With over three million units sold, the Xbox One is in a good place to begin 2014. However, its $499 price tag only makes things more challenging than they need to be. To make it more price competitive, Microsoft might give the Xbox One a price drop sooner than expected.
Zavvi, an online retailer based out of the UK, is currently selling the Xbox One for £409.99. That’s £20.00 off MSPR, or roughly $33 in terms of U.S. Dollars.
Michael Pachter, a well known video game market analyst, said yesterday that the Xbox One has no chance at going toe-to-toe with the PS4 at its current sticker price. He expects a price drop in the short-term future.
The PS4 has been flying off store shelves at its $399 price point so quickly that replenished stock at retailers such as Amazon and Best Buy has sold out within hours.
Given the Xbox One’s current demand, dropping to $399 would certainly make it a lot more attractive to buyers. The problem is that Microsoft is currently paying around $450 – $470 to manufacture and move each console it makes. There’s very little margin for a price restructure, at least while the new Kinect is included, anyway.
If the Xbox One begins to trail behind as much as some analysts expect, Microsoft’s hand might be forced. It can make up for a small loss through software and/or Xbox Live Gold sales, but in the past it hasn’t been interested in such a strategy.
