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Will XBO go back to U$399 after the holidays?

mrklaw

MrArseFace
I mean think about it from a business perspective. If I was Microsoft, the corporation. Now I'm just some armchair analyst, but I can already consider the implications.

Beyond any doubt, Microsoft's holiday deals for XBO this year were absolutely fucking insane. Like, a year ago the thing was impossible to get unless you tied that stone Kinect to it and paid $500. Now we're at a place where Microsoft store is literally selling the thing for $349 with two games packed in - one a high profile product from this holiday - and then you get TWO MORE games with it. I mean, come on bro. What in the actual fuck. I know for a fact Microsoft won November NPD, and they might with December too.

Can you imagine what it'd look like from a consumer's perspective if Microsoft went to $399 with no game? Consumers have seen beyond the veil, now. They know how low Microsoft is willing to go in the name of a little tension about their success and a chance to grab some slight marketshare.

Consumers are just going to wait to see those prices again after this. They gotta stay at $349.99.


Sales in Q1/Q2 aren't going to be great anyway. They can't afford to sustain this deal though the first half of the year, especially as that the leaves them with limited options in the second half.

By raising the price in January theyll lose momentum yes, but that will be limited due to the quieter months. That then gives them the opportunity to do another official cut - perhaps to $349/299 around E3 time. Basically gives them more options to stimulate demand around their big title releases. Keeping the current price will just hurt the for limited return. They wanted to sell in nov/dec and they've done that.
 
I doubt they ever actually planned for the price cut to be temporary. They only claimed as much to take advantage of the ticking click psychological effect to pack as many sales into the holidays as possible in order to make a good showing in NPD figures for the season. That way they can create the illusion that they are more competitive with the PS4 than they really are.
 

Lemondish

Member
Sales in Q1/Q2 aren't going to be great anyway. They can't afford to sustain this deal though the first half of the year, especially as that the leaves them with limited options in the second half.

By raising the price in January theyll lose momentum yes, but that will be limited due to the quieter months. That then gives them the opportunity to do another official cut - perhaps to $349/299 around E3 time. Basically gives them more options to stimulate demand around their big title releases. Keeping the current price will just hurt the for limited return. They wanted to sell in nov/dec and they've done that.

The momentum could be key for them. After all, the purpose of selling so many boxes so cheap is to get the damn thing out there and have people subscribing to Live and hooked into the ecosystem. You don't get that by being soft.

They won't win those early 2015 months, of course. I don't think that was ever a possibility with high profile exclusives coming rapid fire to the PS4 in the first part of next year and no competition from MS on that front. They have Evolve they'll be marketing, but with the Witcher falling until May, it's now their one trick pony. $349 might be the only thing that will keep them relevant until Fall.
 

Bgamer90

Banned
Would be fun if it became an annual price drop each November.

I honestly think it could be; $50 each year?

Holiday 2014: $350/$450
Holiday 2015: $300/$400
Holiday 2016: $250/$350
Holiday 2017: $200/$300
Holiday 2018+: $150/$250

(I think next gen will start in 2019.)
 

Lemondish

Member
I honestly think it could be; $50 each year?

Holiday 2014: $350/$450
Holiday 2015: $300/$400
Holiday 2016: $250/$350
Holiday 2017: $200/$300
Holiday 2018+: $150/$250

(I think next gen will start in 2019.)

Well, they started at $499, so let's see if we can't convince them to keep dropping it at the same speed until 2019. I'd like to pick up an Xbox One for negative monies, please.
 
I mean think about it from a business perspective. If I was Microsoft, the corporation. Now I'm just some armchair analyst, but I can already consider the implications.

Beyond any doubt, Microsoft's holiday deals for XBO this year were absolutely fucking insane. Like, a year ago the thing was impossible to get unless you tied that stone Kinect to it and paid $500. Now we're at a place where Microsoft store is literally selling the thing for $349 with two games packed in - one a high profile product from this holiday - and then you get TWO MORE games with it. I mean, come on bro. What in the actual fuck. I know for a fact Microsoft won November NPD, and they might with December too.

