Microsoft will try a temporary price cut on Xbox One, aimed at driving sales this holiday season for its ailing sales numbers.
Microsoft has been struggling to pull Xbox One sales out of the gutter as the company heads into one of the most important portions of the year for tech companies, and retailers alike. Holiday season is nearly upon us, and Microsoft will be starting a $50, temporary price cut across the well-known Xbox One line, here in the United States until the end of the year.
That means Xbox One consoles, which came with the Kinect motion camera accessory would be cut to $449 from $499, and the Xbox One console without the Kinect motion camera would sell for $349, instead of $399. While the company hasn’t officially announced a similar price cut elsewhere around the world, it would appear that the company isn’t ruling anything out – as they even went as far as to say that other regions will have similar regional offers and promotions.
However, the result of this isn’t just to sell more Xbox One consoles. This price reduction will actually significantly undercut Sony’s PlayStation 4, which came out a week earlier than the Xbox One did a year ago, and according to industry statistics from the NPD group, PlayStation 4 sales have even outdone Xbox One for 9 straight months here in the United States.
This move is big though for reasons beyond the simple timing on the calendar. It isn’t just holiday season that Microsoft is planning for. The company is also planning on franchises like Call of Duty and Battlefield to release their most-recent installments of the popular games. Also, Assassin’s Creed releases a game this time of year, so the price reduction comes at a time when the company is expecting to see an increase in video game sales, as well as demand for consoles.
Sony though has taken an entirely different approach for handling the ever-changing landscape that is gaming. They have ensured that their customers would receive exclusive content, and worked out deals to ensure that they could provide and deliver additional storylines or content, in order to drive greater interest in their console. Even as Microsoft has offered games for free earlier in the year, like Titanfall, things still seem to be bleak for Xbox fans.
However, as some will celebrate the price cut, investors and those who are close to the situation should see that this is a “last resort” and something that will be viewed as Microsoft failing.