-
Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.
Xbox One Price To Go Back Up - Last Chance for $350
- Thread starter mcrommert
- Start date
Hydrargyrus
Member
The losses should be abysmal to make them back to the original price (maybe they were selling at loss when they were forced the price cut)
Dunno, but it's pretty clear that MS is focus only in two months and sell the most. Doesn't care about the users or how the brand looks, it's only about the number of sales, that's why they accumulate all the games in two months, make a price cut and, if this doesn't work, gives tons of games for free. They only want to win holydays and everything else, including the other 10 months, doesn't matter... You know, "it's pre-season"
Dunno, but it's pretty clear that MS is focus only in two months and sell the most. Doesn't care about the users or how the brand looks, it's only about the number of sales, that's why they accumulate all the games in two months, make a price cut and, if this doesn't work, gives tons of games for free. They only want to win holydays and everything else, including the other 10 months, doesn't matter... You know, "it's pre-season"
Beer Monkey
Member
More realistic view:
"We've gained mindshare. Early year sales are not that big of a deal from a volume perspective, let's see how we sell against Sony for the next couple of months and adapt accordingly.".
It's a private company, what do you expect? They all only care about profit, they are owned by shareholders.
Doesn't mean they don't care about user or how the brand looks by the way, that's part of making profit.
- No one was buying them at $399
- Price goes down to $349, people start buying
- Microsoft raises price back to $399 despite sales at said price point being abysmal
BADCOMPLEX
Neo Member
Guess I'll have to pick up another Xbox One before the end of the week. I use it more than the PS4 and Wii U and would like to have another for my 2nd. residents.
Larger install base should help with future sales.
Not saying it will keep it over the PS4, but the gap should be smaller than usual.
Hydrargyrus
Member
Selling at loss and give tons of free games makes a lot of profit in the nonsense world
jhmtehgamr20xx
Banned
That reads like a PR statement. PR statements never tell the whole story (sometimes none of it at all).
But the mindshare!
funkystudent
Member
Well I did not expect them to actually keep their word on it only being a temp cut.
I wonder when they will drop the price again. The slim console announcement at E3 for $299?
I wonder how the jump in price versus the market share in the US they grabbed back will effect sales for the first few months.
I wonder when they will drop the price again. The slim console announcement at E3 for $299?
I wonder how the jump in price versus the market share in the US they grabbed back will effect sales for the first few months.
No, it makes profit in the real world where Microsoft needs an userbase to sell software and services to make money. For an example consider how the video game industry has worked for the last 20 years.
Yes, so if demand for the console starts to fall the can cut the price to stimulate sales. The PS4 is selling exceptionally well, so no need to price cut. 2015 is looking packed with games and M.S. is bumping their price back up, there not going to cut the PS4 price anytime soon. I'd say spring 2016, that's just speculation though.
I can't tell if posts like these are serious. If so...wow. They didn't do this because they wanted to "win" the holidays. They use the holidays to sell a ton of consoles in the hopes that the people who are buying them will buy games throughout the year on their console. That's how console makers make the bulk of their money - game sales. You can't sell games to people who don't own your console, so they made a calculated bet on the holidays. Time will tell if it paid off or not.
Hooboy
Beer Monkey
Member
Yes, PR statements typically reveal internal strategies. You win.
Bam Bam Baklava
Member
299 would only happen if they're so desperate that it's crazy.
How in the hell are Sony being "complacent," exactly?
This is the same company that tries to charge PC gamers for online multiplayer back in around 2007-2008. Think about it.
NavyPharaoh
Member
The mindshare argument makes a lot of sense. Fence riders are more likely to pick up the system his friend has and why not chop his head off for being late to the party. Short term losses are done all the time to achieve long term gains. To keep losing on each console for a few months is one thing. For an entire year, I don't think the new CEO could sell that.
Every Black Friday for the past 3-4 years had temp price drops on one or more consoles.
After December ps4 will have more sold in The US. So how exactly does that more friends thing work out?
That would be an insane bundle. Can't see that happening at all, especially at $299 (unless PS4 absolutely smokes the X1 all year).
Nameless
Member
I wouldn't call it desperation; that's their strategy. Win the holiday season at all cost , the rest of the year be damned. So, assuming Sony drops the PS4 by $50,which everyone assumes they will, MS would look to beat that. Given what XB1s could be had for over the past few weeks a $299 price point a year from now doesn't sound too crazy at all.
This price drop has been for two months. Although x1 did drop to $329 on black Friday.
Possibly. Perhaps the Xbox One sales are strong enough that Microsoft are confident they can outperform the competition next year at $379/$399.
Another possible scenario is Microsoft are just going to make $349.99 permanent after they've scared enough people into buying the X1 in December. Clothing and home appliance companies are notorious for employing similar tactics.
StrongBlackVine
Banned
Nintendo has made more money than both Xbox and PlayStation combined by NOT selling at a loss.
Rogue_Ledr
Banned
Yeah I'm really surprised they are doing this. I heard they were going to raise the price back up after the holidays, but I thought that was just a BS ploy to get people to buy the console now instead of later.
Triggerhappytel
Member
Vallen Chaos Valiant
Banned
Yeah.
The real danger is that potential customers will now see the Nov/Dec discount, and decide that if they are not buying it by the end of the year, that they will wait until next Christmas.
This reminds me of clothing stores, where customers are used to only buy clothes during sales and never show up during any other time.
