Microsoft prepared to lower Xbox One price in 2014, says analyst

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Wedbush Morgan analyst Michael Pachter thinks Microsoft is prepared to cut the Xbox One price price in 2014 if sales of the console don't keep pace with the cheaper PS4.

However, following last night's announcement that Microsoft has abandoned its controversial DRM policies for the console, the analyst said he expects Xbox One to sell as many units as PS4, despite its higher price point due to the inclusion of Kinect.

"Microsoft intends to offer a more robust hardware bundle than Sony will offer, and Microsoft is convinced that consumers will ultimately appreciate the value proposition presented by Kinect," Pachter said in a research note.

"Microsoft has not done a particularly good job of communicating the value proposition to consumers, but today's announcement will remove an impediment to the company's ability to get its message across. We are confident that with six months of focused messaging, Microsoft can fully level the playing field with Sony, and we expect the Xbox One to sell as many units as the PS4. If we are wrong, we think that Microsoft is prepared to lower price next year."

Edward Woo, senior research analyst at Ascendiant Capital Markets, told Edge he expects both consoles to sell two million units in 2013, but he also forecast ten million PS4 sales in 2014 compared to just five million Xbox One sales next year.

"I think the consoles are very similar so the $100 price difference will now be very important," he said. "Microsoft will have to explain why the $100 is worth the price. I don't know if they will be successful, though they do seem to have a slight edge with more exclusive software right now."

Woo said of Microsoft's DRM policy reversal: "While this levels things more, I still think Sony, with the $100 price advantage and goodwill from the Microsoft mess, still has the upper hand."

Piers Harding-Rolls, IHS Screen Digest's senior principal analyst and head of games, also told Edge: "We believe price will be the biggest differentiating feature and have slightly adjusted down our Xbox One sales expectation for continental Europe at launch, based on the €100 gap in pricing."

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Related Forum: Xbox Forum

Source: http://www.computerandvideogames.com/415594/ms-prepared-to-lower-xbox-one-price-in-2014-says-analyst/

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"Microsoft prepared to lower Xbox One price in 2014, says analyst" :: Login/Create an Account :: 118 comments

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byLeonPosted:

RemeAmaze
Sorcery
Oasis Kinect 2.0 is obviously more expensive than the first, it all adds up and if people can't see that well then they deserve a shoddy PS4.


Oh great, another stupid fanboy that doesn't understand that NOBODY wants nor need a Kinect Sensor to begin with.


speak for yourself, need ... no, but want ... yes, if it can enhance the user experience then why wouldn't user's want it

kinect sucks, there is nothing you xbox fan boys can say it is butt and has always been butt. experience my As* nothing is fun about having no option but to use a camera.

RemeAmazePosted:

Sorcery
Oasis Kinect 2.0 is obviously more expensive than the first, it all adds up and if people can't see that well then they deserve a shoddy PS4.


Oh great, another stupid fanboy that doesn't understand that NOBODY wants nor need a Kinect Sensor to begin with.


speak for yourself, need ... no, but want ... yes, if it can enhance the user experience then why wouldn't user's want it

generalhunterPosted:

I bet within a month in Dec a lot of people looking for a christmas gift

imgurPosted:

Its nice to see they are ready to compete with Sony.

SorceryPosted:

Oasis Kinect 2.0 is obviously more expensive than the first, it all adds up and if people can't see that well then they deserve a shoddy PS4.


Oh great, another stupid fanboy that doesn't understand that NOBODY wants nor need a Kinect Sensor to begin with.

OasisPosted:

Kinect 2.0 is obviously more expensive than the first, it all adds up and if people can't see that well then they deserve a shoddy PS4.

aBoxOfMintsPosted:

this is good!

SynybunPosted:

I don't see why they wouldn't lower the price eventually.

UnknownModderPosted:

ODST
IndianBoymodz
ShadowBoltDashie
ThisIs50 X-Box will always win. They do what their customers want!


Sorry but they don't. They will do what they feel benefits themselves, they don't do what their customers want.


They do both because with out pleasing the customer they wont make money.


They didn't give a dang until they were behind in numbers to finally change their DRM policy. They were butchered for 2 months about the policy and are just now acting like it's a total surprise that nobody liked it. Microsoft does what will aid themselves in the future and doesn't give a flying fluke about their customers. (example: "It's your birthday, have $0.08 on us.")
You do know that millions of people play Xbox with multiple accounts and have the same birthdays? If they gave you like 400 Microsoft points or something like that they would be losing so much money it would be ridiculous. Not to mention that people would most likely abuse it anyway if it was like that.

platyuiPosted:

Peer
ODST
IndianBoymodz
ShadowBoltDashie
ThisIs50 X-Box will always win. They do what their customers want!


Sorry but they don't. They will do what they feel benefits themselves, they don't do what their customers want.


They do both because with out pleasing the customer they wont make money.


They didn't give a dang until they were behind in numbers to finally change their DRM policy. They were butchered for 2 months about the policy and are just now acting like it's a total surprise that nobody liked it. Microsoft does what will aid themselves in the future and doesn't give a flying fluke about their customers. (example: "It's your birthday, have $0.08 on us.")


lol you are stupid at least they give you something does apple, samsung, sony and any other company give u stuff for ur birthday?


Microsoft still has the best security out of the consoles. I would have to say that security is a big part in pleasing customers.


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