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  1. #1
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    Xbox One's Price Keeps Shrinking

    A handful of retailers in the U.S. have been cutting the price of the Xbox One, a possible sign MicrosoftMSFT -0.40%’s new videogame console isn’t gaining as much traction as expected.CostcoCOST +0.49%, Target, Wal-MartWMT +0.14% and other retailers have been reducing prices on the Xbox One since its release in November for $500. Even Microsoft’s own retail stores have knocked the price down to $450.
    Earlier Tuesday, Engadget, Polygon and a number of other websites noticed Amazon had temporarily dropped the device’s price to $399, bringing it in line with Sony6758.TO +1.36%’s competing PlayStation 4, which costs $400. The deal ended quickly, leading some to speculate if it had been a mistake. Amazon didn’t immediately respond to a request for comment.
    A Microsoft spokesman said the company hasn’t reduced its manufacturer-suggested price of $500, nor is it helping to fund any price drops. Spokespeople at various retailers didn’t immediately respond to requests for comment.
    The Xbox One’s launch price was hotly debated. At $500, it cost $100 more than Sony’s PS4. Some consumers said the beefier price was one reason they held off buying the Xbox One.
    Since then, the PS4 appears to have outsold the Xbox One. Earlier this month, Sony said it sold more than six million units, up from 4.2 million at the end of last year. Microsofthas said it sold 3 million units by the end of 2013, and that it won’t release updated numbers until its quarterly report.
    While Microsoft has held firm on the $500 price point, it has instituted a price-cut of sorts. In February, it unveiled a bundle offering an Xbox One and a copy of the highly anticipated combat game “Titanfall,” for $500. The game at the time sold for $60.
    http://blogs.wsj.com/digits/2014/03/...eps-shrinking/
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    So it's not an MS mandated price but one by retailers?

    Is this retailers just trying to palm it off? What's to gain if MS isn't backing it officially/permanently?

    #IndieStation4 and proud of it.

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    $399. Whoopie!

    MS must be getting desperate with their current sales.

    Quote Originally Posted by Admartian View Post
    So it's not an MS mandated price but one by retailers?

    Is this retailers just trying to palm it off? What's to gain if MS isn't backing it officially/permanently?

    No. Sales like this are never from retailers. They usually get credit or discount from supplier(MS). Basically MS is behind price cut, but they are not doing it officially. They are taking the back channel. This way they can withdraw and raise the price back up without issues.
    Last edited by Admartian; 03-26-2014 at 01:57. Reason: DP

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    Odd them saying MS isnt backing this price drop yet Officail Microsoft stores are dropping the price aswell.... O_o

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    Quote Originally Posted by Admartian View Post
    So it's not an MS mandated price but one by retailers?

    Is this retailers just trying to palm it off? What's to gain if MS isn't backing it officially/permanently?
    MS could well be driving it, they will rebate the company on any sold.
    I notice the difference even here in NZ is getting smaller and small, eg http://www.jbhifi.co.nz/games/

    Competition is always good for us consumers.

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    Hmm, so it's not technically official, but why not just make it so?

    If they wanted people to opt in for a $500 one and have a lower priced console only version, maybe they can pack in a n older launch title like Forza or DR3 or something?

    Quote Originally Posted by mynd View Post
    MS could well be driving it, they will rebate the company on any sold.
    I notice the difference even here in NZ is getting smaller and small, eg http://www.jbhifi.co.nz/games/

    Competition is always good for us consumers.
    I'll prob end up picking one up once QB hits. Hopefully Sunset Overdrive is good too though, and there's a Gears RPG or something.

    (If/when NZ price gets to sub $450 )

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    I can't ever remember a console price dropping before 12-18 months after release. We're less than 6 months out on the One and retailers are dropping the price.

    Is there any scenario that can play out where this is good?

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    I'm holding off until $349 personally.

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    Quote Originally Posted by Old Man Gamer View Post
    I can't ever remember a console price dropping before 12-18 months after release. We're less than 6 months out on the One and retailers are dropping the price.

    Is there any scenario that can play out where this is good?

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    The PS3's price dropped fairly dramatically from Nov 2006 to Nov 2007, but they also stripped the thing bare to do so (BC, ports, hard drive size, etc.)
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    Quote Originally Posted by Old Man Gamer View Post
    I can't ever remember a console price dropping before 12-18 months after release. We're less than 6 months out on the One and retailers are dropping the price.

    Is there any scenario that can play out where this is good?

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    3DS. but that was around 6 months, X1 is about 3 months. a little sooner.

