Depending on its success, we could see a price cut fairly early in the console’s life cycle.
Following Microsoft’s reversal of policies, Wedbush analyst Michael Pachter believes that the focus will now be on the price difference between the Xbox One and PS4 – and that in good time, perhaps even next year, Microsoft could even the playing field by retailing the console for $399.
“…the focus will shift from Microsoft’s onerous policies to the price differential between the Xbox One (at $499) and the PS4 (at $399). The differential is due to the inclusion of Kinect (a high definition camera with a microphone array) with every Xbox One; Microsoft intends to offer a more robust hardware bundle than Sony will offer, and Microsoft is convinced that consumers will ultimately appreciate the value proposition presented by Kinect…
“Microsoft has not done a particularly good job of communicating the value proposition to consumers, but today’s announcement will remove an impediment to the company’s ability to get its message across.”
A price cut of course depends on their success in the beginning. “We are confident that with six months of focused messaging, Microsoft can fully level the playing field with Sony, and we expect the Xbox One to sell as many units as the PS4. If we are wrong, we think that Microsoft is prepared to lower price next year.”
Source: GamesIndustry International