"Xbone selling poorly, retailers are getting desperate"

This topic is locked from further discussion.

#1 Edited by I_can_haz (6369 posts) -

Saw this on Yahoo's front page this morning. How long do you guys think M$ can go without a pricedrop or dropping Kinect? This shit is getting ridiculous lol.

http://www.fool.com/investing/general/2014/02/19/microsoft-corporations-xbox-one-is-selling-so-poor.aspx

Things aren't looking good for Microsoft's (NASDAQ: MSFT ) Xbox One. After what was admittedly a very strong debut, sales of the console have slowed to a crawl. Last month, according to research firm NPD, rival Sony's (NYSE: SNE ) PlayStation 4 outsold Microsoft's console in the U.S. by a ratio of 2 to 1.

Is the runaway success of the PlayStation 4 simply overshadowing Microsoft's latest console, or is the Xbox One not doing as well as Redmond expected? The latter is looking increasingly likely, as retailers such as Target, Wal-Mart, and GameStop (NYSE: GME) have begun to offer heavy incentives on the Microsoft console.

Pushing the Xbox One
If you're in the market for the Xbox One, I'd suggest purchasing it from Wal-Mart or Target. If you buy Microsoft's machine from Wal-Mart, the big-box retailer will throw in a free game worth $50. If you'd prefer to spend the money on something else, Target will give you a gift card for the same amount.

In addition to offering $10 off the purchase of a second wireless controller, GameStop is letting cash-strapped customers reserve the console on layaway.

Good luck finding a PlayStation 4
In stark contrast, Sony's rival PlayStation 4 is virtually impossible to find. Of the six GameStops I called in my area, not a single one had the machine in stock, and none of GameStop's employees could tell me when their next shipment would arrive.

They did, however, offer to ship a PlayStation 4 directly to my house when it turned up -- assuming that I was willing to purchase a nearly $700 bundle that comes with games and an extra controller.

Too expensive and too weak
I had no interest in purchasing that bundle, and I doubt many gamers would. Indeed, the PlayStation 4's greatest selling point remains its price advantage: At just $400, it's a full $100 cheaper than Microsoft's Xbox One.

The PlayStation 4 is also slightly more powerful. Metal Gear Solid V, a game coming to both Sony's and Microsoft's next-generation consoles, will look better when played on Sony's machine.

To many gamers, a minor difference in graphics quality might not matter much -- but combined with the $100 price difference, it may be too much for Microsoft's console to overcome.

Price cut coming?
The Target and Wal-Mart initiatives basically amount to an unofficial $50 price cut, suggesting that Microsoft may need to reduce the Xbox One's MSRP. There are rumors that Microsoft is working on a cheaper version of the console; if recent sales trends are any indication, that cheaper Xbox One can't come fast enough.

On equal footing, Microsoft's console might hold its own against Sony's system, but at what expense? Microsoft could sacrifice its controversial Kinect add-on, or, as has been rumored, roll out a version of the console that does not include a disc drive.

Although cutting out the disc drive would not, by itself, reduce the manufacturing cost by $100, Microsoft would ultimately see more revenue in the long run. Gamers who purchased a digitally dependent Xbox One would have no choice but to buy their games directly from Microsoft's online store, cutting GameStop and other retailers out of the equation.

But Microsoft had better do something. With excess Xbox One inventory driving retailers to drastic action, the company is far behind Sony in the current console war.

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#2 Edited by ni6htmare01 (832 posts) -

There was a thread already!

#3 Posted by Heil68 (42443 posts) -

Meanwhile

#4 Posted by StormyJoe (4457 posts) -
#5 Edited by Shewgenja (7724 posts) -
#6 Edited by Dire_Weasel (15842 posts) -

@I_can_haz: Already a thread on this...

Pro tip: If you don't like the thread, bumping it really doesn't help. Just ignore it.

#7 Edited by I_can_haz (6369 posts) -
@Heil68 said:

Meanwhile

@Shewgenja said:

@ni6htmare01 said:

There was a thread already!

@StormyJoe said:

@I_can_haz: Already a thread on this...

Different source. Different thread.

EDIT: Sorry I didn't see the thread by tormentos the lemming slayer. Mods lock this thread plz. Thanks

SDC

#8 Posted by Shewgenja (7724 posts) -

Sorry bro, I was wrong. It is the same source.

#9 Posted by I_can_haz (6369 posts) -

Sorry bro, I was wrong. It is the same source.

:( It's okay.

Mods lock plz.

#10 Posted by Salt_The_Fries (8077 posts) -

Cows are trolling poorly. I can haz is getting desperate. The word on the street is he has golden mouth.

#11 Posted by Riverwolf007 (23362 posts) -

good. it needs a price cut before i consider buying it anyway.

the last thing i was ever going to do was pay extra for kinect.

#12 Posted by misterpmedia (3313 posts) -

inb4 lock.

#13 Edited by leandrro (648 posts) -

the guys says obvious things like x1 is 100 more and ts not sellingwell and then say stupid things like: minor visual difference, ps4 is 80% faster in every game you noob

#14 Posted by ominous_titan (440 posts) -

Titanfall will change everything

#15 Edited by clr84651 (5269 posts) -

MS F Bombed the X1. No one wants One, & the more anyone buys One the more one regrets buying One. LOL!

#16 Edited by lundy86_4 (42537 posts) -

@clr84651 said:

MS F Bombed the X1. No one wants One, & the more anyone buys One the more one regrets buying One. LOL!

TBH, they're not in an entirely different boat than Sony was last gen.

#17 Edited by clr84651 (5269 posts) -

Titanfall will change everything

Ya, like change it by 10% maybe? Let's see how you feel come next week after the PS4 launches in Japan where the X1 can't sell even 1 console & sony sells like crazy there.

#18 Posted by Kuromino (1241 posts) -

@Shewgenja said:

Sorry bro, I was wrong. It is the same source.

:( It's okay.

Mods lock plz.

Done.