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

It's never too early for a price cut. The only issues that arise when you cut the price early on is that you potentially anger early adopters and if you choose to ignore them completely as MS has done, you run the risk of poisoning your own support well...
The early adopters got to play a zombie game before everyone else, pretty sure MS considers that enough on their part. You are expecting way too much here Miles...
 

jpax

Member
xbox is making profit for each system allowing it to update features and firmware quickly. Sony is losing money on each console.. how is that benefiting them in any way? Sales are great. Are devs being silenced? Why aren't they announcing big games for sony's ps4? was Sony expecting A LOT more sales than they had gotten? Perhaps.. who knows

Stop smoking crack...
 
The early adopters got to play a zombie game before everyone else, pretty sure MS considers that enough on their part. You are expecting way too much here Miles...

And it was a damn fine zombie game. Perhaps the greatest there ever was and ever will be.

Still doesn't make up for the near £100 price drop within four months. Even if they are unofficial price drops, MS isn't in a vacuum, they need to be get ahead of this and lay out some kind of ambassador program.
 
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I'd forgotten just how bad the price slide was...

Because that slide is made by the CEO's secretary, and not seen by anyone until 30 minutes before the presentation. It's the one thing that can't leak in such a competitive industry.
 

gtj1092

Member
I think the thing that most people forget about the 4 million XB1's sold (if that numbers right and it seems reasonable to me) is that the XB1 sold 3 million in 2013, so it's sold 1 million in 2014, compared to the 2.8 or so million the PS4 has sold in 2014, if the 7 million figure is right as PS4 sold 4.2m in 2013.

Looking at this the PS4 has outsold the XB1 2.8:1 Worldwide this year, that's not a close race and I don't see why the sales wouldn't continue to be like that. The sales of the XB1 since the initial launch rush have been dire.


Yeah that's a good point. People keep citing a total number and not looking at what is happening currently. If the X1 had kept that sales pace or only slowed down slightly then this thread wouldn't even exist because we wouldn't have had these price cuts. Heck we might of had that sweet looking titanfall edition X1 instead of sleeves on unsold xboxes.
 
Because that slide is made by the CEO's secretary, and not seen by anyone until 30 minutes before the presentation. It's the one thing that can't leak in such a competitive industry.

Yeah, that's true. Still, you'd think they would throw some colour on there. A blue background perhaps. Or even just the 'For the Players' banner.

PS3 slide for comparison...

q1l0iAc.jpg
 

KAL2006

Banned
I think the thing that most people forget about the 4 million XB1's sold (if that numbers right and it seems reasonable to me) is that the XB1 sold 3 million in 2013, so it's sold 1 million in 2014, compared to the 2.8 or so million the PS4 has sold in 2014, if the 7 million figure is right as PS4 sold 4.2m in 2013.

Looking at this the PS4 has outsold the XB1 2.8:1 Worldwide this year, that's not a close race and I don't see why the sales wouldn't continue to be like that. The sales of the XB1 since the initial launch rush have been dire.

Pretty much this. MS is in trouble in my opinion, there is a reason why its £350 with TitanFall in the UK. I'm expecting a price cut for current Kinect bundle to match PS4. And a Kinectless Xbox One to undercut PS4. Probably not now but in time for Halo 2 release this fall at the latest.
 
And it was a damn fine zombie game. Perhaps the greatest there ever was and ever will be.

Still doesn't make up for the near £100 price drop within four months. Even if they are unofficial price drops, MS isn't in a vacuum, they need to be get ahead of this and lay out some kind of ambassador program.
Spoiled kids these days...

Would be nice though if MS did something yeah. They need all the goodwill they can get atm.
 
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.

lol, 2gb. They might as well put a CR3022 in there, and sell an add-on 4MB cartridge for extra storage and much profit.

$5 coupon? That's chump change, especially when you account for the free games we get each month.

That's the joke (i think) Sony 'go for the throat' by throwing some chump change in the box and upping production of the console

xbox is making profit for each system allowing it to update features and firmware quickly. Sony is losing money on each console.. how is that benefiting them in any way? Sales are great. Are devs being silenced? Why aren't they announcing big games for sony's ps4? was Sony expecting A LOT more sales than they had gotten? Perhaps.. who knows

I guess you could say The One has ... been 'forgotton' about.
 

Linkified

Member
And it was a damn fine zombie game. Perhaps the greatest there ever was and ever will be.

Still doesn't make up for the near £100 price drop within four months. Even if they are unofficial price drops, MS isn't in a vacuum, they need to be get ahead of this and lay out some kind of ambassador program.

Wow just saw that Amazon.co.uk deal... now they just got to get the price down to £299.99 and get the games to £39.99 and I'm in.
 
