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Will Xbox one drop in price?

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  • donnajunkie
    donnajunkie Posts: 32,412 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    motorguy wrote: »
    Only for there being an unpalatable loss for Microsoft on each console, I'd say they'd cheerfully sell them for £1 if they could.

    I dont think they make the consoles to make money - the real money is in the games. The consoles merely provide a user base to sell games to.

    They are most likely making a loss even at £200, or £190 or whatever but its about getting consoles out there and market share. I've no doubt we'll see XBox One S's at £129 at some point - once even great economies of scale come in to play. No doubt with Sony price matching.
    If they could? Thats because there tends to be a limit to the burden they are willing to shoulder. That is why its understandable to think theres a minimum limit. Everyone has their own opinion on what that is, mine is £200. Thats is why going below that is a surprise to me. Going very low can be due to sales being lower than hoped.
  • motorguy
    motorguy Posts: 22,611 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 5 November 2017 at 1:07PM
    If they could? Thats because there tends to be a limit to the burden they are willing to shoulder. That is why its understandable to think theres a minimum limit. Everyone has their own opinion on what that is, mine is £200. Thats is why going below that is a surprise to me. Going very low can be due to sales being lower than hoped.

    Yes simple economics really - they can / will suffer a small loss, knowing that they make their money elsewhere. A loss leader, simply put.

    Like Tescos selling a loaf of bread at a small loss, to "get you in the door".

    History tells us that electronics prices tend to drop quickly so all of the time Microsoft, Sony, etc will be looking for ways to buy the components cheaper, in a cycle where component prices are dropping anyway.

    Its a simple race to the bottom on price to gain / maintain market share. I would surprised if we dont see the XBox One effectively costing £129 by next Christmas, particularly as they start to mainstream the XBox One X
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