Can you imagine what it'd look like from a consumer's perspective if Microsoft went to $399 with no game? Consumers have seen beyond the veil, now. They know how low Microsoft is willing to go in the name of a little tension about their success and a chance to grab some slight marketshare.

Consumers are just going to wait to see those prices again after this. They gotta stay at $349.99.

Wait, how?
 
If they want sales to crater then sure. I don't think they will be able to though. They can't give any quarter to the PS4 if they want to have any hope of catching up in sales.
 

Lemondish

Member
Wait, how?

I think he/she is just guessing, just like for everyone else. Most everyone expects it, though, so he/she gets to claim prescient knowledge for being right on the thing everyone already expects.

Now, if he/she is wrong, we can come back and laugh and point. It'll be fun.

If they want sales to crater then sure. I don't think they will be able to though. They can't give any quarter to the PS4 if they want to have any hope of catching up in sales.

The first one is the best one to give up if they must. It's historically much slower and they have absolutely nothing available to compete with Sony's upcoming exclusives.
 

Lemondish

Member
If after all that deals, and MS still lost NPD (doubtful) then they're pretty much never going to catch up to Sony.

We don't need them to lose NPD to know that this is highly unlikely regardless of how many months they win in the US. PS4 sales would need to drop off a cliff, which won't happen, and MS is still only pushing this hard in one market. The rest of the world continues to belong to Sony and the gap just continues to widen.
 

EGM1966

Member
Technically it has to go back up or it undermines sense of getting deal during holidays and would force them to go lower again holiday 2015.

Just jumping back to full price seems unwise too so I'm guessing it either doesn't go back to original price but something in between or it goes back to full price but with a game or different configuration.
 

Mooreberg

is sharpening a shovel and digging a ditch
Yes it will. They advertised the price as LIMITED TIME ONLY. If it does stay, then that's false advertisement.
The FTC is not exactly going after publishers who put out a "GOTY Edition" for games that did not win any industry wide awards. Nobody is going to bat an eyelash for the price of something staying lower.

The bundles will just be less expensive to Microsoft. There is no real material cost for including first party games or XBL Gold subscriptions. They must have paid a pretty penny for bundled AC and COD units.

I wonder if the Master Chief Collection becomes an option at some point in the first half of the year. It is basically marketing for Halo 5, and I do not think the sales will have a very long tail if the bad word of mouth persists.
 

Dlacy13g

Member
I think it will go up for just a few months and then they will do an official price drop and bring it back down or more likely do another "special price" for a Limited time and then an official price drop at e3.
 

Ecto311

Member
If I was them I would make it the $399 again so people know that it was an actual sale. That way once they drop it again in the spring or so people will jump on it assuming its a sale again. Boom in sales then they just keep it there that time.
 
So the people saying YES, do you still think this way after the NPD?

MS took the month but then the post of the thread:

That indicates it should definitely go back to the original price.

Microsoft gambled, lost a lot of money, and barely won.
They can't afford to bleed more money when the CEO has been standing by the chopping block.
 
I previously said they would but if what cboat said is true they would be fucking insane to increase the price. It's staying at $350 or less.
 

xxracerxx

Don't worry, I'll vouch for them.
That indicates it should definitely go back to the original price.

Microsoft gambled, lost a lot of money, and barely won.
They can't afford to bleed more money when the CEO has been standing by the chopping block.

What happened to people's argument that MS has infinite monies?
 

Ledhead

Member
Probably wouldn't be a very sound strategy for them to do so. People are expecting the 349 price, to raise it might have most just wait for another inevitable price drop
 
D

Deleted member 752119

Unconfirmed Member
There is no way they're going back up.

Yeah, I can't see it. It would kill any momentum they have. If they want to get back in the race at all they can't afford that, and just need to eat some money on hardware to build the base and recover from the botched reveal and launch. Keep momentum up and they can at least be very competitive in the US market.
 
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