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Xbox One price cuts to be introduced if PS4 sales dominate

Luke Johnson


Xbox One
The Xbox One price could be lowered much, much sooner than we expected

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


June 23, 2013, 3:31 pm

The price is well worth it considering it comes with Kinect 2.0 and HMDI pass thru. Im sorry but throwing my gaming life into my TV watching is sexy sexy sexy lmao. I just love the idea of watching a program on TV and getting game invites from my friends at the same time or on top of that popping a window in of an app/game/browser etc.. Anyone who thinks this price is over the top is dead wrong. If you want to compare the prices i ask that you consider these few things. PS4 doesent come with their PS Eye ($69 and nowhere near matches Kinects power or clarity (1080p vs 1280x800?). Also have to consider one of the main features of PS4 is the ability to take your game with you whether you are headed to the bathroom or out of the house. Well guess what your going to have to drop another $249.99 to do that. Also Kinect itself is the "motion controller" so youll also need to add PS Move in to add up to the XB1 bundle thats another $30-$40 at least. So what are we looking at if you want to match the XB1 bundle and $100 price difference. To match it youll end up spending the same amount to use the second screen option youll have to pay the extra 249.99. All while not getting the TV functionality. Want to compare hardware... Just DONT! lol. They are built exactly the same with only a slight edge to the PS4 but interviews with developers prove that their will be no graphical dominance on the PS4. They stated,"You will not be able to tell the difference in graphical fidelity between the two consoles". They added to it by saying down the road XB1 has the upper hand because of the servers they setup to do cloud computations. You also get that as an added bonus.


June 23, 2013, 4:34 pm

I can imagine conversations in your living room now. "People... SHHHHHH... I need to talk to Kinect to change the channel." Yeah, that really sounds awesome. No thanks. Just gaming for me.


June 23, 2013, 4:36 pm

Cloud is a load if rubbish, no real computing can be done as the time it takes to send and receive data even on the fastest internet is a lifetime compared to normal processing. Only fools believe this cloud hype nonsense. Of course there will be a noticeable difference in graphics on 1st party games. Better gpus produce better graphics the ps4s is considerably better. Killzone is looking amazing already. no one wants the kinnect but forced to pay for it. At least eye is optional. So ps4 cheaper, more powerful, also look how many of sonys studio's haven't announced their games yet. 20 new ones in first year. expect the exclusives to continue to be announced up until launch as sony usually spread them out for other gaming conferences like tgs etc. Stop kidding yourself, xbox have largely been caught with their pants down and messed their own chances up. Concentrating on tv etc means they made weaker console with 3 os. This will ensure the ps4 will be able to significantly utilise its extra available ram and gpu power for better visuals. Anyone who knows anything will tell you that.


June 23, 2013, 4:43 pm

What happens to those who bought the system at full price in November or December?


June 23, 2013, 4:44 pm

Except for it reads your voice and eliminates all background noise with its multi array microphone setup. Obviously you havent watched any demos of it. That was the first thing they went over because that was a huge issue with the last gen kinect. You setup your voice with your profile and whoever is player 1 (first person signed in) controls the Kinect. They explained it when somebody asked what happens if someone walks in the room as a joke and says XBOX OFF lol. Theyve covered all their bases this time. So yes it does sound awesome. Its got more gaming related features than just for motion control too. You should really try researching something before you just entirely dismiss it. Unlike you i thoroughly researched every aspect of both consoles and than ultimately came to my decision of getting the XB1.


June 23, 2013, 4:55 pm

Just to be clear, the XB1 doesn't include an integrated TV tuner, it can receive input from an external TV tuner (eg a freeview or Sky TV box) over HDMI, and overlay its own TV guide and control channel changes. The TV tuner capabilities require separate external hardware, and are subject to compatibility.

I'm not saying that the feature isn't good. I just want to make sure you understand what you're getting. :)

Box Office Buz

June 24, 2013, 3:23 am

Most stores have a price guarantee on pre-orders. Microsoft. Amazon. etc. So if you got it at the higher price (like myself) you would get a refund / pay the new price.


June 24, 2013, 8:22 am

God these analysts are perceptive.

Spike Black

June 24, 2013, 11:03 am

And I'm sure a good many of those pre-orders will end up on Ebay just before Christmas with vastly inflated prices.

Cherish McKenna

June 25, 2013, 11:04 pm

to bad your clueless xbox and ps4 both use cloud if its so bad they both would not use it, the ps3 is more powerful (numbers) then the 360 yet the 360 crushes it, weaker console? it uses a duel processor the ps4 uses a single that means one for gaming one for tv so hows it weaker? you clearly have no clue what your talking about every bench test so far shows the ps4 is slightly stronger nothing you will notice. your just a fanboy with no facts

Cherish McKenna

June 25, 2013, 11:08 pm

Thats not true on xbox one site it says the one has a internal tuner
I just want to make sure you understand what your talking about :)


June 26, 2013, 12:34 pm

Where does it say this?

This is the text I can see on http://www.xbox.com/en-US/x...

"HDMI Pass-Thru
Connect your cable or satellite box to your Xbox One and prepare for lift off. HDMI pass-thru enables you to watch TV through your Xbox, which makes switching inputs seem almost pre-historic.1"

And the footnote:

"1: Supported television tuner or cable/satellite set top box with HDMI output and HDMI cable required (all sold separately)."

That seems to definitively rule out the possibility that the XB1 has an internal TV tuner. If it has an internal TV tuner, I'm sure Microsoft would have mentioned it at one of their press conferences.


June 26, 2013, 3:10 pm

Except Xbox One is almost primarily cloud no matter what you do on it. The PS3 was much more powerful than the Xbox 360 BUT the reason why it may not have shown it in games that werent first party to Sony is becuase its architecture was very poorly written and unique which caused developers to not want to learn how to develop games on it and instead not use it to its full advantage. Sony learned and that's why the architecture is very similar to the Xbox One now so that developers will have an easier time developing games for both consoles while using it to it's fullest.
SO YOU clearly have no idea what you're talking about. As of right now there are not games that have used toe PS4 hardware or Xbox One hardware to the ma 100% usage. The Xbox One power limit will be reached before the PS4 if you look at the hardware and overall capability. The problem with the Xbox One is that the majority of it's computing units will be taken up by the processor which isn't good considering the PS4 has 50% more computing units ( 64-bit with 18 computing units of 1152kbs). This also works very fast with the CPU and GPU that specializes in transfering large loads of informaiton on the 8GB GDDR5 in fast speeds opposed to the Xbox One's 8GB DDR3. DDR3 is very fast but is only fast for computing smaller bits of info at a fast rate, not large chunks.
I'm only here to point out facts but it's hard to not pick a side since one side obviously has a far higher advtage. Buy a PS4.
"You're just a fanboy with no facts"...Cherish McKenna


June 26, 2013, 3:16 pm

THis is 100% opinonated. Most people don't want the Kinect, most people don't want the PS Move. People aren't ready for it and gamers DON'T want to move around to play a game. PS4 Eye is $59, not $69 (wrong once again) and this is a marketing strategy becuase most people don't want the motion control aspect and people who don't want to pay for it will buy a PS4. People who do will buy it and still spend less than a Xbox One. PS Vita is expensive but it has a price drop coming soon anyways, I already have one though. Hardware isn't cheap so stop crying about it being too expensive...just don't buy one then. The PS4 hardware has been proven to be better..please.."Just DONT! lol" idiot.


June 26, 2013, 3:19 pm

Majority rules. Consumers rule. Gamers rule. People don't want motion controlled or voice activation. Please argue against somehting useful.

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