Has Microsoft given up on beating PS4 in America?

[Legend]

The bundles this year are really weird and worse value than last years. In 2014 $350 got you an XBO with AC Unity and AC Black Flag, while in 2015 it only gets you an XBO with an $8 LEGO game. The better bundles are closer in value to last years since they at least include one AAA game, but they have a $50 HDD tax.

2014 @ $350	2015 @ $350
XBO+$100 games	XBO+$8/$40 games

2014 @ $350	2015 @ $400
XBO+$100 games	XBO+$60/$80 games+larger HDD

We've heard reports that XBO lost a lot of money last holiday and management would be stricter this year. We also have Phil Spencer's comments to interpret. "Sony's having incredible success with PlayStation 4, and they've earned that," Spencer said. "But for me as a leader of my team, and as someone who is interacting with the Xbox community, I can have more impact focusing on the product now. ... You'll hear me talk a lot less about the competition. And people will say, 'Well you're losing, so of course you're not going to bring that up.'

I think — and maybe we'll test it some day — If I'm winning, maybe I'll stay in the same swim lane. It is really about the product that we have, the features that we add and how we treat the customers of our box. Share is important, but more than share is are we gaining new customers, are they happy, are they buying games, are they using Xbox live, are they engaged in the service?"




So do you think Microsoft is prioritising profit over system sales? Or is XBO going to get another price cut and attempt to win back some market share?

[the-pi-guy]

Yes, I said this 10 days ago.  

I'm very curious to see what they'll do for black friday.  Making more bundles seems excessive, but if they don't do something, at least another price cut, it's a big drop from what last year's BF was.  329$ for XB1 and Unity bundle looks like it's going to make this year look bad.  

[ethomaz]

I'm sure they will go heavy on Nov/Dec... they are beating Halo will make them win Oct.

[Aura7541]

The AC bundle for $349 last year is like a marathon runner sprinting to catch up with the leader. While the runner has caught up, he has expended a lot of energy and may not have enough of it to win the race. Perhaps Microsoft will do something in November/December such as having retailers bundle an extra game or offer a year of Live for free. However, another $50 price cut will put the XBO's viability in danger. The last thing you want to do is to condition consumers to wait for next holiday season for the next price drop. As we saw from January NPD, the XBO's sales took a severe nosedive. Yes, for part of the month, the XBO costed $399 before MS brought the price back down, but the PS4 continued to outsell its competitor.

Another point is that Halo 5 will the XBO's biggest exclusive for the generation (until Halo 6). No other upcoming XBO exclusive has as much hype as Halo 5. Microsoft's 2nd largest IP, Gears of War, appears to have suffered from franchise fatigue. When Gears 4 was revealed in E3, there was a lot less enthusiasm for the game compared to previous games. Forza is also exhibiting franchise fatigue as indicated by its first week sales in the UK compared to Horizon 2. Crackdown 3? The series didn't sell that great on the 360. Quantum Break might do well, but the jury is still out and its a new IP. If I were Microsoft, I would take advantage of Halo 5's marketability and cut the price sometime next year. That way, the XBO can break even or even be up YOY.

[Legend]

...That way, the XBO can break even or even be up YOY.

You think XBO will be up YOY even with just the current bundles/offerings/prices?

[Aura7541]

You think XBO will be up YOY even with just the current bundles/offerings/prices?

I meant YOY from 2015 to 2016.

But to answer your question, it depends on what MS will do. If things stay the same, then definitely not. The XBO sold over 2.5 million in Nov. & Dec. last year and that kind of performance cannot be replicated unless MS something as drastic as bundling Unity and Black Flag with a $50 price cut.

[Legend]

I meant YOY from 2015 to 2016.

But to answer your question, it depends on what MS will do. If things stay the same, then definitely not. The XBO sold over 2.5 million in Nov. & Dec. last year and that kind of performance cannot be replicated unless MS something as drastic as bundling Unity and Black Flag with a $50 price cut.

Gotcha.

Agreed about both.


2016 is looking good for XBO, but at the same time it's looking incredible for PS4. I wonder how much that'll damage sales.