Sony won't undercut. Hell they raised the prices on their stuff in canada because of the canadian dollar going to 0,90 cents. Ridiculous. 70$ for a controller i paid.
 

driver116

Member
IIRC - the 360 launched a year earlier than the PS3, at a cheaper price, and remained cheaper throughout the generation. And sales wise finished up in 3rd place. Plus most 360 multi-plats performed better on 360 and 360 also had many timed DLC's along with a whole bunch of exclusive 3rd party titles.
 

kyser73

Member
I'd be very interested to know the sales terms MS got those TF bundles into UK retail - I'm guessing it wasn't sale-or-return, hence the heavy retailer price cutting. There may well be an issue with shelf space/time (retailers charge to place a product on the shelves) allotted for the TF bundles, and I would imagine the same applies to warehousing for online stuff.

The bottom line is that no big retailer wants unsold stock lying around anywhere.
 

Hoo-doo

Banned
It's already being sold with Titanfall for 399euros here in Europe, that's a pricedrop of 150 euros.

This is Mediamarkt clearing stock. Not a pricedrop.

Having worked there for 3/4 years in the past, these kind of prices are not that uncommon.
Mediamarkt regularly sells products for less than wholesale just because they can make margins on the accessories that are sold alongside.
 
I just don't understand how this pricing is jiving with the rest of MS. Investors and many members of MS want the Xbox division gone because they feel it is unprofitable, and now they go and cut into their margins.

Unless, tinfoil hat, they are trying to sell as much stock as possible to make the Xbox division an easier acquisition.
 

dolemite

Member
I just don't understand how this pricing is jiving with the rest of MS. Investors and many members of MS want the Xbox division gone because they feel it is unprofitable, and now they go and cut into their margins.

Unless, tinfoil hat, they are trying to sell as much stock as possible to make the Xbox division an easier acquisition.

There is no such thing as a stand alone Xbox division anymore. The hardware, games, Live are in three different divisions now. Are they going to sell them piece by piece or all at once? It's no longer that simple to "sell" the Xbox division.
 
IIRC - the 360 launched a year earlier than the PS3, at a cheaper price, and remained cheaper throughout the generation. And sales wise finished up in 3rd place. Plus most 360 multi-plats performed better on 360 and 360 also had many timed DLC's along with a whole bunch of exclusive 3rd party titles.
IIRC its never been confirmed that PS3 outsold 360 due to how Sony has reported the numbers.
 

npm0925

Member
I don't think it would matter. PS4 at $400 is still a better value than XO at $350. Ignoring the real and meaningful power disparity:

You need to buy a play & charge kit for the XO - $25
Kinect is shitty to begin with, and to make it less shitty you need to mount it above your TV - $20
PS Plus is a superior value to Xbox Live due to the monthly free games

A $300 package is more realistic. Better yet: scrap Kinect, sell it for $250, win the generation.
 
There is no such thing as a stand alone Xbox division anymore. The hardware, games, Live are in three different divisions now. Are they going to sell them piece by piece or all at once? It's no longer that simple to "sell" the Xbox division.

Well those same people see all hardware as the weakest link at MS. Tablets and phones are in a much worse place. That said I don't think they will sell that stuff off anytime soon, but it is strange they are so willing to cut into their margins this early despite having what is a relatively speaking very successful launch.
 
IIRC - the 360 launched a year earlier than the PS3, at a cheaper price, and remained cheaper throughout the generation. And sales wise finished up in 3rd place. Plus most 360 multi-plats performed better on 360 and 360 also had many timed DLC's along with a whole bunch of exclusive 3rd party titles.

This is jumping the gun somewhat. Wii sales have stalled, whereas PS360 are still pretty strong. It's impossible that when all is said and done that they both will have overtaken it...
 

kswiston

Member
This is jumping the gun somewhat. Wii sales have stalled, whereas PS360 are still pretty strong. It's impossible that when all is said and done that they both will have overtaken it...

I would have said the same thing a year ago, but PS3/360 sales tanked when the new consoles launched. Neither one is going to follow the PS2's path of outselling new consoles for several years, and both are something like 15-20M units behind the Wii.
 
I would have said the same thing a year ago, but PS3/360 sales tanked when the new consoles launched. Neither one is going to follow the PS2's path of outselling new consoles for several years, and both are something like 15-20M units behind the Wii.

Well they also need pricecuts, really bad.
 

prwxv3

Member
This topic sounds very similar to the "MS will just money hat FIFA, Madden, Battlefield, Call of Duty, because they they have a shit ton of cash" we all know how that turned out. They will probably drop kinect to match ps4 price though but not undercut. They have cash but the xbox division can't just use it like many claim.
 
