Currently Microsoft’s latest home console is retailing for $349.99. Ever since the XBOX One has dropped to that aggressive price, the system has been selling out at retail stores across the nation. Every time we enter a retail store, we notice that the system is now sold out and seems to be a general trend since the big price drop.
$349.99 seems to be the sweet spot for the XBOX One and the gaming community has been rushing out to pick up Microsoft’s latest home console. The company has stated that this is a temporary price cut and the system will go back to its original price after this holiday season. Although Microsoft has been vocal about this being a temporary price cut, we here at myvideogamenews think it would be wise for the company to leave the price right where it is and gain some ground against Sony and the PS4.
Gamers have gotten used to the XBOX One being $349.99. Matter of fact, this price point for the system has shifted a ton of units and has put the XBOX brand back in the lime light. It’s no secret that Sony’s PS4 is off to a massive success and with this price cut, the XBOX brand is becoming a lot more competitive with Sony’s success machine, PS4.
The system has some fantastic titles already available at retail and gamers are more likely to place their hard earned dollars down on these exclusives if the price remains at $349.99. One can argue that gamers will buy games anyway, but with the price of the XBOX One being $50 less, it’s more money for gamers to pick up an extra game or controller.
Microsoft may be losing money on each system sold but they are most certainly gaining market share and may make it up with other avenues in their business model (controllers, games, XBOX live etc). We think that IF Microsoft does end up brining the price of the XBOX One back to it’s $399 mark, it would be a big mistake.
Momentum is currently in full swing in the XBOX camp and when you are in this business, momentum is a great thing to have in your favor. We think it would cause mass confusion with the general public if Microsoft decided to place the $399 price tag back on its home console.
Overall it appears as though Microsoft has found that all important sweet spot for their latest home console. The XBOX One is flying off the shelves and although it’s the holiday season, we think that they should ride this wave as long as they can. Eventually the company will reduce the price point to $349.99 anyway, so why not gain market share now and force Sony to play their hand with the PS4’s price.
What do you guys think Microsoft should do?