How badly would a price drop to $399 hurt Microsoft?

#1That_Damn_KidPosted 3/20/2014 4:54:38 AM
I'm not sure how much they make per system but I wonder if they could do ok by dropping it that much. They have plenty of money right now.
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#2Kovalchuk_Posted 3/20/2014 4:57:22 AM
Not that much, but they have no reason to do that right now. maybe in a couple months.
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#3PorungaPosted 3/20/2014 5:13:51 AM
No matter what they do, they are in for a rough time.

They stay the course - they continue getting beat in sales, investors not happy

They keep kinect and drop price without reducing manufacturing costs - lose a ton of money, investors not happy

The only real option in my opinion is to lose the kinect, and drop the price - sales go way up, the many people that refuse to buy a xbo due to the kinect will finally buy one, investors happy.

Too bad that one will ever happen.
#4kennyynnooPosted 3/20/2014 5:25:06 AM
Sales are great, why drop it? That's pretty dumb, they are competing against there own forecast not Sony's sales you know?
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#5RS_YELARAKAPosted 3/20/2014 6:06:18 AM
Sales are good so no reason to price cut. They'll release a disc drive free one this year at that price though. No price cut until 2015 is my guess.
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#6Apex-PlayerPosted 3/20/2014 6:12:10 AM
Instead of making roughly 20$ per console they would be losing 80$ per console?
Wouldn't be pleasant losing 80mil on every million sold i'd imagine.
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#7chicken8orPosted 3/20/2014 6:23:55 AM
They need to sell their console at the price that moves them the fastest, not what makes them the most money.

If consoles were where the money was made we wouldn't have 7 or more years between generations. The software is where the money is and the more hardware you sell, the more software you can push.

Taking an $80 loss (or whatever it would be) is a small price to pay when you have another person buying games for your console.

I've spent $550ish on 360 consoles (launch and a 250Gb after my launch console started sounding like a lawnmower). I've spent THOUSANDS on software over the last 7 or so years. THOUSANDS!!!
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#8Neoreloaded313Posted 3/20/2014 6:43:31 AM
RS_YELARAKA posted...
Sales are good so no reason to price cut. They'll release a disc drive free one this year at that price though. No price cut until 2015 is my guess.


That is not going to happen. It cost no where near $100 for a disc drive.
#9JohnWall32Posted 3/20/2014 6:44:27 AM
Not as much as a price drop to 349.99 would hurt ms...which is where this console needs to be at to compete with Sony this gen.
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#10VIC10U5Posted 3/20/2014 6:44:51 AM
Porunga posted...
No matter what they do, they are in for a rough time.

They stay the course - they continue getting beat in sales, investors not happy

They keep kinect and drop price without reducing manufacturing costs - lose a ton of money, investors not happy

The only real option in my opinion is to lose the kinect, and drop the price - sales go way up, the many people that refuse to buy a xbo due to the kinect will finally buy one, investors happy.

Too bad that one will ever happen.


You OBVIOUSLY have no idea how a business, let alone a major corporation, works.