What MS needed was to soften the blow, by offering SOME kind of symbolic discount permanently. As it is, people have the expectation of getting the console for cheap, and will mentally consider the console to only be worth the discount price. The whiplash would be painful.
Customers are not rational, some things can offend them even if you don't mean to. Going back to full price without compromise is going to justify the "waiting until it is cheaper again" crowd.
Doctor_Thomas
Member
The problem they'll now have, once again, they've set a base price for the console. It boosted sales, of course, but why would someone now go out and spend more on the same thing rather than just wait for them to drop the price again?
I thought the "temporary" drop was just going to let them push for holiday sales and get people on board, before just sticking to that price... raising it again is kind of nuts.
I thought the "temporary" drop was just going to let them push for holiday sales and get people on board, before just sticking to that price... raising it again is kind of nuts.
Vallen Chaos Valiant
Banned
The issue isn't the price cut alone, it is the whiplash from going down to the extreme bargain that it was, then bounce right back to the old price.
There are two ways to do temp price cuts safely; either don't make the discount too large, so the restoration of the old price isn't that much of a disappointment, or offer a lesser price cut permanently at the end, so the customers don't feel as much pain for missing out on the bargain. This is about preventing too many people deciding to wait 10 months to get anoother chance to get the discount t price.
There is a reason normally you schedule a permanent price cut just before the end of the year; that's when you have the most impact. But temporary discounts are not easy to do.
Just one more thing: I just have to say that Microsoft in this case have definitely done everything above board. They offered a discount, and told everyone that it is only for the holidays. And now they are retracting it as promised. And yet, they have committed Marketing Sin. They are going to suffer for it, and in this case I have to say they don't deserve the pain that is going to come because of it. But marketing is a cruel mistress.
There are two ways to do temp price cuts safely; either don't make the discount too large, so the restoration of the old price isn't that much of a disappointment, or offer a lesser price cut permanently at the end, so the customers don't feel as much pain for missing out on the bargain. This is about preventing too many people deciding to wait 10 months to get anoother chance to get the discount t price.
There is a reason normally you schedule a permanent price cut just before the end of the year; that's when you have the most impact. But temporary discounts are not easy to do.
Just one more thing: I just have to say that Microsoft in this case have definitely done everything above board. They offered a discount, and told everyone that it is only for the holidays. And now they are retracting it as promised. And yet, they have committed Marketing Sin. They are going to suffer for it, and in this case I have to say they don't deserve the pain that is going to come because of it. But marketing is a cruel mistress.
CadetMahoney
Member
If they get besmirched as much as they did this year, than I expect a $299 with no game model for 2015 holiday season.
Just imagine next holiday
Possible Slim model available, more of a gaming box then media device, some ridiculous cheap price (maybe below $299)
That will be the ideal time to purchase an x1
Vallen Chaos Valiant
Banned
That's what everyone is going to think. And Microsoft is NOT going to like the implications.
It is not even NewYears, and potential XB1 customers are already considering delaying purchases to next Christmas. It is too early for that; MS would have preferred people to think about that no earlier than June.
What MS is risking, is a deflation. People are going to expect another fire sale on Christmas, and as such in their minds the Jan 2015 price would all of a sudden be mentally too expensive.
ThoughtsOfSpeaking
Banned
They are going to pay for it because they allowed every retailer to go crazy adding extra stuff as incentives.
If it was just a $50 increase then it would hurt but it wouldnt be the worse deal in the world. But the console was going as low as $299 in some places, it was being bundled with extra games, giftcards, tablets and allsorts of extra shit.
Across the pond it was even worse. There were deals of Xboxes with tvs, 5 games, tablets, phones, live and even more crazy shit.
Basically the only deal that didnt get tried is "buy a PS4 and get a percentage off a Xbox one".
What they have done is unquestionably going to tank sales now the price is rising back up.
I think that within a few months, the sales gap between the two consoles will be larger than ever.
Even if all else was equal, the PS4 being much more popular at a baseline level and the Xbox One's anemic release schedule for most of the year in comparison to the more popular machine is most likely going to play a significant factor in wiping out whatever momentum the Xbox One may or may not have gained in November.
Vallen Chaos Valiant
Banned
Let's assume MS decided they are okay with killing sales for the next 6 months, and that they will make it all back with another fire sale on Nov; that would mean people saving up money to buy an XB1 but not doing it for most of the year.
Then, just when Nov hits, and MS was about to cash in on the Christmas sale... What if Sony strikes? What if Sony suddenly release an even slimmer version of PS4, and throw all their marketing and discounts at the customers? If MS is going to bet everything on Christmas, it would make them vulnerable. They would put all their eggs in one basket, and any marketing mishap could cause massive damage.
The price rebound is going to make Christmas 2015 too valuable to lose for MS. And Sony might take advantage of that.
jfoul
Member
I'm still on the fence about buying an XB1. I'm trying to hold out for a revision that can sit vertically. Newegg still has a great deal running until 1-2-15 that includes a free year of XBL, and a $40 gift card. You can take another $25 off if you pay with American Express.
yeah - the $50 isn't going to kill them. The 'don't get the kitchen sink thrown in for free' is going to kill them. They might as well raise the price $50 to make a later price cut have more impact - they weren't going to sell any in Q1 anyway due to the loss of the megabundles.
Vallen Chaos Valiant
Banned
It is also direct evidence that the Xbox division does NOT have an unlimited war chest.
If they could, I am sure they would have tried to at least have a permanent $375 new price in the new year. The fact that they couldn't do that, means someone controlling the purse stings said no.