Xbox One price cuts to be introduced if PS4 sales dominate

An Xbox One price cut could be on the cards early next year if Microsoft’s next-generation console falls behind Sony’s PS4 in the console sales wars, industry analysts have suggested.

With the two console’s officially priced at E3 2013 earlier this month, Wedbush Morgan analyst Michael Pachter has claimed that Microsoft is already preparing for an Xbox One price cut for early 2014. The price cut will come into place if the PS4 takes a dominant footing with next-gen console purchases.

With the Xbox One price set at £429 when bundled with the compulsory second-generation Kinect peripheral, Sony revealed it will undercut its bitter rival by £80 when the two consoles hit retailers later this year. A PS4 price has been confirmed at £349.

“We think that Microsoft is prepared to lower price next year,” Pachter suggested in a note to investors earlier this week.

Although claiming that an Xbox One price cut could be on the horizon before the console has even launched, Pachter added that despite the higher price point, Microsoft’s move to rid the next-gen gamer of its previously stated DRM restrictions and constant internet requirements will see the Xbox 360 replacement match the PS4 on a sales front.

“Microsoft intends to offer a more robust hardware bundle than Sony will offer, and Microsoft is convinced that consumers will ultimately appreciate the value proposition presented by Kinect,” Pachter said in a research note.

“Microsoft has not done a particularly good job of communicating the value proposition to consumers, but today’s announcement will remove an impediment to the company’s ability to get its message across. We are confident that with six months of focused messaging, Microsoft can fully level the playing field with Sony, and we expect the Xbox One to sell as many units as the PS4. If we are wrong, we think that Microsoft is prepared to lower price next year.”

With Xbox One pre-orders having regained ground on the PS4 following the DRM repositioning, Amazon has confirmed that the two consoles are already breaking records.

“Last week, the Amazon Video Games store made history with its biggest pre-order week ever thanks to the launch of the Xbox One and PlayStation 4,” an official statement from the company has confirmed. It added: “In fact, at the peak of demand last week, Amazon customers were pre-ordering more than 2,500 Xbox One and PlayStation 4 consoles per minute.”

Read More: Xbox One vs PS4

Via: CVG