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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RemeAmazePosted:

RTE
ShadowBoltDashie
roekzors
Bes Why do we NEED the kinect, i mean can't we just have an xbox and a controller?


If you could stop a second and think of the cool thing they are doing with the kinect you would realize how much you actually want it. For example, in dead rising 3, the kinect hears surrounding sounds.. and like any other tv zombie show the zombies are attracted to sounds.. so they will sense you easier. That is just awesome.


Then I shall be super quiet so I can sneak right pass them :3


Like a ninja >:o
But really I wish kinect was optional


what you are clearly thinking is giving your opinion based on kinect one which was optional and therefore had zero publisher support, this will fundamentally changed with full integration.

RemeAmazePosted:

snarec Obviously.. Wtf.. You'd have to be stupid not to know this. Every (I mean EVERY)console that comes out gives a price drop in the subsequent months. Serious, you guys need to get your **** straight and realize that people do have common sense.


thats all im thinking, are people serious when they think they're being clever agreeing with the article, this is just basic business, this analyst just stating the obvious i might become an analyst jeez

IlIuminatiPosted:

ShadowBoltDashie
roekzors
Bes Why do we NEED the kinect, i mean can't we just have an xbox and a controller?


If you could stop a second and think of the cool thing they are doing with the kinect you would realize how much you actually want it. For example, in dead rising 3, the kinect hears surrounding sounds.. and like any other tv zombie show the zombies are attracted to sounds.. so they will sense you easier. That is just awesome.


Then I shall be super quiet so I can sneak right pass them :3


Like a ninja >:o
But really I wish kinect was optional

TaigaAisakaPosted:

roekzors
Bes Why do we NEED the kinect, i mean can't we just have an xbox and a controller?


If you could stop a second and think of the cool thing they are doing with the kinect you would realize how much you actually want it. For example, in dead rising 3, the kinect hears surrounding sounds.. and like any other tv zombie show the zombies are attracted to sounds.. so they will sense you easier. That is just awesome.


Then I shall be super quiet so I can sneak right pass them :3

III_XBOI_IIIPosted:

pooky177
roekzors
Bes Why do we NEED the kinect, i mean can't we just have an xbox and a controller?


If you could stop a second and think of the cool thing they are doing with the kinect you would realize how much you actually want it. For example, in dead rising 3, the kinect hears surrounding sounds.. and like any other tv zombie show the zombies are attracted to sounds.. so they will sense you easier. That is just awesome.


Sounds cool on paper, what happens when my friends are over and ecide to play music wile I'm trying to play, or what if they really want to see my spine ripped out by zombies and start to yell to make noises? What if it isn't as reactive as they make it out to be and you look like a 4 year old yelling at Dora to look out for Swiper? Whay if you play an online match in COD and people yell over your TV "XBOX OFF!" abd your Xbox shuts off? I don't like being active playing video games because I like to be lazy and enjoy myself. I don't want Kinect, and to me there is a whole bunch of 'what ifs'.


I agree. The Kinect should be optional.

MidtownPosted:

roekzors
Bes Why do we NEED the kinect, i mean can't we just have an xbox and a controller?


If you could stop a second and think of the cool thing they are doing with the kinect you would realize how much you actually want it. For example, in dead rising 3, the kinect hears surrounding sounds.. and like any other tv zombie show the zombies are attracted to sounds.. so they will sense you easier. That is just awesome.


Sounds cool on paper, what happens when my friends are over and ecide to play music wile I'm trying to play, or what if they really want to see my spine ripped out by zombies and start to yell to make noises? What if it isn't as reactive as they make it out to be and you look like a 4 year old yelling at Dora to look out for Swiper? Whay if you play an online match in COD and people yell over your TV "XBOX OFF!" abd your Xbox shuts off? I don't like being active playing video games because I like to be lazy and enjoy myself. I don't want Kinect, and to me there is a whole bunch of 'what ifs'.

WageringPosted:

Maybe I'll buy it after the price cut, or when there are a lot of great games released for it.

-AN-94Posted:

Yayy good it was so over priced

roekzorsPosted:

Bes Why do we NEED the kinect, i mean can't we just have an xbox and a controller?


If you could stop a second and think of the cool thing they are doing with the kinect you would realize how much you actually want it. For example, in dead rising 3, the kinect hears surrounding sounds.. and like any other tv zombie show the zombies are attracted to sounds.. so they will sense you easier. That is just awesome.

ohGlitcherPosted:

Yayy good it was so over priced


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