Xbox One Price Cut shows Microsoft’s Desperation to gain on Sales

Xbox One Price Cut shows Microsoft’s Desperation to gain on Sales

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Microsoft’s Xbox One lacks behind Sony’s PlayStation 4.

Microsoft has decided to reduce its price once again, this time to $349. The move comes out of desperation at a time when Sony has captured the console market of this generation, with the PS4 exceeding past 10 million in August and shows no sign of slowing down.

Meanwhile Microsoft is taking steps to recover from its problems such as fixing the DRM issues, unbundling the Kinect, etc. However the questions are whether the reduction of price proves beneficial? Should anyone shopping think twice about Xbox One? Let’s answer these questions step by step.

David Thier stated that price probably won’t be enough. This is because the Xbox One already has a price advantage and still PS4 is outselling it. Even more alarming for Microsoft is that outside the United States Sony is destroying it.

‘VGChartz’ has shown PS4 leading by 4:1 in Europe and 10:1 in Japan. Jason Evangelho thinks that Xbox One will in the end carry the day as it has a better holiday lineup. Others did not agree with this and expressed their concern for the Xbox One.

History recounts that way back when Xbox 360 was in a better place than PS3, Sony eventually caught up and passed Microsoft. Sony won 2007, 2009 and 2010, but Xbox took the lead in 2011 but was again smashed in 2012.

It could be said for Xbox 360 and PS3 that the both were in a continuous competition and no one was a clear winner. However there is a lot of difference between then and now and the problem now is that Microsoft has a shrinking window to catch up. 

If Microsoft keeps to struggle with Xbox One then maybe CEO Satya Nadella comes to the same conclusion that some observers have: it’s time to cut the console loose. It’s surprising to see that Nadia gave the go ahead with giving a discount on Xbox One which will lead to negative digits for sure, but the company can afford with their huge bank balance. However this all seems pointless because just to benefit from having an Xbox brand the company should not waste its hard earned cash.

Sourc: Forbes

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