Need to get your gaming fix before the year is over? Now gaming consumers can get a significant discount when they acquire Xbox One and various console bundles in the United States.
Microsoft (NASDAQ:MSFT) will reduce the cost of an Xbox One by $50: with the Kinect motion camera accessory it will sell for $449 from $499 and the solo Xbox One will retail for $349 from $399. The deal will begin Nov. 2 and last until Jan. 2, 2015, according to an announcement from the tech titan.
This is an opportune time for Microsoft since at around this time of the year, some of the industry’s biggest game titles are released.
Also, Microsoft is attempting to gain a competitive advantage since its Xbox One consoles will be 13 percent cheaper than its primary rival, Sony’s Playstation 4, which was released one week before Xbox as well as outselling Xbox for nine consecutive months this year.
Video game players may be rejoicing at the news if they’re in the market for the latest edition of the Xbox, but investors may look at it as a sign that Microsoft is struggling with its Xbox One line. In fact, Microsoft could even face losses with this type of sale because gaming console manufacturers maintain very little profit-margins with these machines. For instance, Sony only earned $29 per $500 console that was sold upon release.
In addition, Microsoft could be trying to gain back customers who were frustrated at the reports of the company implementing questionable policies, such as urging users to plug into the Internet once every 24 hours and to keep the Kinect motion camera plugged in during all hours of the day. Furthermore, it was reported that Microsoft would incorporate software that would prevent gamers from sharing titles with their friends or potentially selling them back to retailers.
Microsoft (NASDAQ:MSFT) has reversed some of these policy measures, but it could be a matter of too little too late.