member
Damn, I bet MS are really kicking themselves expecting such a high margin on video games ... I have absolutely no idea what your point is? You think they should pack it in because it isn't doing as well as office and windows? I guess Sony should pack in Playstation then because it doesn't do nearly as well as their Insurance division.

There are many reasons MS continue with Xbox, it was never going to be a big earner and they knew that.

http://uk.ign.com/articles/2013/05/24/microsoft-over-1-billion-next-gen-consoles-will-be-sold

Sounds like they expect to go wider than a games console and make a large profit.
 
Damn, I bet MS are really kicking themselves expecting such a high margin on video games ... I have absolutely no idea what your point is? You think they should pack it in because it isn't doing as well as office and windows? I guess Sony should pack in Playstation then because it doesn't do nearly as well as their Insurance division.

There are many reasons MS continue with Xbox, it was never going to be a big earner and they knew that.

Nobody's calling either company to pack up their gaming divisions.

We're only refuting the notion of Xbox as a major profit driver & the whole 'warchest' rationale driven by the fact that MS itself has a ton of money.
 
That is patently false. You can only play one of those three games on Xbox One or PC. Destiny and Watch Dogs are releasing for the PS4 and other platforms.

Strictly speaking it's true. Only the Xbox One will play all three of those games. A PS4 or PC will only play two out of three of them. The point is that to play all three of those games you can either buy an Xbox One or a PS4 and a PC.
 

Elios83

Member
Well the crysis mode has begun.
Microsoft is far from happy with the current sales. In UK they have been beaten hard by PS4, 2.5:1 almost 3:1 ratio.
Titanfall is their best chance until next fall to move consoles.
 

Miles X

Member
But you said most years? that proves that MS had 2.53m revenue in a quarter, which was up 56% YOY. So if we assume all quarters are the same (they're not) then they post 10.12bn in revenue that year and the year before thanks to the 56% growth would have only been 6.48bn in revenue.

Also your looking at what would be considered the best financial year for a console, which is when they are at their install base peak (80 million 360's which are now being replaced by PS4's)

I don't doubt Xbox has brought in 10bn in a financial year as revenue, but to claim it has done so consistently and to imply that automatically makes it a profitable venture or even a good return on investment is a stretch.

You're right they're not, the previous Q was $3.77B revenue which was down YOY.

So that 6 month period brought in $6.3b revenue and was flat YOY.

http://www.gamesindustry.biz/articles/2013-01-25-microsoft-reports-29-percent-drop-in-xbox-revenue

MS now have 360 and XB1 to keep revenue high.
 

iJudged

Banned
If they do a $399 bundle for the U.S. too...that would be insanely aggressive.

Edit: Looks like the bundle is $499 for US.
Wishful thinking, that would be amazing, but the price cut in the UK should def move some units, especially since it is including Titanfall.
 

GoaThief

Member
Good to see Microsoft making moves like this.

When it gets to £300 with Kinect or a suitably priced Kinectless SKU I think I'll succumb to my urges and pick up an Xbone. Hopefully sooner rather than later.
 

Miles X

Member
Nobody's calling either company to pack up their gaming divisions.

We're only refuting the notion of Xbox as a major profit driver & the whole 'warchest' rationale driven by the fact that MS itself has a ton of money.

Who the hell thinks that?! MS do have a warchest, and they've used it on Xbox in the past. As long as they want Xbox, they will spend on it.
 

twobear

sputum-flecked apoplexy
MS to EA:

"You know you will sell the most with us. Did we mention we are going to have to give it away for free?"

...I'm pretty sure they can't do a bundle like this without EA's permission

They'll be cutting EA another big cheque to do it
 

Skeff

Member
You're right they're not, the previous Q was $3.77B revenue which was down YOY.

So that 6 month period brought in $6.3b revenue and was flat YOY.

http://www.gamesindustry.biz/articles/2013-01-25-microsoft-reports-29-percent-drop-in-xbox-revenue

MS now have 360 and XB1 to keep revenue high.

It doesn't work like that, people don't buy last gen and next gen watchdogs so MS don't get 2 license fees, they buy one, and it's likely people are moving from 360 to PS4 looking at sales numbers, so software sales and XBLG revenue is likely to drop sharply if the sales patterns continue.
 

ironcreed

Banned
Awesome news for UK. But it is pretty much a price cut in the US as well, beings that Titanfall is free at the original price. Which tells me that the console itself will be at $399 shortly thereafter.
 

chubigans

y'all should be ashamed
"Titanfall is a game that has won more than 80 awards so far, it's incredibly hotly anticipated, and I believe it's a game that people will buy an Xbox One in order to play. But moving forwards if you think about what I think are the three hottest games of the year to come, Titanfall, Watch Dogs and Destiny, the only place you're going to be able to play all three of those games is on Xbox One."

201622brp2.jpg
201671b.jpg
201623b.jpg


If you're gonna spin, at least try to get it right.
 

Miles X

Member
It doesn't work like that, people don't buy last gen and next gen watchdogs so MS don't get 2 license fees, they buy one, and it's likely people are moving from 360 to PS4 looking at sales numbers, so software sales and XBLG revenue is likely to drop sharply if the sales patterns continue.

I didn't say it worked like that? There are still 80 million 360 owners, they're not all going to migrate to PS4 in the next year, heck how many 360 owners do you currently think are on PS4? I would have thought it was more likely PS3 owners that own PS4.

If MS sell around 8m XB1's a year, that's $4b in hardware alone, that doesn't take into effect 360, all the software and live.

The figures I posted speak for themselves and they were during the 360's slowest selling period (software and hardware).
 
I didn't say it worked like that? There are still 80 million 360 owners, they're not all going to migrate to PS4 in the next year, heck how many 360 owners do you currently think are on PS4? I would have thought it was more likely PS3 owners that own PS4.

If MS sell around 8m XB1's a year, that's $4b in hardware alone, that doesn't take into effect 360, all the software and live.

The figures I posted speak for themselves and they were during the 360's slowest selling period (software and hardware).

80 million 360s sold =/= 80 million active 360 userbase. (same applies to PS3 as well)

There's too many variables for those without access to the metrics and accounting books to know how it works. Besides, you thinking it's more likely PS3 owners jumping ship to PS4 is also conjecture.

Your points have as much holes in them as Skeff's.
 

ironcreed

Banned
Feel really ripped off to be a launch day buyer. They really need to offer us something.

Welcome to early adopterville. Where you always pay a premium. Things go down in price, and in the case of the Xbox One, it needed a price drop ASAP. It was overpriced straight out of the gate.
 
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