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    Quote Originally Posted by Sufi View Post
    3DS. but that was around 6 months, X1 is about 3 months. a little sooner.
    hmmmm........the original xbox didn't get a cut till around 7 months.
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    I believe on certain things, they can only be put on sale by the manufacturer. Not saying they say hey offer so and so product for X amount of dollars but they can approve price cuts. It seems like I remember hearing that. Could be wrong. But a $50 cut will help for sure. If MS did approve these cuts then it sounds like they are not as continent with sales as they expected. This would be a good move though.




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    Quote Originally Posted by Christopher View Post
    The PS3's price dropped fairly dramatically from Nov 2006 to Nov 2007, but they also stripped the thing bare to do so (BC, ports, hard drive size, etc.)
    Yeah they dropped the original model a $100 in June 07.
    In Nov 07 they introduced the 40gb model at $399 ($200 cheaper than the original).

    So yeah, its not unheard of and certainly not a death knell.

    And the original Xbox dropped $100 to $199 only 6 months after launch.

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    I think it's a smart move if Microsoft is doing an official price drop. Knock $50 off and you're good to go. It's really early and i love my Xbox One but there's no doubt that MS is in danger of getting buried right now. We'll see how Titanfall does for the One but it's not looking promising. Then again, it's a long generation so anything can happen.


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    Quote Originally Posted by mynd View Post
    Yeah they dropped the original model a $100 in June 07.
    In Nov 07 they introduced the 40gb model at $399 ($200 cheaper than the original).

    So yeah, its not unheard of and certainly not a death knell.

    And the original Xbox dropped $100 to $199 only 6 months after launch.
    Nowhere near a "death knell". X1 isn't winning, but it isn't dying either.
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    Quote Originally Posted by mynd View Post
    Yeah they dropped the original model a $100 in June 07.
    In Nov 07 they introduced the 40gb model at $399 ($200 cheaper than the original).

    So yeah, its not unheard of and certainly not a death knell.

    And the original Xbox dropped $100 to $199 only 6 months after launch.
    Yeah price drops are not the end all be all. Its just a strategic move to even the playing field. I said it before launch that this would likely happen. Basically they would cash on the launch price from early adopters and then lower. Basically playing the market. Smart move. You know people will adopt early as long as the price is doable. Then lower price to help create more sales.




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    What happens after these unofficial price cuts are over with? If sales were slack before then you can only imagine what is going to happen once MS tries to sell just the console for $500 again.

    Destiny and Middle Earth: Shadows of Mordor is all I need for the rest of the year.

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  20. #18
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    Quote Originally Posted by Two4DaMoney View Post
    What happens after these unofficial price cuts are over with? If sales were slack before then you can only imagine what is going to happen once MS tries to sell just the console for $500 again.
    Kinda have to make it permanent, don't they? Hope no one around here bought a X1 prior to the cuts (meaning recently).
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    Quote Originally Posted by Christopher View Post
    Kinda have to make it permanent, don't they? Hope no one around here bought a X1 prior to the cuts (meaning recently).
    Yeah, MS has to bite the bullet or get their ass kicked probably harder than before. The extra $50 off these bundles has screwed them big time.

    You have the titanfall and forza 5 limited edition bundles for $499. They were limited edition because MS had plans of going back to just selling the console for $499. If those bundles were selling decently then retailers wouldn't have cut the price $50 off the $499 suggested price.

    And here's when things get ugly...

    According to MS, retailers are doing this out of their own profits. MS has been very quiet about the sales of the xbone. Only they know what the sales were like pre-bundles/pre-price cuts. And since MS brags every time that they are in the lead, the quietness/bundles/price cuts suggest that the demand has slowed down. Since MS has no plan to officially drop the price then these retailers aren't going to keep losing $50 just to sell their consoles. They're simply not going to stock up on as many xbones that they did before.
    Last edited by Two4DaMoney; 03-26-2014 at 07:35.

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    If only the console shrunk.

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    it was built to stay on for 10 years straight...apparently. people don't know how technology works...unfortunately. the smaller a technology gets, the better it has a chance to survive longer.

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  25. #23
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    Good, GOOD! When I have payed my PS4, I just might get X1 too if it is cheap enough and has good lineup.
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  26. #24
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    Quote Originally Posted by Mael Duin View Post
    Good, GOOD! When I have payed my PS4, I just might get X1 too if it is cheap enough and has good lineup.
    That is what I am waiting on as well.
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    Quote Originally Posted by keefy View Post
    If only the console shrunk.

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