Microsoft just unveiled its newest weapon in the fight to yank the Xbox One game console out of its second place to the PS2 – cost cutting.
Microsoft will offer a temporary $50 price cut across its Xbox One line in the US, until the end of the year. The company said in a statement the Xbox One model that comes with the Kinect motion camera accessory will retail for $449, down from $499. The standalone Xbox One without Kinect will sell for $349 from its earlier $399 price tag. Other regions might have specific promotional offers, including possible price cuts. This was already tried in the UK.
This means that the entry-level Xbox One will be nearly 13 percent cheaper than Sony's PlayStation 4. That video game console, has outsold the Xbox One in the US for nine straight months this year.
It is an important time for sales. Most of the video game industry's highest profile new games are released during this time.
Redmond’s cunning plan is different from Sony, which has hammered out deals to ensure PlayStation 4 owners can get different storylines and features for popular games. Microsoft thinks that cheaper products will draw them in.
In March, the company gave away a popular new space-age shooting game called Titanfall for free when consumers bought a new Xbox One. In May, when Microsoft announced the Kinect-less Xbox One.
Game consoles have notoriously razor-thin margins. Microsoft was earning around $29 per console sold according to research firm IHS when it first went on sale last year for $500, and even less after sharing that remainder with retailers.