Waiting For The Xbox One Price Reduction? Don’t Bet On It!

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(Newswire.net — September 6, 2013) London   The Xbox one does come with the Kinect 2.0 sensor, which maybe or maybe not justifies the extra price.

Will Microsoft reduce the cost of the Xbox One before the launch? With the latest information from Yusuf Mehdi ( Xbox chief marketing officer) Mr Mehdi speaking to the Games industry about Xbox One`s margins at launch. It would appear that there is very little room for error.

“We’re looking to break even or low margin at worst,” he said. “As we can cost-reduce our box as we’ve done with 360, we’ll continue to price reduce and get even more competitive with our offering. You’ve seen us over the years constantly be focused on profitability and improving year over year. If you look at 360 that platform lasted for seven to eight years and it’s going to go for another three years. It’s incredibly profitable now in the tail.”

So if Microsoft did somehow reduce the price to the same as the PS4, They would be losing around $100 dollars on every Xbox One console.

What could be a possibility for Microsoft to launch at the same price as the PS4, Would be to drop the Kinect 2.0 and sell separately. The first Kinect cost $150 on its own, and its manufacturing cost was $100, So removing the Kinect 2.0 would not affect Microsofts margins, and keep in touch with the PS4 on price.

It does appear with the console only a few months away, that everyone who buys an Xbox One at launch, will get the Kinect 2.0 bundled with it.

The big question is the Kinect 2.0 worth the extra? It does have a lot more features than the original Kinect, but that doesn’t mean it’s the revolutionary piece of technology we want it to be.

One of the best things we have seen on the Xbox One has been input & channel switching. This is hardly a must have at this stage. The Kinect 2.0 games so far announced, are the usual mix of fitness and dance titles, with only a couple of titles that sound interesting, like Fighter Within from Ubisoft.

Microsoft is keen to stress that the Xbox One is not just simply a game console, but rather a new generation device for multi-platform entertainment.

The new advert from Microsoft sends that message, by not showing any games & rather focusing on the Xbox Ones Skype capability, & the deal with American Football’s NFL, Just in time for the new season.

The partnership with the NFL will show exclusive interactive broadcasts, & highlights packages to appear on the new console from Microsoft.

The Xbox One will be available from November 22.