Xbox One Price Cut Wasn’t Just About Sales; It’s About Bigger Things to Come

The Xbox One did an amazing turnaround this holiday over what they started out of the gate with. While we await the final sales figures from the entire holiday season, including the sales from after Christmas and all the kiddies cashing in their gift cards, there is little doubt the Xbox One outsold the PlayStation 4 yet again. It happened the previous month and it looks to be two months in a row that the Xbox One will sustain the momentum. It is easy for gamers and most consumer analysts to see why they have been able to capture the numbers they have, the sale on the Xbox One over the holiday with $50 off was too good for many to pass up. The Xbox 360 didn’t have the same issues with sales as what the Xbox One has had, actually it was quite the opposite when it comes to early success. It took the Xbox One predecessor two years for a price cut, versus the Xbox One just one.

The first Price cut for the Xbox 360 was actually shortly after Microsoft introduced their newest model of their system the Xbox 360 Elite. One of the biggest complaints about the previous console was that the originals didn’t have adequate storage space for the games coming out. One could argue that the majority of the Xbox Ones on the market are missing the same. Only one of their consoles currently has over 500 GB’s of storage and at the rate of almost 40-50GB’s per game install wise, the Xbox One’s hard drive gets eaten up rather quick. Only the Call of Duty Advanced Warfare bundle has more at 1 TB of space which could be deemed sufficient. Many have had to result to an external hard drive for their consoles to ensure they can load all their favorite games. One of the first things we could see is that Microsoft has used the price cut to slowly move out the older skus in order to make way for something bigger and better. It isn’t out of the question to see companies use tactics such as this to make room. Not only does it help to saturate the market, it helps to widen the brand of the One.

Building that brand then in-turn continues to build interest and continue to grow the fan base which will help when a new model comes out to increase interest and at the same time, sales. A bigger hard drive might not be the only thing up the sleeve of Microsoft. It maybe getting bigger in one facet and smaller in another. Microsoft has not been shy about making changes to something that wasn’t working. They first removed the Kinect from a bundle that they said  was a packaged deal that wasn’t one that would split. The turned around and offered more bang for your buck with games packed in with the system and then followed that up with a cut in price on top of that. That’s the most action a system has seen early on quite possibly in gaming history. So why would they not think about following something that many of the previous systems have done along the way and that’s to slim down its waist line?

Creating an Xbox One slim would create buzz-worthy headlines with the ability to continue the push toward evening the score which is a steep hill to climb versus the mighty PS4. That’s not out of the realm of possibility either. After all, if Microsoft is willing to listen to the complaints of the gamers, why would they stop now? The Xbox One is a beast of a machine in terms of size and the PlayStation 4, even with more under the hood was able to keep the size overall, minimal. The Xbox One needs to cut down on the snacks and lose some weight and putting out a slim  would achieve that needed gut-cut. The Xbox One was not above admitting its faults and answering the call to make it more affordable, appealing, and desirable to consumers. Slimming the systems overall size cuts down costs for the company and they have shown willing to pass those cuts along to gamers.

The $50 price cut was a test, a test of a more permanent thing to come. If sales drop again next month, badly, don’t be so sure that Microsoft won’t make that an official reduction. Not only that, with things like bigger Hard Drives needed, and the potential of a slim system, the Xbox One has a lot going for it. When momentum swings you do what ever is needed to keep it moving in your favor. Microsoft hasn’t risen to the top of the game by rolling over and playing dead… they have achieved that success with growing a brand, improving their pitfalls, and listening to consumers. The Xbox One won’t be any different and more changes are on the horizon.

Have your say!

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  1. What do you feel was the reason for the Xbox One price cut? Leave your comments here>

    • Sales

    • Sales. Sales for market share, market share for third-party and indie support, those things for more sales.

  2. The problem with Xbone is that it doesn’t have any exclusives for the following 6 months whereas PS4 has Bloodborne, The Order:1886 and other games.

    It’s most likely that MS will really cut the price in a few weeks or months but they really need to step it up in the games department meanwhile Sony has two timed exclusives (No Man’s Sky and Hellblade) and SFV console exclusive for the future.

  3. It was them taking advantage of the holiday season and was for nothing but sales, period.

    “When momentum swings you do what ever is needed to keep it moving in your favor.”

    Every thing except keep what is making the momentum( the $50 price drop).

  4. The price cut was nothing more than a desparate grab at marketshare, and perhaps mindshare. Just look at PS4 game sales versus Xbox One game sales. Microsoft doesn’t want to end up losing 3rd party support for the Xbox One like Nintendo did with the WiiU. (And while we’re making comparisons with Nintendo, Microsoft’s first party titles for Xbox One didn’t sell as well as Nintendo’s first party titles for the WiiU).

  5. Yeah still around 50% install base compared to PS4 since November 2013. What a turnover lol.
    Bigger things to come because of the price cut? So if they didn’t do the price cut they wouldn’t be releasing the games and things that they are/aren’t going to do in 2015? So do we point to the price cut for other random things? Will the Games for Xbone Gold still suck in 2015? So for example do we blame the price cut solely for this continuing to suck every month then? Please author, we need answers to your ingenious insight.

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