I would have said the same thing a year ago, but PS3/360 sales tanked when the new consoles launched. Neither one is going to follow the PS2's path of outselling new consoles for several years, and both are something like 15-20M units behind the Wii.

I think this has more to do with the price. Both are grossly overpriced for their age. They'll probably see a second wind when/if they hit $99.

Well they also need pricecuts, really bad.

Yup.
 
The thing I find weird is, even for a first price drop, $100 is a LOT. Maybe they drop it $50? They've already taken that hit elsewhere with Titanfall, so they're prepared to budge that. Or maybe they just increase the value offering.

They HAVE to act now though, if they want to make their console more competitive.
 

Furyous

Member
xbox is making profit for each system allowing it to update features and firmware quickly. Sony is losing money on each console.. how is that benefiting them in any way? Sales are great. Are devs being silenced? Why aren't they announcing big games for sony's ps4? was Sony expecting A LOT more sales than they had gotten? Perhaps.. who knows

How is Sony losing money on each console sold? Do you have figures to support this?

I want Microsoft to drop the price of the XOne to $350. Sony can counter with a $300 PS4 standalone, a $350 bundle with one year of PSN+, and a $400 bundle with one game and three months of PSN+.
 
How is Sony losing money on each console sold? Do you have figures to support this?

I want Microsoft to drop the price of the XOne to $350. Sony can counter with a $300 PS4 standalone, a $350 bundle with one year of PSN+, and a $400 bundle with one game and three months of PSN+.

Why would Sony want to counter? That's $50 less per console and with the console still selling extremely well, there's no reason to react to a MS price cut. It's throwing away money for no gain.
 
I think this has more to do with the price. Both are grossly overpriced for their age. They'll probably see a second wind when/if they hit $99

Problem is i don't think they can make them that cheap maybe MS can but no way can Sony get PS3 to $99 Cell and XDR ram make sure of that .
Truth is i think Sony and MS rather make as much profit as possible from them and with PS4 selling so good it better for Sony not care that much about PS3.
We should see a price cut for MS at E3 but at most $100 making X1 $399 .
 

kinoki

Illness is the doctor to whom we pay most heed; to kindness, to knowledge, we make promise only; pain we obey.
The sad reality is that Microsoft can't drop Kinect before the 10th month or so since they're committed to producing it. Even if it isn't manufactured they still need to pay for it. So, they're better off just keeping it there. Think of it as an added bonus. They've also managed to make the more expensive console to produce even without the Kinect.

They're dropping the price pretty radically and since it's already sold at a loss it'll be even harder to make up that cost. With the money they spend on EA with the promotion of Titanfall and the bundle it's pretty easy to assume that's another bullet they've bitten. The lack of sales figures kind of confirms it.

Microsoft isn't in a strong position. They were targeting 720p content (from their slide) but their competition was targeting 1080p. Regardless how you look at it the Xbox One is a worse deal, even at a lower price. With the Gold pay-wall decreasing casual value and a competitor that seems to be making all the right decisions in this regard it's pretty hard to see them come out on top.
 

Yopis

Member
Don't think price is dropped that fast, this isn't a PS3 situation. Also you cheapen your brand when you drop price that fast.

People calling for 300 dollar PS4......hell just make it 5 bucks and sell as extra for fast food meals smh.

This stuff cost money and thats okay.
 

2345425

Member
The thing I find weird is, even for a first price drop, $100 is a LOT. Maybe they drop it $50? They've already taken that hit elsewhere with Titanfall, so they're prepared to budge that. Or maybe they just increase the value offering.

They HAVE to act now though, if they want to make their console more competitive.
Microsoft cut the price of the original Xbox by $100 a few months after launch, incurring huge losses as a result. Are they willing to go way into the red again to match/undercut Sony? Of course they could always just cut Kinect (this might be difficult due to manufacturing contracts, etc.) or keep bundling games and hope that works out for them.
 

Skeff

Member
Microsoft cut the price of the original Xbox by $100 a few months after launch, incurring huge losses as a result. Is Microsoft willing to go way into the red again to match/undercut Sony? Of course they could always just cut Kinect or keep bundling games and hope that works out for them.

If MS drop the official price to $399 and keep Kinect, then I'd say they were very desperate and it would likely be a last ditch effort, it would have to handily outsell the PS4 if MS were going to be taking $80 or so loss on each console, Investors have been paying close attention to the division for a while with some being vocal about it.
 
Microsoft cut the price of the original Xbox by $100 a few months after launch, incurring huge losses as a result. Is Microsoft willing to go way into the red again to match/undercut Sony? Of course they could always just cut Kinect or keep bundling games and hope that works out for them.

As someone else said, Kinect is there now. Unless they decided to cut it after E3 last year, I reckon it's still gonna be a part of the picture until next year. I understand Microsoft is being nimble, but the point is they have a huge (probably contractually agreed) production line for Kinect. On top of that there's games that are in production (like Fantasia) that were agreed on the pretense that 100% of the userbase has Kinect. My point being not including the Kinect this year won't allow them to make the box any cheaper.

Are they willing to do that $100 price cut? That's the only question for this years E3. Something to preempt their release in Tier 2?
 

Hellshy.

Member
I wonder how much money MS could shave off the price tag if they change the density of the case. I couldnt believe how heavy the xbox was compared the the ps4. I thought someone put rocks in the box or something. Maybe it isnt the plastic molding but something makes the box seem unnecessarily heavy.
 
Problem is i don't think they can make them that cheap maybe MS can but no way can Sony get PS3 to $99 Cell and XDR ram make sure of that .
Truth is i think Sony and MS rather make as much profit as possible from them and with PS4 selling so good it better for Sony not care that much about PS3.
We should see a price cut for MS at E3 but at most $100 making X1 $399 .

Even after all these years, they still can't get the price for either PS360 down to $99?

Jesus Christ...
 

Skeff

Member
How about the flip side of this coin? Could Sony go for MS's throat and announce a Holiday $299 PS4 package complete with Destiny?

They could and if they did the console race would be over. The reason why I say they Could is because Destiny is going to Require PS+ much like Titanfall, which allows you to drop the price knowing people are going to buy your subscription service for the game. Though I'd say a $399 w/ Destiny and TLoU is more likely for the holidays, I expect TLoU to be released this Summer and be cheap enough to bundle by the end of the Year.
 

fasTRapid

Banned
How about the flip side of this coin? Could Sony go for MS's throat and announce a Holiday $299 PS4 package complete with Destiny?
Why would they? They haven't even come near meeting the current demand, more than 5 months after launch that is. PS4's are wildly sold out and scalpers are still getting a relatively huge profit of it. Sony is (correct me if I'm wrong, at least in Europe) selling their console at a profit for the first time, right from the start. If it keeps selling like that, there's absolutely no need to change anything.
 

2345425

Member
If MS drop the official price to $399 and keep Kinect, then I'd say they were very desperate and it would likely be a last ditch effort, it would have to handily outsell the PS4 if MS were going to be taking $80 or so loss on each console, Investors have been paying close attention to the division for a while with some being vocal about it.
Yeah, i don't think the shareholders will be willing to wait out another generation of heavy losses. If they do opt for that kind of dramatic price cut, it had better yield some impressive results.

As someone else said, Kinect is there now. Unless they decided to cut it after E3 last year, I reckon it's still gonna be a part of the picture until next year. I understand Microsoft is being nimble, but the point is they have a huge (probably contractually agreed) production line for Kinect. On top of that there's games that are in production (like Fantasia) that were agreed on the pretense that 100% of the userbase has Kinect. My point being not including the Kinect this year won't allow them to make the box any cheaper.

Are they willing to do that $100 price cut? That's the only question for this years E3. Something to preempt their release in Tier 2?
Check my edit; the contracts for Kinect were probably in place before Microsoft knew they might need to react. They might be pretty much married to the thing for the time being.
 
True about the PS4 not needing help. Just looked at Amazon US and the Xbox One isn't even in the Top 100 anymore. PS4 sitting there at #5 atm with those PSN cards 2/3/4.

But as Sony seems to be have returned to their former selves, they used to love undercutting the competition over and over and over again throughout a generation.

Oh and just for fun, the TLOU Remastered is already close to the Top 10 on Amazon. Sitting @ 11.
 
Funny, no one is talking about the improved controller that will have a built-in headphone jack like the DS4.

Thanks to the move to x86, the generation after this one will be backwards compatible. The winner this gen will have a huge advantage next-gen which makes winning now absolutely critical. MS will pull out every stop to get back into the mix.

Sony better step up.
 

Raistlin

Post Count: 9999
Since a number of investors have been bitching to MS about the XBox ... I really can't imagine the fallout if MS decides to take a bath on hardware costs.
 

2345425

Member
True about the PS4 not needing help. Just looked at Amazon US and the Xbox One isn't even in the Top 100 anymore. PS4 sitting there at #5 atm with those PSN cards 2/3/4.

But as Sony seems to be have returned to their former selves, they used to love undercutting the competition over and over and over again throughout a generation.
On the hourly chart the Titanfall bundle is at #25 and the standalone console is at #133, and they're at #28 and #24 for 2014. PS4 is at #5 currently and #2 for the year overall.
 

Huggers

Member
The metaphor in the thread title amuses me for some reason. How could we describe last e3s DRM fiasco in a metaphor?

On topic I think the dropping of Kinect and them undercutting Sony price wise is a no brainer
 
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